Week - 04 Reflection to 2008 Financial Crisis

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What was the 2008 financial crisis?
In 2008 banks started loaning money to people buying houses with low interest rates across the country. After the downfall the banks were failing, and the government had to bail them out because those are essential. There were also a lot of car recession from 2007-2009. The new car sales dropped nearly 40% and that was a killer in the car industry and the car employee rate dropped 45%. Chrysler and General Motors were bailed out by the government using funds from TARP. The TARP funds are Troubled Asset Relief Program. At one point the government owned 61% of General Motors.

Did people thrive from the 2008 financial crisis?
My dad had stocks in 2008. He works for the Boy Scouts of America. He was calling people in California, and it was going south fast and then Arizona, then Nevada, and when it his Colorado he knew it was coming faster than people thought. He moved his money to a mutual fund and what that allows investors to put their money together and invest in a portfolio of stocks, bonds, or other assets. After the stock market crashed my dad waited to buy it back until it was low. For example, if you buy a stock for $10 and it got lowered to $5 you basically get 2 for 1.

How can we avoid another financial crisis?
I think we always must be hyper aware about another crash, but I think since 2008 we have learned many ways to avoid it. In 2007 we saw the signs but then it was too late. I think now people will always remember how bad it got so they will be watching it closely. I think banks have learned their lessons about loaning money to people and then being in debt.

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