Sunday, April 11, 2010

The Economic Crisis: Who is to blame?

It is true that we are always trying to find someone responsible for each action made in this world but most of the time people turn around because they do not want to be the ones to blame for the action committed.



I find this crisis to be much more than that. This problem if not only because of one person or a small collection of people, it a whole cycle caused by several groups in diverse places. This starts with the banks and the people who borrow money from those banks. Not all the people who borrow money from the banks are people that will pay back, there are also high risk people which the bank approves for them to borrow money, also giving them a high interest in case they do not pay back. This affects all the people who do pay and the people who are saving their money in that bank, because it’s not the banks money that they are lending it is the people’s money, that is how banks lose money and the crisis is created.



On another hand government are also included in this cycle, because they are in charge of commerce, economic trading and our well-being. I think that it is right that they step in once in a while when it is necessary like know, to be able to save banks they need to inject money in the system, but the problem might later occur when the government themselves create a new crisis and then will have no were to turn.



Maybe were are all to blame, but then we must all help recover our economy, a way to start recession of the crisis could be to lower taxes and create jobs, that way people will have more money to pay back the banks and buy more things which will the economic growth.

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