POL 211 6 - Discussion Post
In 2008 we experienced a global financial crisis that we will never forget. I was a kid then, but I
remember hearing it from every adult in my life. How tight the money is, how bad the market is.
The main reason for this is the collapse of the subprime mortgage market (Field, 2021). Banks
offer mortgages to borrowers who simply cannot afford them. After taking possession of the
house, the bank stopped lending. People can't sell their house because they are in debt. It was a
very difficult time. They say the crisis lasted 18 months, GDP fell by 4.3% and unemployment
rose to 10% (Al-Maidan, 2021). This is pure confusion. Business is also very important in this
regard. In the domestic market, financing standards are lax. It seems that getting a mortgage can
be done almost without problems. This creates a serious problem.
People are so eager to buy a house that they don't worry about how they will pay for it. In
addition to this, the government is also involved. When interest rates were at their lowest point,
they immediately started to rise. Everyone is worried. While no party is responsible for this, no
one wants to take responsibility for it. It happened and as a country we must learn from it. We
should not make our children pay for our mistakes.
Reference
Field, A. (2021, July 8). What Caused the Great Recession? Business Insider. Retrieved August
6, 2022, from https://www.businessinsider.com/personal-finance/what-caused-the-great-
Recession.
