The Global Economic Meltdown
Directions
Based upon Frontline: Inside the Meltdown (Links to an external site.) and
the corresponding transcript/information (Links to an external site.) (Links to an external
site.), in a 750 to 1000 word essay, discuss key points, including in relation to Unit 6
course material and the research article used in the discussion.
Criminal Justice
Text books that are used for this class:
-Title: Economics of Social Issues, ISBN-13: 9781259300103
-Title: Taxing Ourselves: A Citizen’s Guide to the Debate over Taxes, ISBN-13: 9780262533171
Reference:
-Register, C. A., & Grimes, P. W. (2016). Economics of social issues (21st ed.). McGraw-Hill Education.
-Slemrod, J., & Bakija, J. M. (2017). Taxing ourselves: a citizen’s guide to the debate over taxes (5th ed.). MIT Press.
Answer preview
Banks started lending irresponsibly to households and people who lacked the financial ability to repay their mortgages. These high-risk debts were always packaged and transferred down the chain (Register & Grimes, 2016). Financial organizations started to suffer financial problems as the volume of worthless mortgage packages increased to an alarming level, with a significant proportion of them going into default (Slemrod & Bakija, 2017). It contributed to the world’s poor financial circumstances from 2008 to 2009, which persisted for years after that.
Most people undertook expensive mortgages ultimately had to pay them back. Commercial banks suffered significant losses when they were unable to pay. On the other hand, the state came in to save the banking institutions (Slemrod & Bakija, 2017).
[859 Words]
The Global Economic Meltdown
