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Have we learned any lessons from the financial crisis of 2007-8.
Finance & Accounting
Pages 8 (2008 words)
Name Institution Course Instructor Date Lessons Learnt from the 2008 Recession The financial crisis facing America in the 2008 financial year posed the greatest economical threat that the American society had witnessed in a long time. The disaster came unexpectedly and renowned financial institutions experienced massive losses.
When the criticality of the matter dawned on the American society, it was difficult to accept the dire consequences of the downfall. Organizations deemed stable enough to survive any surging economic pressure proved to be at the verge of collapse in the 2008 scenario. President Obama had to help America resolve the issue, and settling it needed firm decisions taken in good time to save the average American from the consequences resulting from the crisis. This is how the Dodd-Frank law surfaced as a potential solution to the imminent financial collapsing of the great economy. It is of essence to highlight the critical lessons learnt from the crisis and doing that is the sole purpose of this paper. Causes of the 2008 Recession An analysis of the real situation in 2008 and highlight the main causes of the collapsing of big financial institutions. One fact about the issue is that Americans had build too much trust on some of the banks that they did not see the crisis, coming and this is the main reason why Americans became victims. This does not assert that people should not trust banks but should do so after judging their credibility based on their financial reports. At least people should make an informed choice be ore trusting financial institutions. ...
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