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Market & social research - research proposal
Pages 8 (2008 words)
Market/Social Research Name Institution Background The onset of the financial crisis in the Britain was signaled in 2007 when the country’s fifth largest mortgage provider, Northern Rock, sought support from the Bank of England. Imperatively, the United Kingdom population was among the first people to be exposed the problems of financial institutions.
The financial crisis impacted negatively on the savings of the British public as most banks lost the savings entrusted to them by depositors. According to Buckley, one of the major contributors to the global financial crisis was the untenable rise in subprime mortgage lending (2011). Part of the reason for the rise in subprime mortgage lending is attributable to the government’s own efforts to win votes and popularity by making it easy for the public to buy homes. Also, the banks rode on this high risk debt products due to their potential to generate immense profits. The banks leveraged the mortgage loans with credit default swaps and the mass failure of borrowers to pay back led to added levels of debt on the banks’ books of account. Ultimately, the culmination of mass defaults led to the financial crisis. Due to globalization, the financial crisis had a negative impact on many countries since the world economies are interconnected. The credit crunch had cross cutting effects that affected virtually all sectors of the economy. This led to social economic changes that had direct impact on the British public (Akinbami 2011). This paper will evaluate the British public attitudes towards the banking sector after the financial crisis. ...
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