ENGL 2326 200 Financial Crisis

I don’t understand this English question and need help to study.

Don't use plagiarized sources. Get Your Custom Essay on
ENGL 2326 200 Financial Crisis
Just from $13/Page
Order Essay

Watch video Panic: The Untold Story of the 2008 Financial Crisis – FULL EPISODE | VICE Special Report | HBO on HBO channel on Youtube, then write an 500 words minimum essay answering the question at the end of the text.

In the fall of 2008 the collapse in the housing market in the US brought down the economy, and put a number of major banks and investment companies at risk of complete failure.


It turned out at a comparatively high percentage of those who had purchased homes between 2000 and 2007 really lacked the long term ability to pay for those homes.

So the first problem was that the actual mortgage itself, the paper contract between a bank and a customer, was judged to be solid, and to be increasing in value by several percentage points every year since at least 2000.

Compounding this difficulty considerably, the second problem was, that billions of dollars of stock – bond speculation had been generated on the assumption that in fact those mortgages were solid, were a good investment.

That is, people bet, through purchase of bonds, on the value of those mortgages.

So when home owners began not making their monthly payments, and banks needed to foreclose on them, and take the homes back, the value of homes nationally reversed from climbing UP, to instead dropping DOWN

Making all those billions of investment bets against mortgages lose value, and more value

And the banks and investment companies holding those bets, those bonds, were in danger of total collapse.

This was at the time of the 2008 presidential election.

The Secretary of the Treasury, Henry ‘Hank’ Paulsen, and Federal Reserve Chairman Ben Bernenke, talked with the Congressional leaders in Washington, and created a plan to inject 700 billion dollars into the Wall Street banks to keep them from failing. And then, days later, inject another 300 billion into the top banks, like Bank of America, and investment banks, like Morgan Stanley.

Critics did not like Congress giving all this money to the banks.

Critics said ‘These banks had created the bonds (the bets) that home mortgages were a good investment. And these banks had given home loans to people who could never afford to make the payments. So they should be punished for harming the economy, not rewarded for doing it.’

Paulsen said, ‘If you let a bank like Bank of America fail, because you want to punish it, that bank is big enough to take down the US economy with it.’

Critics said, ‘You are saying that the banks are now too big to be punished for wrong doing. So what incentive do they have, ever, then, to act honestly, if they know, every time, you will come along and give them money, bail them out, if bad decisions come back to hurt the country?’

Paulsen said, ‘Blame for the mortgage crisis can be shared very, very widely. But if you give the banks the money now, in two years, the economy will turn around, and the economy will be better, and the banks will just give us the money back, and the US will avoid a ‘Greece type’ economic disaster. So isn’t that justification enough?’

Congress voted for the US Treasury, for Hank Paulsen, to get all of the money he wanted, nearly a trillion dollars, he dispersed it the way he said. The US did not have a ‘Greece type’ economic disaster. Gradually, the US economy picked up.

There was a lot of US protest however. One mass movement was called ‘Occupy Wall Street’ and involved hundreds of protesters laying down, camping out on the sidewalk in front of the entrance to the New York Stock Exchange. The point of the protest was the charge of a serious economic inequality that had come about with the 2008 crisis.

That is, there was an economic emergency that was not caused by the ordinary people, it was caused by clever banking tricks by big companies; then, everybody was hurt by the crisis, and then the government stepped in and helped the banks. In the year, and then two years, then three years, after the crisis, the banks fully recovered their strength, but ordinary Americans were still in a recession.

Greece imposed austerity upon all of its people, the banks, the corporations, the people. The US did not impose austerity on its banks or its corporations. But the ordinary working people felt as if they were subjected to serious austerity. Since 2008, the time of the crisis, wages in the US have been almost completely flat — that is, working people today are working for almost exactly what they were being paid in 2008. Nobody is getting offered raises at work.

Essay question:

After watching Panic: The Untold Story …. Which of the government officials in the video seems trustworthy or believable in his (or her) estimation of what was happening in the financial crisis:

Secretary of the Treasury Paulsen?

President Bush?

Senator Obama? (candidate for President)

Federal Reserve Chairman Ben Bernanke?

Josh Bolten?

Jamie Dimon (President of JP Morgan)?

Isaac Sorkin (economist)?

Tim Geithner (banker, future Secretary of Treasury)?

Rahm Emanuel, Congressman?

Ted Poe, Congressman?

Which of these people – if any – was trying to fix something that was going bad? Which – if any – was mostly taking care of his elite friends in the banking industry?


Homework On Time
Calculate the Price of your PAPER Now
Pages (550 words)
Approximate price: -

Why Choose Us

Top quality papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional academic writers

We have hired a team of professional writers experienced in academic and business writing. Most of them are native speakers and PhD holders able to take care of any assignment you need help with.

Free revisions

If you feel that we missed something, send the order for a free revision. You will have 10 days to send the order for revision after you receive the final paper. You can either do it on your own after signing in to your personal account or by contacting our support.

On-time delivery

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & confidential

We use several checkers to make sure that all papers you receive are plagiarism-free. Our editors carefully go through all in-text citations. We also promise full confidentiality in all our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.


Essay Writing Service

You are welcome to choose your academic level and the type of your paper. Our academic experts will gladly help you with essays, case studies, research papers and other assignments.


Admission help & business writing

You can be positive that we will be here 24/7 to help you get accepted to the Master’s program at the TOP-universities or help you get a well-paid position.


Editing your paper

Our academic writers and editors will help you submit a well-structured and organized paper just on time. We will ensure that your final paper is of the highest quality and absolutely free of mistakes.


Revising your paper

Our academic writers and editors will help you with unlimited number of revisions in case you need any customization of your academic papers