What Is The Cause Of The 2007-2008 Financial Crisis

The 2007-2008 Financial crisis was one of the worst crisis that, not only the United States had to go through, but a crisis all other countries in the world were forced to experience. Due to many poor investments and decisions made by the banks, companies, and the people themselves, millions of people began to lose their jobs, homes, and the property they purchased. This occurred after the banks, companies, and the people were unable to pay back money owed or sell an item they wanted to sell. These poor decisions caused panic worldwide and stock markets to quickly plummet. Here in the United States, the government had to step in and bail out several industries with the taxpayers’ money. This infuriated millions of people, because some of these industries exploited them. That is why an economic control by the government here in the United States should happen, so another crisis can be prevented before it affects the people, the industries, and our economy. …show more content…
To know how the economy is performing in a country, one must know what the GDP is made up of. GDP, or gross domestic product, is made up of consumer spending, government spending, business’ capital spending, and exports minus imports. A country that exports more goods and items to other nations, has less foreign debt than a country that imports more. Even though the United States has been importing more goods and items than exporting them, it somehow has the biggest GDP in the world. The reason why is partly because of government spending and