B ONUSES Would you do something in order to get free money? Probably you would. What happened with all these powerful industries, was that employees were signing contracts just to earn $3.5 billion bonuses, even if the knew they were bad investments. In fact, the truth about every powerful company, especially those who work with loads of money, is that at the end employees end up stealing their money. Furthermore, the idea of extrinsic incentives encourages companies employees to take a risk that afterwards will affect their own firm. |
The G overnmentIt's sad how people had no idea where their money was going, how it was being used, or what was going on behind this huge industries; for some, everything was a surprise. In addition, the government, who was supposed to protect the nation and make sure that everything was working correctly, were some of the main causers of the crash, where they helped investment banks because they didn't want their colleagues to "fail". |
Trust There's too much trust between banks, people, and insurance companies, but the truth is that you never know what's behind a deal. For instance, AIG insured the sub-prime loans from investment banks, thinking that they were actually triple A's; however, they where completely wrong, they clearly were not informed about the loans. They trusted the banks thinking that they would earn a greater profit from the monthly percentage payment, but at the end AIG was 100% affected. Everyone started losing their properties and AIG had to pay investment banks due to their loan insurance, leading them to go bankrupt. At the end, banks gained money that they actually never had; they knew perfectly what was going to happen. |
I can't believe that the crisis happened in 2008 and I had no idea about it. Im still upset about the causes of the financial crash, and how no one did anything about it. It's irritating how banks took the incentive of MONEY to another extent, and with no face to admit their error, they simply denied that they were the ones that caused this whole issue. SADLY, IT'S ALL ABOUT MONEY |