Financial crisis

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#Make sure they don’t moan before you loan

The financial crisis happened because of three main points: firstly, bankers were being paid to take risks meaning that more people were not able to pay back; secondly, banks were lending to people who could not pay back; finally, the government was not setting strict enough rules.

The idea we are looking into is for banks to only lend to people who can definitely pay it back. To follow this idea, bankers should do a thorough check before giving out a loan.

But why?

 People would not have to worry about running out of money when paying back a loan.

 The bankers would still get paid because they are still giving out loans.

 Only reliable people would receive loans meaning that the money would be used for the right things.

For example…

Mr Simmons wants to buy a Ferrari. It costs £300,000! He earns £500 weekly. With the idea that banks should only lend to people who can easily pay the loan back, the bank would lend him a loan as the income he gets would be enough.

#Make sure they don’t moan before you loan

The financial crisis happened because of three main points: firstly, bankers were being paid to take risks meaning that more people were not able to pay back; secondly, banks were lending to people who could not pay back; finally, the government was not setting strict enough rules.

The idea we are looking into is for banks to only lend to people who can definitely pay it back. To follow this idea, bankers should do a thorough check before giving out a loan.

But why?

 People would not have to worry about running out of money when paying back a loan.

 The bankers would still get paid because they are still giving out loans.

 Only reliable people would receive loans meaning that the money would be used for the right things.

For example…

Mr Simmons wants to buy a Ferrari. It costs £300,000! He earns £500 weekly. With the idea that banks should only lend to people who can easily pay the loan back, the bank would lend him a loan as the income he gets would be enough.

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