We didn't do it THEY did!
Truthfully, yes people can be irresponsible with their money. As well as people do make bad borrowing choices, by running up credit. However I respectfully disagree that that is the primary reason for our recession. With all this turmoil you cant ignore the fact that Wall Street has made some of the worst decisions of all. On top of that are the uses of our central banks, and the creation of money that we don’t have.
Due to the bad investment behaviors of Wall Street the FED has had to authorize the creation of billions of dollars in order to bail out the companies that have been deemed “to big to fail.” This is all because we don’t want to see another failed Lehman Brothers. Because the economy couldn’t have handled another failed firm of that magnitude the FED extended an $85 billion credit to AIG. The Economist explained weeks after that this was done because AIG posed a “systemic risk.” Even if the company will own almost 80% of AIG, it is because of poor investment choices that this bail out happened.
The investment tycoon Warren Buffett examined derivatives he called them “financial weapons of mass destruction.” The problem is that these financial companies have their derivatives market to exposed. The Last Resort explains that the failures sounding the sale of derivatives suggests that Wall Street has too much leveraged and too much capital devoted to products of questionable economic utility. So what he have is the sad truth that our financial system is becoming more dependent on the taxpayer. You and Me!
I thought you presented your argument well. I think you can add some more information, facts and own input. You present the facts well, but I would like to see why you are against as the writer and what made you choose this side of the argument. Explain a little more with each fact why this particular event or information helped persuade you to the side you chose for this argument.
ReplyDeleteWhat would have happened had we not bailed out these companies? Was it really just the investment banks that caused all of this or can we blamed the normal people who bought property when they couldn't afford it? How exactly is the financial system becoming more dependent on the taxpayer?
ReplyDeleteYour stance was clear but it feels like there is a lack of background information. What if someone reading this had no idea that we were in a recession or who caused it? It also feels really choppy just going from facts to facts.
Maybe add in personal effects this has had? Good start.
It is sounding pretty good, but maybe some rewording of certain sentences would be nice. A few of the first facts stated could use some references. Give some more easy to understand mistakes that AIG made. It would also be sweet if there was some possible solutions given as examples of what we can do better; as a nation and individually.
ReplyDeleteLooks good on facts but you need to throw some of your own opinion and emotion into that mutha. Drive it home with what YOU think.
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