Economical Crisis Cause Essay

470 Words2 Pages
The cause of our current economical crisis is easily summed up by one word. The word carries a definition which is one of human’s worst traits and even included in one of Christianities very well known teachings, the seven deadly sins. This word is Greed. Greed is caused by desiring something such as money and acquiring an excess amount of the desirable thing by any means possible. The reason for why Greed is considered a bad trait is because the acquisition methods for what somebody desires are usually carelessly thought through and result in personal gain from others suffering. They also usually result in excess amounts of the desirable thing when the amounts are not even needed. Often these things are needed by others as well but those others are The methods of acquisition are also usually made up by very naïve thoughts. Greed supplemented by naïve thoughts is what caused the economical crisis we are under now. Human’s desire for money is properly satisfied by our ability to lend each other money in return of the money back at a later time. But what happens when we lend money to someone and they cannot pay you back. This is what happened with banks and their account holders. Many banks in the USA were lending out money in excess amount. The more money lent out, the more profits they will make because of the interest rates placed on the lent money. These banks were very naïve though because what they did not factor properly into account was that the money lent out might not necessarily get paid back. These Naïve thoughts also were mirrored by these banks customers. The customers saw the opportunity that they were able to acquire a lot of money so many decided they would. But they did not consider the fact that they may not be able to pay it back. This all resulted in many banks losing their money and in the end many banks fell
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