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Explain Why Orman Thinks Greed Is The Culprit For The Financial Crisis

Good Essays
1. Explain why Orman thinks greed is the culprit for the financial crisis. Orman thinks greed is the culprit for the financial crisis because people chose to make money fast instead of making good financial decisions. For example, mortgage lenders stopped caring about whether or not borrowers were qualified to buy homes. Also, some of those borrowers bought houses they knew they couldn’t afford. Overall, it was the combination of the desire for money mixed with ignorance towards making quality financial decisions that led to the financial crisis. 2. In the past, to get a mortgage you had to go through a series of steps; list them. Show up at the bank with tax records, pay stubs (to verify your income) and proof that you have enough savings to make a 20% down payment…show more content…
What would happen if the bank didn’t think you were eligible for a mortgage? How did this protect the bank? If the bank didn’t think you were eligible for a mortgage they wouldn’t give you one. Banks approved loans with the expectation that the borrower would be able to repay it on time for the duration of the mortgage. This protected the bank because it ensured that by the time the mortgage is up, they would have their loan and interest fully paid
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