Many people are confused about why our economy went to shambles in 2008. The crisis was actually the result of many complex factors. First, easy credit conditions allowed people who were unworthy of credit to borrow. Even people who had no income were eligible for large loans. Second, banks bundled these toxic loans into packages and sold them. Third, large insurance firms backed these packages. They misrepresented these high-risk loans as safe investments. Fourth, rapid growth in the housing market lead to people buying too many houses. All these factors created bubbles of speculation. The bubbles burst, sending the whole market into a downward spiral. Employers lost capital and laid off employees. Consumer spending plummeted. Businesses suffered. The economy is like a big boat, and once it gets moving quickly in the wrong direction, it's hard to turn it around.
Compare and Contrast
Chronological Organization
Spatial Organization
Cause and Effect
Problem and Solution