economic system must change?
banks are getting way too greedy, to the point where recession and economic boom becomes a cycle. For a while banks and businesses calm down and the economy settles, but then banks and businesses get more and more greedy, and the recession that came before is farther and farther behind them. Banks begin loaning money to people with bad credit scores so they can make more money, knowing these people will never be able to pay off their mortgages. eventually the bank has no more money to give away, and people who are stuck with unpaid mortgages still aren’t paying. We are in a market of instant gratification, banks and businesses see a way to make money, they jump on the opportunity, regardless of what that might mean in the future. As a result, banks became bankrupt, leading to many businesses failing, people getting laid off.
Then, the recession is like a snowball rolling down the hill, causing panic, reluctant spenders avoid buying things that they do not absolutely need, and further businesses collapse, leading to more unemployment and more panic/hysteria. When the market recovers businesses go about as they did before the recession, not learning anything.
the government should impose some laws against overinflation so that this cycle can be stopped and markets can be stable. I must say people really are suffering, two colleagues of mine were laid off today as well as a few other friends of mine.