The Great Recession Part 3

The Great Recession Part 2

As we conclude our review of The Great Recession Hancock International College wants to emphasize to our ESL students that Americans teach history so we don’t repeat it. As before we do show signs as a country of making this crisis a reality again and here is why…  Keep in mind the article below in no way reflects our opinion on this matter.

Thebalance.com says, “How It Could Happen Again: Many legislators blame Fannie and Freddie for the entire crisis. To them, the solution is to close or privatize the two agencies. But if they were shut down, the housing market would collapse. They guarantee 90 percent of all mortgages. Furthermore, securitization, or the bundling and reselling of loans, has spread to more than just housing.

The government must step in to regulate. Congress passed the Dodd-Frank Wall Street Reform Act to prevent banks from taking on too much risk. It allows the Fed to reduce bank size for those that become too big to fail.

But it left many of the measures up to federal regulators to sort out the details. Meanwhile, banks keep getting bigger and are pushing to get rid of even this regulation. The financial crisis of 2008 proved that banks could not regulate themselves. Without government oversight like Dodd-Frank, they could create another global crisis.”

Full Article: https://www.thebalance.com/2008-financial-crisis-3305679

Idiom of the Day

History Repeats Itself

Meaning: The same kinds of events seem to happen over and over.

Example: Alan: The country is headed for an economic depression. Jane: How do you know? Alan: History repeats itself. The conditions now are just like the conditions before the last major depression.