The Crisis Of 2008 The World

2130 WordsMar 28, 20169 Pages
Before the financial crisis of 2008 the world was financially safe, stable and solid. Iceland was a beautiful place with a high standard of living. Iceland had the complete infrastructure for a modern society, clean energy, Fisheries with quotas, clean air, food production, healthcare, education, and a low crime rate. This made it an area where people wanted to settle down and start families. Around the world country’s looked up to Iceland’s financial aspect until it all came to a frightening halt. In 2000, the Iceland government started to make harming decision to their economy. They began to allow deregulation which brought on horrible consequences for the environment and the economy. The government allowed for multinational corporations to take over their region. Giant aluminum Smelting plants were built that began to exploit their geothermal and hydroelectric resources. While this was happening the government also privatized or transferred from public to private ownership and control, the three largest banks. These banks began to grow larger and larger until they became more then 10 times the size of the economy, making it extremely difficult for the government to rescue. In just five short years three banks that were basically unknown outside of Iceland before this became huge. These banks were giving out loans to anyone who needed or wanted them which was the cause of the financial crisis of 2008. Before the banks loans were given out to only people they knew could
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