preview

The Problem Of The Financial Industry

Better Essays
As children, every time we would be taught something new, we would always ask a very important question, “why?’. We used to be very curious about why specific things happen, and why things in life are the way they are. Somehow, along the way, we stopped asking why. We stopped wondering about the reasons behind everything and started accepting everything as it was told to us. This essay will once again raise the question that we should all be asking; it will make us understand more about who is ultimately in charge of the entire decision making process in America today. For example, when you go to your bank, and they give you a set of rules and guidelines that they are committed to, don’t you wonder who set these rules? We just live our…show more content…
These cultures also invented the concept of money. After the concept of money had been invented, further expansions started, which led to the first banks being established in Europe in the fourteenth century. Later on, in the seventeenth century, there was another change when the first stock markets started.
About 8,500 years ago, people went from using lumps of copper as money, to using leather, and later on, paper money, which was invented by the Chinese people. From that time, the financial sector started to progress in ways more than one. Phoenician, Arthurian, and other Mediterranean civilizations invented the concepts known to us today as insurance, commodity markets, and security markets. Italy also has an important role in this development when things such as corporations, double-entry bookkeeping, and banks were established there. Such developments kept growing larger and people started becoming aware of the process.
The history of banking goes way back to the early history of Egypt, Babylonia, and Greece. These places had temples where they practiced the early form of banking, specifically, approving loans, which were given in the form of gold and silver. They would later on charge very high interest rates on these items. Private banking started in 600 B.C, and was later modified by the Greeks, romans, and Byzantines. Later on, purpose oriented banks started forming.
Get Access