Essay --

According to the film â€Å"Too Big Too Fail† the cause of the crash was from home loanings. Which in the case banks started to give out loans to people that owned homes. Giving out loan to homeowners the banks started to gain a lot of money. Later on in the process the owners of the banks began to go overboard by giving out more loans. And since the banks were lending out more loans , homeowners thought they could afford it. Reasons why the housing market crashed according to the film was because banks gave homeowners loans even if they could not afford it. The banks had their pride set to high, because they never thought that the housing market would ever crash or go down, so they invested securities in wall street. So the banks bought insurance on consumer loans. Which consumer loan is â€Å" a loan that establishes consumer credit that is granted for personal use, usually unsecured and based on the borrowers integrity and ability to pay† (Free Dictionary). When the housing market dropped the homeowners could not pay the banks their money back. In which the insurance companies could not pay...