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… your thoughts about credit  and ethics made me think of the financial crisis of 2008 in which banks practiced indiscriminate massive lending to a target market that would not be qualified to get loans. Financial institutions switched from traditional banking to speculative banking through ‘securitization‘ and were backed by insurance companies and risk rating agencies. There were visible ethical problems in the lending and borrowing sides. Borrowers did not have any income, assets or jobs. Many people abandoned their mortgages even though it would negatively affect their credit score; they did not feel any moral obligation to pay what they’ve signed for. In the lending side, financial institutions were scamming the system and creating as the author said: the sub-prime mortgage ticking bomb. Interestingly, the author questions the ethical matter affirming that there was nothing financial about the 2008 financial crisis.



Tamny, J. (2013) ‘ There was nothing financial about the 2008 financial crisis’ Forbes [Online] Available: http://www.forbes.com/sites/johntamny/2013/09/11/there-was-nothing-financial-about-the-2008-crisis/ ( Accessed: January 1st 2014)