What happened?
The GFC was a phenomenal global event that started to unravel the world economy in 2008. Its root causes though started well before that. What stunned the governments, banks and international institutions was the speed at which this threatened economic infrastructure across the world and how policy makers were not prepared for such a devastating crisis. For Australia it seemed like we rode the wave by paddling into it but other trading partners were not so lucky.
'The Big Short' is one person's account of what happened -on the winning side. Have a watch and see what you can make of it.
'The Big Short' is one person's account of what happened -on the winning side. Have a watch and see what you can make of it.
10 years after the crash, we're asking the same question:
What Happened?
![Picture](/uploads/1/0/2/0/102025052/rba_1_orig.png)
The Reserve Bank of Australia is the Australian government's bank. They are not a retail bank, you can't open an account with them but they still have a lot of influence on your financial security. Whatever interest rate you are paying on a mortgage, personal loan or even the interest you receive from your savings or investment is affected by the RBA's decisions. Click on the image here to read about the GFC and then get ready to answer some key questions.
Think, Pair, ShareAfter reading the RBA Explainer on the GFC, look at the list of reasons for why it happened. Write these in your notebook.
Discuss with a partner whether or not you think each of these reasons were very important, important, neutral, not important, or completely unrelated to what happened. Write in your own words a short description of each of these reasons. Do you think this could happen again? How can you avoid the next GFC? Write up your ideas. |