Money problems can have big consequences for both individuals and banks. For people, experiencing a financial crisis from expensive homes and loans they could not repay led to job losses and home repossessions for many Americans in the late 2000s. Banks also faced major consequences as many went bankrupt due to the high number of loans in default, including prominent investment banks like Lehman Brothers, Bear Stearns, and Merril Lynch. It will take a long time for the financial system and those affected to fully recover from the crisis.

1. MONEY PROBLEMS CAN HAVE BIG
CONSEQUENCES
Annelore De Vriese – 2FV1

2. 1. CONTENT
 Introduction
 Consequences of money problems
 For people
 For banks
 Conclusion

3. 2. CONSEQUENCES FOR PEOPLE
 Financial crisis
 America: middle class system
 Ideology: expensive lifestyles on law pay and
easy credit
 Expensive houses  high loan
 Banks gave to easy loans

4. 2. CONSEQUENCES FOR PEOPLE

5. 2. CONSEQUENCES FOR PEOPLE
 Example: John and Catherine
 Renting a small house
 Home repossessed
 They lost their jobs
 Trying to find a new job
 But...

6. 2. CONSEQUENCES FOR PEOPLE
 For companies: credit indicates character
 Vicious circle
 Solution? 9 million extra jobs!

7. 3. CONSEQUENCES FOR BANKS
 A lot of bankruptcy
 Since crisis: 106 banks bankrupt
 In 2010: already 41
 For example:
 Lehman Brothers
 Bear Stearns
 Merril Lynch
 ...

8. 3. CONSEQUENCES FOR BANKS
 Goldman Sachs: another problem!
 They will cut the compensation of their staff
 2 reasons:
 Battling to improve reputation
 Public outcry of “normal” employees

9. 4. CONCLUSION
 Big problems
 Victims
 People
 Banks
 It will take a long time before everything will
be like before the crisis!

10. THANK YOU FOR YOUR ATTENTION!
I HOPE YOU ENJOYED IT.