We discussed the broad social goals of an ideal economy. The six main goals an economy may achieve is economic efficiency, equity, freedom, growth, security, and stability. In class, we discussed which of the goals would be considered the most or least important for an economy. As we engaged in activity that involves identifying the achieved and unachieved goals, we finally concluded that all of these goals are equally important. Although it is said that it is extremely hard to achieve all of these goals considering that if we have too much of all, they will go against one another.
On the 15th of September in 2008, the Lehman Brothers from being one of the most successful banks in the history of United States collapsed for having the largest bankruptcy in the history of the United States. The bankruptcy was caused mainly by the risky loans(sub-prime mortgages) that the bank invested millions in. Due to the occurrence of the sub-prime mortgage crisis, the value of property dropped, bringing the reimbursement value down along. This lead the bank to have huge losses because they did not get the money they thought was guaranteed; it had vanished. The money was unfortunately not recovered, and Lehman Brothers filed bankruptcy. Evidently, no one, including the government was willing to save the bank. Following it’s devastation, many people around the world, directly and indirectly, suffered an economical crisis.
