Imprudent 1100 Words You Need Week 24 Day 2

Imprudent 1100 Words You Need

Imprudent 1100 Words You Need

/ɪmˈpruː.dənt/ (adj)

unwise and not considering the consequences of one’s actions, stupid, foolish, showing no care, caution or forethought, impulsive, indiscreet, irresponsible, rash, hasty, careless, thoughtless, inconsiderate, incautious, unwary, reckless

One of the contributory factors to the recent global financial crisis is the level of imprudent loans made by US banks and financial institutions. This article shows that US government legislation and regulation led to this behaviour. In pursuit of social justice objectives, the US government created an artificial market that ultimately had unintended and adverse consequences for the financial system.

Banks and financial institutions in the United States made mortgage loans to individuals who were unlikely to be in position to repay those loans. Indeed, many banks and financial institutions were very aggressive in making these loans. The term ‘predatory lending’ has been used to describe such behaviour. This type of behaviour for the banking system as a whole is contrary to what we might otherwise expect. After all, bankers are normally perceived to be conservative and prudent. As Ludwig von Mises indicated: ‘Imprudent granting of credit is bound to prove just as ruinous to a bank as to any other merchant’. This is well known and understood. Yet US banks and financial institutions have been accused of imprudent credit practices that have led to ‘toxic debt’ being spread around the global financial system, resulting in the global financial crisis (GFC) that began in 2007.

Source: https://www.researchgate.net/

Antonym: prudent

Noun: imprudence

Adverb: imprudently

Farsi: بی احتیاط، بی تدبیر