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elllo.org
Go online for the slide show, interactive quiz, and free downloadable MP3 of this interview:
 www.elllo.org:Interview #962
Hanna:
OK, so we weretalking about finance, sowe're just going to talk alittle bit about the financialcrisis. What do you thinkabout it?
Diego:
I think thefinancial crisis is a hugemess and a lot of peopledon't really understandhow it happened or why ithappened, so I think it'simportant to talk about thegeneral background of the whole thing, sobasically in my ownpersonal opinion, I think itis that credits got out of hand and they were givento people who were notable to repay thosecredits and the wholesystem collapsed.
Hanna:
But at the sametime, if you are taking outa loan and you have alook at the details andrealize that you might notbe able to pay it out,maybe you should bethinking a little more, alittle bit more carefullyabout whether youactually can afford to takeout this loan or not
Diego:
You do have apoint but I think it has todo with culture in a waybecause I am fromMexico and we Mexicanscan see Americans, thatthey never ... that they'realways taking out loansfor everything, right? Sothey buy a house. theytake out a loan. If theybuy a car, they take out aloan. So there's thiscommon expression thatAmericans are always indebt, so that's the wholething, a lot of people weretaking out loans to buy amillion dollar house, a750,000 dollar houses,when they were only ableto afford 500 ... 300,000dollar houses, but theyknew they weren't goingto be able to pay lookingat their incomestatements and all that,and regardless of all of that, they still gave outthose loans.
Hanna:
That's true but atthe same time, I think youare the person signing thecontract if you're takingout the loan. I don't thinkbeing in debt is a badthing, but I think that if you are going to take outa loan, you have to do itresponsibly, so you dohave to read all the fineprint, and you do have geta second opinion aboutwhether you will actuallybe able to keep goingwith this loan. I mean, asyou said, if you're takingout a loan that's, youknow, or mortgage, that's750,000 grand, I mean,you're gonna be payingthat for a long time, andyou want to know thattwenty years into thefuture you're not gonnaend up losing your house.
continued on the next  page...
FinancialCrisis
Diego and Hana debate the currentfinancial crisis.
 
elllo.org
Go online for the slide show, interactive quiz, and free downloadable MP3 of this interview:
 www.elllo.org:Interview #962
Diego:
Well, that's the thing, like, the banks in a way ... it's all about the social contract,right, and that social contract was broken from both sides, but the banks knew that thethese people we're going to lose their houses in twenty years due to their ... you know,because they weren't going to be able to pay out these loans?
Hanna:
Really?
Diego:
Yes, they knewthat, like I'm pretty sure,because it doesn't take a rocket scientist. If you look at their income statements andyou do the math for twenty years at the interest rates they were charging, like I don't ....I think it was just taking advantage of the people in a way.
Hanna:
I think the banks have been a little bit irresponsible in this matter, but in the endit is the person taking out the loan who signs the contract, so they also have to bear some of the burden.
Diego:
Yes, but this is not the first time that this has happened. It happened back, Idon't when ... with the Asian crisis in Thailand, and it was a huge collapse around theworld economy, and it happened in the States before, so it's not the first time that it hashappened, so it makes you wonder why do we allow this huge financial institutions andbig government to allow these things to happen.
Financial Crisis
continued...
 
elllo.org
Go online for the slide show, interactive quiz, and free downloadable MP3 of this interview:
 www.elllo.org:Interview #962
Grammar Page
1.Benjamin Franklin said, “A penny saved is a penny gained.” ______________________________________________________________________  ___________ 2. Whose rich? He that is content. Who is that? Nobody. _________________________________________________________________________________ 
 
3. The only way not to thinking about money is to have a great deal of it. _________________________________________________________________________________ 4. Money is root of all evil. _________________________________________________________________________________ 5. Lack of the money is the root of all evil. _________________________________________________________________________________ 6. A large income is the best recipe for happy that I ever heard of. _________________________________________________________________________________ 7. A wise men should have money in his head, but not in his heart. _________________________________________________________________________________ 8. The safest way to double your Money is to fold it over and put it in your pocket. _________________________________________________________________________________ 9.No one can earn a million dollar honestly. _________________________________________________________________________________ 10.Never spend your money before you have. _________________________________________________________________________________ 
Work with a partner. Circle the mistakes and write them correctly.
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reply04 / 05 / 2009
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