5 CULTURE When things go wrong
1 Work in pairs. Check the meaning of the words 4 Read the definition of the word ‘recession’. Then
below. Then answer the questions, using the words
where possible.
go bankrupt a mortgage
shares the stock market
1 Look at the photos. What are the people buying
and selling?
2 What are the advantages of buying and selling
these things?
3 What are the disadvantages?
2 5.14 Listen to a podcast about the Wall Street
Crash in 1929. Why are the following mentioned?
• The first world war
• 3 September 1929
• Black tuesday
• The great depression
• The second world war
3 5.14 Listen again and choose the correct answers.
1 What does Lorena say about the USA in the 1920s?
A Wages had gone up recently.
B Only the rich could afford to buy shares.
C People spent more money than they earned.
2 What did factories and farming have in common?
A They had new machines and were doing well.
B Both industries were producing too much.
C They couldn’t produce enough for consumers.
3 What does the expert say about the crash itself?
A Bank owners tried to stop it once.
B It came as a complete surprise to investors.
C It happened on a Monday.
4 What happened after the Wall Street Crash?
A The credit system was no longer used.
B Many countries had economic problems.
C House prices rose all over the world.
Life Vision Intermediate Plus Culture worksheet 5 
complete the article with the words below.
back down for into
less make sure worth
THE GREAT RECESSION
In the early 2000s, the housing market was growing fast
in the USA. Interest rates had gone 1 , so
more people wanted to buy their own home. The increasing
demand pushed house prices up, which gave banks an
opportunity to 2 a profit. So, they started
to offer mortgages to people with lower wages, although
they knew these people probably wouldn’t be able to pay
the money 3 . Soon banks in Western Europe
were following their example. Then, interest rates began
to rise. As a result, there was 4 demand for
housing and prices began to fall. Suddenly, thousands of
people found themselves unable to pay their mortgages
and with a house that was 5 less than they
had paid for it. Banks lost millions in unpaid mortgages.
Some went bankrupt while others received money from
governments to help them survive. Some European
countries got 6 so much debt that they had
to ask the European Union 7 a loan. The USA
and many countries in Western Europe went into recession,
and millions of people lost their jobs. The period became
known as the Great Recession because of its similarities
to the Great Depression of the 1930s. Since then, rules
have been passed to control the banks and try and make
8
that this situation can never happen again.
recession (noun) [C, U] – a difficult time
for the economy of a country, when there
is less trade and industrial activity than
usual, and more people are unemployed
5 Read the article again and answer the questions.
1 Why did house prices rise in the USA during the 2000s?
2 How did banks respond to the rising house prices?
3 Why did so many homeowners find themselves
in debt?
4 How did this affect the banks?
5 Which countries were affected most by the recession?
6 What are the similarities and differences between
the Great Recession and the Great Depression?
6 Discuss what you think the saying means and
whether you agree with it. Give reasons for your
answers.
Money doesn’t grow on trees.
7 THINK & SHARE Work in small groups. Imagine
that an older friend of yours has asked you to make
a monthly budget for them. Your friend earns €1,000
per month and rents their own flat. Number the items
in the list in order of importance. How much can your
friend spend on each item?
accommodation beauty products bills
clothes entertainment exercise food
savings transport
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