Essay Questions

Why is Elizabeth Warren against loaning by the financial institutions?

Elizabeth starts her book by enlightening the reader on the evils of the financial institutions. It is common sense that the financial institutions are in business and they are doing everything possible under their power to maximize profits. In the process of profit maximization, Warren notes that these financial institutions blindfold the borrowers for their own benefit. For instance, they entice mortgagors to take big loans using their important assets as security. When they fail to meet loan obligations, these financial institutions take over those prestigious properties to enrich themselves.

What is the main theme in the book A fighting Chance by Elizabeth Warren?

The main theme in this book is exploitative commercial activities by financial institutions. The marketing strategies employed by the banks and other lending institutions are geared towards convincing the innocent customers to engage in blind financial contracts which in the long run benefit the financial institutions. For instance, people are enticed to take mortgages so that they can become homeowners but the primary goal of the banks is to recall those houses when the borrowers default payment.

What is the primary reason why Elizabeth Warren’s family is living below the poverty line?

Elizabeth has emerged as the primary defender of innocent borrowers because her family is a victim of financial institutions. Her family was rich because they were living in a middle-class neighborhood before. However, when Elizabeth's father fell ill and failed to honor the loan obligations, their home was repossessed by the bank and they were thrown out. Warren's family ended up living under absolute poverty thereafter.