In today’s society there are many things that we are on the lookout for. Gas prices, the credit crisis, and medical malpractice. What these three things have in common is more than you might suspect. For starters, let’s begin with the credit crisis. Banks were giving out loans like candy and offering them at low starting rates that intended to increase after a couple of years. People thought great, I can get into this great big home and afford the monthly payments. What these people did not realize, or chose not to realize was that after a few years the monthly mortgage payment significantly increased as the rate increased, common sense right? So the people that were living in these great houses could no longer afford them. Homes started foreclosing left and right. In turn banks were left the deeds to all of these houses that people couldn’t afford. The thing is the banks didn’t have enough as well to back these homes. Once this happened investment banks and other investors started to worry. Since the bank that is financing them cannot afford their assets, the liquidity of their equity is very minimal.



Investors and firms alike started to get out of different types of bonds and investment funds that are backed by the banks so that they don’t get burned in the process as well. At the same time that this was all going on, investment firms knew what was going on and started to do some shady dealings to get their investors to keep their accounts running, so that the investment firms would keep commissions going. When Bear Sterns and other funds fell in early 2008, there was no turning back. All stockholders that held these types of stock saw a decrease of almost 20%. Pharmaceutical companies are an example of a company holding a lot of stock. Also, since the credit crisis emerged less people are investing which is hurting pharmaceutical companies.

This crunch on the pharmaceutical companies is forcing them to push out drugs that may have not been through the proper testing. It is also compelling them to convince doctors and other medical professionals to recommend their products to patients through the use of incentives. A pharmaceutical company may promise doctors residuals for the sale of a certain drug that is going to make a lot of money for the pharmaceutical company. This is where medical malpractice comes about. When doctors prescribe medications linked to incentives from the pharmaceutical companies, the prescription may do more harm then good to patients. Writing prescriptions to patients just to earn residuals from the pharmaceutical companies is an occurrence of medical malpractice that is very prevalent today. Medical malpractice can cause serious injuries and death if committed by the wrong doctor or medical professional. Whether the medical malpractice is an accident, or a committed act, neither action is acceptable.