The writer is to consider the thesis statement below and collect FOUR different peer reviewed journal articles or other sources that relate to the research topic. Then in 200 words per reference, outline the relevant details of each article and explain how this information can be used to create a defensible argument for the thesis provided.

This task will provide the framework for what later on will become an essay.


Of the factors that gave rise to the sub-prime mortgage crisis in 2008, the lack of regulations surrounding credit institutions has been argued to be the most critical. Loose lending standards, inadequate bank capital requirements and outright corruption led to toxic debt accumulation which, inevitably sparked a major liquidity crisis in the banking sector. I suggest that a similar scenario is witnessed in the emergence of Buy Now, Pay Later services. In Australia,​‌‍‍‍‌‍‍‍‌‍‍‍‌‌‌‌‌‌‍‍​ companies such as Afterpay and Zip Pay have risen since 2013 with user accounts rising from 500,000 to over 3.7 million in just a few years.

These institutions provide credit yet are not required to hold a credit license, perform credit checks nor subject to the National Consumer Credit Protection Act 2009. Importantly, for the health of the broader economy, they are not required to adhere to any capital requirements to sustain operating losses in the event of defaults. In a similar way to the sub-prime mortgage market collapse of the mid 2000s, I argue that this shadow banking industry poses great risk to the economy. Specifically, I compare the events leading to the sub-prime crisis can be likened to the poorly regulated, inadequately reserved debt being accumulated by the BNPL industry today. I argue that the regulations be applied to the industry in order to limit the possibility of broader economic collapse​‌‍‍‍‌‍‍‍‌‍‍‍‌‌‌‌‌‌‍‍​.