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Readers Respond: What Caused the Global Financial Crisis of 2008

Responses: 3

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So many things have been blamed for the Global Financial Crisis of 2008. Was it over-lending by Fannie Mae and Freddie Mac? Did Federal Reserve Chairman Ben Bernanke and others ignore obvious signals of impending economic doom, such as the inverted yield curve and the melt-down in the sub-prime mortgage market. Perhaps it was banks' reliance on chasing profits from mortgage-backed securities and other derivatives. This was aggravated by investments like hedge funds, which were poorly regulated by the SEC. Or, was it simply greed by businesses, the government and even home-buyers who bought homes they knew they couldn't afford? Tell us what you think. What Do You Think?

Predator Nation has all the answers

Just read "Predator Nation" by Charles Ferguson who also wrote "Inside Job." Seems to me he had almost everything correct. READ IT!!!
—Guest Joan Galt

2008 Meltdown

In 2008 several factors were at play as mentioned in previous articles but they are only the outward manifestations of the underlying problem of today’s society. We as a society have not learned to find peace with our everyday lives so we look to other means. While money may solve several continuing problems, it in itself cannot provide happiness. So try as many might, the search for contentment through excess spending and greed, whether in business or personal endeavors is doomed for failure. 2008 was just another point in time in which the tipping point was exceeded.
—dfundy

Deregulation

Read "13 Bankers" by Simon Johnons. It's all laid out there. Hedge funds and all those derivatives you mentioned weren't regulated. Banks and AIG were allowed to use depositors' money to make risky investments. Fannie and Freddie did the same with government guaranteed funds. They were private companies and knew the government would bail them out. Nothing has changed. Wall Street is bleeding Main Street dry, and who's stopping them?
—Cre8iveForce

What Do You Think?

What Caused the Global Financial Crisis of 2008

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