From the article: What Was the Global Financial Crisis of 2008?
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?
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
