unfortunately, the greed of normal people also caused the crisis when they borrowed heavily out of their means to invest in this speculative bubble such as by buying houses with no money down by taking a home equity loan etc..... yes the Government did make it easier getting credit and did not regulate mortgage lenders but I thought that most people would have enough brain cells to know that they were living outside their means
---------- Post added 16/07/2011 at 12:03 AM ---------- Previous post was 15/07/2011 at 07:11 PM ----------
just to add to this, Deregulation of the financial sector actually had its advantages but unfortunately the bankers were greedy and took advantage of this by making more and more risky loans because they had incentives to do so, read Rajan's paper so its hardly fair to blame the Fed or Paulson fully