Quote:
Originally Posted by Bobblehead
But there are also issues with how the risky mortgages were being packaged and re-sold in order to hide the amount of risk.
There were also issues with some of the safety mechanisms put in place (limits on the amount of leverage you were allowed to do), which were waived.
There were issues with how low the interest rates have been kept for so long. This has made sense for traditional measures, but the effects on financial markets seems to have created a whole house of cards dependent upon low interest rates, a house now collapsing.
Lots of reasons, lots of blame.
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Yes, that was the second nail.
Clinton overhauls depression era banking laws
This video gets a bit political in the end, but it runs down the situation.