The 2008 Financial Crisis

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Joe Leote

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May 26, 2024, 2:11:08 PMMay 26

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The 2008 Financial Crisis - Why and How It Happened:

Major causes are described as financial deregulation, excess leverage, and fraud in the mortgage origination industry. Beside fraud and leverage and loose regulations the psychology of credit market liquidity is the key to driving an asset price overshoot (bubble), the subsequent price collapse, and systemic bankruptcy episodes.