[businessprofessor]

The Government didn’t cause the crisis. Greed was the cause. From people being greedy so they lied on their applications. To mortgage companies and banks that knowingly accepted those lies.

The article indicates that government decisions are a major reason for the crisis. Mandates for sub prime loans, relaxed rules about yield spread premiums, and lax reporting about loan portfolio quality are major reasons for the crisis. These policies were begun with rats and continued with the pubs. I think that Utopian government policies stopped normal market forces from working properly.

[driftdiver]

“I think that Utopian government policies stopped normal market forces from working properly. “

How did a government policy result is some schmuck fabricating his income on a loan application?

Perhaps lack of some regulation prevented oversight of senior bank managers that would have caught the rampant corruption, but they didn’t cause it.