There are a number of reasons for the 2007-2009 financial crisis on Wall Street. Research that time period, and along with material presented from your text, summarize the three key issues that caused this crisis.
Finally, what things are in place to keep this from happening again?
What would need to happen today to cause another financial crisis like this recent one or anyone from the past?
The subprime mortgage,increased debt burden and financial Innovation and complexity are the three key issues that caused the financial crisis of 2007 -2009 on wallsteert.Subprime mortgage is one that's normally issued to borrowers with low credit ratings.It have a higher risk of default to prime borrowers and bank charges high fees to compensate them for the additional risk .Increased debt burden and financial Innovation such as the introduction of new financial instruments footed to financial crisis.There are many things to keep this from happening such as increasing capital requirements for shadow banks and depository institutions and make them counter cyclical , eliminate liquidity requirements,improve Consumer literary and restrict Consumer leverage
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