Question

If you were to play the ‘blame game’, how would you allocate the blame for causing the global economic crisis（2008/09）?

Answer 1

The 2008 financial crisis was an "avoidable" disaster caused by widespread failures in government regulation, corporate mismanagement and heedless risk-taking. The Bush administration could be blamed for this because it could have avoided, or reduced the effects of, massive financial crises, if they had acted in time. Administration could have reduced the outsized fiscal deficits that spurred foreign borrowing, thus could have acted to slow an overheated economy. The Federal Reserve could have raised lending rates, as a result would have prohibited homeowners to borrow money, and thus decelerated the credit boom. More robust financial regulation i.e. being more stringent about implementing prudential principles to all of the complex financial operations in which financial institutions were engaging. But instead, none of these government agencies did anything.