Question

What ideologies specifically led to the housing crisis

What ideologies specifically led to the housing crisis

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The ideology that specifically led to the housing crisis is excessive deregulation. Indiscriminate deregulation removed various safety net from the financial market of the USA. For example, excessive deregulation led to banks participating in various non-banking businesses such as hedge funds trading and financial derivatives. This was a major cause of the housing crisis.

The other ideology that led to the crisis was rewarding excessive risk-taking for higher returns. Financial institutions took excessive risks, developed complex products the risk of which could not be easily measured, and entered into complex financial transactions, which contributed to the crisis.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Explain succinctly how the decline in housing price level led to a major financial crisis in...
Explain succinctly how the decline in housing price level led to a major financial crisis in 2008-9 in U.S.
What issues in the U.S. have led to a budget crisis?
What issues in the U.S. have led to a budget crisis?
How does Beck’s theory explain the housing crisis
How does Beck’s theory explain the housing crisis
What factors led to the present financial crisis in Europe, especially in Greece and Ireland. Discuss...
What factors led to the present financial crisis in Europe, especially in Greece and Ireland. Discuss the differences between the Greek and Irish economies.
What were the major factors that led to the financial crisis that began in 2008? How...
What were the major factors that led to the financial crisis that began in 2008? How did we get here? You may find it useful to break this down into primary and secondary causes.
What actions were specifically taken by the World Bank in response to the Asian Financial Crisis?...
What actions were specifically taken by the World Bank in response to the Asian Financial Crisis? What was the purpose and outcome of their responses
The factors that led to the crisis in Northern Rock whether have been effectively solve? Explain....
The factors that led to the crisis in Northern Rock whether have been effectively solve? Explain. (at least 200 words)
Some have argued that there was a “perfect storm” that led to the 2008 financial crisis....
Some have argued that there was a “perfect storm” that led to the 2008 financial crisis. List the 5 main contributing factors that happened together that led to the financial crisis (maximum 2 double spaced pages). Note: the 5 factors are: 1-Dot-com bubble and the shift of funds from the technology era to real estate 2-Inflow of foreign capital from developing countries 3-Deregulation (refer to Glass-Steagall Act of 1933 and Gramm-Leach-Bliley Act of 1999 and shadow banking) 4-Financial innovation (CDOs...
Do you think the United States is more or less likely to face another housing crisis...
Do you think the United States is more or less likely to face another housing crisis similar to the one experienced in 2008?
(1) Describe the path of housing values leading up to, and after, the financial crisis (4pts...
(1) Describe the path of housing values leading up to, and after, the financial crisis (4pts each, 8pts). In this context, you should talk about NINJA/subprime loans, adjustable mortgage rates, then in detail describe at least one real economic impact that was a result of the housing bubble (5 pts). (2) What is a recessionary GDP gap (5pts) and why might one arise (5pts)? What is a potential solution to eliminate this gap (2 pts)? (12 pts).
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT