Similarities are as follows:
- A common backdrop to both crises was abundant liquidity and
excessive, imprudent credit expansion
- There was also a search for yield by lenders, and the
abundance of liquidity tended to lead to lax credit
standards
- Another sign of trouble prior to both crises was the rapid
increases in property asset prices
- Another sign of trouble prior to both crises was the rapid
increases in property asset prices
- There were also classic cases of moral hazard, because
lenders and borrowers faced little if any risk from their
activities.