Sunday, January 25, 2009

What caused the crisis

It will take years and many arguments to settle the questions

But Alan Blinder from Princeton and former vice chairman to the Fed provided a preview in NYT of decisions that lead us closer to current circumstances

Wild Derivatives
Sky-High Leverage
A Subprime Surge
Fiddling On Foreclosures
Etting Lehman Go
Tarp’s Detour

(for complete article click here):


berly 2 said...

Only one, the most underlying foundation of crisis:

Tremendous GAP between value of money (or what people perceive on the wealth they have) VS value of goods/commodity they (money) represent

Which was caused by 2 fundamental fault in capitalistic economies:
1. Fixed interests (or usury if you want to call it that way)
2. Fiat money, created out of thin air, without gold reserve

aroengbinang said...

It's a long list of shorter answers: greediness and recklessness.

fajar said...

salam kenal