Unintended consequences of earlier public policy choices Position #6643

The roots of the crisis lie in the unintended consequences of policy choices made with respect to the financial sector over the last 30-40 years—which have allowed the volume of (all kinds of) debt in the global financial system to explode.
PAGE NAVIGATOR(Help)
Map HomeThe Global Financial Crisis
IssueLong-term causes of the financial crisis?
PositionUnintended consequences of earlier public policy choices
IssuePartial repeal of Glass-Steagall act
ComponentInvestment banks incentivised to move into riskier activities
ComponentInvestment banks entirely outside the regulatory net
ComponentMeddling with interest rates caused bubble
ComponentRegulatory changes encouraged home ownership
ComponentUS policies to encourage home ownership promoted risky lending
ComponentUS spending funded by credit
EquivalenceAllowed commercial banks to compete with investment banks
CommentsAdd a comment
Metadata

Entered by:- David Price
Entry date (GMT): 9/24/2008 9:40:00 PM
Last edit date (GMT): 10/7/2008 12:27:00 AM
Incoming cross-relations: 1
Outgoing cross-relations: 0
Average rating: 8 by 1 users