Interaction of Multiple Failures: A Linear Path to Our Financial Crisis

In 2008 a slow and subsequent reversal of growth in the housing market resulted in a massive downturn on Wall Street and ultimately a global recession. This article examines the leading causes of the financial crisis, including poor lending practices by banks, biased credit ratings by the leading rating agencies, the lack of effective government regulation on the industry, housing speculators, and the Federal Reserve’s monetary policy. The interaction of these different roles all of which reflect a “something for nothing mentality ” is presented as a linear path to a global financial crisis