Crisis Pie Infographic - 55 views
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#5 Apiraami Pathmalingam on 14 Jan 11I agree with Paul, Alicia and Tina as well. I believe that the four biggest culprits are the rating agencies, sub-prime mortgage lenders, investment banks and central namks. I believe the central banks is up there because the FED had many ways to prevent this. Greenspan didn't agree to regulate the business spending and banks. He also left the federal funds rate too low which let the house prices rise. This low interest rates may have encouraged many mortgages to be lent out even to the people, who can't handle it. When the federal funds rates rose in 2007 to 6.25%, many people couldn't pay it even the people trying to build their good credit. The FED has alot of explaining to do we'll see what else they have to say today.