Исправке

Текст од Flo_BS - English

  • The causes of the financial crisis

  • IV.
  • The problems of regulation Instinctively, we immediately think that there was a lack of financial regulations which failed to monitor the excesses of financial actors.
  • Indeed, as we have seen, they developed very complex financial tools but they forgot all the risks as all that they wanted was to make profits at any cost.
  • We can prove the reduction of regulation in the US with the example of the promulgation of the act in 1999 that repealed a former law from 1933 (so during the Great Recession) which separated commercial and investment banking.
  • Lots of experts agree that this repeal was a mistake because this authorized a too big competition between both types of banks pushing them to take important risks.
  • Antoher lack of regulation is to be explained which is the developpement of financial innovations eased by new technologies and regulation wasn't able to keep track.
  • So there wasn't a specific regulation on new tools, they weren't really monitored.
  • (For example, the CDS credit default swap) So, we could conclude that the 2008 crisis is all about a lack of regulation.
  • However, the problem is that when we dig a little deeper, we realised that the problem wasn't just a lack of regulation, but that the regulations in place were the wrong ones.
  • Indeed, the regulation could also be at the origin of the crisis.
  • For example, loans to lower income households were encouraged by the american government as well as redemptions of mortgages (credits?
  • Loans?) such as subprimes.
  • All of this was to encouraged the access to property of households.
  • Interest rate policies are also incriminated as they were maintained to a low rate for long periods.
  • And the Federal Reserve has also a role in the crisis because they did not react to stop the growth of the speculative bubble.

МОЛИМО, ПОМОЗИТЕ ИСПРАВИТИ СВАКУ РЕЧЕНИЦУ! - English