Monday, January 26, 2009

The Decade Leading to Disaster

This article regarding the steps to disintegration from the New York Times helped my understanding. The six steps lead to our current financial crisis include (in order since 1998):
  1. Unregulated trade of derivatives
  2. Allowance of too much bank leverage
  3. Unbridled Sub-prime lending
  4. Failure of government to intervene 1 year ago to limit foreclosures
  5. Failure of government to bail out Lehman Brothers
  6. Misappropriation of first $350 billion of bailout money - sent it to banks instead of applying it to specific needs.
I liked this article...let me know your thoughts

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