The Great Recession

The common causes cited for the Great Recession are a lack of financial regulation (or deregulation), an 'easy credit' environment, and subprime mortgages. These were players, but there were many other events in the early 2000's that many people contend also contributed significantly to the crisis. Some of the lesser known issues were:2) Flow of international savings into the US (globalization, trade imbalance)3) Increase in commodity prices such as oil and food 4) Expansive monetary policy under Alan Greenspan (Fed Chairman at the time) 5) Credit rating agencies and inaccurate credit ratings 6) Consumer mortgage fraud 7) Consumer housing speculation (buying for investment purposes, or 'flipping') or excessive risk taking 9) Financial engineering-Credit Default Swaps, Collateralized Mortgage Obligations, Collateralized Debt ObligationsASSIGNMENT: The list above is not all-inclusive and there may be overlap between some, but for this week's assignment, select one of these issues as a basis for your research. summarize in your own words (do not use direct quotes) why this issue may have contributed to the Great Recession of 2008. Briefly discuss whether you think this issue was in fact a significant contributor to the crisis.