In search for the causes

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From 1997 to the peak in 2007, prices in the US increased by 125%. In support of that was the special legislation imposed by Democrats aimed to provide access to housing for people with low incomes. Thanks and derivatives, it was possible to grant loans to people with poor credit history, which repackaged to be sold to other investors. By 2007, derivatives on t. Pomegranate. Second- (subprime) mortgages reached around USD 1 trillion
Deregulation, derivatives and incorrect risk assessment.
Once in the United States gradually deregulated financial markets over the last decade, major banks have created a huge variety of financial instruments, computer-generated and incomprehensible even for professionals. The so-called. Derivatives such as collateralised debt obligations (CDO) swaps insuring against credit risk (CDS) were invented primarily to transfer risk. These products were practically hidden from regulators, they are not traded on exchanges and financial firms revealed little information about them.
Easy credit and low interest rates.
Delay the Fed to tighten monetary policy loose because of strong technology bubble of the early centuries doprine for pouring cheap money and the inflation of asset prices.
The global surplus of savings and capital flows.
Thesis of excess savings was formulated years ago by the current Fed chief Ben Bernanke. There is the large rate of savings in emerging Asian economies (the savings rate was around 50% in China). In combination with their large reserves it increases the flow of capital to countries like the US (almost zero savings before the crisis), helping to inflate asset prices.