Is The Financial Crisis Over For Financial Stocks? [Bank of America Corp, Citigroup Inc, Wells Fargo & Co, AFLAC Incorporated, American Tower Corp, BlackRock, Inc., ICICI Bank Limited (ADR), Monmouth R.E. Inv. Corp., Vanguard Financials ETF] – Seeking Alpha

Is The Financial Crisis Over For Financial Stocks? [Bank of America Corp, Citigroup Inc, Wells Fargo & Co, AFLAC Incorporated, American Tower Corp, BlackRock, Inc., ICICI Bank Limited (ADR), Monmouth R.E. Inv. Corp., Vanguard Financials ETF] – Seeking Alpha: The cause of the financial crisis of 2007-2008, also known as the Great Recession of 2008, is attributed to many different theories. However, one of the most common theories is an easy money regulatory environment that led to an abundance of subprime loans, which in turn inflated real estate prices to bubble levels. Additionally, many blame the Financial sector, predominantly the money center banks, for exploiting the lax lending requirements with reckless and greedy behavior. They did this through the creation of and proliferation of high risk bundled subprime mortgages (CMOs, etc.) and the creation of other high risk and complex financial products that were being pawned off as safe investments.

About EdR

Tant que les lions n’auront pas leurs propres historiens, les histoires de chasse continueront de glorifier le chasseur. (proverbe africain)

Posted on August 3, 2013, in Bank of America Corp, Chuck Carnevale, Citigroup Inc, Wells Fargo. Bookmark the permalink. Leave a comment.

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