Did deregulation cause the financial crisis?
Did deregulation cause the financial crisis? Deregulation in the financial industry was the primary cause of the 2008 financial crash. It allowed speculation on derivatives backed by cheap, wantonly-issued mortgages, available to even those with questionable creditworthiness.
Did deregulation cause the financial crisis?
Deregulation in the financial industry was the primary cause of the 2008 financial crash. It allowed speculation on derivatives backed by cheap, wantonly-issued mortgages, available to even those with questionable creditworthiness.
What led to deregulation?
History of regulation One problem that encouraged deregulation was the way in which regulated industries often come to control the government regulatory agencies in a process known as regulatory capture. Industries then use regulation to serve their own interests, at the expense of the consumer.