A Short Digression into the Root Cause of the Financial Crash

February 20, 2014 by John H. Fitzpatrick

Six years after the financial crisis, there is some common understanding of the root causes of the 2008 crash in the U.S. as well as the causes of its recessionary cousin, the 2010 banking and sovereign debt crisis in Europe.

First, it should be acknowledged that many actors made mistakes, including financial institutions such as banks, mortgage brokers, securities firms and insurance companies.