Causes of the Crunch
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What links the following?
China
The liquidity bubble
Search for yield
Sub-prime lending
Leverage
Originate and distribute
Alan Greenspan
The Democrats
The Republicans
Regulators
Credit rating agencies
Financial Services Authority
Greedy bankers
Consumers/housebuyers
Margaret Thatcher
Moral hazard
Gordon Brown
Mark-to-market accounting
Basel 2
Estate agents
According to Sean Farrell and Sean O’Grady from the Independent, they have all contributed in one way or another to the credit crunch. Here is the link to what is an excellent background article for students.
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