The 2008-2009 credit crisis was seemingly caused by misbehavior (one might say greed) in the mortgage markets.
Question:
The 2008-2009 credit crisis was seemingly caused by misbehavior (one might say greed) in the mortgage markets.
Many fans of unregulated capitalism have argued that "Greed is good." (a line made famous in the 1984 movie Wall Street by the anti-hero Gordon Gecko) and that a thirst for profits by firms drives economic growth.
Write short essay on the downsides of capitalism and how regulation attempts to control the consequences of unbridled greed in the financial markets.
Also address the reasons why, in this instance, regulation failed to stop the catastrophe and who bore the consequences.
You should also consider how Dodd-Frank was designed to limit taxpayer exposure to a similar crisis going forward and the efforts that have subsequently been made by the financial industry to dismantle Dodd-Frank.
You might also want to briefly discuss how the Fed has used some moves from the Financial Crisis playbook in dealing with the pandemic crisis and how that differs from the earlier incident.