[TheGame]

Originally Posted by Professor S

Keep in mind, regulations also helped create risk that made the eventual fall take place. Google the history of the CRA (Community Reinvestment Act). Basically, in the 90's this Carter era act was expanded to encourage lending to lower income customers, and preferential treatment was given to lenders who gave out loans to this risky group, and this created many of the risky loan products that are now vilified today (like sub-prime mortgages, etc.). The nature of the market took over selling these unnatural products.

http://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_Act

I think deregulation caused a much bigger problem much faster.