, and many of them were given aaa rating. in this system, lenders didn’t care anymore about whether a borrower can repay, and the investment banks didn’t care either. the more cdo sold, the more profits they earned. due to the moral hazard, the investment banks preferred subprime loans because they carried higher interest rates. this led to a massive increase in lending, and more and more borrowers were involved in expensive loans, but many of borrowers could not repay them. this system is just like a time bomb, which is the weapon that caused the crisis.

3.conclusion
based on the above analysis, the origin of the financial crisis is monetary policy of u.s. government. and the abuse of derivatives and financial institutions’ moral hazard also lead it. although the financial crisis bought the us economy into disasters, the financial reform which is the main measures taken by us government to cope with the crisis have no rooted impact to the financial industry. the financial crisis will be alleviated but not eliminated because of the interest that is held by the wall street and the u.s. government.

references:
[1] gary b. gorto, the subprime crisis [eb/ol]. nber working paper, 2008.
[2] jianshan ke, "u.s. financial crisis:reason.government intervention and lessons".<>, cumulatively, no 116, no.8, 2010

上一页  [1] [2]