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Publication Date:
Publisher: Center for Economic and Policy Research
Author(s): Dean Baker
Research Area: Banking and finance
Keywords: Subprime mortgages; Housing market; Personal loans
Type: Report
Coverage: United States
Abstract:
Dean Baker first describes the circumstances under which the bubble began to grow. He then discusses how financial innovations and the lack of a proper regulatory structure allowed the bubble to grow to ever more dangerous levels and eventually crash in a way that has placed unprecedented strain on the country's financial system. The third part outlines key principles for reform of the financial system.