Monday, December 28, 2009

Financial Meltdown Article

Lost Trust: The Real Cause of the Financial Meltdown
by Bruce Yandle

Accounting standards, credit ratings, and credit-default swaps were created to help facilitate financial transactions by fostering trust. In the run-up to the credit-market freeze of 2008 those assurance mechanisms collapsed under the weight of political and regulatory pressures to aggressively expand homeownership and other policies.

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