A Comprehensive Historical Overview of the 2008 Financial Collapse Who is to blame? The truth is, everyone is to blame, and I do mean everyone!
Let’s start with the Congress. They repealed the Glass-Stegall Act in 1999, with the passage of the Financial Services Modernization Act of 1999, also known as Gramm-Leach Biley Act of 1999. This act allowed for the deregulation of the stocks, enabling derivatives to flourish. The derivatives responsible for the credit freeze were bundled, and sold, and originated with bad mortgages. Terrible mortgage are mortgages in default. It’s kind of like, buying a sever of the pie. The pie is your under baked mortgage.
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