Debt+crisis

1. Rates- federal bank lowered rates resulting in overbuying, irresponsibility and inflation. 2. Rating Agencies- They would "sell ratings" to companies rather than the company earning the rating. 3. The Radical Deregulation of Derivatives- Credit Default Swap (CDS- A company takes money out from a bank. The bank takes it from a pension fund. But the company is a B rating. So they pay a company to back the B rated company so they can do it). 7. Automated Underwriting-Mortgage brokers learned how to get terrible loan applications through the automated system. 8. Collaterized Debt Obligation (CDO)-Banks would use debts owed to them as collateral. 9a. Glass Steagall-A law that didn't allow the banks to become too intertwined in Wall Street was removed and when Wall Street collapsed, the banks collapsed. 9b. State Banking Regulations-Less regulation on loans. 10. Fannie and Freddie-Government organization started buying terrible mortgages.