Late 2000s
Financial Crisis

Causes

easy credit conditions

new financial engineering instruments

growth of the housing bubble

increased debt burden

boom and collapse of shadow banking system

systemic crisis

less investment available

high unemployment

recession

decline in wealth

decline in consumption

decline in governments budget

Alan Greenspan
Federal Chairman 2003

"The notion of bubble bursting and the whole price level coming down seems to me as far as a national phenomenon, is really quite unlikely."

John Snow
Treasury Secretary 2005

"The idea that we're going to see a collapse in the housing market seems to me improbable".

Anthony Hsieh
CEO Lending Tree 2006

"If you own your own home free and clear, people will often refer to you as a fool. All the money sitting there, doing nothing."

Dale Atkins
Market Edge 2006

"The National media is reporting a housing bubble. Don't believe it."

George W. Bush
US President 2008

"We've got a big problem."