Abstract
The financial crash that was in full force in the Fall of 2008 triggered the Great Recession. This chapter explores the deeper reasons behind the crisis. Three in particular are noted: the uncritical promotion of homeownership; the enthronement of finance capitalism in a time of global deregulation; and regulatory capture. The crisis was years in the making as the deregulation of the financial system introduced after the Great Depression led to a relentless financialization of the US economy that saw mortgages as just one financial product. And in a classic example of moral hazard, the costs of the risky behavior of financial institutions was paid by the federal government and the US taxpayer.
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Short, J.R. (2021). The Financial Crisis and the Costs of Neoliberalism. In: Stress Testing the USA. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-65999-8_4
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DOI: https://doi.org/10.1007/978-3-030-65999-8_4
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