Inside Job Essay
A factor that caused the real estate bubble was when mortgages companies were given mortgages to finically unstable families. Inflation went up and there was more demand than supply. Also interest rates were very low as well. The bubble was creating profits for these CEOs, but it wasn’t real therefor flooding the financial system. Deregulation allowed banks to combine and set any inters rate they want. Compensation motivated CEOs to continue handing out mortgages simple because they would even more […]