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I think there were many factors that led to the financial crisis. There were both moral and cognitive theories. In the moral failure the executives were caught up in maximizing their own profits instead of doing what was best for the company. They received incentives to give out loans that they should not have morally given out. The credit agencies were also a big factor in the crisis. The rating agencies were rating bonds AAA or AA when they did not make the standards of being AAA or AA. The people responsible for the crisis did not know what they were causing as an increase in housing ownership made people think there was a positive sign of the economy, when in reality it wasn't.

I believe everyone is a little responsible for the financial crisis. The greedy CEO's were looking to maximize their own salaries, Congress was loosening their loan requirements, credit agencies were not rating bonds at their appropriate rate, Fannie Mae and Freddie Mac lowered their standards to compete, and individual borrowers did not appropriately research their investments or know that they cannot afford all the loans they are getting.

I tnink the financial crisis was brought on by more of well-intentioned individuals than greed. I don't think people really understood the repercussions of their actions. Nobody thought the housing market, one of the most reliable systems would fail like it did. The underlying factor might have been greed as every mistake made was a step to the financial crisis.

“Ryan Thurston”

The credit crisis had many reasons for its cause, moral and cognitive. Morally there were executives that didn’t look at the best interest of the firms they worked for, but instead made decisions for their own salaries and benefits. Credit agencies also had a moral problem when it came to giving out their ratings. They were too generous in handing out AA and AAA ratings so that they get paid by the bond issuers. Cognitively, many people believed that everybody owning a home was a good thing and that the economy was doing great. Many executives and lawmakers believed the same thing.

There is no single person responsible for the credit crisis. But all the individuals and groups put together are to blame. Credit agencies giving risky risky ratings, uneducated borrowers, greedy CEO’s and other employees, and even Congress can be blamed for the crisis.

I don’t believe that we can blame just greed or ignorance for the actions that led to the crisis. It is both, but I do believe that it all started with just ignorance of what was being created. Then I think it developed into willful ignorance for most of the people involved with it, while others knew there was no way it would work in the long run and their greed let them continue it.

“Caleb Howard”

Major factors that contributed to the financial crisis: The executives trying to fatten their pockets by offering as many housing loans as possible and not taking into consideration at what costs there may be to pay in the future for such acts. Credit ratings for market securities were being flourished to have the appearance of doing well beyond what they were actually worth. Those that were doing the credit ratings were benefiting financially by making inaccurate readings. Capital regulations of banks were being quite lenient on the borrowers by not requiring pertinent information to offer loans, such as credit history and financial statements of the borrowers. By not requiring such information, some borrowers were able to acquire loans that they may have been unable to do so in the past, which may have resulted in defaulting on these loans.

I believe that all parties are responsible for the financial crisis, however, some more than others would be considered at fault. First, I considered the capital regulations to be at fault due to the fact that they were rewarding banks for taking the risks and increasing the amount of mortgage securities. Also, they were being careless with offering loans by not requiring pertinent information from the borrower to ensure they were going to be paid. Secondly, the borrowers could be considered the highest at fault because they took advantage of the loans being offered. Some borrowers probably should not have been borrowing due to the fact that they knew they would not be able to pay these loans back. Others fell for the bait that was being danced in front of them and not considering the old saying of "too good to be true."

I think greed was the biggest factor being played by all parties involved because everyone was wanting to increase their own wealth. Mistakes made could have been corrected at that time had they not been more worried about wealth rather than looking to how it would affect future outcomes.

“Nina Lindsey”