Business Administration 2295F/G Chapter Notes - Chapter 11: Commodity Futures Trading Commission, Decision-Making, Bounded Rationality
22 Apr 2013
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Document Summary
Due to rash of political activity that led to movement which suggested that home ownership should be a right instead of privilege. Through weak ( self regulation) banks were encouraged to provide mortgages to subprime borrowers on financially inflated real estate. Series of risky decisions were founded upon assumptions that economy would stay strong, real estate prices would continue to rise, and subprime borrowers would somehow find a way to pay their mortgages even though they had no money. Arguments of born, head of commodity futures trading commission (from 1998) were ignored. But meltdown results from series of decisions founded upon principles created and backed by. In hindsight, seems global financial crisis could have been avoided. American people through office of presidency, voted with their money or their homes. Problem: a perceived gap between an existing state and a desired state.
