Debunking Two Myths About the Origins of the 2007-2010 Financial and Economic Crisis

Roderick Macdonald
Journal article Jurnal Ilmiah Ekonomi Bisnis • 2011

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(Bahasa Indonesia)


The paper corrects two popular misconceptions about the originas of the 2007-2010 world financial and economic crisis. The first misconception was that it was caused by a greedy elite exploiting the ignorance and weakness of the poor. While there may have been irrepsoinible behavior within the finacial services, the story is rather one of a misguided benevolence of government bodies. The second misconception is that failed subprime mortgages were at the heart of misvalued mortgages backed securitites (and thus CDOs and CDOs squared) €“the toxic assets that incarnated the finacial crash. Failed prime mortgages and jumbo mortgages were at least as important in thses toxoic assets. Keywords : Financial crisis, sub-prime, mortgages, housing boom, government intervention




Jurnal Ilmiah Ekonomi Bisnis

Jurnal Ilmiah Ekonomi Bisnis is a peer-reviewed, open access journal that covers a broad range of... see more