The Unlearned Lessons from 2008 Global Financial Crisis

Phil Angelides was appointed as the Chairman of Financial Crisis Inquiry Commission (or FCIC) to investigate the 2008 financial meltdown in the United States. His report confirms that the meltdown had occurred primarily due to easy (or reckless?) lending of home loans to anyone including those without any viable repayment capacities – whatsoever. These loans were termed as “Subprime Loans”.

It all began when mortgage companies, in a rush to book profits, overlooked every safeguard and made lo...