Question

You just watched a video in which President Obama announces his plan for financial regulatory reform. According to President Obama, what are the reasons for the financial crisis?

Answer 1

Answer:

According to the president, one of the main reasons that triggered this crisis was the lack of responsibility of national financial institutions.

Explanation:

According to the president, the country's financial institutions were irresponsible in creating situations in which there was a very large amount of risks involved in national investments. In addition to this increase in risks, the number of investors was very small and the number of consumers was even smaller. This caused a deregulation in the financial system that generated a strong national crisis, leaving the economic sector in complete chaos.

Answer 2

Answer:

President Obama indicates that there are several reasons for the financial crisis. According to the president, one reason is irresponsible practices by financial institutions. The amount of risk involved in newly created investments was high, and few investors or consumers understood this. These types of investments were made possible due to a lack of regulation within the system.

Explanation: