The following are reason for the Economic Recession:
- Subprime lending
- Growth of the housing bubble
- Easy credit conditions
- Weak and fraudulent underwriting practices
- Predatory lending
- Gross Deregulation of Financial Market
- Fraudulent passage of Government Policy and Laws after substantial donations and perks from financial corporations.
(i.e Repealed part of the Glass–Steagall Act of 1933)
- Increased debt burden or over-leveraging
- Incorrect pricing of risk, lack of transparency about banks' risk exposures prevented markets from correctly pricing risk before the crisis
- There is strong evidence that the riskiest, worst performing mortgages were funded through the "shadow banking system"
- Failure of economic "professionals" who benefited financially from approval of false