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There are a few “narratives” attempting to place the causes of the brand new crisis to the context, which have overlapping aspects. Credit extension mainly benefited the real house market, leaving most other energetic elements of the new discount underfunded. In some cases, such companies even sustained financial obligation to invest in such financial maneuvers, after that diverting tips of effective sectors. At the same time, of several non-economic businesses prioritized inventory buybacks, bonus costs, and you can speculative investment over reinvesting in the energetic investment and expanding work. The brand new unregulated production and you may trading of derivatives, together with an excessive amount of influence and you will misplaced trust in the housing marketplace, was just as extreme contributors.
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