Who is responsible for our financial crisis? Lenders or Government. ?

Is it the lenders that gave loans to individuals with poor credit or the government who forcer lenders to be more lenient. Who is responsible for our financial crisis? Lenders or Government. ?Its the people that walked into banks thinking they could afford a 3,000 sq ft home on a cop's salary.

They refused to read the fine print. Which CLEARLY stated how high their interest rates could go up by. They also refused to ask questions if they did not understand because they were in love with a 500,000 home.

So its the people. Stupid people.Who is responsible for our financial crisis? Lenders or Government. ?Greedy ceo's and risky investors who tried to make a quick buck and failed to build in safe guards. Too many people thought they could turn over a quick buck.



The government, by a lack of regulation allowed this.



The worst part is the excessive rewards given to/taken by CEOs for poor performance and inflated values.Who is responsible for our financial crisis? Lenders or Government. ?it is margaret thatcher who started all this, and i will explain why, back in the 70's she thought everyone ought to be entitled to private ownership and as such gave everyone who owned a council house a chance to buy it on the cheap, the problem with this is that a lot of people sold there council house for a massive profit compared to what they actually paid for it and thought "look i can now afford to buy a bigger house cos i now have the money to do so" but this was just a temporary thing because house prices started to drop steadily and all those who had bought bigger properties saw there value drop to the point where the value of their home was less than they had originally paid giving them "negative equity". anyhoo, it's this lack of council housing that is causing so many problems for first time buyers. in answer to the original question asked (i get on my soap box a bit when stuff like this is asked) it is a mix of the 2, it is lenders fault for giving mortgages to people who had no hope of paying it back, it is the fault of government for not intervening in the system to stop this sort of thing from happening. but the blame lies mostly with the banks.Who is responsible for our financial crisis? Lenders or Government. ?
Both. And the investment banks/credit rating agencies that packaged these loans as "investment grade" bonds.