What are the causes of financial crisis ,with particular focus on understanding and manage risk

I am looking at an exam preparation answer for this question ,the answers to this question can be found by watching the following 3 videos ” Love Of Money ” on www.veoh.com

Answer must include a short the following issues:

• Free Market Capitalism / power of Global Financial Markets
• Light Touch Regulation
• Low Interest Rates [post 9/11, rise of China]
• Complex new Derivatives [Credit Default Swaps, Securitised Loans] – traded globally, and largely unregulated
• Moral Hazard – Liars’ Mortgages, “elimination” of Risk, Rating Agencies
• U.S. Sub-prime bubble
• Weak Corporate Governance
• Failure of Banks to understand & manage Risk
• Human Nature – greed, hubris, bonus culture, herd instinct

Further details needed on the following areas by watching the documentary “ Inside Job “

-Rating agencies

– Conflict of interest ( Goldman sacs/J P Morgan / Morgan Stanley )

– Wall street has poisoned academia

"Looking for a Similar Assignment? Order now and Get 10% Discount! Use Code "GET10" in your order"