Explain why the great crash of 2008 occurred. Make sure you analyse the contribution of: I) Herding, bubbles and speculation II) Private banks’ credit creation, the housing bubble, financial asset bubble and the nature of CDOs III) Deregulation, IV) Changes risk-taking and management, claims of perverse incentives V) Concentration in banking, leverage, and the effect of the repeal of Glass Steagall and blocking of other regulation. (You may not answer this question if you are in one of the groups who presented on it).
