WhatCausedTheFinancialCrisis？

Ithinkwecansumup（总结，概括）thecauseofourcurrenteconomiccrisisinoneword—GREED（贪婪）.

Overtheyears，mortgagelenderswerehappytolendmoneytopeoplewhocouldn‘taffordtheirmortgages.Buttheydiditanywaybecausetherewasnothingtolose.Theselenderswereabletochargehigherinterestratesandmakemoremoneyonsub-primeloans.Iftheborrowersdefault，theysimplyseizedthehouseandputitbackonthemarket.Ontopofthat，theywereabletopasstheriskofftomortgageinsurerorpackagethesemortgagesasmortgage-backedsecurities.Easymoney！andwhatwentwrongwithourfinancialsystem？

Thewholethingwasonebigscheme.Everythingwasgreatwhenhousesweresellinglikehotcakesandtheirvaluesgoupeverymonth.Lendersmadeiteasiertoborrowmoney，andthehigherdemanddroveuphousevalues.Higherhousevaluesmeansthatlenderscouldlendoutevenbiggermortgages，anditalsogavelenderssomeprotectionagainstforeclosures.Allofthistranslatesintomoremoneyforthelenders，insurers，andinvestors.Unfortunately，manyborrowersgotslammedwhentheiradjustablemortgagefinallyadjusted.Whentoomanyofthemcouldn‘taffordtomaketheirpayments，itcausestheselenderstosufferfromliquidityissueandtositonmoreforeclosuresthantheycouldsell.Mortgage-backedsecuritiesbecamemoreriskyandworthlesscausinginvestmentfirmslikeLehmanBrotherstosuffer.

Moreover，insurerslikeAIGwhoinsuredthesebadmortgagesalsogotintrouble.Thescheme（体系，结构）workedwell，butitreversescourseandisnowcomingbacktohurteveryonewithavengeance.