To the extent that mortgage defaults contributed to the financial crisis of 2008-2009, blame for these actions lies with:
A) homebuyers who borrowed more than they could afford to repay.
B) mortgage brokers who encouraged households to borrow excessively.
C) government policymakers who pursued policies to encourage homeownership
D) all of the above

Question

Quizplus · Accepted Answer

All of the above factors contributed to the mortgage defaults that led to the financial crisis of 2008-2009. Homebuyers who borrowed more than they could afford, mortgage brokers who encouraged excessive borrowing, and government policymakers who pursued policies to encourage homeownership all played a role in creating the conditions for the crisis to occur. Each of these factors contributed to an environment in which housing prices rose rapidly, but households were increasingly unable to afford the mortgages they had taken out. When housing prices eventually began to fall, many of these households found themselves underwater on their mortgages, unable to pay their debts, and facing foreclosure. These developments had ripple effects throughout the financial system, leading to the widespread economic disruptions of the financial crisis.

To the Extent That Mortgage Defaults Contributed to the Financial