The Enron energy scandal and the 2008 subprime mortgage crisis illustrate which problem?

Question

Quizplus · Accepted Answer

The Enron energy scandal involved the company manipulating energy prices and engaging in accounting practices that were illegal and unethical. The company had significant political influence and lobbied for laws that favored their interests. Similarly, the 2008 subprime mortgage crisis was fueled by interest groups in the financial industry lobbying for laws that allowed them to engage in risky lending practices, which ultimately led to the collapse of the housing market. Both examples illustrate the problem of interest groups setting up laws that only benefit themselves.

The Enron Energy Scandal and the 2008 Subprime Mortgage Crisis