UI forum panelist dissects causes of economic crisis
By Don Dodson
Thursday October 2, 2008
URBANA – A University of Illinois finance professor said several factors combined to produce the financial crisis that brought down several banks last month and prompted a proposed $700 billion fix from the federal government.
George Pennacchi said interest rates that were kept low too long, the practice of securitizing mortgages and federal policies subsidizing housing all contributed to the crisis.
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