Why did the financial crisis of 2008 come as a shock? What effects, if

Why did the financial crisis of 2008 come as a shock? What effects, if any, did legislative policies of the 1990s have in steering America towards financial crisis in 2008?

Evaluate the role and practices of many of America’s leading financial investment firms and how lax regulation led to financial disaster.

ANSWER
Answer: An ideal answer will:
1. Discuss how events of the 1990s allowed America’s economy to boom for nearly two decades.
2. Discuss and analyze the importance of the Glass-Steagall Act, in particular when and why was it created and what did it intend to prevent.
3. Discuss the importance of Congressional repeal of part of the Glass-Steagall Act and its effect on America’s financial institutions.
4. Discuss and analyze the consequences of business practices by some of America’s leading financial institutions as a result of more freedom to speculate.
5. Discuss the new vision of how banks perceived and handled home mortgages leading to the ultimate goal of bigger profits.
6. Write a concise and effective conclusion.