Rather the crisis reflects a confluence of several developments: loose monetary and fiscal policies in the United States, global macroeconomic imbalances, and poor financial system supervision and regulation.
•  Poor policies: It should be noted that the USA pursued excessively loose monetary and fiscal policies in recent years, which stoked two price bubbles (the high technology company stocks, 1999-2000; and the massive housing price bubble which spread from the USA to Europe and Middle East. The sustained period of low interest rates encouraged excessive risk-taking and indebtedness by individuals and enterprises.