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There are several « narratives » wanting to place the factors behind the brand new drama for the context, having overlapping elements. Borrowing from the bank extension generally gained the actual home industry, making most other active components of the newest cost savings underfunded. Occasionally, these organizations even sustained loans to finance such financial moves, then diverting resources of active circles. At the same time, of a lot non-economic companies prioritized inventory buybacks, dividend payments, and you will speculative opportunities over reinvesting inside energetic money and you may broadening a career. The fresh unregulated creation and you may exchange from derivatives, and excessive control and you will misplaced trust on the housing marketplace, have been just as extreme members.
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