When the economy crashed in 2008, the markets on Wall Street went into panic. Big banks and investment companies started pulling their hair out, not knowing what the next day would bring. Despite backlash, President George W. Bush signed a bailout of the banks on wall street for over $700 billion, paid for by the taxpayers. The economy across the board, from the auto industry to the housing market, was in disarray. The question needed to be asked: What caused this mess?
If Greenspan opened the credit lines in the 1980s, he opened the floodgates in the early 2000s by letting Americans use their home equity as their own private bank. Sub prime mortgages were given out, giving people the impression that they could afford a home they really couldn't. When the housing bubble finally burst, Greenspan spoke at a congressional hearing stating that he "made a mistake" in thinking financial firms could regulate themselves.