State 3 reasons for the wall street crash?

I can give you more than 3, as this was a complicated issue. There is plenty of blame to go around.

1. The Federal Reserve, which slashed interest rates after the dot-com bubble burst, making credit cheap.

2. Home buyers, who took advantage of easy credit to bid up the prices of homes excessively.

3. Congress, which continues to support a mortgage tax deduction that gives consumers a tax incentive to buy more expensive houses.

4. Real estate agents, most of whom work for the sellers rather than the buyers and who earned higher commissions from selling more expensive homes.

5. The Clinton administration, which pushed for less stringent credit and downpayment requirements for working- and middle-class families.

6. Mortgage brokers, who offered less-credit-worthy home buyers subprime, adjustable rate loans with low initial payments, but exploding interest rates.

7. Former Federal Reserve chairman Alan Greenspan, who in 2004, near the peak of the housing bubble, encouraged Americans to take out adjustable rate mortgages.

8. Wall Street firms, who paid too little attention to the quality of the risky loans that they bundled into Mortgage Backed Securities (MBS), and issued bonds using those securities as collateral.

9. The Bush administration, which failed to provide needed government oversight of the increasingly dicey mortgage-backed securities market.

10. An obscure accounting rule called mark-to-market, which can have the paradoxical result of making assets be worth less on paper than they are in reality during times of panic.

11. Collective delusion, or a belief on the part of all parties that home prices would keep rising forever, no matter how high or how fast they had already gone up.

Conservative government.
Cronyism.
Banking and trading focused on short-term profits.

Greedyness, wars and not good supervision of the wall street system.

Lack of regulation on the part of the Sec. of the treasury,greed on the part of the money lenders,and no deferred gratification on the part of the consumers!

1) repeal of the "glass-steagall" act, which had previously forbidden the mixing of commercial banking, investment banking and insurance underwriting. the bad mortgages ended up in every sort of portfolio instead of being quarantined. the repeal was sponsored by phil gramm, the senator from texas. the bill carried his name. clinton signed it into law

2) changes in the "net capital" rules in 2004. previously leverage had been limited to 12 to 1. with the change investment banks leveraged 30 to 1 and higher. this allowed the "house of cards" to be built even larger and more flimsily. henry paulson, as chairman of goldman sachs, argued for this change.

3) the extended period of cheap credit in 2001-2004 which allowed for the run-up in home prices and made them a vehicle for speculative investment. this was the work of alan greenspan.

there was speculative investment in real estate on a massive scale by individuals. lenders securitized and sold these loans to investment banks, who then used these loans as capital for further highly leveraged speculation on other investments. these investment positions were then hedged with credit default swaps as insurance. have a nice day.

Corrupt, incompetent politicians and bureaucrats of all political stripes. Bottom line, though, it's US, the American people, who continue to tolerate it.

As to "change", I'm not holding my breath! :-(

Greed, self advancing, heartless to others

1. Low interest rates.
2. Stupid lending practices
3. China and our lack of savings

OR

1. Easy money
2. Greed and Stupidity
3. The pusher and our addiction

Which one? In 1929, after a LONG run of republicans, crash!
In 2008, after a long run of republicans, crash.

When will people learn?