According to president obama, what are the reasons for the financial crisis?

I believe the answers are:

- irresponsible practices by financial institutions.

- failed to constrain the financial system’s creation of private credit and money.

The real estate crash that happened in 2008 is caused because banks, scoring institutions, developer , and credit companies make it far too easy to approve credit to buy houses in order to increase their profit. This create a situation when people who are barely able to cover their basic needs for living able to owned 3-5 houses.

This led to bubble which eventually popped in 2008 since those people who obtained credit unable to pay their houses, leading to an economic crash in 2008 since majority of people put their money in fixed assets as their main investment.

the answer to this question is the third option. hope this