In my honest opinion, the federal is responsible for financial crisis of 2007-2008 due to

reason that financial crisis is avoidable as financial crisis was primarily caused by

deregulation in the financial industry. That permitted banks to engage in hedge fund trading
with derivatives. Banks then demanded more mortgages to support the profitable sale of these
derivatives that permitted banks to engage in hedge fund trading with derivatives, and
resulted in the financial crisis that led to the Great Recession.
The government is responsible for the making the polices to protect the interest of both
society and regulated institution. In absence of a suitable monitory policy the stock market
crashed in 2008 because too many had people had taken on loans they couldn't afford where
lenders relaxed their strict lending standards to extend credit to people who were less than
qualified, and it resulted in drove up housing prices to levels that many could not otherwise
afford.
Moreover, increasing home ownership has been the goal of several presidents, including
Roosevelt, Reagan, Clinton, and George W. Bush. Some experts say the events were driven
by the private sector, with the major investment banks at the core of the crisis not subject to
depository banking regulations such as the CRA.
Finally, due to weak Federal control policy, millions of families lost their savings as
numerous banks collapsed, unable to make mortgage or rent payments, many were deprived
of their homes or were evicted from their apartments. Both working-class and middle-
class families were drastically affected by the Depression.