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“Because the government was such an active participant in the markets, the markets got lazy,” she said. “They assumed regulators were doing more work than they were. Markets relied very heavily on credit agencies because the government told them it was okay to rely on them. It turned out that those agencies hadn’t done a great job.
“If we look at the lead-up to the crisis, we see that a lot of
the problems stemmed from government failures, not pure market
failures, because the market was already too dependent on the
This article originally appeared at Watchdog.org.