Which of the following does not identify a factor that caused both the U.S. crisis and the Irish crisis? A. Irrational Exuberance. B. Capital Bonanzas. C. Regulatory Imprudence. D. Financial Securitization.
Four common features of the two credit crises were: capital bonanzas, irrational exuberance, regulatory imprudence, and moral hazard. Irish banks were not involved in significant amounts of financial securitization.
