Bankers or bubbles: What caused the financial crisis?

Our readers reckon that greedy bankers played a bigger role in causing the global financial crisis, but Wharton professor Franklin Allen blames the real estate bubble.
<div class="ArticleImageCaption" style="text-align: left;">Don't blame greedy bankers, says Franklin Allen</div>
<div class="ArticleImageCaption" style="text-align: left;">Don't blame greedy bankers, says Franklin Allen</div>

We asked our readers about the causes of the crisis last week, and whether a real estate bubble or greedy bankers had played the bigger role. Voting was relatively close, but the banker bashers won out in the end.

The question was prompted by a speech given by Wharton finance professor Franklin Allen in New Zealand earlier this month. Speaking at the Financial Management Association’s Asian conference in Queenstown, Allen said that the real estate market was the real culprit in the global financial crisis.

“Governments and central banks did a wonderful job of saying the problem is these greedy people in Wall Street,” he said, according...

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