How would a more controlled access to credit by firms

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How would a more controlled access to credit by firms and individuals have reduced the over leveraging of businesses and individuals and decreased the likelihood of the recent economic downturn?

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This report provides cause of recession and analyzes the impact of relaxed credit policy. This caused havoc in real estate and prices once artificially rose. Later defaulters of loan did not pay amount and credit to them was lost. This was due to easy access of home finance. Later government tightened credit police to overcome from this crisis. This in turn resulted in proper leveraging of business and individuals and avoided recession.

Reference no: EM131089591

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