Discuss at least two (2) areas in which these deregulation policies impacted the U.S. economy overall and may have had roles in laying the foundation for the Great Recession of 2008. Provide a rationale for your response.
Deregulations impacted the reserves in the local as well as central banks. The low amounts of reserves made the whole money supply system ineffective because banks had not enough money to pay investors. The deregulation also impacted the financial market by increasing the rates of inflation which was a major cause of Great Recession. Government issued gigantic amounts of loans to institutions. for example, 85 billion loan was issued to rescue AIG which was an insurance giant at that time.