GDP: Short Term Economic Fluctuations - Causes of the Subprime Crisis February 6 Reading: M. Helwig. 2008. The Causes of the Financial Crisis. CESifo Forum (4) 12-21 (Cnvs) Case 2: U.S. Subprime Mortgage Crisis: Policy Reactions (A) (CP) Questions: 1. What were the causes of the real estate bubble and the ensuing financial crisis? 2. Why did the crisis spread from subprime mortgages - recall Ben Bernanke's famous predicament that the crisis is contained - to the entire financial sector? 3. What policy responses did the U.S. government consider implementing