Which one sounds better out of the two? Any way to improve or change something?

Question

Which one sounds better out of the two? Any way to improve or change something?

Problem: Beginning in 2007, the U.S. economy slid into what has been described by many economists as the most serious financial crisis since the Great Depression.
1. Why did U.S. economy slid into the most serious financial crisis since the Great Depression?
Because of the housing bubble that peaked in 2005 or 2006.
2. Why did the housing bubble peak in 2005 or 2006?
Because of the availability of low interest rates on variety of loans.
3. Why were there low interest rates on variety of loans?
Because of an influx of foreign capital into the U.S. Market.
4. Why was there an influx of foreign capital into the U.S. Market?
Because of strong home value growth
5. Why was there a strong home value growth?
Because of easy initial loan terms.
Solution: U.S. government needs to work toward tighter regulatory controls in the future.

Problem: In 2008, the financial stocks of mortgage lenders Fannie Mae and Freddie Mac dropped 31 percent.
1. Why did the financial stock drop 31 percent?
Because the federal government took Fannie Mae and Freddie Mac into conservatorship, which was viewed negatively by the financial markets.
2. Why did the federal government take mortgage lenders Fannie Mae and Freddie Mac into conservatorship?
Because of the financial meltdown in the U.S. Financial Industry.
3. Why was there financial meltdown in the U.S. Financial Industry?
Because of the housing bubble burst.
4. Why did the housing bubble burst?
Because of leveling off and slight decline in home values in some parts of the country in 2006 and 2007, combined with rising interest rates.
5. Why was there leveling off and slight decline in home values, combined with rising interest rates?
Because Americans took on mortgages they could not afford in hopes they could refinance later at more favorable terms.
Solution: U.S. government needs to work toward tighter regulatory controls in the future.

Explanation / Answer

Problems mentioned in the two years 2007 and 2008 have the same solution stated as:

U.S. government needs to work towards tighter regulatory control in the future.

As per my understanding, all what is mentioned under 2007 and 2008 are relevant for taking tighter regulatory controls but my view about what sounds better is Because Americans took on mortgages they could not afford in hopes they could refinance later at more favorable terms.

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