The government could have placed tighter constraints on the credit market; the government agencies charged with managing banking policies and procedures could’ve formulated a policy that would require that banks were only able to hedge a certain amount of liability as long as they had enough capital to cover double the amount of the liability. The government could also have placed more stringent regulations on banks and related financial institutions to provide proof that the potential buyers of homes could fiscally make the required home/mortgage payments in lieu of the poor economy. This could have been accomplished by verifying their credit score, annual salary, and reviewing 6-12 months of the potential homeowner’s financial statements to ensure their candidacy and responsibility. Another regulation that could have averted the 2008 credit disaster would be requiring all potential home buyers to take a financial course that included content covering how to read legal contracts” or something similar. Yes, this additional step would prolong the home buying process but in the long run it would potentially weed out the vast majority of homeowners that would likely default on their mortgages.…