Laying the foundation for the recently experienced financial crisis (2007-2009) includes all of the following EXCEPT:

a. The securitization of subprime mortgagtes purchased by investment banks around the world. The risk associated with these new financial products was not accurately assessed.

b. Real estate price levels has increased for some time. The issue, however, is that the assumption was made that home values could only continue to increase.

c. Federal Reserve actions to decrease the federal funds rate to the lowest level in decades led "Wall Street" to seek greater returns in new places, including Collateralized Debt Obligations (CDOs).

d. Leverage ratios for major investment banks such as Bear Sterns, Goldman Sachs and Merrill Lynch has increased significantly.

e. Mortgage lending standards were tightened such that down payment requirements were increased and credit score requirements were raised.