The lack of government oversight occurred in the housing market -- specifically in the home loan business. It's sometimes referred to as the "subprime mortgage" crisis. Subprime mortgages were mortgages given to borrowers that didn't qualify for a conventional loan. They would be financed in ways that charged borrowers higher interest because of the risk or had large balloon payments later in the loan period. As a result, there was a "housing bubble" created, where many people had entered into home loans above what they could pay. When that bubble burst and the housing market crashed, it triggered the great recession.
You might check out the book or the film called "The Big Short" for an interesting study of what happened!
A comparative advantage is when one country can make a good more inexpensively and efficiently in comparison to another country. Comparative advantages plays a significant role in the American and world economy. This is due to the fact that countries decide to trade and interact with each other based on these comparative advantages. This ensures that countries are using their resources wisely.
