🏡⬇ Housing Bubble and the Great Recession | 2008 Financial Crisis financial crisis 2008 explained

Thanks socialism and neoliberalism for many messes.

Im a little concerned with the placement of blame on efforts to undo years of discriminatory policies of banks which refused to grant loans to minorities. The redlining and refusal of banks to grant loans to minorities was racist and the videos focus on trying to undo these policies (while insinuating that minorities are the only people who sought loans they could not pay back) is shaky at best. It was really lower white middle class that were the main recipients of these mortgages that they could not pay back. Lets place the blame on the financial institutions that prevented the equal distribution of mortgages and not on efforts to overturn racist policies.

Most of what you said is true, but you overestimate the impact of the Community Reinvestment Act as a trigger for the crisis. The Act stipulated that they weren't to make bad loans, and it doesn't explain the fact that many of the unregulated actors gorged themselves on the sub-prime market, often to the excess of banks effected by the CRA. Private lenders had an incestuous relationship with the ratings agencies that allowed them to secure the highest ratings for even the most sub-prime trash debt, which fueled the continued demand for crap MBSies as both the lenders and investors had no incentive to stop. It was, in fact, perverse market incentives which caused the crash, and moral hazard with Fannie/Freddie which exacerbated it (although they were also duped by the ratings). Fannie/Freddie should be completely privatized and the ratings agencies should be state-run to prevent conflicts of interest.

https://www.youtube.com/watch?v=OdWUk9GgTl8

6:38 there's a recording of Andrew Cuomo admitting that despite his intentions for raising home ownership rates for minorities, they would also see a higher bankruptcy rate… He was head of Housing and Urban Development in 1997 when they put this affirmative action policy.

thanks for dispelling the Keynesian myth. It kills me our great and "free" markets are built on fraud and usury

it is true that greed is the cause of great recession. u know greed people make lower interest rate regulation lure people to make stupid decision in buying home.

Maybe they should seek back the help and assistance of those individuals/group of persons who have COMPASSIONATELY helped sincerely in the past during the 2008 crisis without any monetary gratifications or kickbacks making 2020 a way better circumstance than it was before??🤔😊

18:40 in 2020 March the history repeats itself

white collar crime

Alan Greenspan should have known better since he's an Austrian Economist. It proves that the notion that "power corrupts, and absolute power corrupts absolutely".

Why is that the middle class always suffer

Thanks for going to the root cause as opposed to just blaming greed

I relate this expansion of the restaurant example which became a huge cost to how we are trying to colonize Mars. It will be a huge misallocation of Earth's resources and it won't be as if it we will cut ties and allow them to fend on their own. Mars will basically be a near permanent welfare recipient. Sometimes resources should be consolidated. It's like sending a family member to the ghetto, but he can't get on his feet and you need to send your money for him to survive. He would've been better off staying close to the family in a resource-heavy location. We don't need to be a two planet species. Has our level of happiness increased as we expanded over time? No, it's all relative. All we are doing is creating increasingly difficult challenges for ourselves.

The reason people started not paying back their loans was when oil prices went to 150 per barrel and gas prices were above 4 per gal, the thinking was oh shit i have to go to work to keep my income so I will but gas and not eat out and slow my extra expenses. Now this slowed spending laid off workers and and they stopped paying their mortgages.

Well we are currently writing the sequel in the United States right now stay tuned. Its called credit card debt, auto loans, student loans and housing loans debt. I heard its gonna be a box office hit.

I think you have mis represented the role of CRA and regulation. The banks brought in great and unchecked risk into the market and the economy and tax payers paid for it. Why were these externalities not taken into account in building these products and making these trades? The banks and the “free market” played a major role in destabilising the US economy and the global economy. But they have not paid for it as yet.