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#GreatRecession #2008 #History…(read more)
BREAKING: Recession News
LEARN MORE ABOUT: Bank Failures
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
The Great Recession, which lasted from December 2007 to June 2009, was one of the worst economic downturns in history. It saw millions of people lose their jobs, businesses crumble, and families suffer. The question on many people’s minds is, “who caused the Great Recession?”
Many people place the blame solely on the banks and investment firms that got caught up in risky loans and subprime mortgages. While they certainly played a role, the problem was more complex and involved a number of key players.
Certainly, lax regulation was a major contributor. Under the Clinton administration, Congress passed laws that encouraged banks to lend money to people who wouldn’t have qualified previously. This was known as the Community Reinvestment Act. The goal was to expand access to credit, particularly for low-income and minority communities. However, this also encouraged banks to make loans to individuals who were not creditworthy.
At the same time, the Federal Reserve was holding interest rates at low levels, which made it easier for people to borrow money. This created a lending boom that fueled the housing market. Home prices skyrocketed, but the bubble eventually burst, leading to the collapse of the housing market.
Wall Street also played a significant role in the Great Recession. Banks and investment firms created complex financial instruments that packaged subprime mortgages into securities that were sold to investors around the world. These securities were rated highly by credit rating agencies, despite being risky.
When the housing bubble burst, these securities plummeted in value, causing huge losses for those who had invested in them. This led to the collapse of several large financial institutions, including Lehman Brothers and Bear Stearns.
The government also bore some responsibility in causing the Great Recession. As mentioned earlier, the Federal Reserve kept interest rates artificially low for years, which helped fuel the bubble. Additionally, the government-sponsored entities Fannie Mae and Freddie Mac purchased and guaranteed a huge portion of subprime mortgages, which made them more widely available.
While many entities contributed to the Great Recession, it’s difficult to place blame solely on one group. It was a combination of factors that led to the downturn, and it took all of these groups working together to create the crisis.
In conclusion, the Great Recession was caused by a combination of factors, including lax regulation, low interest rates, and risky behavior by banks and investment firms. Rather than pointing fingers, it’s important to learn from the mistakes made during this time and work towards preventing a similar crisis in the future.
Who really caused the crash? THE GOVERNMENT. All depressions are the result of GOVERNMENT INTERVENTION IN THE ECONOMY.
Who are they??? None but the chosen one who destroy America. And like cancer got to Europe and did the same
This again proves the total ineptitude and stupidity of so-called journalist. His initial premise that all of these failure came from the practice of free market capitalism and making loans to people who were not credit worthy because they were greedy is a lie. The US government was behind all of this. Go back and see what Politicians were demanding. They threatened banks that we’re not making loans that The government deemed necessary to increase homeownership with action against them, and made them honor these lending practices that were purely political. Then the loans were guaranteed by the US government so the banks complied. What else were they to do ? These moronic loans were guaranteed by the US government and given triple A ratings by credit rating agencies through government pressure.The paper , these non-conforming, stupid dangerous loans ,were all purchased by the federal reserve. These no money down, no qualifying loans were felt by many politicians, Democrat, and Republican to be politically expedient. So don’t blame free market capitalism ,blame the real culprit.,as usual the clowns in congress and the Whitehouse .
Should of let them fail
This is COMPLETE BS!!! The banks were MANDATED, yes MANDATED to give out 'Woke Home Loans' to keep in 'compliance' with the CRA!!!
History repeats. There is another AIG out there but they aren't called AIG. Its short term profits, execs collect their bonuses and bail out before SHF. Gonna happen again, may not in real estate but could be any other market. Rinse and repeat
What happened to if you take out a loan you pay it back? Seems like they had no problem bailing out businesses that make poor choices but when it comes to student loans it’s a problem
Mortgages were bundled into MBS not CDO. It was only the shittest of the shit tranches of MBS that were re bundled into CDO – once the shit was put into the mixer they came out AAA
Ftx
You know the old ''joke''…. If I owe the bank $10,000 that's MY problem. If I owe the bank $10 billion dollars… that's THEIR problem!
This video was so amazing. I had a lecture, and we briefly covered Lehman Brothers. After your video, everything became more evident to me!
I've watched a few videos on the collapse of 2008 and this by far did the best job of explaining the situation
'm not kidding when I say that the market crash and high inflation have me really stressed out and worried about retirement. I've been in the red for a while now and although people say these crisis has it perks, I'm losing my mind but I get it Investing is a long-term game, so focus on the long run.
Kanye was right
I'll save you 8 minutes and 48 seconds.
2008 happened because of 1913 when the Federal Reserve Act was ratified. No gold standard = printer goes brrrrrrr. Ever since then the government has had unethical control over citizens.
De-globalization seems to be the answer.
Coming to get the money. Savvy
They should have stripped all staff/owners/shareholders of banks and insurance companies of their personal wealth/money/assets…….as punishment for gambling with the population's pension-pots and savings.
It was Bush's admin waging war on Iraq for enrichment of his family and his associates.
22billion profit, not bad. that was above excellent.
Stop. You are wrong. AIG was NOT the cause of "The Great Recession." Fed Laws forced the banks to make loans to unqualified people. AIG could have gotten out of its problem. AIG had its finances covered. The Feds made AIG the scapegoat. To cover US gov. incompetence.
Freddie Mac and Fannie Mae were buying these subprime mortgages when they should have known they were overvalued. They were a bigger cause than AIG.
What about Wallstreet banks sellings record mortgages to lousy customers who knew they won’t pay back ? Many banks had 200% leverage is that not fraudulent ?
AIG just changed their name to Corebridge Financial.
Yes, BUT!!! If it weren't for the world's most evil corporation, the Federal Reserve to fraudulently digitally counterfeit currency (fed debt notes & digital debt) out of their arses that came from absolutely nowhere to start with, then there would have been absolutely no way possible to have "bailed out" AIG in the first place! Just physically not possible!!
This is evidence that if you have a deregulated system, the system would be run to the ground by people who know there is nothing to lose and everything to gain.
3:54 🙂 🙂
I lived through the Great Recession as a home owner and barely made it through it, I watched some documentaries on it, and I watched the popular and very entertaining movies focused on it. So, like most, I'd heard the buzz-words of Collateralized Debt Obligations and Credit Default Swaps many times. But this video really truly made all of it make so much more sense to me. I'm glad I watched it.
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