hey /biz/, can someone whos knowledgeable about business and economics explain to me how global markets and how business and finance works? What caused the great recession and worldwide financial collapse of 2008/2009 it was nothing like the world has ever seen, it was different than the 1929 great depression or the mini recessions of the 70s 80s and 90s because today the world is so highly connected and globalized and money is a bigger issue than ever in the world and stuff like politics and finance and business. Please /biz/, if you can explain to me and teach me all you know about business and finance and how markets and global economies work because I want to understand this stuff to learn from it and be prepared for the future and find a way to make it work in my favor and get rich off it. thank /biz/ and talk soon!
Watch the movies Inside Job and The Big Short, then come back
Over priced shit kept growing and growing, if you want to make money work off others stupidity
>>1103020
2008-2009 recession was caused by crony capitalism. 70 years of cold war never happened. There were never any poor socialist countries, only oil rich Scandinavian countries. people never starved in Poland, Yugoslavia, East Germany, Venezuela, North Korea, or Vietnam. That was all propaganda elect Bernie Sanders thx.
this fucking b8 again
please help me /biz/.... I really want to understand and know all there is about business and finance and how money and money systems work and what led to the greatest and worst recession and financial collapse the world has EVER seen and that is still recovering from today and will change the world forever
>>1103056
So you've decided to give up helping people and just pursue the $$$?
>>1103035
It's not bait, he's actually sincere. He just has a unique perspective on reality.
From a purely financial/economics point of view -
>In the 1990's Bill Clinton makes it easier for niggers and poor people to get mortgages, in order to get a big market-boom going
>In the 2000's legislature is passed to deregulate the financial institutions allowing for shady shit to start happening
>Firms start trading mortgage-backed securities that they know are bad (meaning, those poor people from point 1 are going to default on their payments and get foreclosed on) alongside with other better mortgages in packages, called securitizations
>Eventually, these defaults start piling up and trust begins to evaporate from the economy (those I've talked to who work on wall st and predicted the crisis say that this loss of trust was very clear to see for those who didn't have their head in their asses)
>lastly, the fed decided to shrink the money supply, had been raising interest rates very sharply for the last few years
Overall it was a pretty shitty occurence .It was one of those things that people should have learned from and never repeated, but if you look at today you will see the exact same shit happening with student loans and college. Housing bubble is growing again too.
>>1103020
Here's something from 2006 on the housing bubble and its predicted effects.
http://michael-hudson.com/wp-content/uploads/2010/03/RoadToSerfdom.pdf
yeah Im just interested in and want to understand business and finance and how countries and global markets work so I can find a way to use it to an advantage and make a difference and make a living off it, please help me /biz/....
>>1103020
banks loan lots of money that they conjure up out of thin air
then when people need to pay things back and they can't, it all falls apart
>>1103108
Wow talk about a crystal ball. Spot on accurate too.
>>1103020
The only legit GFC book written by the man himself. Great book btw, read it.
On top of what has already been mentioned, another part of the puzzle is the fact that most rating agencies stamped as "Good investment/safe investment" a lot of risky mortgage backed securities, basically all parts of the system failed.
Just recently watched "enron the smartest guys in the room" and its pretty eye opening when you know what happened in 2008. the same damn banks that had literally financed enron's existence, knew about it, knew they were cooking the books, lent them money and still got "bailed out" at the end and what do they go about doing later. The lesson had been learned in the 30s but for some reason the next generation always thinks they're smarter than the one before because muh technoligy.
When you watch the documentary about the "dot com" bubble on youtube from Chas Mastin ( https://www.youtube.com/watch?v=EsVpNB2Lv3U ), it is amazing, because it sounds like he's talking of today, we just keep making the same mistakes.
