What were the causes of the 2008 financial crisis
your mom's huge fupa was just too much of a burden and it all came crashing down
>>1130183
this desu
property bubble made exponentially worse by massively leveraged positions on fraudulently labelled mortgage-backed-securities.
they made a movie, i think called the big short. stream it then come back and explain to us what YOU think happened
>>1130179
>What were the causes of the 2008 financial crisis
believing no burger can be so stupid.
they were wrong.
>>1130179
The Jews probably
>>1130179
Just watch 'the big short'
Basically overvalued CDOs backed by subprime (100% likely to default) mortgages.
OP was a faggot
>>1130179
Don't listen to the people telling you to watch the big short because that paints the whole blame on the banks.
Banks sold bad loans to people who couldn't pay them off. People who couldn't pay them off took those bad loans and SURPRISE didn't end up paying them off. The banks lost a lot of money, then because of that everyone lost their money because guess where they had it? The banks.
There's much more to it (like loan ratings and mortgage selling), but for the most part this is the shortest answer you're going to get.
>>1130195
What I don't get is why that branch of the market would affect everything else?
Greenspan's policies created the perfected environment in which banks lend out shady, suspect loans to thousands of Americans who simply weren't financially able to bear them.
>>1130224
also, this
>>1131128
>What I don't get is why that branch of the market would affect everything else?
Because they took the bad loans, dumped them into a box, got the box rated AAA despite it being filled with bad loans and sold that AAA rated shit to literally everyone else. Some people had the foresight to take out a type of insurance on these AAA shitboxes and other investment companies obliged them, then took that insurance contract, repagacked it and sold *THAT* to literally everyone.
So, now, every bank around the world in some way, shape or form has their hands on either the shitboxes or the insurance on the shitboxes. So guess what? The bad loans turn out to be bad loans, and now the shitboxes are soaking through with shit-water and dragging down other stocks, even stocks that have nothing to do with mortgages. Now margin traders are getting fucked even though they have nothing to do with the situation.
We're not done. The insurance clauses now kick in and all the people who hold the contracts are demanding their money, from the same people who now hold worthless stocks.
We're still not done. Banks around the world have their portfolios devastated by not only the worthless shitboxes, but the insurance contracts hammering other companies and the stock plunge shitting up everyone else.
NOW because bank's reserve requirements are not met they can't loan out more money. This means companies that need a 24hr loan to do stuff like pay workers (this is extremely common, btw, giant companies like Coca Cola do it all the time) can't get that. Banks can't loan each other money.
This is happening worldwide in a matter of DAYS.
Dumb Americans overstepping their bounds
>>1131084
>People who couldn't pay them off took those bad loans and SURPRISE didn't end up paying them off
come on man, you can't blame the peasants who have been brainwashed for 120 years to chase the American dream
>>1131210
Actually, you can. They are retarded
>>1131165
Very well written. Basically what happened.
>>1131165
good post, where can i read more?
>>1131165
>Ignores the fannie/fred involvement
>Ignores the 1% interest rate which surged capital
>Ignores foreign investment from China and Russia
>Plenty of other issues about synthetic CDO'S, asymmetric information, shadow banking
Holy moly this response reeks of "personal reading and study"
>>1131084
>banks lost a lot of money
Until they used their control over the media and politicians to get the fed to step in and hand them six trillion dollars as reward for fucking up the economy.
>>1131476
Forget my previous response, this guy thinks people's savings and investors capital should be thrown to the wind
The documentary "Inside Job" is better than The Big Short, imo. It has very telling interviews with many of those who were pretty close to the situation. It's a very well made, and revealing documentary that does not pull punches.
>>1131484
This desu
>>1131481
Absolutely. That's the definition of a bubble: high prices backed by no value.
Also nobody's savings were at risk. Individuals are insured.
>>1131488
Pretty sure a bubble is characterised by an immense period of growth which outstrips the level of inflation and collapses as the price begins to falter which causes a deflationary spiral from the constant selling of whatever the asset is.
>People had insurance
$2,500 insurance seemed to be a great idea
