hey /biz/, can some of you who are well versed and knowledgeable in business and finance and economics explain the great recession to me? I know business is based on supply and demand and mass psychology and how people and businesses interact and how different policies that effect interest and lending but I want to know all I can and learn business and finance in and out and use it one day to do something great and make a lot of money or have something really good come out of it, Please help me /biz/ help me understand and learn the great recession of 2008 and 2009 that the world is still effected by and recovering from today, I know it was really bad for a while and everyone and big banks and corporations were panicing and trying to sell out and trillions of dollars in private accounts and big businesses were lost but I want to understand the root of it and what caused it and what caused everything to fall apart in 2008 financially and how come all the businesses and and banks and stock markets were going out and crashing. Please help me /biz/... Explain to me business and finance and all you know about economics...
>>1171004
The business cycle combined with a housing bubble and speculation. It was a perfect storm of variables. The world is still affected because a lot of jobs that are added are lower-mid wage jobs.
Are you asking how to make money off a a recession? Buy a lot during the bottom of a crash and sell when it recovers. lol
I want to know and understand and see how business and economics works and what causes things like recessions and busts but also booms and bubbles, I want to find a way to use the things I learn and know about business and finance and get rich in the process or be someone great, please help me /biz/....
>>1171004
low lending requirements and rising house prices resulted in everyone and their dog getting into the housing market, which pushed the house prices up. Then the low/no income earners defaulted on their mortgages, causing banks to tighten credit and try to foreclose houses and sell them to recover the money they were owed.
>>1171081
with the sudden increase in houses being foreclosed, and higher interest rates and lending barriers, people started realising they could not afford their mortgages and started to sell their houses, flooding the market with supply and pushing house prices down
>>1171084
when people's house values dropped, people felt less rich and were inclined to spend less, also there were those still paying massive mortgages for a place that was worth shit all. when people feel less rich/are less rich, they spend less, meaning less income for others and less available jobs, etc
>>1171004
Look at your charts. The key to understanding what has transpired over the past 10 years can be traced back to the past 36 years. Simply, the developed economy as you find in the developed world has undergone a cataclysmic change. From an industrial economic base supported by finance to a financial economy with a withering industrial component that is so highly efficient that needs a fraction of the labor it once did. Global entry of the third world labor pool of essentially free labor aided by easily transferable technology of production soaks up an pricing power of unskilled labor in the developed world. This creates a falling standard of living in the western world and only a small marginally increasing standard of living in the third or developing world. The financial crises of '08 represented a confluence of these trends and the manifestation of these imbalances.
The collapse of wall street and its subsequent bail out pretty much scared the shit out of investors and businesses. After the wellbeing of major banks was guaranteed by the government, biz and investors had no reason to do anything but invest in risky business expansion and just played it safe by investing their on hand capital instead of plowing that money back into business/wage growth. You should check out some material on the subject, if you're newish to fin/econ/biz just pick up some michael lewis novels, easy to read and informative. After that you can seek out some more in depth material. There's no get rich quick schemes out there.
