Are markets efficient? Why did the financial crisis of 07-08 happen then? I want to believe.
>>66555419
Greed mostly.
>>66555534
>Government tells you to give loan to people who can't hope to pay it back
>You give out the loan
>They can't pay it back
welp
>>66555419
more then the govermant.
market crashes are a long text, you have the patients to listen?
>>66555419
Markets are efficient at making rich people richer.
The financial crisis did nothing to change this.
>>66555663
Pretty much this but they also put those loans into a pool and sold them as an investments for other companies and investors.
The banks who sold these investments, insured these loans and when the mortgagers couldnt payback the interest and principal, the banks couldnt give back to the investors so they turned to the insurers. And they couldnt pay back either.
Ithus the financial collapse
>>66555419
>Why did the financial crisis of 07-08 happen then?
Because the banking industry is the most heavily regulated and cartelized industry on Earth, and considering every other industry relies on the banking industry it is no surprise that this fucks everything up.
Credit expansion is not a natural occurrence in the free market, at least not to significant degree.
>>66555419
https://www.youtube.com/watch?v=SI5txKz5IfU
>>66555419
>Why did the financial crisis of 07-08 happen then?
government intervention. Banks should have been allowed to fail so there could be a real recovery. Now they are back to the same tricks and another crash is inevitable. FED keeping interest rates artificially low creates huge bubbles.
>>66555419
during the clinton era congress decided poor people should own houses. this will improve the economy. so they passed a law to back bad morgages so banks will loan to people less likely to pay it back. this is a less safe bet or even a losing bet but a small expense for large non banking gains.
the bankers used loopholes to give type b loans but then quickly sold them as risky invesments. near the end the banks were stuck with alot of these loans since they couldn't find buyers. this inflated the housing prices, so people started taking large loans because they thought housing prices would continue to rise. once the type b loans failed, some neighborhoods becamee half empty, so housing prices fell there because living in a half empty neighborhood lowwers house prices. people started bailing on thier morgages. the reason is simple , if you bought a 300k house, and now it's worth 30k, and you have a 90k debt for it, then by defaulting on your mortage, you loose the large debt. it just ruins your credit score. so allot of solid mortages defaulted. once prices dropped in certain neighborhoods people stopped investing in lending to mortages, which help burst the bubble further.
once the large housing market crashed the banks were hurt and alot of the other sectors were harmed by this crash.
shall i now explain obongo's failed policies in this regard or do you have any other questions about the crash?
>>66555419
>Why did the financial crisis of 07-08 happen then?
They created millions of useless loans that where never going to be repaid and since bankers create money out of nothing when they create debt they made tons of money on it.
And then when it all failed they where like ''ooops sorry, we are to big to fail so you (the tax payer) better bail us out or else the economy is going to crash''
And then they gave themselves huge bonuses.
TL;DR
Socialism for the rich and capitalism for every one else.
>>66557177
Look at Obama's advisers in 2008, it was a bankster cabal
Is McDonalds big deal in America?
>>66558073
madatory weekly consumption
worst habbit they have other they put into law since penis inspection day
>>66557335
Yep, the banksters finance the politicians campaign and in turn they drive through their agenda. Just look at Hillary and Goldman Sachs.
Then the politicians push shit through and finance it will borrowed money backed up by the tax payer.
>>66558302
Thankfully we can get both of them done at the same place nowadays.
>>66559354
since when is penis inspection day become weekly? did obongo do this?
>>66555419
a free market is efficient however there is nothing to stop it from correcting itself in a manner that can be rather catastrophic for a good number of people.
Governments will try to put in safe guards for these but that usually just kicks the can down the road and makes things worse.
Since governments make rules to influence markets, large corporations will give government officials shit tons of cash and hookers so the laws the right will favor them and secure their positions of market dominance.
