Sorry for the re-upload everyone! Wanted to fix a blunder I had in the original video since this is such an important topic.
@UltimateSoul15 жыл бұрын
What was changed?
@ajinkyapathare5 жыл бұрын
Changelog.txt?
@ThePlainBagel5 жыл бұрын
Some of the text where I had a spelling mistake, but most importantly I changed the $600 trillion to $600 billion (a pretty important clarification haha)
@Joso9975 жыл бұрын
It seems since Kurzgesagt fiasco everyone is fixing their videos. Good things can come up from the bad stuff I guess. Keep up with the great job!
@anibalrodriguez26265 жыл бұрын
@@Joso997 What was the deal with Kurzgesagt?
@MaximilianFischer4979 күн бұрын
Creating wealth entails establishing positive routines, such as consistently setting aside funds at regular intervals for sound investments. Financial management is a vital subject that many avoid, often leading to future regrets.
@henryallard2459 күн бұрын
Starting early is simply the best way of getting ahead to build wealth , investing remains a priority . I learnt from my last year's experience , I am able to build a suitable life because I invested early ahead this time >.
@EvelynBrooks09 күн бұрын
You're correct>! With the help of an investment coach, I was able to diversify my 450K portfolio across markets and produce slightly more than $830K in net profit from high dividend yield equities, ETFs, and bonds.
@LukasMeyer4769 күн бұрын
That does make a lot of sense, unlike us,; you seem to have the Market figured out. Who is this consultant?
@EvelynBrooks09 күн бұрын
',Sonya Lee Mitchell maintains an online presence. Just make a simple search for her name online.
@LukasMeyer4769 күн бұрын
I checked Google up out of ;curiosity and I must say I am impressed by her Credentials. I emailed her already, waiting on her response.
@nickbargas73525 жыл бұрын
It just goes to show some companies can't fail as long as they are backed by government. If I did something like this I would be in prison for life without the possibility of parole.
@peasantarcher24865 жыл бұрын
Welcome to capitalism!
@ArmstrongMixture5 жыл бұрын
Kill a man you are a murderer Kill a million, a conqueror Kill them all, god.
@4sight7195 жыл бұрын
Government bailouts = Socialism Expect GE to be bailed out soon.
@4sight7195 жыл бұрын
Jay Blake socialism- a political and economic theory of social organization which advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole. Aka the government spending our money to keep the companies that failed open.
@henrythegreatamerican81365 жыл бұрын
See, that's the problem. Government is not there for "the people." It never was and never will be. It's always been there for the elites way back when the first real governments started forming during the agricultural revolution to protect the landowners. The mortgage crisis of 2008 was nothing more than a sophisticated asset bubble that burst. Just like the stock market today. It's gonna burst and average folks invested in 401ks will be the ones left holding the bag. And if the republicans had their way and turned social security over to wall street, we'd all be left holding the bag. The more money we give these guys the more asset bubbles they create. Instead of creating wonderful paying jobs, they use that money to buy up assets we depend on for day to day life. And through manipulation, it ends up costing a ton more for everything (healthcare, school loans, housing, etc...). Look at the recent drug pricing manipulation as a small example of what's happening throughout the economic system. It's a system where almost everyone including government ends up in debt to afford basic living expenses. It's unsustainable. Simply raising wages is not the answer. We need to stop these banker crooks from manipulating asset prices. That's why we need to elect Elizabeth Warren or Bernie Sanders. They are the only ones discussing this whereas republicans want to "free the market" even more LOL. And I'm gonna be frank here.... if Joe Biden is the democratic nominee, I recommend everyone vote for TRUMP. And the only reason I'm saying this is if TRUMP wins it will help the crash come sooner. I'd rather suffer through a quick but seriously painful economic collapse than prolong the agony for another generation of young folks.
@daltonevans34125 жыл бұрын
"It's free money!" Biggest lie ever told. Someone tells you a way to get free money, it's going to end bad every time.
@tryrshaughroad5515 жыл бұрын
In this specific case where credit rating agencies overrated CDOs, credit default swaps were mispriced and while it was not "free money", they were pretty profitable investments while they lasted
@waszkreslem93065 жыл бұрын
There is a saying in Poland that the only thing you can get free is a purple eye.
@TheKain2024 жыл бұрын
It's a bubble, it IS free money, as long as you have the common sense to get out in time before it bursts.
@hmr11224 жыл бұрын
Free money, worth as much as you paid for it, ironic isn't it?
@iwasbreathingfit77774 жыл бұрын
Exactly, nomatter if its a friend or lottery etc it wont end well
@firstnamelastname86844 жыл бұрын
"the big banks wont fail because theyre not supposed to" -bill wurtz
@davecrupel28174 жыл бұрын
Tell that to Lehman 😂
@StromcekDavid4 жыл бұрын
@@davecrupel2817 *American Insurance Group.
@Daemon1995_4 жыл бұрын
same logic with chernobyl
@godisdeadandwememedhim41743 жыл бұрын
R/unexpected bill wurtz
@ahadumer4183 жыл бұрын
Dude that is a singer
@lizardlegend424 жыл бұрын
The 2008 crash had a huge effect here in Ireland. We're still experiencing the aftermath of it. Dublin has one of the highest rent rates in the world and we're suffering from an extreme housing crisis. Meanwhile the banks got bailed out and those responsible are enjoying a nice huge pension.
@chemicalbrucey1572 жыл бұрын
Its insane how much a cock up in America can fuck up the entire world the way it did.... That country is a bloody liability
@lizardlegend422 жыл бұрын
@@chemicalbrucey157 Oh no our banks participated in the property bubble just as much as American ones did, arguably more so. It even has its own name here, the 'Celtic Tiger' era. The Boom before the Bust.
@Frosst2 жыл бұрын
@@chemicalbrucey157 Don’t just blame America when those same investors buying up these mortgage pools could have been from many different countries.
@colleenfrank16782 жыл бұрын
In Oregon you hardly saw homelessness except in large cities. Now it’s out of control because you can work 2 jobs and still not be able to afford rent. It’s a crime, good people turned out to the streets
@sadhu71919 ай бұрын
Yeah but they 300 pounds 60 year s old getting sunburned on island with drinking problem
@PositiveInvesting5 жыл бұрын
Appreciate the time taken to correct mistakes - most don't bother and I think it's important to address it on topics like this!
@levaann4 жыл бұрын
The memory of the 2008 crisis still feels kind of fresh to me. The house that my parents saved for 10 years, lived for in 2, gone within a year, It was awful. 2020 now and It's a lesson for me and my siblings to learn.
@jonestprades65202 жыл бұрын
What made them lose the house? I'm sorry if I sound rude, I don't mean to be. Was it because the financial crisis caused your parents to lose their jobs?
@herusaleron6793 Жыл бұрын
@@jonestprades6520 that’s what happened to my family dad was hit by the lay offs made the rent unaffordable as my mom is disabled and he was the only income on the upside though we were able to secure a cheap foreclosure in the aftermath lol
@jaxonwoods8181 Жыл бұрын
The financial crisis hurt man. My dad lost his job (worked in mortgage industry), my mom had to pick up work for the first time since the early 90s, and we lost the house since our landlord defaulted. I envy those who only have to experience the Great Recession in history class.
@sadhu71919 ай бұрын
Not to give responsibility to others for your mortgage even for some paper money to throw instrip
@NapGod Жыл бұрын
I was an upperclassman in high school in '08. My dad filing for bankruptcy, my parents' divorce, the foreclosure on our house, and the evaporation of nest eggs like mine and my siblings' college funds were some of the immediate effects. The events over two years completely changed the directions of our lives - the fallout quietly permeating for years in different ways. I learned two extremely important things: 1) how to stand back up after being knocked down 2) Greed will *always* trump common sense and decency in a society enslaved to Capitalism *gestures broadly to Citizens United in 2010 and the partial repeal of Dodd Frank in 2018 which somehow didn't include the full reinstatement of Glass-Steagall when it was drafted and passed into federal law*
@me-myself-i787 Жыл бұрын
Citizens United was a very important ruling. The government was trying to prevent companies from spending money to promote their political opinions. That was a clear violation of freedom of speech.
@HeathenwoodOfficial10 ай бұрын
Thanks for your insights. In 2008 I was in 3rd grade and didn't know it happened.
@sadhu71919 ай бұрын
This 2008 scam only hurt the dumb.
@roseq536 Жыл бұрын
Just as millennials were leaving college and trying to get into the workforce, this is what we were met with (that and 9/11 in HS). My friends could only get temp jobs, working up to 3 months at a time. Went on for years. Most millennials still struggle to afford and buy homes. The goalpost keeps getting moved.
@tek1645 Жыл бұрын
And the boomers who caused this continue to blame millenials to this day although hating on Gen Z is gaining popularity for that group.
@roseq536 Жыл бұрын
@@tek1645 honestly. The government is filled with the Boomers and they refuse to retire. Pushing around their “back in my day” memories. Worst generation ever. They project everything they think about the younger generation.
@Raging.Geekazoid Жыл бұрын
@@tek1645 Boomers are getting their revenge on the world for doing the same thing to them in the '70s.
@krisnick92 Жыл бұрын
I just started my apprenticeship when this went down so I was lucky in that way
@smileychess9 ай бұрын
Just keep living below your means, pile up as much cash as possible, avoid consumer debt. Then when the market crashes again, use that pile of cash to jump on opportunities. This may be cheap stocks or cheap houses. Hold the the line until then.
@michelakras80235 жыл бұрын
WOW, it took you 5 small minutes to explain this whole very important subject, and I am sure it will take me much more to re-watch your presentation to re-understand what it was all about and how it happened... (after a concentration of 2mns, I got carried away by your nice and funny illustrations not to forget the sound effects!!!!)... Thanks for this great job.
@SuperNineThou4 жыл бұрын
Just watch a movie called the big short it explains everything
@mr.m77914 жыл бұрын
@@anonymousandy5574 *Yes, FBI?* This comment right here!
@williamjacobs4 жыл бұрын
@@SuperNineThou Yes, good adaptation. The book, though, covered the analysis put into the evaluation of mortgage quality that made shorting CDOs an almost surefire bet. Worth the read, if anyone's go the time.
@paob75803 жыл бұрын
Try watching The Big Short
@BuriedFlame2 жыл бұрын
@@SuperNineThou I did and was still lost afterwards. This vid help clear it up insofar as "selling the same one thing bazillions of times is not a good idea" is concerned.
@Jox92 жыл бұрын
I’ve learned from history that whenever i hear “free money” or “infinite money glitch” or “it literally can’t go tits up” to prepare for the worst. Remember kids it works until it doesn’t and then it implodes and ur in debt :)
@yeetionary2 жыл бұрын
"and then it implodes and you're in debt" was hard to read
@nuclearjello22432 жыл бұрын
And remember that for all the money that you get, another person (or group) loses that money. You don't want to be that other person, and you can't get around that fact (unless you are in the/close to the government).
@BlasianBobbi2152 жыл бұрын
There’s another aspect to this: I was living in Florida when 2008 happened. I remember a couple of years before the crash, a knew a couple of people that didn’t have a pot to piss in, all of a sudden were buying houses. This video isn’t lying about how loose the lending became. Even the church my mom went to got into the “rental property” business. The daughter of the preacher and her new husband bought 10 houses in one year. The preacher and his wife did the same, the church choir leader and his wife? They literally started a company, and had plans to build a whole subdivision (I’m not kidding when I say this, they showed us the blueprints to the subdivision). I’m not gonna bog the comment sections, but the TL;DR version is the preacher and his wife lost all their homes and had to move themselves and their 7 kids into the church, itself. Their daughter and her husband literally lost everything. They were riding off the thousands a month they were getting from their rentals, but once those balloon/adjustable payments hit after a year or so, they couldn’t afford day to day expenses, and they just had a child. Husband had to enlist in the military. The church choir leader? That was a doozy. They were also in the process of building this gigantic house that had a butlers quarters and all that, but when the crash hit, the house was only half finished. The bank said they didn’t want it, but since it was mortgaged, they were still liable for the payments.
@Sara-ik5po2 жыл бұрын
Yes, it’s so heart wrenching that they were preying on these people. I watched the movie The Big Short (which is basically about this crisis) and apparently there was something as NINJA, no income no job application. They were legitimately allowing people who had no jobs to take out loans that they would never be able to pay back. It just goes to show how inhuman greed makes us.
@nickc3657 Жыл бұрын
Sounds like they should’ve heeded Jesus’s advice about moneylending and greed.
@caucasianafrican1435 Жыл бұрын
It's good to know some people who rode high on the hog had to pay for it.
@sylvio1687 Жыл бұрын
Florida had a massive housing boom in the 2000s even more than the nation as a hole. And the stronger the boom... the harsher the bust
@me-myself-i787 Жыл бұрын
@@Sara-ik5po It's stupidity, not greed. Making loans which can't be paid back is not profitable.
@nothoughtsjustphotosynthesis2 жыл бұрын
All three of my dad's biggest clients went under in 08 (Lehman was his top client, he's a commercial real estate appraiser.) It was the first time I can remember my parents being worried and stressed in front of us, they normally hid all that stuff pretty well. Now as an adult it's interesting to see how a lot of my fears over financial stability and the economy started that year.
@bjbell522 жыл бұрын
Sorry but it was Lehman Brothers INVESTMENT firms that went under. I don't know if the failure of the investment side caused the problems with their real estate business or not. BTW, as I posted earlier, I worked 12+ years in the mortgage backed securities department of Lehman Brothers, so my information is first hand.
@nothoughtsjustphotosynthesis2 жыл бұрын
@@bjbell52 I was a kid at the time so I don't really know all the details but he appraises commercial real estate for financing & investment purposes. Lehman was his biggest client and once the financial crisis happened that all changed and he had to build some more relationships with other banks to make up for the loss of their business since Lehman no longer needed appraisals. That's all I know about it, but he didn't work for their real estate business specifically (he works for a real estate and investment firm that takes bids on appraisals for banks & investors etc) so like you I don't really know about that either. All I remember about that time was the stress he was under for a while.
@bjbell522 жыл бұрын
@@nothoughtsjustphotosynthesis The department I'm talking about bought and sold mortgaged backed securities and TBA's. That's entirely a different business. What ticks me off is places like Fox Fake "News" who claimed poor people buying houses caused the crash and that isn't true at all. Most of the problems were caused by derivatives (credit default swaps). There was actually a law that passed that made regulation of them illegal. I know for a fact that in 2007, on average for each MBS there were 7-10 derivatives used as insurance policies.
@the_expidition42710 ай бұрын
It was not the CDS these were only the insurance contracts. Its the banks writing these bad loans
@the_expidition42710 ай бұрын
On top of that the CDOs
@RedsHitpostMedia2 жыл бұрын
I literally lived through this at 13. And i remember it was just endless discussion and talks on all news/radio. Didnt understand a lick of it then and still mostly dont. But now i learned something
@JessicaGarcia-xf9wr2 жыл бұрын
Same I was 13! I heard it everywhere but didn’t understand! I remember my parents were concerned and scared! If only I knew
@RedsHitpostMedia2 жыл бұрын
@@JessicaGarcia-xf9wr Scary times but we pulled through. Lessons learned
@dingdongpaddiwack2 жыл бұрын
I was just a kindergartener at the time and couldn't have cared less. Only now am I understanding the severity of it.
@ziggy76765 жыл бұрын
Hey! I paid for 5:00 and only got 4:59! What gives!
@CatholicWeeb5 жыл бұрын
Sorry, The Profit Margins are small! Like 1%
@FishbowlPhenom4 жыл бұрын
The final second is your happy moment of educated clarity at video's end.
@smg00034 жыл бұрын
Negative interest rate. No worries! We'll set up 'x, y, z' and maybe another 'a' company to earn fees fees fees and what, more fees..oh. were earning to much, oops, guess we'd better sell x,y,z to superannuation compnies on the quiet just before next downturn..nobodies saying boo about this ever
@SorryBones4 жыл бұрын
The 5:00 bubble is bursting. See you in debtors' prison.
@motab99814 жыл бұрын
Taxes...
@booklist1231235 жыл бұрын
"Greed should never trump common sense and decency" Hahaha, good luck with that. Never going to happen sadly.
@cageybee72215 жыл бұрын
not while we live under caitalism. because capitalism trumps everything and capitalism is greed.
@consistentinconsistency38675 жыл бұрын
Unlawful_Falafel Capitalism is also the reason KZbin exists and you have a platform to voice your shitty opinion on. Capitalism is also the only fair system out there, because it’s everyone for themselves. It’s not fair if I’m a rich dude and I have to pay 90% of my earnings in Taxes, so that the government can decide what to do with my money. That’s what happens in communism and socialism.
@greylepoard5 жыл бұрын
@@consistentinconsistency3867 no. the idea that people could not create or innovate under a different system is complete and utter dogshit. the idea that we're so enlightened that there's little we can do to improve our current paradigm is misguided, hubristic and keeps us from finding even better solutions to problems and resource management. capitalism is a load of horseshit stapled together to keep from falling apart. one can admit that without directly endorsing something else (though actual, iterative democratic socialism accompanied with a shifting of class consciousness would probably work great), but also recognize we should always be looking to improve, and some things don't really hold up to the academic rigors of time. the world shouldn't run on 10th grade economic understanding
@Aj-yu6ec5 жыл бұрын
Chizom Wali our system is flawed and im taking action by voting for yang 💯
@TheBrickMasterB5 жыл бұрын
@@consistentinconsistency3867 Wrong. Capitalism in it's purest form would've never allowed for people like Bill Gates to exist. In it's purest form, you had pseudo-slave labor in factories as the doomed, damned fate of most of the population outside the select few who had the "superiority" needed to excel in the market. "Everyone for themselves" is a fair system to you? Okay, hope you like having to pave your own roads and highways then. Hope you don't like having a government or police force providing enough incentive for murderers and rapists to not attack you on sight. You don't get to live in civilization and say "everyone for themselves" is a fair system, because civilization is BUILT through cooperation. "If I'm a rich dude and I have to pay 90% of my earnings in taxes, so that the government can decide what to do with my money. That's what happens in communism and socialism." Even if 90% tax rates on the rich were a thing, they'd absolutely be fair. The rich benefit the most out of anyone from any government, especially THE government. Most wealthy people have no practical skills of their own, or even basic life skills to take care of themselves, since many are born into lavishness and have servants in their households. Governments and civilization, which includes a state-funded police force to keep order, ensures that all that money that every single rich person "worked" for isn't just stabbed and cut from their purses overnight. Without a government taxing the wealthy, they'd have to spend a vast quantity of that wealth on mercenary guards to keep their treasures and hoard them, which doesn't even guarantee safety. The wealthy want to have as much power as possible in society, so they should be held accountable for it. Even if someone making $1 Million a year is taxed 90%, he's still living much better than anyone who makes less.
@PassiveIncomeTom5 жыл бұрын
The last crash was bad for everyone not prepared . Thanks for the reminder!👍
@H3c1715 жыл бұрын
and the crash wasn't even THAT bad which is the scariest part. The next crash will be catastrophic
@nuvisionprinting5 жыл бұрын
Wait for what is coming. This was just a wine tasting.
@darkorbitpro15 жыл бұрын
@@nuvisionprinting when is it coming
@lightningchegg48235 жыл бұрын
@@darkorbitpro1 soon, too soon, be as ready as you can be at all times no matter the hour or how long or little one must wait. For too many it shall be far too soon when it arrives.
@Ian-hn8ty4 жыл бұрын
@@H3c171 the last crash is saved by pumping more money. It did not recover properly. please at least let this crash recover slowly and properly.
@DavidAntony-gq7id Жыл бұрын
Well that would be impossible to do considering I'm in my late 50s and I'm more interested in investments that could set me up for retirement in my 60s, my goal is at least $2million.
@harrisonjamie794 Жыл бұрын
As you plan your retirement, be sure to talk with a financial advisor who can help you make the most of your retirement investing scheme.
@DavidAntony-gq7id Жыл бұрын
@@harrisonjamie794 Very true, If you're looking for help building a retirement nest egg, you most likely want a certified financial planner with expertise in retirement planning. With the aid of a coach, I grew my reserve from $160k to almost $600k during this Red season.
@harrisonjamie794 Жыл бұрын
@@DavidAntony-gq7id How can one find a verifiable financial Planner, I buy the idea of employing the services of a Financial Advisor because finding that balance between saving and living requires counsel.
@DavidAntony-gq7id Жыл бұрын
@@harrisonjamie794 KRISTIN GAIL CUNNINGHAM. On the internet, that’s the financial advisor I use. She’s verified; you could also read more about her and then communicate with her. it’s always good to do your research before putting your money into any investment.
@harrisonjamie794 Жыл бұрын
@@DavidAntony-gq7id Thank you so much! Found her webpage and left a message. Hopefully, she responds.
@PraveenKumar-xp8ej3 жыл бұрын
In 2008 my dad lost his granite factory to recession, his while life was invested in that factory...it effected him psychologically
@longtimelurker21845 жыл бұрын
The bit that everyone always leaves out is the Government's role. They saw that middle-class and up families owned homes, and somehow concluded that if everyone owned a house, than they would all be wealthy (rather than houses being expensive). So, under Clinton, they passed anti-redlining laws that made it hard for mortgage lenders to refuse mortgages. Afterwards, some of the larger lending groups, lobbied to be able to have higher interest rates. Because, until the 90s, there were laws that set the maximum possible interest rate. This allowed them to make these predatory loans. Bush expanded pro-homeownership laws in an effort to broaden his appeal. Really loved your video.
@MrThatguy3335 жыл бұрын
How do I save comments?
@Kevin_Street5 жыл бұрын
Those are good points.
@mm-dw2yh5 жыл бұрын
But the video does mention the government's involvement- Fannie Mae and Freddie Mac, two government organisations tasked with encouraging mortgage lending.
@brantleystraub2435 жыл бұрын
@@mm-dw2yh while true, something that is left out is the extent of that interaction. Freddie and Fannie had quotas that they had to meet, where they had to buy up loans that were given to [at or] under median income earning families. Clinton increased that quota from 30% up to 50% and Bush increased it from 50% to 55%. That meant that Freddie and Fannie had to buy up loans while meeting a quota where 55% of those loans were originated to families that were making below the median income. That is what led to Fannie and Freddie holding 70% of the subprime loans during the peak of the crisis, which was nearly 20 million subprime loans. [Source of information: Thomas Sowell's book, "The Housing Boom and Bust"]
@brantleystraub2435 жыл бұрын
@@MrThatguy333 I recommend taking a screenshot and then saving that screenshot to a special folder on your device. Sorry that this is a roundabout way of doing so, but it's the best I've got.
@tuck37715 жыл бұрын
4:42 hearing the DOW Jones drop 1/3 of its value actually sent shivers down my spine
@Ben-dg7qi4 жыл бұрын
Now it should do so too
@howtoeataham3 жыл бұрын
How is that bad?
@markmatthews7202 Жыл бұрын
Whose here after SVB and Signature got shut down.
@noahschimmel3216 Жыл бұрын
I am
@AirWindStorm Жыл бұрын
Yeah, never again ... and again ...
@xxquickscop3s11_6 Жыл бұрын
Uh oh
@kaylieew Жыл бұрын
Where is Luke and John?
@tq7468 Жыл бұрын
Here we go…..
@johnathanpenczek54993 жыл бұрын
"greed should never trump common sense and decency" boy does that apply today...
@minecraftdoors16613 жыл бұрын
How?
@boozecruiser2 жыл бұрын
@@minecraftdoors1661 capitalism is still around, that's why
@TimE4Shelly6 ай бұрын
Humans will ever be greedy
@Gungho732 жыл бұрын
The end of your video regarding it affecting the economy/people for years to come encapsulates my fathers career perfectly. He went from owning a construction business that paid his workers benefits better then the competition across his state, to being out in the field taking unemployment with the workers he had to let go as he would have lean days where he wouldnt eat so I could but sit at the dinner table all the same. The area he was based in alone was one of the biggest growing in the country, and essentially 180'd in a year. Crippled the local economy for awhile but oddly enough, not the growth. Which only exacerbated the issues.
@snipeyounoobzyee26622 жыл бұрын
The fact I’m learning about this on KZbin instead of in school should show everyone that this will happen again
@Noid2 жыл бұрын
Most students at school want the easy way, they wouldn’t ever want to be in a class learning financial skills (at least at my school)
@racequad92 жыл бұрын
You should make a video about what is happening in the current bubble. Homes selling 3 to 5 times what they cost to build isn't going to last forever. Especially once some homes builders that want to get their foot in the door begin to see that they can still make good profit and not charge a ridiculous amount.
@EmmureMARIO643 жыл бұрын
Oh I remember that year. During my sophomore year, mainly new teachers got the pink slip and my dad was laid off his engineering job.
@neilefc8773 жыл бұрын
I was in college in Ireland when this happened. In the years prior to the crash the banks would actually ring my parents house unsolicited and basically say: do you want a loan? Here, have some money. Theres loads of it! Looking back, we (society) absolutely deserved to go to the wall for this.
@kevinbeazy3 жыл бұрын
This is how I lost half of my retirement. Awesome. I got set back 10 years.
@PatKuenig5 жыл бұрын
So...in ten years from now you'll do a video on the recession/depression that's gonna hit us in a couple of years right?
@joanmasdeu46005 жыл бұрын
My bet is on 2022
@PatKuenig5 жыл бұрын
@@joanmasdeu4600 Well fuck that...America's dad Bernie Sanders will be smeared endlessly again then
@lI-tm2pn5 жыл бұрын
@@IlluminaZero Time in the market beats timing the market.
@alexanderrow76435 жыл бұрын
I dont want it to happen, but I'm going with 2020
@infamousstreetperformance12335 жыл бұрын
Can any of you give me a good reason why one should happen in a year, or Do you guys just call a resseion like you call for a sunny day
@Pauloveskim5 жыл бұрын
Education within 5 minutes. Our world is changing.
@clickbaitcabaret82084 жыл бұрын
The 2008 financial crisis is right up there with the treaty of Versailles for a hugely complex historical timeline that takes a great deal of study to fully understand.
@ThatsMyDawgFasho2 жыл бұрын
I appreciate this cus this video was not it 😂
@gFamWeb4 жыл бұрын
This is the most in-depth yet also quick explanation of the crisis that I've seen. Thank you so much for this.
@milestailprower17 күн бұрын
This is one of the best videos I have seen explaining the 2008 financial crisis. As complex as it is, it gets into enough detail for me to understand what happened without completely blowing me over.
@Dutch_Engineer_Piff_Dahnk5 жыл бұрын
Do investors have access to student loan backed securities?
@TheActiveAssault5 жыл бұрын
Good question!
@chandruae5 жыл бұрын
Wait, do these actually exist?!
@aawishkhan5 жыл бұрын
gotta invest in them, if they exist
@AA-gl1dr5 жыл бұрын
A K short the hell out of them
@ryanm20515 жыл бұрын
F F y? If the students go bankrupt they still have the loans...kinda a full proof way to make money
@triplecap43075 жыл бұрын
I'm wondering why you omitted the key fact that government guys like Frank were pushing lenders to make loans to risky borrowers, in the naive goal of expanding homeownership to the less affluent.
@raptango_na61995 жыл бұрын
because he's a democrat and the Democrats never acknowledged that they did this
@andydavis30755 жыл бұрын
True it was the central banks that started huge credit creation which fueled the crisis as well as Freddie and Fannie chugging it along not saying the free markets innocent though
@HGRvSBG5 жыл бұрын
That's a hard one for the left to admit. Anything that will make brown people look bad, yeah, forget it, they won't go there. Glad I found this comment so I can move on and not watch this guy blame it all on capitalism. Prost!
@cliffsousa41845 жыл бұрын
Good point. Many people overlook that fact about govt interference in homeowner policies.
@RockdaNike5 жыл бұрын
Triplecap maybe because it’s 5 minutes 🤷🏾♂️
@soerenbode5 жыл бұрын
It's important to note that not all subprime loans defaulted. A lot of people achieved their dreams with limited financial means. I still believe that bailout money should have been invested in the "real source": Helping those lenders that just couldn't make it (often due to predatory loans). Might have saved us all a whole lot of hassle... Thanks for the really got nutshell-vid!
@SgtStash Жыл бұрын
I have watched multiple documentaries and movies regarding the 2008 financial crisis. This was the first piece of media to use proper visual and explanations of what happened. Thank you!
@louisgreenwood951511 ай бұрын
And all it took was 5 minutes!
@DiamondMaker-is8qe3 жыл бұрын
What I got is that companies, and unaware people, for money, have crossed their limits and generally dismissed them foolishly thinking they're fine, and then their string suddenly breaks with the burden of their careless economic status and then WE are supposed to take it.
@Monster333365 жыл бұрын
I remember right before the collapse a property owner who made a fortune. He was able to get $1.6M in return for a home that was assessed at around $150k. He played it smart and knew when it was coming.
@boozecruiser2 жыл бұрын
Sounds like he already had money lmao
@remussirca55025 жыл бұрын
This is the best and most comprehensive short presentation of the subprime mortgage crisis, you really succeeded in fitting every important aspect in those 5-minutes. Great job!
@bjbell522 жыл бұрын
Except subprime mortgages didn't cause the problem in 2008!!!!! Turn off Fox Fake F'ing "news"!!!! The problems were caused by investments in derivatives. And that info comes from over 12 years of experience in the mortgaged backed securities department of Lehman Brothers!
@thelastname2k5 жыл бұрын
Nothing has been learnt since then, if anything it's worse than 2008.
@GranukeGamingProductions5 жыл бұрын
Oh please. The current US economy is doing phenomenal. It may take some hits in the future, but it's definitely one of the best times economically.
@SupremelyFly5 жыл бұрын
@banana aya playa honestly, I'm so sick of it
@cutecheerfreak15 жыл бұрын
Yeah they are already back to selling subprime mortgages too, they renamed them, but they are basically already back in CDOs.
@henrythegreatamerican81365 жыл бұрын
Booming for who? The wealth gap is the widest it's ever been. Healthcare is still unaffordable and the biggest reason for personal bankruptcies. Young people are in massive debt from school loans and can't afford to live on their own because of high rents and other costs relative to wages. The jobs being created are NOT paying enough. The under-employment statistics back this up. The real underemployment is well over 15% if you count not only the unemployed, but people working part-time and those working low paying jobs. Stop judging an economy based on stock prices, GDP and CPI. None of those show the well-being of average folks, and most of those numbers are fudged (especially the CPI). Look at this short 2 minute video of John F Kennedy discussing this. It fits perfectly for our times. kzbin.info/www/bejne/bWislX58pr2Vi7s
@BobBob-of7fg4 жыл бұрын
Why? To see Trudeau fail?
@mistercrab3 жыл бұрын
Well, this aged nicely. I don't think that you will be able to cramp 2021 financial crisis in 5 minutes.
@ilect16905 жыл бұрын
Its hard to believe that i actually had to live through this... my dads buisnuess closing down because we desperately needed money, my parents arguing with eachother about the fact we were on the verge of bankruptcy.... I had no clue what was going on as i was only 5 but now i know why
@goa141no64 жыл бұрын
Did your parents divorce or they managed to tank the hit.
@ilect16904 жыл бұрын
@@goa141no6 they were but then my mom gave birth and they backed out of it because they didn't want her to live with only 1 parent
@goa141no64 жыл бұрын
@@ilect1690 Good to hear it.
@herusaleron6793 Жыл бұрын
i remember too i was only like 10 when it happened but my dad lost his job and we couldn’t afford our rent anymore
@tomtrinchera84053 жыл бұрын
My aunt and uncle got hit by the subprime debacle: took out a 2nd mortgage on their home to fix it up before they planned to sell it a few years down (and move into a condo) the road and the bank talked them into a subprime loan. They had to put of their respective retirements for a few years too.
@forgottenartform2 жыл бұрын
I remember getting my first proper part time job not long before the recession hit in 2008 and lost it after only a few months in, then the shop shut down as well so yea that was an abrupt introduction to it, then graduated uni in 2013 when things were still not great prospect wise - to this day I've never managed to use my degree but managed to keep my head above water with low wage jobs and renting, but definitely nowhere near where I imagined I would be based on what I was told growing up
@ujoel2 Жыл бұрын
The 2008 crisis in a nutshell... People took out loans they couldn't afford or stopped paying their mortgages because they willingly overpaid for their homes and now their property value dropped (as anyone with half a brain knew would happen) + the government and other organizations then bought and sold those bad mortgages to everyone...
@LavaCreeperPeople Жыл бұрын
damnnnn
@br74512 жыл бұрын
We had no subprime mortgage crisis in Canada because the Canadian government did not demand 'affordable housing' for the poor by making the banks lower mortgage requirements.
@perrymeanspearwine4 жыл бұрын
And just like that, you can again get a mortgage with a 580 credit score in 2019.....
@massineben71984 жыл бұрын
Isn't everyone predicting a recession to happen again in 2020?
@davecrupel28174 жыл бұрын
@@massineben7198 yup.
@angelgjr19994 жыл бұрын
Many people act like this is normal. All the Same symptoms of 2008 are happening again. It’s very easy to buy a house, we are trillions in debt, and the stock market is breaking records (unstable growth).
@ADM-wt9cn4 жыл бұрын
Where the hell can you get a mortgage with a 580 credit score? I was denied at 715 in California... Had to wait 6 months for it to rise enough to be accepted. That is with 25% down...
@angelgjr19994 жыл бұрын
ADM Don’t live in California. It’s the most expensive state.
@ayovenom99065 жыл бұрын
The reccecion caused my uncle to lose his job Which lead to him drinking that lead to his wife devorcing and leaving with My cousins to another country.. i havent seen My cousins in over 10 years now.
@yoleeisbored5 жыл бұрын
what countries are your cousins living in now? are they happier
@ayovenom99065 жыл бұрын
Europe. I guess they do seem happy so I do get peace from that.
@herbeyspucturs89255 жыл бұрын
@@ayovenom9906 So do you not speak to eachother
@ayovenom99065 жыл бұрын
Herbey Spucturs of course
@herbeyspucturs89255 жыл бұрын
@@ayovenom9906 How about your uncle where is he now?
@jaypee23233 жыл бұрын
Do. Not. Sell. This is personal.
@bregjejabra255 жыл бұрын
Did somebody ever come up with the Idea to blame The FED? Lol....Might be true...
@grodt885 жыл бұрын
Jorn Verschoor that would be an "antisemitism" of course
@gordonrules1235 жыл бұрын
Why would we blame the fed. Investment banks went rogue.
@gordonrules1235 жыл бұрын
@Danijel Mornarić "the fed manipulated the interest rate". What? That's literally the feds job, they've been setting interest rates to stimulate the economy for a hundred years. What happened is that rating agency's got bought out by the big banks and gave triple A ratings to shit CDO's. How the hell do you blame the federal government for the banks wrapping bad mortgages with good ones, screwing the good home buyers.
@bregjejabra255 жыл бұрын
@Danijel Mornarić Glad you seem to get the whole picture, including the knowledge and the names of 10 Private Banking Cartels that own the Fed, in which Country the Main Office of the FED is based (which is not the USA or on a USA Island), and an economic system where money has never existed, doesn`t exist and will never exist....Therefore you cannot pay a bill in the USA by definition (but you can discharge a debt).....
@bregjejabra255 жыл бұрын
@@gordonrules123 Because they are the head of the snake....Privately owned...They decide how much money gets printed.....As you can see in every Third World country ....
@MrDmmagic3 жыл бұрын
After falling down a Wikipedia rabbit hole, I found myself looking at the entry for the United States housing bubble. Wanting to know about it, but not wanting to read so much material, I Googled for a video essay. Your video definitely delivered! Thank you so much!
@cabefinn4 жыл бұрын
Subprime loans weren't predatory. They were designed as a way for people, who wouldn't normally be able to afford one, to be able to finance a home. The government made it mandatory for banks to offer them. And while they got out of control, it was less about predatory lending than it was about financially unsavvy people who didn't understand what a variable rate loan was. What made it so impactful was the fact that between Dec 2001 and June 2004 the Fed Funds Rate was between 2% to 1%, then rose sharply to 5.25 in Oct 2006 until Jul 2007. So when the majority of the loans were made, the interest payments were minuscule. But when the higher rates kicked in, the rates were much higher. This rate change was key to the whole disaster, but few people bother mentioning it. Then, if that wasn't bad enough, the economy began to slow down as productivity began to drop. It wasn't the finical crisis that triggered the economic slowdown. It was the reverse. But the crisis did make it much worse, of course.
@komurohokyoji91695 жыл бұрын
Lesson: Seemingly free money always has a hidden price, usually too high to pay.
@marciaosullivan32004 жыл бұрын
Lesson just blame boomers
@mikew64844 жыл бұрын
Excellent video. You manage to give a thorough explanation of a complex issue in a surprisingly short amount of time. Keep up the great work.
@theduckscp2 жыл бұрын
I was 9 years old durring this and from what I can remember my family wasn't really effected by it I was still living in the house I lived in for most my life and I never noticed any sense of panic in my family. Whether or not they panicked when I wasn't around I don't know. I just mainly find it interesting how these things happen and as a kid you really dont see the full scale of them. It creates some interesting interactions later in life.
@multida Жыл бұрын
For context: a synthetic CDO, which is mentioned very shortly here, is a CDO made up of the (insurance) premiums paid on a Credit Default Swap, instead of the similarly-structured payments on a mortgage repayment. This means that the investment banks creating synthetic CDOs didn't have to raise the capital to make a loan for an MBS; instead they could rely on mortgages not defaulting to not pay out the insurance (CDS) on said mortgage, and turn the insurance premiums into an effective replica of a CDO, loaning-free. This got extra bad when people started buying CDSs on CDOs and synthetic CDOs, because then exponentially more capital was at risk, yet exponentially further from the thing they were really betting on.
@ominous_stranger3 жыл бұрын
I love these 5 min History lessons! Two of my favourite subjects!
@chungyanwong72935 жыл бұрын
Lesson learned here: The Great Depression caused people to think of getting money in a so complex way that they created unpredictable disasters
@oyi21 Жыл бұрын
And despite all this, no one and I mean no one was punished despite the damage done they’ve caused to a lot of families What a country
@erandi82114 жыл бұрын
I recommend this video more than that crash course one! This one is so much more informative while being simple to understand, thank you :')
@dan8753 Жыл бұрын
Repeal the Glass-Steagall Act and replace it with the Dodd-Frank Act. Brilliant.
@hachijospaniard5643 Жыл бұрын
Humanity never changes.
@julianj98302 жыл бұрын
I can’t believe people forgot the term “if it’s too good to be true, it probably is” before 08
@elongatedpikachu40293 жыл бұрын
2008 never ended.
@marktierney13314 жыл бұрын
Amazing Channel, this is so much better than watching TV or Films, will have to watch this a few times, a lot of information to take in
@K3ogh19892 жыл бұрын
Just got a mortgage in australia at 2%, they wouldn't touch me unless I could afford 7%, it's fixed at 2% for 3 years. I'm actually proud of my country for that.
@blackghost17342 жыл бұрын
That’s cheap money. It’s actually not good
@K3ogh19892 жыл бұрын
@@blackghost1734 I should've been clearer, at a federal level they regulated lenders to assess people well beyond the interest rate to make sure they could handle rate increases. But you are correct, inflation is crazy high at the moment.
@TheBrendNew Жыл бұрын
As someone who wasn't yet a working man in 2008, and barely felt the consequences of the crisis, I kinda love the crisis. Not that it actually happened of course, but the perfect shitstorm of events that all came together to burn everything down. It's fascinating how everything went wrong so right. You couldn't write this. It's insane, and I'm obsessed with it.
@Zero3 жыл бұрын
2021 and same thing is happening again but this time it's with #nakedshorts. AMC and GME will be remembered. do not bail them out this time.
@mikeoxlong63513 жыл бұрын
$AMC is payback for 2008..
@MrSt3v3n1233 жыл бұрын
and GME
@sonofode9025 жыл бұрын
The one who are hired responsible to scream "Greed" when they have to scream "Greed", did not scream because they get greed themselves. Thats what happened, thats what caused it. Who police the police? Who keep cheking the cheker? Who judge the judge? Gin,
@eavyeavy28644 жыл бұрын
Fed
@TatianaLamilla3 жыл бұрын
So true.
@farikkun18413 жыл бұрын
the people
@randomlyentertaining82872 жыл бұрын
Moral of the story: The common folk aren't the ones that fuck things up. The banks and Government are. Yet we still get tens of millions of people trusting the government and the big government parties.
@omidmoaddab4 жыл бұрын
I'm so glad I found your channel! I had this topic in my economics class but never really understood it. I fully do now
@nuvisionprinting5 жыл бұрын
But we are at it again. Can't put brains in a statue.
@Boxsteam5 жыл бұрын
So you clearly don't know whats actually happening, lol
@rahulramteke9995 жыл бұрын
We can put a bullet tho!!!
@davecrupel28174 жыл бұрын
@unknown anon Justin Norman wont explain. Because he doesn't have a clue in hell whats happening either. All he's good at is name calling.
@marufhassan6345 жыл бұрын
Waiting for a video on the 2020 Recession.
@JohnAckerman934 жыл бұрын
Everyone is saying that. If we hit a recession, people are saying it’s not going to be a bad one like 2008. The problem is investors and the government don’t know how to control their money. Everything is about spend, spend, spend. I always say that the government should open a savings account and put x amount in the savings account and use whatever they have left to spend. It’s that simple. The problem is investors and the government don’t have that type of common sense.
@studygodsword59374 жыл бұрын
@@JohnAckerman93 if there is a recession that hits in 2020, you can blame the Democrat party! A large part of the economy is public confidence, and the Democrats have been talking that down ever since President Trump was elected! Also there is the October surprise, in 2008 the Democrats use that to destroy the economy to get Obama elected
@deleteduser874 жыл бұрын
Yoinks
@asnekboi72324 жыл бұрын
Christians Pray for USA you’re crazy
@cryptical12103 жыл бұрын
@@JohnAckerman93 this comment did not age well
@mohamedsalem60145 жыл бұрын
An ancient Egyptian saying: “ if the greedy builds a house, the bankrupt will reside in it”
@duduwe80715 жыл бұрын
@Hoàng Nguyên very true my friends
@nofear4584 жыл бұрын
Watched the big short 2 times and watched this 3 times. Finally, I truly understand what happened.
@roymustang58503 жыл бұрын
This is why my parents always told me even when you in desperate time don't ever try to Mortgage your house, it's not worth the risk
@sometwo74293 жыл бұрын
I mean mortgages themselves weren't the problem, it was the bank giving mortgages to people who couldn't pay it off. Most people can't afford to buy houses with cash, and mortgages are generally a good thing
@Alpha-ro8sc5 жыл бұрын
Worked with a guy who had nearly 1 million in his 401K &< 2 years from retirement in 08. When this went down, he lost half before he pulled out. Had to keep working nearly 10 more years & never fully recovered. Good thing Obama bailed out the culprits...
@davecrupel28174 жыл бұрын
This is why im not investing in a 401k. Its MY retirement money. Not Goldman Sacch's.
@PatsandSox4 жыл бұрын
@@davecrupel2817 If you're just saving and not investing, YOUR retirement money's going to get you through about 5 years of retirement.
@wnsjimbo28633 жыл бұрын
You know if Obama didn't bail them out the guy you knew he would lose more money right ?
@medleysa2 жыл бұрын
History is repeating. Look at the student debt market. However, you can’t discharge student loans like you can a mortgage. So it’s stalling and the bubble continues to grow.
@thepaintingbanjo88942 жыл бұрын
*2010's:* "boy that sucked. Hopefully we learned our lessons and not repeat the same mistakes again!" *2020's:* "hahahaha....HaHaHaHA......HAHAHAHAHAHA!!!!HAHAHAHAHAHAHAHAHAAA!!!!"*
@yoloman36072 жыл бұрын
But now with oriental flavor
@NGRevenant2 жыл бұрын
reminder that many of the big players who caused the 2008 crash got jobs in the obama administration
@thepaintingbanjo88942 жыл бұрын
@@NGRevenant Jerome Powell was nominated by Donald Trump to the Fed in 2018 and he was printing money for all of 2020 in order to stave off a recession during an election year.
@EverythingHR2 жыл бұрын
The Great Recession has taught us that we need to be prepared for the future, no matter what. We must build a business that can withstand tough times and continue to thrive.
@jadonmesfun64797 ай бұрын
Brother if the economy completely collapses then whatever business you have will collapse as well. It is inescapable. When money transferred in the economy halts to 0 and all banks closed your business is fucked. Your business works within and is dependent on the economy you are in.
@Interitus12 жыл бұрын
It also scrwed over students. I graduated college in 2009, and it was impossible to get a job because people were willing to take any job, even something that paid less. And of course these people all had more experience and were willing to work for the same amount so they always got the jobs.
@charlesrodriguez62765 жыл бұрын
Honestly this video was fantastic. I know that your are gonna be super successful in your profession after seeing you get the cfa exams done but pleaseee make more videos on this history. They are concise, clear and very well put together!
@ladhkay4 жыл бұрын
Who's here after corona took over your life?
@1ciscojg4 жыл бұрын
👍🤮
@lukastegge99774 жыл бұрын
👋
@Unbekannt_00124 жыл бұрын
Men this the best oppurtunity to get rich
@utopia21344 жыл бұрын
Me I can’t stop drinking
@alexc53694 жыл бұрын
@@Unbekannt_0012 go on?
@d_all_in2 жыл бұрын
It's funny that you blame the companies who engaged in legal albeit risky practices but not the government who not only allowed it and participated but required lending to unqualified persons to improve minority homeownership rates.
@user-ol7bt4wp1j Жыл бұрын
Honestly with shit like this or corporate government bailouts as well as Lobbying no wonder the system isn’t going well This is literally a Oligarchial Corpotocracy that the government allowed to happen this isn’t just basic simple free market capitalism This is government and corporations leeching off of each other without in any way considering normal people. I won’t blame billionaires or corporations for having the only organization there is not prevent or even not allow them to cheat the system There’s probably a bunch of companies right now who are only alive because of the government companies that should have been long replaced by new start ups and increase the diversity in the corporate game. Like literally no wonder that there are so many monopolies.
@user-ol7bt4wp1j Жыл бұрын
Humans: > establishes a well established economic system that is as of now one of the best currently available in which basically the people have lots of power in changing the market > also takes accounts many human needs Government: > gives out bailouts to failing corporations and banks > allows for lobbying > free money glitch (very trustworthy.) > turns capitalism into corpotocracy > government and corporations now leech off of each other > system collapses Thanks daddy government i truly want to live in the capitalist equivalent of communism that is so nicely called corpotocracy.
@colinubeh1180 Жыл бұрын
Sadly, greed is part of us humans. Something like this will happen again in the future.
@LavaCreeperPeople Жыл бұрын
damn
@jonathanweiling9113 жыл бұрын
The fact is people will never learn such thing will come back and haunt the economy again....while some has so much greed in them that they don't care about others.... everyone of us has some certain greed in us... We really need to be careful...
@benyseus63255 жыл бұрын
Wait so lemme get this straight, somebody with enough money during the financial crisis of 2008 that hadn’t taken part in this fiasco and had no ties to it and its domino effect could have theoretically bought several houses on the cheap, kept them for a while and let their equity rise, and then sold them several years later for a profit? Did anyone take advantage of this or am I understanding incorrectly?
@SergioDumbrava5 жыл бұрын
Yeah that's one way to get some money with real estate, you buy it when it's cheap and sell it when it's expensive.
@Frosst2 жыл бұрын
I’m sure there were many people/groups/entities that capitalized on this. There’s always someone smart enough out there watching waiting for the right opportunity.
@countdown2xstacy3 жыл бұрын
Well, the moral of the story The moral of this song Is simply that one should never be Where one does not belong So when you see your neighbor carrying something Help him with his load And don't go mistaking Paradise For that home across the road
@celestialvoyager824 жыл бұрын
I congratulate your ability to squeeze so much information into such a small amount of time. But I think i'd be happier with a 10 or 20 minute explanation and at a slower pace so I can actually understand what your saying, and maybe learn something in the process.
@Kid_Ikaris2 жыл бұрын
This did a great job of showing how all these financial instruments were connected and ultimately imploded together.
@stealthlock66344 жыл бұрын
This is why we work at a summer camp now. I’m learning about the history of something that actually affected me and my family.
@mememaster93934 жыл бұрын
And not a single person went to federal prison for this.
@dannybruff4 жыл бұрын
Tomas cook, wonder what the outcome to that will be?
@Victor-kt6qn4 жыл бұрын
I was 8 when this happened... I was just playing osrs I didn't even notice a criss was happening.
@okboomer12413 жыл бұрын
I was 10 the last time runaway inflation happened.
@simoncantley6655 жыл бұрын
Try and be ready when it happens again. Educate yourself to the best of your ability and just understand that greed trumps common sense 99.9% of the time.
@felixkjornsberg3 жыл бұрын
Im not even 18 and i have no knowledge about finances but i watch his videos because it sounds important and cool
@marcochavez58804 жыл бұрын
2008 recession: 2020:recession: "ima show you how a real recession looks like"