The Crisis of Credit Visualized - HD
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- เผยแพร่เมื่อ 7 ก.พ. 2025
- The Short and Simple Story of the Credit Crisis -- The Full Version
By Jonathan Jarvis.
Crisisofcredit.com
The goal of giving form to a complex situation like the credit crisis is to quickly supply the essence of the situation to those unfamiliar and uninitiated.
This is the original, full version.
"But they have an idea", that's where you know things are going south
I went to school for 4 years to earn a BA degree from UOP and I would say that Jonathan Jarvis (in my opinion) gave a clearer and better explanation of the concept of credit in 11 minutes than I heard in 4 years. I would love to watch more videos like this explaining the Auto subprime crisis, stocks, trading, and other things that I'm not smart enough to understand the big picture of. Thanks again and great job Jonathan!
aren't you glad you paid $60k plus for the education that you could have got here for free?
@@MassEffectFan113 actually it was prob more than 60K
Ive seen so many explanations of this crisis, but this is by far the best and most comprehensive one!
The others probably didn't understand the subject well enough to explain it in layman terms like this guy does.
Yes, but it doesn't cover everything. Another huge part of the crisis is the credit default swaps, which the investment banks bought, essentially betting against their own CDOs, putting companies like AIG bankrupt (before it was bailed out, that is)
The Inside Job- watch it
An statistician here, and I was enraptured by how easy yet complete this explanation was. 3 cheers for data visualization. Wow.
This is how economics should be taught in our schools. This presentation helps on so many levels.
Thank's for this priceless video.
I just watched The Big Short and remembered watching this video from back when it was happening! So crazy!
+Eric Andal So much like for this comment. Same here.
+Michael Holder Same here
+Eric Andal The SAME thing and thought happened to me today! I just got back from watching The Big Short.
+Eric Andal just sent this around to a bunch of people at work for the same reason
+Eric Andal Same!
Brilliant presentation - easy to understand, entertaining, scary, and a superb Infographic.
If you enjoyed, you may also like the movie/documentary "Inside Job", narrated by Matt Damon.
I saw it. Matt Damon knew how to calmly narrate a rather scary phenomenon.
@Richard Wilson yikes...chill man
@Richard Wilson wtf...dude chill the fuck out. Lmao whats wrong
@Richard Wilson chill out, relax, have a drink and maybe start jogging a little bit, that's a lot of fat to carry around everyday. Oh shave the neck beard too
@Richard Wilson mom Jokes... Ok dude grow a pair of nuts and then come back. Actual 12 year old trapped in overweight senior body
I paused the movie "The big short" and came to youtube to understand the terms and and found your video and it was helpful and now I'm back to watching the movie. Thanks 👍
Love that movie 👍🏻
i see the problem, they were paying $10,000 for a box. Thats where they went wrong
+Move Along nailed it
LOL! ;-)
totally
Best joke I've heard all day! Thanks!
JC Denton you never cease to amaze me.
The best explanation of the credit crisis... A full semester worth of study summarized in a 10 minute video.....Thank you Jonathan Jarvis.....
i watch this video any time i can’t sleep and it works like a charm
Jonathan - we looked at your video back in uni days to learn about the crisis and here i am 10 years later looking at it again to refresh my mind. thanks so much for the clear, informative video and really enjoyed the graphics too! love your work!
This video was made over 8 years ago and it is as relevant as ever in 2016, very good explanation of this debt bubble that we are facing, Lord knows the next crash will be catastrophic ...all we can do is educate ourselves , learn the truth and be prepared
*2018
@@lolbots still low sub prime mortgages.
@@lolbots *2019
It's going to stay relevant for a long time.
"All we can do is educate ourselves" that hasn't aged well. In fact, it might be the cause (this or car loans) that will cause the next recession, essentially based on the same model.
This video was SO helpful for me in truly understanding how the crisis happened. I had to do an assignment where I explained what happened using a theoretical perspective, and it was 100 times easier to do after watching this. Keep up the good work!
Had to watch this video for school but this is the first time I genuinely understood what actually happened the whole way through. Thank you.
Best explanasion of 2008 crisis i have seen so far!
thank you you actually explained something made complicated by everyone
you condensed the big short within 10 minutes
Thank you very much for such a brilliantly presented video!
Since 2008 I must say this is the best explanation I have seen.
Well done.
I'm just glad they papered over the problem with more easy money. Hopefully this time it works out better.
That's hilarious, blunt and to the point
HE HE EHE EHEHEHEE that's hilariously sad @@wayneruffner223
The only video that managed to explain this in a clear and simple fashion. Thanks!
I have come across many channels trying to explain the 2008 financial crisis...but they were able to clear the picture upto certain extent!
Luckily I found this video...and for a person who have watched a dozens of videos on this topic...I can say with utmost honesty...that this is the best and the most effective and simplistic video ever made...that explained points precisely...
Great work people...amazing job
Thank you for making an extremely confusing topic much more understandable!
Although I already understood almost every aspect of this subject and the consequences that were suffered from abusing the powers of credit, this video was a great refresher. Awesome video, powerful visuals, and very clear explanations.
whoever made this video did an excellent job explaining something so complex
That was by far the most well made, clear and easy to digest explanation of the mortgage crisis I've seen. Excellent video sir
Thank you TH-cam algorithm for finally giving me a video worth watching that I didn’t have to search for myself
Giving credit to people to buy homes, knowing that they will never be able to pay it back.
That's... fucking evil.
Ryan Yakov But the investors wanted higher risk products. So that is what they got. Too many investors got greedy and when it all fails, the investors blamed the banks. The public and regulators fail in their role to monitor banks.
Going into debt you know you can't pay off.
Now that's fucking dumb.
Ryan Yakov And yet, people accepting credit knowing they can't pay it back? that's fucking ignorance.
Pushing out the government is the reason why it happened. You don't want government? Fine. I give you this. The end of our economy. No government, means no regulation. And there was certainly no regulation. Especially with the republicans running the house. Hank Paulson(REP) had to run to the Democrats to try and save our economy.
+Ryan Yakov On many occasions, the lenders were FORCED to give that credit due to legislation known as the 'Community Reinvestment Act' which was supposed to tackle racism in the mortgage market, but ended up giving lots of mortgages to black people who could never pay it back.
In late 2008, I pulled an amount from my account for routine expenses. It was the only reason the economic crisis.
hahahaha
ahhahahahahaha
Your mustache trims itself though. What could that expense have been?
Fukin legend
It is stupid to say "don't buy things you can't afford". People need houses, and they can't afford because the system is rigged to make the poor poorer and rich richer, and rich folks force more and more people to owe them and make them in debt so they can get richer and buy the politicians too. Don't you see the system is rigged? Don't you see the inherent corruption in monetary system and capitalism? Stupid system just to make a few elite rich, parasites who brainwash us that there are no better alternatives. They want good slaves, that's all they want. We need Resource Based Economy for sustainability and a better future.
Thank you so much for this video ! It is clearly explained and you taught me more things in 10 minutes than I learned in one semester ! Keep going, you're awesome !
I loved the music after "welcome.... to the crisis of credit". An under appreciated part of the video
Iv'e seen so many videos trying to explain the housing crisis. Ive learned alot from this video. Thanks !
this is one of the most informative videos on youtube
Crystal clear explanation!! Thanks a bunch!
I need to get me some of those boxes...
+Nikhil Autar I'll sell you a box of magic air for $1000. guaranteed invisible.
+Nikhil Autar hahhahaha
Warsrogue I’ll take 10! 💁♂️
😂😂😂
You mean the boxes with ticking time bombs in them? have at it, bro xD
I'm in 2021 right now and truly amazed to see this.
Awesome work done in visualisation, Cheers!
Excellent information. Clear and concise.
I watched the movie, but I never understood what was a CDO.
Greetings from Peru 🇵🇪
It's called don't buy things you can't afford.
+Andre K
my philosophy precisely!
+Andre K If everybody did that the economy would die instantaneously.. PLEASE TELL ALL TO DO IT!!! We need to build a new system.
+DanusMax Obviously people don't have enough money laying around to buy a house upfront. However, that doesn't mean just anyone can go and buy a 5,000 square foot house.
since the market prices of houses were going up. banks would accept essentially anyones credit.
however, the reason people would take this (that cant afford it) was because they thought there house values were going to cover there mortgage costs... as in the interest theyre making in there $600,000 house(s) they thought it was a good idea to put it on there credit cards... and hopefully sell the houses when they need to for a profit.
this was the problem in 2002, 03, 04, 05, 06, 07, and 08.... banks werent controlled and gave out these sub-prime mortgages only to make a quick buck from investers.... the sickness was that these cdo's were labeled as triple aaa bonds...
bankers are just plain greedy
jake smitth Blame the banks! Blame the rich! Blame anyone, everyone, but yourself!
Thanks for this video man, easy to follow and understand...
Professional guidance brings about remunerative results in trading. Great job Payden, you exceeded my expectations. Thank you.
I’m interested please. I want to build my portfolio, and trade profitably.
5 accounts of the same age with 0 subscribers praising a man you've never heard of before for advice you didn't ask for 🤔
I am showing this in my introductory macro course each year. Extremely well made! Thanks a ton!
The best video on subprime crises I have watched.
Kudos. Brilliant job.
"Home owner"?? Not really, until the home is fully paid for you're a mortgage holder.
I see what your saying, but you still own the house. The bank is not responsible for maintenance and repairs. You are
You never own your home. The government does. You will pay property taxes forever
@@bd5236 the government does not own your home simply because they tax you.
@Shawn Huffman you pay tax on almost everything, the government does not own those things.
@Shawn Huffman Yea I get that, but you are still the owner, the owner can decide to knock down the house, renovate it or whatever, the government cannot. Paying taxes just comes with ownership, I pay the government tax when I buy a car, the car does not belong to the government because of this.
No jail time for anyone.. Free to do it sll over again.
If anyone should go to jail, it should be government officials that started this mess, not the banks.
@Martin Shepherd No, they understand. But they're corrupt af and being paid off by lobbyists.
@Martin Shepherd people who made bad loans and took out bad mortgages should have taken a bath. fuck em
dude! i finished my chapter 11 watching this video for my econ class!!! ur awesome mann! thumbs up! :D and this is not only this class , I also watched it for poli sci too! :D
chapter 11? what made you bankrupt
The best educational video about 2008 financial crisis. Thank you!!!
probably the best visual explanation ever done. good job!
That was beautiful. An excellent introduction to the credit cycle, and pointing out that 2008 was supposed to be the end of one cycle and the start of another. Those bombs didn't go off like they were supposed to. Instead, we've extended the credit cycle with rates at 0.25% under Obama. We've watched the same banks and automakers that we bailed out just stagnate on their stock prices(especially since 2015). Honestly, the worst stock to buy from 2008-2018 is a US automaker or bank. Except GE.
Meanwhile, silver trading volume hasn't been this high since 2011. German bonds are negative(all years). The US cut the FED rate. Unemployment is at record lows. Yield curve inverted in Dec 2018......We're in a recession. Once the central bankers realize it, it's going to be QE4 on a massive scale. They're scared because they don't know what to do. In reality, They're scared because they know exactly what to do. Accept deflation. It hurts the parents, but benefits the kids. Just do it!
And a QE4 had already occured and we have COVID + the war in Ukraine.
What is even worse is the fact that there are no regulations for the rating agencies. They are paid by the investment bankers. Hence, the rating is meaningless.
The real problem is that investment banks leverage the shit outta rating agencies. It forces the agencies to rate their sub-prime CDOs higher so they dont run to seek a higher rating elsewhere.
Here we are in 2019 and its all happening again.
Zelcs dod frank is getting lose. Looks like ninjas are coming back
Not so sure about that. Things aren't as crazy as 2008. Neighbors aren't buying multiple houses ect. Not sure how much higher home vales can go tho and still be affordable.
I ain't a finance/banking guy and wanted to understand mortgage but couldn't find a reasonable link.
This makes total sense. Brilliantly explained! Thanks
what an amazing presentation. Made everything crystal clear. Jonathan Jarvis thank you much for creating this amazing presentation and sharing it with the world.
This video should've been added to "The Big Short" movie 😂
honestly now i understand the movie
I love Economics. :3
this is finance
Its a good combination of both. When the supply of the houses exceed the demand, the demand had to drop to bring the equation back to equilibrium, causing the prices of the houses to plummet
The tie to government is never explained- the triple A rating, the government insuring these bad trading policies, and then eventually bailing them out with free money etc.
+James Gant Most of the big name rating agencies are actually private companies. So this is not accurate.
+James Grant as Roman said, most of the rating agencies are private firms, who were more concerned about retaining customers. Plenty of underpaid staff also helped to incentivize easy passes on junk bonds to re-rate an ordered CDO of risky mortgages into a AAA rated CDO.
But that's not to give the government a clean pass. The SEC at the time was sitting around doing next to nothing. Just a year or two after the crash, there were reports of the SEC Office of Inspector General turning up plenty of its regulators watching and collecting porn instead of doing their jobs.
The whole system was just a shitstorm of bad actors waiting for a poorly built house of cards to come crashing down. The bailout was a bad idea, and the banks weren't given enough restrictions on their restructuring for taking TARP. I said it in '08 and continue to say it today, if you took TARP money, you have to listen to the regulators and do exactly what they said. Not give your execs golden parachutes and pay off lobbyists to turn the political tide in their favor.
Wtf! I never thought something soo complicated can be explained and understood soo easily! You did a fking AAAmazing Job
Big short in a nutshell. Same vibes with on point explanation.
I you should credit some subscribers. You deserve a lot more!
1 year full of ups and downs, ain't ya?
I watch this video literally every other day. 🤦🏽♂️
👀
great vid best I ever seen on this besides inside job
Nicely explained. Almost all the aspects of crisis covered in a short video
You explain the Big Short so well. Thank you.
My teacher should have shown this video in economics. To bad I was in school when this was happening... and to bad TH-cam didn't really exist yet.
lol same . I'm studying finance , when the teacher explains in detail of subprime crisis , the whole class was confused as fuck . But lucky , i watched The Big short , Margin Call and this video before so I can understand better than them
You know youtube existed when this was happening, right??
be ready for 2019-2020 time to make $$ of the crisis
@7:13 Only thing I learned from this video is that responsible homeowners have one kid and a dog, while irresponsible homeowners have no dog, multiple kids, drink, smoke, are overweight and have a tattoo
It’s only irresponsible to have multiple kids if you can’t afford them, I think that was the point they were trying to make
Which software was used to create this video?
I really like the effects and the way the story has been told :)
*hats off*
Probably Adobe After Effects for the animation and Adobe Illustrator for the illustrations
These types of videos are usually created using Adobe Animate
Best animated video explanation of the crisis
This is by far the best explanation I have ever seen on the subject. Thanks!
Great video
Lol, I just paid an extra $5000 on my mortgage this year, cheating the banks out of $10,000 in interest. Prepay you loan as much as possible.
Don't you pay a premium everytime you prepay? There's a fee. Which makes sense, because your mortgage deal is based on the dealer's interest income. No reason for them to lend you if they couldn't make back a profit above LIBOR.
You are not cheating the banks. Giving the money earlier than expected has value.
Well done video, verry well explained!
Keep up the good work!
Might just be my fav financial video on youtube. I played a part once. Homeowner looking at what i owe and what my homes worth so i short sold.
Such a lucidly told story. Thank you very much for this!
Its a MULTIVARIATE issue, the best thing to do is not to look for a single group to place blame on, but to look to ourselves for what WE could have done to help the crisis. After 2008 our country saw a complete abdication of blame. This "blame game" is far more dangerous than any financial instrument or CDO that can be created. Those who are responsible for the housing collapse go from the borrower to the mortgage lender to the banks to the fed chair and to the president (multiple presidents in fact). And yet all you see in the comments are people looking to place blame on a single group its pathetic, you and I and everyone we know are all in some way responsible for this, and trying to redeem yourself by blaming someone in the comments is what creates the conditions for an event like 2008 to repeat over and over and over again.
Finally, a comment I can agree with.
Philip my god where were you all this time?
Let's review this video in 10 years from now...
We will be laughing.
7:22 the parents smoking and the dad presumably holding a bottle of alcohol lmao
Edit: he even has a heart tattoo on his arm 😂😂
excellent explanation, the best I've seen for the 2008 economic crisis
This is the best presentation of the credit crisis, and I've watched 10 videos on it thus far. This same concept can be applied to anything, credit will never work in any system unless that system is actually creating new value. Using credit for automation works; using credit to buy assets, not so much.
Everything was right, right up until about 6:40. The problem is that this does not cover the massive carrot and stick model the Federal Government set in play. They punished banks, large and small alike, for discrimination if they didn't make enough mortgage loans to minorities. This was regardless of income or credit status. Also, who do you think was doing the overall insuring of the entire housing market that essentially took the risk away from the banks in the first place? Freddie Mac and Fannie Mae.
So banks were punished if they didn't give enough mortgages (essentially to people who couldn't afford them in the first place) and the risks were taken away by the Federal Government. They were essentially getting handed free money. That's why the bailouts happened. Privatize the profits, socialize the losses.
The 2008 financial crisis wasn't a problem of capitalism, no. It was a problem created by perverse incentives instituted by multiple levels of government combined with ridiculous fed policy, neither of which have learned from their mistakes.
DakAttack the problem started when the fed artificially increased credit
DakAttack aka min 1:25
@@metallica27796 Yes that more or less started "A bubble", but the federal policy directed where that bubble went essentially, and made it as large as it was.
very accurate description of the last credit crisis, though i come bearing a warning all those who read this would do well to heed. a bigger crisis looms 2008 was but a tremor and the main quake is yet to come. the problem lies within the very structure of the current economic system, this is not merely banks being stupid (though that has played a big part) the problem is the US economy is a credit economy, which only has a quarter billion in physical money circulating around yet trillions change hands daily (nearly all credit) the reason the US has gotten away with this for so long is people believe theres enough physical money in the system to balance the books.... there isn't not by a long shot (250bn over 60 trillion). and if those numbers make you turn pale and chill you to your bones (as they should) then i suggest figuring out your own plan B because the govt doesn't have one. i know ive made what appears to be a far fetched claim however the US dependency and use of credit has gone up steadily from 1950 to about the mid 80s where it exploded and took off to unseen heights, well it cant go on forever credit has to be paid back.
U mean the gov bonds could not be that secure?
Pio The Double X he mean buy gold and silver.
+Pio The Double X : It means start working out, learning how to hunt for food, learn history and academia as best as possible, learn peace and calm, and learn how to protect yourself and those that are good people...
Unfortunately, I have to agree. It's all going to blow up eventually. It won't just be the real estate market, it will be all forms of credit, which as you noted, the U.S. economy runs on. When the Federal Reserve can no longer sell Treasury bills to investors, foreign or domestic, it's The End. GG. Game over. Once it starts it'll happen breathtakingly fast. People will wake up to their banks being closed with chains on the door, their ATM and credit cards will be declined, their 401k's and investments worthless, the stock market bust.... everything will switch to cash only, paid in advance, no lines of credit and the businesses will start shutting down and the employees will be out of work with no income and no money on them to survive. Hyperinflation and hoarding will begin instantly, the stores run out of merchandise and food, the gas stations are out of gas.... so what comes next when you have millions and millions of angry and desperate people? Why, the guns, of course. Out come the guns. Lots and lots of guns.
The end.
Pio The Double X im saying nothing is safe forex stocks bonds equities futures nothing is safe this this is the economic equivalent of a star exploding
Why was there no mention of Fannie Mae or Freddie Mac? Or about Barney Frank? This presentation left some vital points out.
Of course it did. It's meant to be brief presentation. For me the most important part the presentation left out was the trade in Credit Default Swaps. In any case, I think there is another presentation about those things.
Tell me about barney frank
The best explanation I have seen on the subject.
i remember watching this video in class with 240p on a projector. i’d like to thank you greatly for making this HD.
thanks lord
I have no loan, and I have home from my own savings!
That's why I don't like having any debts
so basically GREED caused the crisis
+msabri1 No, it was nuns who caused the crisis...
+msabri1 Greed is also the one thing that keeps our system running smoothly. This problem originated with government's control of interest rates.
Joshua Stowers how can greed keep our system running smoothly? could you elaborate.
Because people always try to improve their own position (greed) they bend over backwards to provide, improve, and invent services and products to sell for us. Since everybody else is doing the same, businesses find themselves with competitors, which they then have to battle with by offering better or cheaper goods and services. In the process jobs are created, there is competition over employees, and better wages as a result. By acting in our own self interest we have been able to develop extraordinary medications, invent advanced technologies, and pull almost everybody out of poverty.
msabri1 It's not a perfect system, but it does a surprisingly good job.
This is the best explanation I have ever seen.
thank you jonathan jarvis. this was brilliantly done! really helped me get my head around what happened.
Actually, the investment banker does not necessarily need to go bankrupt. What if he insures himself against the colapse of the mortgages? And that is what they did. Even though it was illegal, i think only 1 investment banker went to jail.
Who does he insure it with?
The only thing I disagree with in this video is when he says "Federal Reserve Chairman Alan Greenspan lowers interest rates to only 1% to keep the economy strong" If having low interest rates keeps an economy strong, then why would they bother changing it?, Why interfere with economic prosperity? No, when the federal reserve keeps interest rates artificially low, all that means is that they are making money EASY to borrow and ACTUALLY sends false economic signals to the economy indicating there are A LOT of savings. But there are NOT a lot of savings. Their source of "savings" is a counterfeiting operation called "The Federal Reserve" which prints the money OUT OF THIN AIR. Unfortunately these low interest rates are meant for big wall street banks to borrow cheaply and speculate with these financial instruments he talks about. CDS, CDO, etc. Artificially Low interest rates causes inflation and makes everyone POORER. Moral of the story END THE FED.
To replace it with? Anarchy? Another bank/ reserve? Communism? just kidding but it's choosing between two evils
The FED, at least in USA, is not allowed to print money that freely. They are tied to a treatment that allow printing money proportional to their gold reserve. That is why USD has been a strong currency and used world wide. (That and a strong Economy)
After years of having high interest rate, effectively attract a flow of money into reserve, USA has trouble spending all those funds effectively. When you have so many money to spend and cannot used them well, and yet you still have to pay interest to bond holders -> Let's "give away" those money.
Hence, they started to lend out, starting with lower interest rate. They however, should create a barrier to borrow to ensure those funds/money are used correctly.
The currency crisis start with "risk", basically, bank took up a big amount of bad debt that are not recoverable (aka. default in the video. I have no ideas why this terminology was used, never heard of them before although I major in BA). At other perspective, we can say that GREED got over them and they willing to take risky assets without using the correct return rate.
Hoang Minh Le First of all your wrong.., there is no Gold Standard anymore. They eliminated that back in the 1970's under President Nixon which means YES they can print money that freely. And now that the entire world is on this FIAT paper money system there is not ONE credible currency. Every Currency out there is being inflated every single day by the central banks around the world. This is why debt is at record levels and the government and fed are pouring more and more money into the system which makes everyone poorer (INFLATION). You need to understand that Politicians, Bankers, and the Media work as shadow governments to rob the public blind. I dont mean to be rude but whatever you learned in Universities in regards to economics is false and is bad information to keep the system the way it is. You need to understand The Bilderberg Group, Council of Foreign Relations, David Rockefeller, the Rothchilds and their ownership of this system through the Federal Reserve Bank. They have been in control of our education system for years to keep majority of the public mislead to the truth about the world. And the truth is quite disturbing. After doing my research about the New World Order, Freemasons, Illuminati, Luciferienism and Satanism i can say without a doubt that Truth is Definitely Stranger than Fiction. Btw these financial instruments you hear about in this video were created by the very scum bags Larry Summers, Tim Geithner, Robert Ruban and the Bush administration to purposely destroy the economy and they KNEW the end result would be catastrophic and that the bankers would be the ONLY winners. Once again this is only a small part of the entire picture. Those names along with MANY others have sold out. You need to understand that majority of the government is corrupt to the core... That should be OBVIOUS by now...
Hoang Minh Le Your first paragraph couldn't be further from the truth
D R To replace it with nothing. We do not need the Fed. It's an evil tool for the government to keep us in debt while they buy more toys.
Lol! Love how they associate the irresponsible with a fat guy and more kids 😂
He and the wife were both big drinkers too.
The best explainer for the financial crisis I've ever seen.
Sharing with my friends, subscribed. You nailed it!
one of the best explanations I have ever seen on YT! Thanks!
0:25 - "how ddlh happen?"
The one that paid off their home, sleeps blissfully at night.
Our Economy runs on Credit,
there is more Credit out their than actual physical paper money,
that's why we have cycles of recessions, and then every few decades, we have a Economic Collapse or the Depression.
Basically, people are buying things they can't afford, and with more credit in the market, than income, people start defaulting on their loans, and voila, Banks and Investors lose their money, people lose their Collateral , and everything just goes to shit.
I am so glad to have found this. thank you so much. great job.
watched at my freshman year and watched it again four years later great explanation video!
This is what I should’ve been Learning in school instead of reading the catcher in the rye
And all because the investors were getting too greedy
greed kills everyone you are right .
You seem to have misunderstood the video. The investors were just doing there job, which usually benefits the economy. The reason for the crisis is that Alan Greenspan artificially lowered the interest rate. This both A) prevented the investors from making safe investments in Treasury Bonds, rather than risky sub-prime ones, and B) allowed for easy, cheap credit for the banks. It's how they got so much money to leverage, and when the malinvestment became unsustainable, and the interest rate increased, it all collapsed. It's the classic example of an artificial credit-fueled bubble. People seem to have the idea that bankers and Wall St. are the culprits (and trust me, I believe many of them are very immoral in their actions), but the real problem is government. If it weren't for the government, Wall St. wouldn't be able to do the bad things it does. If we want to solve problems like this, we need to abolish the Federal Reserve, and return to a monetary standard (of which gold is arguably the best).
To be fair, we are all greedy. Having more is as part as who we are, as it is to be curious. You know... humans
And the scroungers rated sub-prime weren't greedy for taking a loan they knew they couldn't afford in a million years? Scum exists on all levels of society.
***** Money in circulation + interest owed to the federal reserve.
Someone ask France if we can borrow a guillotine
I came here after watching The Big Short and it makes so much more sense now
Superb!! Still come back to this for revision. Wish to see more such videos!!!