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- เผยแพร่เมื่อ 10 ก.พ. 2025
- Discover the confluence of events that prompted the Great Recession in America and its main culprit: the subprime mortgage housing crisis. Learn how the Great Recession affected the economy and how it differed from the Great Depression of the 1930s. #HistoryChannel
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Season 1
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It’s crazy how I grew up during this time and didn’t even know this happened until now
me too I grew up on February 2003
I imagine you must have been relatively young at the time?
I was born in 1998 and looking at the two economic downturns between 2008 and 2020, the financial crisis of 2008 could’ve been avoided if the housing market had not allowed those with low credit to buy homes. The financial crisis of 2020 could not have been avoided because well obviously pandemics are operated by nature.
Same 😭 I mean I wasn’t even 10 then so it makes sense that I didn’t notice but it’s just so weird that I lived through it
born 2002 sooo yeah same
I was playing call of duty the whole time. Didn't even know there was a recession going on lol
Lol same
@no no no I was 3
You know we are kinda going through a recession now thanks to COVID-19.
In mommy n Daddy's basement. 🤣😂🤣😂🤣😂
@@daniellekreviazuk we didnt have a basement
I graduated high school in 2008. No money and no family support. Life was rough. I'm trying to get my life together so the next recession won't touch me.
I didn't even know there was a recession in 2008 untill now- I didn't learn this in school or nothing
We’re about to hit a recession now. How are you doing?
Wow I’m graduating high school soon and a new recession might hit….its really scary..
If you don’t learn your history,
Your bound to repeat it.
But instead of the stock market, it’s the home market.
You're* ;)
and now some suggest the education market is next
@@projectjt3149 correct education is a big scam.
@@projectjt3149 get ready
The best lesson we can learn is use our money wisely and spend within our mean.. 😀
Used to work for mortgage company, and this is accurate. You should also mention, bankers were INTENTIONALLY giving out subprime loans so they can maximize their profits. That's why I can't work in sales industry anymore.
rickiex
That's their business. People should also research what the Federal Reserve Bank is. Hint: is not part of the US Gov't.
rickiex how would they unintentionally give out loans...? Lulz
He means that the banks knew that people would not be able to pay them back and people who invested in these loans would lose money. They didn't care and were only thinking of the ROI. They also knew that the Gov't would bail them out. They crashed the market and they got fat bonuses for it.
Abbas Timmy this is FALSE. They were required to! In 1992 congress order banks to offer subprime mortgages to low income and specifically minorities. These banks would never do this as it it wasn’t profitable. The mortgage back securities and all that stuff came in later. Credit rating companies and tranches absurd this. They would never been able to do this if banks weren’t required to hand out these mortgages.
@@SP3NTT Unintentional would mean that the banks did not know the risk. Every banks has a Risk Management division. The Mortgage companies and the banks knew exactly what they were initially doing in order to get rich. What they didn't bank on was that housing investment would cease and that the bubble would burst. This is because all prior charts pointed to home values increasing. Home values increasing too fast would make it hard for a person who normally would have no business buying a house to buy a house because they wouldn't be able to afford the home value plus interest rate and interest rates in 2005 were at 4-4.5% which at the time was low. So maybe they climbed in along with housing values but the bubble burst prior to 2008. It was actually in like early 2007.
Host is a great speaker 👏
I grew up during this and never knew it was happening. I still went to school, none of the staff had been laid off, and the bus drivers were still making their routes. And my parents were still working because their jobs were essential. Never knew about this until I was an adult.
I remember I was a kid in elementary school hearing about this, crazy how a lot of people just lost their homes like that.
All I remember from this at age 6-7 was that we were going to lose our home...which thankfully we didn't at that time and lasted 10 more years!
Me during the Great Recession: why can’t they just print out more money?
The material that they use to print money has value is not just a piece of paper so printing money can’t be done unless you use lenin and cotton and also making or printing money could double prices making the money less valueable
There will be domino effect they print more and business will take advantage until they print more and more then boom. The dollar has no value.
They did, they are doing and they will continue to do so. And now with negative interests rates coming, that is showing that it is taking increasing amounts of money to keep capitalism going, to the extent that the financial system has begun to require raiding its depositors for that continuation.
@@Nine-Signs , Bill Gates is giving away his money fast to charities because he knew it wont have any value and he knew where the dollar is heading.
@@theglorioussapphiremonkey4750 lol, wtf?!
The masses of unearned income Bill Gates is given per year via dividends, rents, and compound interest on that, vastly dwarf his yearly contributions to a given charity or fund. If it did not, his personal fortune would not keep rising. Mr Gates knows little of economic systems, their strengths and weaknesses and their systemics. I've seen similar such questions put to him that he simply admitted he could not answer as he did not know enough to do so.
Mr Gates like all of us to varying degree's, is in the position he is in due to how capitalism works not due to any particular brilliance on his part. Most of the base tech for DOS was stolen from a far brighter man and much of Bill Gates fortune is from extracting a portion of the wealth created by every worker under him from the first day he employed someone, never to end.
The bank employee who loaned 100k to a broke guy: *Oopsie*
I remember the recession vividly. I live in the Detroit area and watched on tv as they kept laying off thousands of auto workers. The whole area suffered. I didn’t have a job for over two years. The news paper back in 2009 published a listing of foreclosures in the area and it was two inches thick.
This goes back to my comment on this video. Have a look. It might explain a little about your situation back then. You were done wrong by Al Gore.
This is what caused my family to move to another state
who is here after the coronavirus pandemic?
Me..lol
Me
you mean, “during”
@@NlCKXY not if they're from the future
@@antalyab3603me
Parents divorced during this time. Never knew why until i learned of the recession
My bf at the time had a really great job but got laid off bc of what happened to the economy. It was such an awful and stressful time for both of us. I was still in undergrad school and he had just gotten his MBA and had so many hopes and dreams. He played for Chicago slaughter & was in the army too. He had so much great stuff going on for him.
But after he got laid off, he tried really hard to stay afloat but we eventually had to move out of Chicago. He started drinking & got into a lot of trouble. It really ruined his life. I’m so sad about this but I think he’s finally just healing from everything bad that’s happened since then. He’s very strong willed and overly arrogant. That attitude was good and bad but I won’t go into it now.
I haven’t talked to him at all since we broke up a long time ago but I hope he’s happy and living a good life now.
Harvey An-Nasir Salah ad-Din Royce you have no idea what we went through or what I did for him. So don’t assume I said it for no reason.
Not sure why you would post all this up on youtube unless you're fishing for pity posts.
Ehhh maybe you shouldnt have said all that at the end.
Well with Obiden in office, We will see these bad times again in 2022.
Left after he fell off, like most women
It's also a major reason why so many grown children are still living with their parents.
In Asian culture, houses are usually inherited since land is more expensive in Asian Countries
Funny how we went from everyone being able to get a home to no one can get a home.
Is this why my parents argued a lot during this time and are completely fine now? Lol
Quick, informative, easy to understand 👍🏾
ur si fat
Thank you for the explanation, I needed it for my economics class.
I remember living during this time. Was a sad time....so is this year.
Anybody here after Covid-19
Nah I’m here after the gamestop stocks
That’s old news buddy
we're probably heading for another one within the next 3-4 years
I remember being in middle school when this happened. I had no idea how serious it was.
Never buy at all-time highs, that is crazy....
I made that mistake myself a few months back. My portfolio is almost at 8% losses. It'll be years before that portfolio turns a profit.
RIP
Like California right now?
@@Eisenbison
Did you keep your money in? You'd be rich of you did.
@@betohax I kept it in for my Roth IRA. I've made nearly $1000 in tax-free income.
@@Eisenbison
How about now....
very informative - im doing my presentation based on your preview... thanks !
short and informative! thanks, like is deserved
Just doing my homework for what we're about to face again :(
I graduated high school in 2003, and undergrad 2007... i remember gas and gold prices shooting through the roof... i seen how bad it was but didn't understand the severity until i was a little older and researched the economy... i was so young at the time but after researching, that collapse was BAD!!!
Thanks bro! true G! helped me understand how to do my homework. U r actually pretty good at explaining. Thanks
Amazing video, thank you
wow ...... can't believe that was in my Mom's lifetime and I haven't even heard about it until I started researching different generations ......
It happened during Obama's presidency and the administration was claiming it wasn't that big of a deal, and the media went along with it. Up to the 2008 election you can find many news sites complaining about an impending financial crisis in order to encourage voting for a democrats (since democrats got a good reputation for growing the economy during Clinton, even though it was actually due to Newt Gingrich), but after the election many articles start trying to downplay the economy. The administration even claimed jobs were growing in the second term by citing part time jobs over full time jobs. The current economy right now is like day and night compared to just several years ago. Many can tell you how difficult it was to get a job, even if you had the credentials. Google even reduced hours of most of their workers and claimed they were giving them "more free time" to have fun.
Dave Smith began in 2007 buddy and was 2 years before Obama takes office in inauguration in 2009
@@1999ToyotaSupra Foreclosures happened in 2007 because the media started claiming the economy was doing poorly when it wasn't for preparation for the coming election. This is because due to Newt Gingrich helping Bill Clinton, the democrats gained a recent reputation as being saviors of economic issues, so downplaying the economy would rate favorably for a democrat candidate.
Foreclosures didn't become a major issue until 2008 when it doubled within months due to many early predictions were that Obama would win. Obama on the campaign trail frequently talked about how he would socialize medicare and increase taxes. This caused lots of companies to pull back and start downsizing early to prepare for the costs of 2008 and the following four years. Coupled with the Fed losing the pulse, it resulted in many people stuck in the middle.
@@DaveSmith-cp5kjObama's the one who ordered an investigation into the banks like Fannie Mae and what caused the recession. I remember Wells Fargo taking houses back. He created the stimulus package which assisted the economy.
I was born in 1998 and I told my mom the other day when I think of the most historical things in my lifetime. I told her the 9/11 attacks and this.
How can you remember 9/11 when you was only 2-3 years old. I was 3 at the time and I don’t remember anything that happened that day.
supermoneymagnet1 the only thing I remember, was my parents dressed me and my brother up as a policeman and fireman that year for Halloween. So I don’t remember the day itself but I remember it being a season of mourning and commemoration and the “patriot spirit”
Same ... I just remember how depressed my family was
redv bae about 9/11 or the recession?
Thank you for the explanation
Long story short, dont be stupid and go buying houses that you cant afford and buying them with money you dont even have, buy things outright, and live within your means,
Buying a house is a great retirement plan, it’s better then paying rent
Wow! explained pretty easily and pretty well. Thanks historytv18!!💙💙🤙
The county I live in is heavy into manufacturing and it came to a screeching halt. Some businesses took over a year to get busy again.
I got through it alright but knew people that lost homes.
Builders were building expensive homes as fast as they could as mortgages were easy to get.
There ended up a lot of foreclosed homes and one big builder actually left the country when things fell apart..nobody haven't heard from him since
One local large bank went under which was a shock .
Lots of small banks were trying to get on the bandwagon and they got hurt also.
Gas was spiking in price right before then also and I could just feel something bad was going to happen to the economy.
This totally ignores the effect of the "Fair Housing Act" and the pressure that the government put on lenders to make more and sub-prime loans.
Larry Marsh of course it ignores the roll of government. What you expected an honest evaluation of the facts? Our government overlords are here to protect us from the evil rich guy. At least that’s what public school taught me
Larry Marsh, Don’t forget Bill Clinton’s contribution. In 1995, using the powers of the presidency, Bill Clinton turned the 1977 Community Reinvestment Act into an aggressive program that basically forced banks to lend money to "underserved" communities. That meant those with low incomes who couldn't necessarily repay a loan.
Yes! Thank you!
@@davidgrover5996 I don't think I've ever seen a more blatant racist dogwhistle in my life
Australia was one of 40 countries that didn't go into recession
How did australia prevent it?
At age 12, this kicked start my interest and passion in politics.
During my Final Year in High School as a 12th Grade Senior Class of 2008 through College.
Besttt everrr explanation
The recession has only made us stronger. We've learned a lot and we're ready to take on the world.
Great simple video.
Banks should never let low credit people borrow enough for a home, just a moderate car and see how they do first! A few people get richer while everyone else gets much poorer. Real Bad deal.
Yeah but it’s racist they say to not give low credit people loans
no "why?" question was answered in this video:
Nobody talked about futures
Nobody talked about oversaturation
General Motors had to kill Pontiac, Saturn and Hummer and sold Saab to someone else because of the recession
Dawg I can’t believe I was only a baby and a toddler during this whole recession.
People think we’re gonna be in another recession at some point😖
great video
Kids born in 2007-09 were having a field day without knowing the inflation was worse than 2020s😔
Every election (this is my 3rd) I watch this video to remind myself of where I’ve come from.
Clear concise
Get ready for round 2
You didn’t say what caused the housing market bubble to burst
Obama's election. People got scared due to the impending regulation hits on business (primarily with healthcare fees) causing them to shrink back and that triggered the wave of job losses and refusal to hire we saw in the following several years. Basically it came down to why would a company hire a person full time and have to pay the enormous fees when they could hire multiple people part time at a much lower cost.
@@DaveSmith-cp5kj Obamas Election? False. the cause of the crash happened well before obama was elected president. in 2007, the defaults and foreclosures started, and the economy was well on its way to the bottom before the Obama campaign.
@@qntainmnt Not quite. Foreclosures happened in 2007 because the media started claiming the economy was doing poorly when it wasn't for preparation for the coming election. This is because due to Newt Gingrich helping Bill Clinton, the democrats gained a recent reputation as being saviors of economic issues, so downplaying the economy would rate favorably for a democrat candidate.
Foreclosures didn't become a major issue until 2008 when it doubled within months due to many early predictions were that Obama would win. Obama on the campaign trail frequently talked about how he would socialize medicare and increase taxes. This caused lots of companies to pull back and start downsizing early to prepare for the costs of 2008 and the following four years. Coupled with the Fed losing the pulse, it resulted in many people stuck in the middle.
The bubble burst because economic bubbles are unstable. The market grew too fast and prices got too high for the bulk of the market. Once prices hit their peak, the only way left to go was down.
@@DaveSmith-cp5kj The threat of Obummercare and Gov't control was indeed a big factor in the falling economy. I still remember how the fake media would say during the Obama years unemployment was at a low yet millions of people were out of a job.
Watch or read "the big short" of you're interested in this topic.
1989 the first subprime loans appeared, they surged in the 1990s and early 2000s.
Yup because of Clinton
@@masculinemillennialtv7566 Yeah, the 1995 Cra, the same legislation that incentivized lenders to authorize subprime loans. They had good intentions, but the outcome was terrible.
Waiting for part 2
So it happened because the banks were not regulated.
Dang, I was only 8 years old at the time, it makes sense now why my parents said that times were tough and I wouldn’t be able to get a Wii for Christmas.
1:43 You failed to say why home prices dropped in the first place.
I've been homeless ever since and now I have a drinking problem.
I remember during these times the fuel prices were nearing $5/gal
Now look
Kinda like now
@repunklican1181 adjust it for inflation and consider cars were less fuel efficient then and its even more eye-popping.
No mention of mortgage backed securities or credit default swaps?
theres one thing i dont understand...if the only thing that his value dropped was the homes, how did it become HARDER to pay for them?
I was just jamming to Taylor Swift’s Fearless album during this time, and Fearless (Taylor’s Version) just came out in 2021. I’m not sure whether 2008 wasn’t that long ago, or Taylor is just so productive and swift at making music. Kidding aside, I hope everyone impacted all stood, fought and believed that things will change… for the better.
Moral of the story, don't live outside your means.
I’m here for when this happens again after Christmas
Same
"The primary cause of the great recession was the subprime mortgage crisis." No it wasn't.
The primary cause was the USA creating hyperinflation through years of near zero percent interest on federal reserve loans and more. The banks had two options, capture more of the huge influx of cash in the economy or die; because of loss of purchasing power due to debilitating hyperinflation.
Exactly. I may be wrong, but I believe this video is trying to rewrite history to say deregulation is bad when government regulation of the economy via the fed was the real problem then and also in the depression too.
I don't understand. Can you explain, please?
In other words exactly what they are doing in 2019?? 🤔
but the only different is at that time the debt was at 8.9 trillion dollars now its 20 trillion dollars....
@@baussocks Uh, yeah but GDP was also lower as to now.
This is cray-zy!
Got this suggestion in August 2024
Good Morning
End the Fed
-Ron Paul
AMAZING VIDEO! REALLY WELL DONE
This is a tale of nothing but greed.
LOVE AND BLESSINGS 💓 FROM RAVINDER TALWAR
1. Fed (a non-government agency) printed money and lent to banks.
2. Government mandated more loans to the poor.
3. To maximize profits, banks lent even to those who were poor credit risks, then sold the loans to unwary purchasers.
4. Buyers were lured in rising house values.
Funny enough in December of 2007 was when me and my family moved from California to Illinois
This is a result of deregulation.
I knew a real estate agent who was doing really really well for two years before the crash. She sold real estate left and right and made a ton of money. She said people were idiots buying far more than they could afford with a ARM loan.
She says she feels no guilt. She said these were adults who made their own decisions. If she didn't sell the home, then someone else would of.
She told me everyone got in the business of selling homes back then. Getting a mortgage from the bank was extremely easy and very few were denied a loan application. Pretty much if you had a job for a year and a credit score above 540, you shouldn't have a problem getting an ARM loan. FHA was even easier.
Could the 2008 U.S Recession have been avoided?
Sure, just like the Great Depression could have been avoided: stopping the Federal Reserve. The fed gets a bad pulse on the economy, lowers interest rates and banks end up having to give out easy loans people can't pay back and then the economy crashes. The video is actually very misleading saying it was due to deregulation, when both the Great Depression and the Recession were a factor of bad interest rate manipulation
@@DaveSmith-cp5kj Even without the Fed, interest rates can still be manipulated. Interest is the way to profit from the act of lending someone something.
@@tiendoan1333 You misunderstand. Interest rate manipulation itself is not bad, what is bad is the gov establishing the rates for various businesses. What is bad is someone else setting your prices for your business operation.
It is like if you owned a store where you bought products for $5 and sold for $6, then the gov told you you had to sell it for $5 because bigger department store corporations can buy in bulk for $4 and profit at the same amount at $5 and tell you to deal with it, even though they don't understand the situation of your business.
A bank for example would be very stupid to offer a low interest rate to an unstable business that clearly doesn't weigh the risk vs reward well. If a bank makes enough of those bad choices, they lose money and are unable to function as a bank. This hurts everyone. The Fed however takes away that judgement from the banks and decides for itself what the banks should do. This is done with the implication that the Fed has the most accurate pulse on the economy... but keep in mind that the government is trillions of dollars in debt, they aren't exactly very successful in economic proficiency. It is like making the head of all the banks a gambling addict. It is stupid.
The main reason the Federal Reserve continues to exist is because the government cannot make a sound budget ever since FDR did away with the gold standard in order to fund the disastrous "New Deal". They constantly spend more than they are given through taxes. This is why taxes keep going up and the dollar keeps devaluing. This normally would destroy a country, but rather than becoming fiscally responsible, the government controlled the banks so they can manipulate trends of buying and saving via interest rates. This is why our markets are so economically unstable and people have trouble saving for retirement where as a century ago this was not nearly as difficult.
Starting on 2006 to 2014 10 million
The Great Depression, The Great Recession and now The Great Incession. Move on and learn from prior Generations.
Left a lot out
I was born at that time
Learn something!
I'll never understand why people put themselves into debt. You're basically signing yourself up to slavery
Well, every rich guy is full of debt. Because when money printer goes brrrrr, it is way better to have assets bought with debt than having no debt and saving to buy assets. And that printer goes brrrr more often in past years. The only thing is to analyze market correctly and not overleverage yourself.
Those subprime mortgages.
Gen X caused the Great Recession. Gen Xers were high spenders during the housing bubble. Houses went from small ranch homes to large cookie-cutter McMansions.. all in just under two decades. I see consumerism as a waste. I also don’t buy things I don’t need.
at least with the coronavirus people were more social more in harmony
NO CC ??
Thank you for the upload,,, just wondering the extent to which ordinary people contributed to the crash through their own financial recklessness,,, here in Ireland the banks got all the blame but most people I know were very careless with their money spending it like it was gonna be there forever,,, not trying to antagonise here,,, but you have to ask this question if you want to really understand what happened,, rather than just casually blaming it all on the banks,,
this is very subjective, but I believe that banks as the lenders should have had a threshold to which they give people money. The reason why banks are to blame is because with higher interest comes more gains so they got greedy and you know how that goes.
Yes, It’s called predatory banking. They knew what they were doing
Waiting for another housing crash so I can afford a 2 bed 1 bath house that doesn’t cost 400K
To anyone who was born 1996 and after, is it just me or is anyone trying to grind to beat the clock before the next recession comes as in youre trying to stockpile so much or get a recession proof job so the next time the economy crashes it wont touch you? Healthcare seems to be a popular dream career amongst us for this and the fact we are helping humanity
I was worried about this for a long time after my high school graduation. Healthcare certainly guarantees employment, but no one imagined we would be living in a global pandemic. What has kept me and many others employed is working in non-profit. I've worked at more than 3 now and my experience so far has been positive. What also surprises me is they all went virtual without letting people.
I know how every economic crash Is named with the work “great” in it ..
Almighty God bless everyone
Find the cheap house
The Balance of factors in many area.sss in a business-environment departed into many imbalances but artificially prevented by superficial intervention from normal-correction (auto rebalancing of demand and supply) (politicians not well schooled in economics) (stupidity of price protection theories) resulting in an imbalance too big to hide thus causing a bigger and longer stock-market correction known as recession to the last few support-levels (financial-health of population - demand and supply).
This feels like a grown up version of reading rainbow. 😜😜😜
I was two years old when all this happened 😂