Skip to content
Home » 🏡⬇ Housing Bubble and the Great Recession | 2008 Financial Crisis financial crisis 2008

🏡⬇ Housing Bubble and the Great Recession | 2008 Financial Crisis financial crisis 2008



2008 Financial Crisis (The Great Recession) was initiated by bursting of the housing bubble. But why there was a housing bubble in the first place? What was the root cause of the crisis of credit? What was the government response?
Learn Austrian Economics in a fun way!

LINKS
BLOG:
ANIMATIONS:

SUPPORT our project:

Visit our website:
Like our Facebook page:
Subscribe to our YouTube channel:

★★★★★★★★★★★★★★★★★★★★★★★★★★

Music on CC license:

Artifact – The Dark Contenent
Kevin MacLeod: Artifact – The Dark Contenent – na licencji Creative Commons Attribution (
Źródło:
Wykonawca:

See also  FINANCIAL MANAGEMENT TIPS FOR STUDENTS financial management

Kevin MacLeod: Brittle Rille – Reunited – na licencji Creative Commons Attribution (
Źródło:
Wykonawca:

Kevin MacLeod: Home Base Groove – na licencji Creative Commons Attribution (
Źródło:
Wykonawca:

★★★★★★★★★★★★★★★★★★★★★★★★★★

Econ Clips is an economic blog. Our objetive is teaching economics through easy to watch animated films. We talk about variety of subjects such as economy, finance, money, investing, monetary systems, financial markets, financial institutions, cental banks and so on. With us You can learn how to acquire wealth and make good financial decisions. How to be better at managing your personal finance. How to avoid a Ponzi Scheme and other financial frauds or fall into a credit trap. If You want to know how the economy really works, how to understand and protect yourself from inflation or economic collapse – join us on econclips.com. Learn Austrian Economics in a fun way! .

Images related to the topic financial crisis 2008

🏡⬇ Housing Bubble and the Great Recession | 2008 Financial Crisis

🏡⬇ Housing Bubble and the Great Recession | 2008 Financial Crisis

Search related to the topic 🏡⬇ Housing Bubble and the Great Recession | 2008 Financial Crisis

#Housing #Bubble #Great #Recession #Financial #Crisis
🏡⬇ Housing Bubble and the Great Recession | 2008 Financial Crisis
financial crisis 2008
See all the latest ways to make money online: See more here
See all the latest ways to make money online: See more here

25 thoughts on “🏡⬇ Housing Bubble and the Great Recession | 2008 Financial Crisis financial crisis 2008”

  1. The CRA was enacted in 1977 to combat redlining and other blatant discriminatory practices… Yeah, I'm not buying the argument that 30 years later banks were suddenly "afraid not to offer loans to 'high risk minorities.'" From the Federal Reserve (granted, a govt institution): "First, these commitments generally lack any enforcement mechanism and, to a large extent, may not represent increased lending or, surprisingly, even consist of CRA-targeted loans. For example, a Citigroup managing director testified to the FCIC that most CRA commitments "would have been fulfilled in the normal course of business" (FCIC, 2011, p. 99). The FCIC report also found that less than 1/4 of the loans pledged in the largest-ever CRA commitment ($800 billion by JPMorgan Chase) were to the lower-income borrowers and neighborhoods targeted by the CRA (FCIC, 2011, p. 97). https://www.federalreserve.gov/econresdata/notes/feds-notes/2015/assessing-the-community-reinvestment-acts-role-in-the-financial-crisis-20150526.html

  2. Im a little concerned with the placement of blame on efforts to undo years of discriminatory policies of banks which refused to grant loans to minorities. The redlining and refusal of banks to grant loans to minorities was racist and the videos focus on trying to undo these policies (while insinuating that minorities are the only people who sought loans they could not pay back) is shaky at best. It was really lower white middle class that were the main recipients of these mortgages that they could not pay back. Lets place the blame on the financial institutions that prevented the equal distribution of mortgages and not on efforts to overturn racist policies.

  3. incredibly biased take. if you are going to put your own political opinions into an "educational video" make sure to say it in the title. this was 50% facts and 50% your opinion about the economy, label it that way

  4. Most of what you said is true, but you overestimate the impact of the Community Reinvestment Act as a trigger for the crisis. The Act stipulated that they weren't to make bad loans, and it doesn't explain the fact that many of the unregulated actors gorged themselves on the sub-prime market, often to the excess of banks effected by the CRA. Private lenders had an incestuous relationship with the ratings agencies that allowed them to secure the highest ratings for even the most sub-prime trash debt, which fueled the continued demand for crap MBSies as both the lenders and investors had no incentive to stop. It was, in fact, perverse market incentives which caused the crash, and moral hazard with Fannie/Freddie which exacerbated it (although they were also duped by the ratings). Fannie/Freddie should be completely privatized and the ratings agencies should be state-run to prevent conflicts of interest.

  5. 6:38 there's a recording of Andrew Cuomo admitting that despite his intentions for raising home ownership rates for minorities, they would also see a higher bankruptcy rate… He was head of Housing and Urban Development in 1997 when they put this affirmative action policy.

  6. it is true that greed is the cause of great recession. u know greed people make lower interest rate regulation lure people to make stupid decision in buying home.

  7. I agree with everything stated other than your concerns with CRA , which is something that is more up for debate. When isolated, the effect of the CRA isn't as large as you would think that it was, most of the risky loans made by institutions that caused the crash were not required by the CRA, or were made by loaners not covered by the regulation's umbrella. Moreover, the default rate on CRA-backed loans weren't significantly worse than the average loan, and there wasnt much evidence that it influenced the profitability of banks.

    The CRA was successful in its goal of countering redlining, which included discrimination against people of color with both high incomes and low, so there was room to make good loans under the CRA requirements. It explicitly stipulated that loans made under the guidelines were to remain profitable, and that there was no obligation to take losses.

    If we are looking for the true culprit of the crash, it has to be the state-backed Fannie/Freddie. A private firm wouldn't securatize such risky loans, or at least there wouldnt be an assumed AAA rating.

Leave a Reply

Your email address will not be published.