1. Of course this doesn't explain the ENTIRE story…. The CRA and it's expansion in the 90's is the real driver of the housing bubble. Banks were forced by the federal government to make these bad credit loans to people who couldnt pay back the loans THAT WERE THEN BACKED BY FANNIE MAE AND FREDDIE MAC.

  2. Very nice explanation of what happened. We were heavy in mortgage sales and we lived The Big Short from the ground level. I can remember talking with my wife in 2005 and 2006 about how much of a ponzi scheme the housing market was. Janitors making $60K were getting interest only loans and living in $245K homes. Shouldn't be. It was an insane time to be at ground zero of the crisis to come.

  3. "the government failed to regulate and supervise the financial system" – yet you pussies cry when the government is too much in your business. So which one is it? You want the gov snooping around OR NOT?!?!?!

  4. Nothing here about the corruption of government by Wall Street. And about how the investments banks knew exactly what they were doing. The crisis was avoidable, but Wall Street set out to defraud everyone.
    I highly recommend watches 'Inside Job'. Hands down the best documentary out there on financial crisis.

  5. So why didn't mortgage bankers and other managers who created these fraudulent instruments go to prison? Our jails needed to be filled from coast to coast with these Republican criminals in white collars and other greedy thieves and regulators who ruined our economy. We had to wait 8 years for Obama to reverse the trend and who ultimately managed to save our economy. Now we have the insane Donald Trump hogging all the credit for himself.

  6. the banks are doing this again, but they gave this method a. new meaning, everyone don't buy a house on the next 2 years or less, mortgage crisis is going to happen again,

  7. The banks really are too big to fail.
    Strong banks, and you have a strong economy, and the respect of other countries.
    If the banks collapse, it has a cascading effect across the rest of the economy. There is a very fine line to maintaining a strong economy and once its crossed, there could be no going back for a very long time.

  8. Anyone who thinks they can fix the financial system by replacing it is delusional. All we can do is learn from our mistakes and don't make them again. A system that crashes once in a while is better than a system that may not be fair, free, or regulated.

  9. I love this course, but it is a bit US-centric! We don't have "green" money in Australia (it's different colours). Often when you are talking about "the economy" you are talking about the US economy. A more inclusive approach would be better.

  10. They were even holding on to the payments and posted them after the due date, which lead to penalties and late fees on top of the mortgage payment. This is what happened to my parents.

  11. Wow it's like deja vu, auto loans, student loans, and devaluation of money, to big to fail is bigger… Dow more then twice the size of it when it collapsed in 2008… i don't think we'll be able to kick the can down the road again this time

  12. You still hear more conservative people clamoring for fewer financial regulations because the free market economy will be stifled. There are many explanations for this, but two that immediately come to mind are that the explanation of the crisis given here is grossly inaccurate, or conservatives today have learned nothing from the free market-induced financial crisis that was ameliorated by none other than the government they love to hate

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