I remember in November of 2008, i was 14 years old when i saw the terrible look on my dads face when he said we were loosing our beautiful home. We had to move to some horrible house that had mold, dirty carpets, and no central heating or ac. My dad had lost his job and was struggling to have food on the table. I felt useless/helpless becuase i couldnt do much to help, It was very tough but in the end we survived. All of this just made me realize how much of a hard worker my dad was, he never gave up. Now im 22 years old and we have our own business now, and a beautiful home

"History doesn't repeat itself, but it often rhymes" - Mark Twain

@SirPuggsly

4 жыл бұрын

I thought it was George Lucas. Something about poetry...

@jamiedellafave8695

4 жыл бұрын

Thank you I had never heard this quote before I really love it ❤️

I was 9 years old in 2008, and my father worked for AIG. My recollection of it was that my dad and I were at a local restaurant and he was reading a newspaper (an actual paper, ye yungins) and he just told me "Nate, we have made a mistake."

@jakethunderbird8735

5 жыл бұрын

I was 7 in 2008 and my mom and my siblings moved to Mexico which is where my mom is from and moved with family there for about 8 months due to this crisis. My dad had to stay at the home we left and hard to work a tough job as a truck driver. We later moved back when my dad gave us the OK

@LoneWolf303

5 жыл бұрын

My family lost 20 million my auntie 5mil dad 5mil grandparents 10mil

@goteacher7981

5 жыл бұрын

I was the same age. In my country it was felt differently but I remember that I was always asking for the cheapest ice cream, thinking that was the way to help my family budget :))

@thepred28702

5 жыл бұрын

I was 12 in 2008, my dad was an electrician and my mom a maid. Both lost their jobs and we had to survive off of 300 dollars a month and stale church hand outs. It was like that for 2 years, horrible times

@royxeph_arcanex

5 жыл бұрын

I was 11. My country was thankfully a lot less affected by the crisis than most other countries so I barely felt its impact in my everyday life, but they were talking about it a lot on TV so one day I decided to ask my dad why is there a financial crisis and it went like this: Him: "There are some business people who borrowed money they can't return" Me: "So why did they borrow it?" Him: "Because they thought they could give it back" Me: "So weren't they too irresponsible?" Dad: "Yes" Me: "But dad, why are people like that?" Dad: (pause) "Son, now you can finally realize what type of people await when you grow up" I'm 21, and this was one of the greatest life lessons I learned yet

“Put down your crossbows” Yeah right, then you’ll attack me with your crossbow.

@Darth_manick

4 жыл бұрын

Lmao 🤣🤣

@samboi123

4 жыл бұрын

Hagrid rarely put down his crossbow... but he just straight up broke it lol

Who’s here during the great crash of 2020?

@jadegray2730

4 жыл бұрын

Vinista 🤚

@the_wau_

4 жыл бұрын

woot

@ivoriankoua3916

4 жыл бұрын

lol u already named it!

@WelFonz

4 жыл бұрын

👋🏿

@stephandoan

4 жыл бұрын

Not me.

And we, the hardworking taxpayers, bailed the bankers out so they could go on giving themselves tens of millions of dollars in bonuses and living in luxury on their private islands.

I was 8 when the crash happened, so I was blissfully unaware of what was going on. Now learning about what happened and having recent experience with loans, it sounds absolutely absurd for banks to give out credit without checking proof of income. Like I audibly screeched when adriene said that.

So it's basically because the financial industry turned the economy into a Monopoly game played inside a casino. Amazing.

@kindakhalaf7509

4 жыл бұрын

exactly

I can't wait for the Crash Course Economics episode of the impending "Student Loan Debt Bubble"!

@Ek70R

6 жыл бұрын

better grab your popcorn!!!

@EdwardOrnelas

5 жыл бұрын

We just hit 1.5 Trillion, this will be interesting

@henrygustav7948

5 жыл бұрын

mort debt 15 trillion, CC debt 1 trillion student loan debt 1.5 trillion. most of the money circulation is bank credit. Loans create deposits economy expands, loans paid back economy contracts. The problem is bank credit. The solution is deficit spending.

@eross21363

5 жыл бұрын

It’s about to happen!

@idontlikeyouyo

5 жыл бұрын

3 years later still no Student Loan Debt Bubble. The reason is... You owe the government and the government, always ALWAYS will get their money from you. You can never default or call bankruptcy.

Who else is here because your business teacher didn't explain anything

@seeDiersoilcrossrowds

5 жыл бұрын

I was taught in the mid 1980's in High school to NEVER get a loan that was not a fixed rate. If more people knew this, this would of never happened.

@letsgetcancer7265

5 жыл бұрын

Same

@TrenchcoatNinja3

4 жыл бұрын

@@seeDiersoilcrossrowds my thoughts exactly. You'd be surprised how many people stuck themselves with ARMs or balloon loans, and then call and complain that the rate went up, or that they found out about the balloon payment when they most likely failed to read the mortgage note.

@judithkimball2125

4 жыл бұрын

seeDiersoil crossrowds; To be fair, the professor TRIED to explain.

@motlagomangmakoe4456

4 жыл бұрын

And this is in the final exam😭💔

"And eventually, they just blaimed immigrants and poor people, and this time even teachers"

@saishabathla

4 жыл бұрын

best movie

@galactic904

4 жыл бұрын

Great movie it was.

@Big-guy1981

4 жыл бұрын

Actually nobody blamed immigrants or teachers.

@mrthugamer7603

4 жыл бұрын

@@Big-guy1981 it's in the film

@tomlaureys1734

4 жыл бұрын

@@mrthugamer7603 at the time of these events I didn't see anything in the news blaming immigrants and teachers. But if it's in a film it must be true.

The Big Short was a great documentary of exactly who the players were and what happened (mostly behind the scenes), but this "Crash Course" was really good at giving an overview.

Thumbs up if you came to this after watching The Big Short

@socialjustice1379

5 жыл бұрын

I have a test on this thank you

@abloshow91

5 жыл бұрын

Yep

@SANKETBENDBHAR

5 жыл бұрын

I came before watching

@jessicapineda117

4 жыл бұрын

What is that movie about

@abloshow91

4 жыл бұрын

@@jessicapineda117 financial math hookers and superstars explaining recession and how buying houses works. ( heh i geuss i retained some information).

I was 8 in 2008, and I remember my dad putting up our house for sale and it being sold right before the crash in 2008. We were extremely lucky quiet honestly, it really pisses me off that so many were hurt because of these financial company's and banks who were a little too big for there briches.

@andresmartinez8439

4 жыл бұрын

Kyrsten Carlson back in 2009 I had a friend told me that her father was having heart problems. I asked why is that? Because Chase Bank was going to close their home.

"How an Economy Grows and Why It Crashes" is a must read.

Anyone watched "The Big Short" ?

@laurencerosenthalwinckler4439

5 жыл бұрын

yep., next thing i wanna watch is this dude using a van hallen belt buckle or even pantera

@abc-xn7db

5 жыл бұрын

Not yet haha

@shawnmoney8055

4 жыл бұрын

In my top 5 favorite movies You should also check out Margin Call

@The_New_Abnormal_World_Order

4 жыл бұрын

It was a great film. I don't know how they managed to make me empathise with characters that benefit from the suffering of millions tho!!!

Had to watch this when there was like 35 minutes left in The Big Short.

@masterchef1837

7 жыл бұрын

im watching that now. Had to pause it to research it so i could understand it better :)

@mohamedradwan388

7 жыл бұрын

same here :)

@shanekasodope7257

7 жыл бұрын

lol me too I realized I was lost af from the beginning 'cause I never really completely understand the recession

@mun6832

7 жыл бұрын

hahahahhaa exactly why im here

@mike-ner6645

7 жыл бұрын

THANK YOU!!!! Im glad someone said it!

I used to be a large format printer. The firm I worked for printed blueprints and our bread and butter was home builders. When the crash hit nobody was building new houses. My firm was hit hard and even though we switched over to more school and hospital plans I got laid off in the 3rd round of layoffs. The firm went from 200 employees to 80 in 6 months. That was the best paying job I ever had.

"Things got better..." no they didn't, they just got pushed down the road

@wojtekthebear4958

4 жыл бұрын

They actually did get somewhat better thanks to legislation like Dodd-Frank. Too bad it's been gutted.

@JK-gu3tl

4 жыл бұрын

"Money Printing Press goes bbbrrrrrrr......."

@marcellenel3569

4 жыл бұрын

Sadly the so-called "experts" in the industry mistake "getting better" for "making it someone else's problem". What happened in the crisis? I'll tell you what happened. The US entered 2008 fiscal year with a national debt of about $9 trillion. At about the end of 2009 when the crisis was "over" it stood at about $12 trillion. Thus, the so-called "got better" actually just means they made $3 trillion in national debt to bail out the big financial institutions who caused the issue in the first place, thereby increasing the general public's future tax obligations of paying back the price of the bailouts. Literally all they did was punish the very group of people who fell victim to the crisis in the first place and rewarded the very group that caused the meltdown. That is the problem the world has. It rewards the elite and punishes the middle class. It will happen with the current coronavirus induced crisis as well. But make no mistake, the crisis is not BECAUSE of coronavirus. It is because of GOVERNMENT's RESPONSE to the coronavirus.

@historynut3460

4 жыл бұрын

@@marcellenel3569 How did the big financial institutions cause the crisis? The government started the problem by making it illegal to build on much of the land in California, driving up the value of the existing land to inflated prices, limiting homeownership. In order to fulfill their campaign to make it so every American can own a home, the democrats forced the banks to make bad loans by dragging them into court for not giving loans to poor people and minorities. The banks had to create some stupid loans that these people could actually afford, and then they passed the mortgages onto the government-sponsored Fannie Mae and Freddie Mac. When the people didn't pay their mortgages, the value of the securities vanished. So the fed hit the printing press to fix the problem.

My parents got lucky. Back in early 2008 just before the crash my parents had gotten a house with two mortgages. Fast forward two years and one of the banks went belly up and the first mortgage was forgiven so my parents ended up with half the payment and an a suddenly huge equity in the house. We had also started our own business and barely managed to get by. Looking back I can't believe we survived it!

Oh wait, we survived the 2008 Financial Crisis? Please excuse me, i need to return to my secret lair, grab all the weapons and ammo that I have been stockpiling for a revolution, and sell all that crap to make some money back.

@OMGltsFred

8 жыл бұрын

+Achillez It has indeed been ongoing with like 4 if not 5 by now, federal loans over the years since 2008. Which makes the economy artificially recovering, and the feds are just printing money, so after a couple of more government loans, and we will be worst of then 2008.

@mbanana23456

8 жыл бұрын

+Achillez godammit it's asholes like you who are crashing the weapons market

@joshbobst1629

8 жыл бұрын

+OMGltsFred I don't think so. The reason is the exponentially increasing nature of economies. Currently all the wealth of that exponential increase accrues to a very few really wealthy institutions, and not to most workers. This makes it seem like the economy is failing. In truth, the economy has continued to grow at the historical mean of ~ 3-4% annually. This means global wealth doubles about every fourteen years, as it is on track to do now. In 2022, the Dow will have a value of about 20,000, double what it was before the crash of 2008. The Fed printing money is just a way to pay for current projects - like maintaining the fiscal health of our civilization - by borrowing from future productivity. The reason this works is that the future is way richer than the present, and current debt will be worth half what it is now in fourteen years.

@OMGltsFred

8 жыл бұрын

Josh Bobst Interesting, so when would you souppose the dept will decrease? Isn't this logic you presented, going to keep going, becuase "the future will be richer" so that justifies increasing a debt increase for all eternity?

@SpathaMagna

8 жыл бұрын

+OMGltsFred We'll probably see a debt decrease when changes in taxes and economic growth occur. For instance, CO2 emissions taxes and tariffs have the potential to add revenue streams, without directly taxing citizens. New technologies in particular have the potential to create economic growth, as they become new exports, improve existing industries, or both. However, all this assumes the government doesn't pursue greater spending when they are no longer faced with collapse from debt. In some ways, debt is acceptable and even advantageous -- provided lender confidence is strong. This is what makes the government shutdown more dangerous than high debt, because it undermines lender confidence and threatens debt management with potential austerity measures.

Here comes the productive, interesting and nuanced internet discussion! Oh wait...

@SinHurr

8 жыл бұрын

+Menko We can dream.

@ispeakasiplease

8 жыл бұрын

+Menko A self-fulfilling comment...

@Iznikroc

8 жыл бұрын

+Menko productivity is determined by expectations. if you only want to have a discussion to agree with other people, you must be new to the internet...the internet is a fiery crucible where ideas clash.

@CarlyleA999

8 жыл бұрын

+Menko People in KZread comments are only there because they're not being productive. Or doing anything interesting...

@zemorph42

8 жыл бұрын

+CarlyleA999 Hey! I resemble that remark! (Really; I have nothing better to do)

I was 7 when that happened. Our bubbling growing town suddenly became a ghost town. My dad’s busy company became a 1 man army and he was suddenly home a lot more. Then we moved to a different state and my parents lost the house. My family went from comfortable middle class to almost homeless a few times. Nowadays, my parents has their company again and are looking at getting house finally

My first year of college was 2008. My dad worked in the auto industry. My mom was a realtor. Talk about the worst situation at the time. Ended up having to join the Army to get some reliable income and put myself through school. Ended up being a great decision but man that was a tough time.

0:44 No, YOU survived it. I can't even afford a decent crossbow.

@olivercuenca4109

5 жыл бұрын

Crossbow? You one of those fuel-loving Mad Max road warriors he mentioned?

@4-CQL

5 жыл бұрын

R3Testa yet you have a device capable of accessing KZread

@AzazelEblis

5 жыл бұрын

@@4-CQL Impoverished Nigerians claiming to be princes, and pretending to be hot girls on tinder have access too. Doesnt mean they can farm or hunt food.

@SilverSentinel

5 жыл бұрын

@@olivercuenca4109 You got a problem with road warrior-ing? 🤨

@ussocom3644

5 жыл бұрын

Sorry to inform you cupcake, but that's *your* fault.

it was a big game of pass the bomb and there were too many that couldn't be defused.

@HamletTwin

4 жыл бұрын

Alright which of you cheapskates didn't buy a defuse kit?

Who's ready for 2020: The Great Recession Electric Boogloo?

@hschsc1300

5 жыл бұрын

So it seems you are woke too. We deserve jobs when that happens, more so than anyone in Wall Street or the Fed.

@vaxen805

5 жыл бұрын

@@hschsc1300 i agree. Keep in mind the most billionaires were made after the Great Depression.

@randyscott3386

4 жыл бұрын

If Trump doesn't get reelected we're all screwed . I'll never vote democrat again .

@Sky_god1

4 жыл бұрын

2023 is my guess. In November.

@ofirbenattar9508

4 жыл бұрын

some one can explain this pls????

Excellent video!!!! This is definitely one of the best videos out there for anyone wanting to learn about the Financial Crisis that took place in 2008.

I'm 13 and recently I have just watched the movie "Too Big Short", because of my ignorance; naturally, a lot of economic terms did not make sense to my understanding, but by watching this short video representation of the 2008 Financial disaster, I have finally understood most of the terms. Thanks a lot, guys!

@frankjones4622

8 жыл бұрын

The big short explained it way better than this, investment bankers are scum bags and hopefully that movie helped open people's eyes, also credit default swaps are higher now than they were in 2008 so I think we are in for some fun

@rajivunome

8 жыл бұрын

+Yuan Yu God dame 13, so you wasn't on KZread back in 2006

@henrykingfire6236

8 жыл бұрын

I'm 13 and I understand this too

The movie just out, "The Big Short" does a fantastic job of showing what went on with this, even providing some clever illustrations to help define/explain the more technical sounding stuff. Brilliant direction and acting make it a must see for someone curious about this calamitous event.

Beautifully written and thoroughly explained. Love it.

The teachings on this channel are always top notch so informative and easy to understand, it's very hard to find good content online these days

I've been fascinated with the research on the 2008 crisis. Been following Planet Money from NPR since 2009 and they often go back to it with new information relating to places around the world.

@ozonefreak2

8 жыл бұрын

SAME

@kaiseramadeus233

8 жыл бұрын

I barely remember the crisis

@iant419

8 жыл бұрын

+SirCrest NPR.... jesus f***ing christ...

@SirCrest

8 жыл бұрын

+ian turner :\ Planet Money is a podcast though not on the Radio. It's pretty separate from the network. I would really recommend it. Has some great episodes analyzing all sorts of markets and industries over the world. But if you hate NPR then I suppose I can't sway you.

@crashcourse

8 жыл бұрын

+SirCrest Agreed. Planet Money is REALLY good. -stan

Moment I started HS in 2008, was the beginning of a very difficult chapter of my life. I first noticed it when a lot of my favorite small businesses were closing at a rapid rate. Almost 10 years later it feels like a repeat but with new closing settings. #ThinkingOutLoud

I love these people for the way they articulate lessons. They make it interesting and simple to understand such complex subjects, events and etc.

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.

Mortgages: you might already know what that means Me: yes, yes I learned from monopoly

So basically we have not learned from the Great Depression

@SinHurr

8 жыл бұрын

+Abe It's not that we didn't learn, it's that we forget entirely too quickly. We need an elf or something really long lived to constantly remind us, "hey, don't do that stupid thing again. It was bad." Because History class isn't doing it.

@SinHurr

8 жыл бұрын

+Abe It's not that we didn't learn, it's that we forget entirely too quickly. We need an elf or something really long lived to constantly remind us, "hey, don't do that stupid thing again. It was bad." Because History class isn't doing it.

@JediBearBob

8 жыл бұрын

+Abe Rather, we forgot everything we had learned, and grew complacent. Pride goeth before a fall and all that.

@kalibos

8 жыл бұрын

Check out the film Inside Job. One of the biggest factors in this was the repeal of regulation laws that were created after the great depression. We did learn, but the people involved basically bought the law and did what they want.

@hairynuggs

8 жыл бұрын

+kalibos you should watch koch brothers exposed doc. Many great organizations are trying to overturn citizens united, along with ridding the influence of money on our politicians. Never going to happen unless people starting voting more than every 4 years

My brain just exploded from excitement !!! Mr. Cifford and Crash Course together ???? MY DAY IS MADE

Thank you for this. You took a very complex topic and made it super easy to understand.

Failed to regulate? more like deliberately deregulated..

@aneyeforcapitalism6531

4 жыл бұрын

@James D That makes no sense. Let's put this into play. You're a multinational bank. Who do you choose to loan to, the college student who isn't even interested in paying off his principle and consistently fails to pay bills, or a wealthy entrepreneur who has a solid business plan and years of experience? In what reality does a business give their assets to people who will lose them? That's not how that works.

@benjaminr8961

4 жыл бұрын

@James D The government incentivised the risky loans that lead to the financial crisis. They provided very low interest rates, guaranteed loans, and required banks to provide loans to low income neighborhoods in return for larger loans.

@1974scorpioking

4 жыл бұрын

@@aneyeforcapitalism6531 now who doesn't benefit from highsight, I mean of course we can look back and say man those types of risky loans don't make a lick of sense.... Which you're correct. However that was the thought process as the loans themselves were the product... If we're listening the mortgages we're being sold from bank to banks.... That's why they though of loosening the standards for loans .... See

@death-disco

4 жыл бұрын

@James D a pattern is a pattern. It's not 'edgy' it's standard knowledge to anyone who isn't a government and banker apologist. The reason the banks did not care is because they knew they would be bailed out. This was deliberate and banks will continue to do this in other markets and destabilise our economy, now with ETFs for example. Crashes are a profitable part of the cycle for these people.

@robinsonkaspar3395

4 жыл бұрын

James D The Clinton administration signed the repeal of the Graham Leach Bliley Act, a depression era law that kept savings banks and investment banks separated. Once savings banks could become wide scale investment speculators, everyone’s savings were on the line, invested in CDOs and MBSs. The savings banks would never have approved the risky, ridiculous mortgages that they were motivated to approve once they had an investment arm that could profit from the sale of those same mortgages.

"The fault lies not in the stars, but in us."

@MagpieEpicdude

8 жыл бұрын

+Ben Aaron "The fault in OUR stars" - John Green... Maybe that's where he got the title!

@koellekind

8 жыл бұрын

+♫Epicsauce4000♫ That was my thought exactly. I'm sure that's true! :o)

@jimzheng4912

8 жыл бұрын

+Ben Aaron Pretty sure the fault lies both in us and the stars #natureandnurture

@AlliArt15

8 жыл бұрын

+Ben Aaron That is personally my favorite Julius Caesar quote.

@benaaronmusic

8 жыл бұрын

AlliArt15 neat-o

You guys are the best, this was one of the best explanations for the crisis of 2008 i have ever found. Keep up the good work i love the channel

Thank you so much! Such a thorough explanation - made everything about 2008 financial crisis so clear.

I learned in 11 minutes what the last 8 years of explanations from the media completely failed to do. Thanks Crash Course (^_^)

You're being way too easy on the banks. They were manipulating this. The banks were the traders and the lenders. It was a conflict of interest.

@nickcivetta2

8 жыл бұрын

You are very uneducated on this topic aren't you.

@joemiranda1404

7 жыл бұрын

Correction. Government backed by Wall-Street is who Manipulated this staring with Bill Clinton's home affordability dream. His dream came from being in bed and getting paid by Wall-Street investors that put money in his pockets in exchange for Subprime Lending which these investors invested in and made a killing from.

@libertyatitsfinest7669

7 жыл бұрын

You are blaming the wrong people. It started with the Fair Housing Act of 1968 and Freddie Mac and Fannie Mae, further back, The Federal Reserve Act of 1913, Quantitative Easing caused this as well. The Banks were forced to lend out Subprime Loans, and as a result it caused a housing bubble, and killed the Automotive and Banking Industry, which led to the failsafe, the Bailout. Thus we repeat this sad cycle of detrimental regulatory laws that cause our people to suffer as a result. We live in a Corporatist society now, not a Capitalist one, the large Corporations are just too big to fail.

@abduluddin5645

7 жыл бұрын

Liberty At Its Finest thats very intresting. i didnt know/think for a second that the bank had to lend out subprime loans. so your saying they were forced to, because of quantitative easing? what is quatitative easing?

@SolaceAndBane

6 жыл бұрын

You know who was manipulating this? I have friends who know people who took out mortgages in order to buy more houses because of the housing boom. They repeated this and they "earned" a LOT of money and "owned" a bunch of houses. Of course we hate those we can't relate to. The truth of the matter is; people thought they could use the housing bubble to get rich and they gobbled up lending funds like it's theirs. Everybody tried to find a way to take advantage of the bubble while offloading risk to somebody else.

your ability to break down economics for the average Joe and Jane to understand is top notch. You really need to create a course on trading stocks for the retail investors. Thanks for all this great content and information. Lastly get those likes up folks and share this video

This is the best channel on KZread hands down.Learned more here than in class. God Bless your souls.

CrashCourse can you do a speculation video on what will happen if the College Debt bubble popped? Cause you know we have a lot of student loan debt

@robinsonkaspar3395

4 жыл бұрын

Gumer Zambrano it will pop. All bubbles pop. And it’s already been securitized just like mortgages were, and that is why tuition prices are rising so much faster than the value of a degree.

@carolinas5132

4 жыл бұрын

@@robinsonkaspar3395 well said.

@harrypatatochips139

4 жыл бұрын

@@robinsonkaspar3395 yet we haven't learned lol

@marcellenel3569

4 жыл бұрын

More of the same will happen to be honest. Government will announce QE, print the dollar into oblivion, interest rates will drop, stimulus packages will be announced, laws will be passed to "seriously address the issue" and then we will sit back and wait for inflation to kick in, people will lose jobs and homes, government will announce a "successful stopping of the crisis" and about 5 - 10 years later it will happen again in a different market. It's how it always goes.

@160p2GHz

4 жыл бұрын

My friend actually just wrote a letter to politicians outlining just how bad it's going to be for everyone when that thing pops and explaining why it's actually way smarter to just absorb that debt ("forgive") and see the boost in the GDP. It sounds counter intuitive at first but it's far far more stable to do.

Hits different in 2022 🤪👌🏻

Superbly easy way of explaining the 2008 FC, glad for this channel's existence!

So far the simple yet best video on the subject. Simple because avoided needless economic jargons.

Who's here just because they wanted to learn about the recession? I haven't watched the big short and I dont study buisness/economics.

@squirtle9990

4 жыл бұрын

Me

@thethee3035

4 жыл бұрын

Ok

@SrinivasanIFS

4 жыл бұрын

Me too

@credokasemiire2582

4 жыл бұрын

Yup. Same here

@culibarri7

4 жыл бұрын

Why not watch it?

Peter Schiff warned long before the crisis. There are many videos from 2006 to 2008 with people laughing on him. He was right at the end.

@JediBearBob

8 жыл бұрын

+Diego Sales Peter Schiff predicted nine of the last three financial crisises. His abysmal record, never-varying predictions, and complete failure to grasp the actual mechanisms of the crisis argue against giving him too much credit. Dude has no idea what he's talking about.

@AdamHamdan1

8 жыл бұрын

Happy someone is pointing out Schiff. Hes a smart man and has been right many times including Fed interest rates. The commenter above me is a tard

@coletrain2357

8 жыл бұрын

+Robert Richter Nice meme bro. You should try the stopped clock one too, I hear it's very popular with other people going around preaching the infallibility of the state.

@TheProdigalBard

8 жыл бұрын

+Robert Richter What abysmal record would that be? And why not demonstrate for us his failure to grasp the 'actual' mechanisms?

@JediBearBob

8 жыл бұрын

Prodigal Bard The abysmal record of constantly predicting crises that never happened before finally predicting one that (only sort of) did. And then there's his record since the crisis of predicting runaway inflation any day now -- which still hasn't happened after half a decade. As far as his failure to grasp the actual mechanisms? He predicted the wrong crisis. He got the collapse of the housing bubble more or less right, but he's gotten everything else since wrong. People have lost a lot of money following his financial advice.

Guys i had to watch the big short twice and read about this many times. By far this is the best explanation i have come across. Thumbs up

Can't wait to watch the 2019 version!

@skiezz9582

4 жыл бұрын

Here.2020

THANK YOU SO MUCH

I was in 8th grade when the financial crisis happened, so now it makes sense why I kept seeing homes being foreclosed and why my little 13 yr old self felt like the gov't was being terrible.

The way you conduct your explanation is just phenomenal. Thank you.

Thank you guys so much! I know very little about economics and you explained this in a way I could easily grasp. 🙏

The courses are awesome, please have more. Good jobs!

Thanks for providing videos like these. Economic theory is something I have a very low grasp on, and these videos help explain the concepts that even an idiot like myself can understand. I really like the concept of adding references, and further reading, into the comments. I hope that becomes the norm for future videos.

I love it! I use those infos for my Master Degree in Economics! Thanksss!

Very well explained. Congrats and thank you so much!

It's so great to see Mr.Clifford in crash course!! I passed all my econ classes thanks to you.

had to come to this video while watching the big short. its a great film by the way, just like this video

After browsing through myriads of You Tube videos, this one by far was the most easiest to understand from content and delivery point of view in providing clarity around the whole GFC of 2008...We’ll done ✅

That really helps explain it in a way that I understand it more clearly. Thank you for the video.

"The Fault in Our Stars" Hrmmmm... I bet that would make a good title for a book.

You guys did a really good job explaining the 2008 Financial crisis. So glad that you took a balanced approach to the subject and also mentioned the Moral Hazards that were in place in order to make the crisis a reality. Something that is often overlooked when people talk about the crisis. Speaking of moral hazards, could you make a video on the possible implications of 0% interest rate?

thanks for educating us. continue it consistently

The 2008 GFC was the main reason I decided to study Economics and Law at University the same year.

@leonardu6094

5 жыл бұрын

And how did your life turn out ?

@MademoiselleNoonie

5 жыл бұрын

leonard u I’m a lawyer now. My life turned out pretty good lol

@leonardu6094

5 жыл бұрын

@@MademoiselleNoonie Good to know

i was in first grade at this time, and i remember a bunch of kids leaving my school around this time and i didn’t know why. i later realized that they couldn’t afford tuition and it makes me feel so bad for them looking back

Thank you for this! I was 11 or 12 when it happened so I didn’t really know much, if anything. There’s a common factor in all of this: Greed and Big Companies. Corruption.

The exuberant a keep it rational. I'm glad you did that in this video and keep it up.

Best video on the topic yet. Well done.

Silicon Vally Bank brought me here.

"The fault lies not in the stars..." Woah! John Green out for a day and these people hung his principles upside down!? ROFL...

Wow that was an awesome explanation of how and why it all happened. Thanks!

This video is beautiful and teaches soo much, I love this channel.

Imagine when they make this video about the 2020s crisis 😅

Part two is coming next year

@mrrandom2303

4 жыл бұрын

You where right a lot of people lost there jobs

@narutouchiha5464

4 жыл бұрын

Are you psychic

@bubblebreak4160

4 жыл бұрын

Naruto Uchiha No I’m just smart enough to predict the future based on trends

@adrianmarapao8711

4 жыл бұрын

You just nailed it bruh

This is the best explanation so far!

so amazing video , that video gives a lot of information about financial crises , now i understand ,what the main causes of financial crises , thank you mam and sir.....

WOOOOOOOO ITS HAPPENING AGAIN

You skipped the part where the government coerced banks to lower lending standards, thus causing a 30 year moral hazard that led to the collapse of the housing market. But go on.

this was so good i am so intrigued

When this happened as a kid I didn’t notice much but looking back it impacted a lot

I guess the lesson here is we all need to be patient and save until we can actually buy a property, and only spend money which we have already actually earned.

@monkiram

5 жыл бұрын

I feel like this is basically impossible in this day and age. Nobody would be able to afford a house without a mortgage. I know that in some cultures, they eschew debt of any kind so much that they will live in a house with several different families so that they can pay in full cash for the house and not have a mortgage. But that's not the standard of living most of us have gotten used to in North America and it seems like a tough lifestyle. Besides, this financial crisis screwed everybody over, every American tax payer had to help bail out the banks and not just the people directly involved in the bad loans, so I don't even know if that would solve a similar problem in the future.

@MCDJEntertainment

5 жыл бұрын

if only that was possible...modern society has only gotten so far due to the ideaof credit and investing in something that doesn't yet exist but obviously it's not very stable, and we can't get by without anymore

@bornfree8073

5 жыл бұрын

No the lesson is small government. If the government wouldnt have backed up the banks, they would have never had the balls to do so.

@CHURCHISAWESUM

4 жыл бұрын

The lesson is never spend more than 33% of your income on housing, never take a subprime adjustable loan (ie. never take an adjustable interest rate). It's ok to use credit, but not for consumption. It's pretty much impossible to live without credit utilization, and it's not even smart to do it. Watch the interest rates, keep them low, keep your credit score high. And watch your leverage (your level of debt compared to assets, income).

@The_New_Abnormal_World_Order

4 жыл бұрын

Also that banks are ruthless and psychopathically-run institutions.

Who is here because of the next crisis in 2022?

literally the best explanation of this crisis on YT.

Amazing video, thanks!

I wouldn't say "things got better" I would say "things were covered up" , or at best, "patched up", great explanation though, thanks.

Wow! Great job skipping the fact that the federal government promised to back these sub prime mortgages, and that federal reserve artificially lowered the interest rates which sent false signals to borrowers.

@vectorconcepts1

4 жыл бұрын

WHOA ! .........dude? you mean da feds was in on it too?!...........thats whicked awesome maaannnnnn ! (( fast times ridgement high voice lol ))

NICE & CLEAR, (VERY) EASY TO LEARN... THANK YOU FOR THI$ EXPLANATION ;-)

Great video! We did that in Uni and now finally I got it. Kind regards from Germany

My dad worked for AIG in 2008 D: That wasn't a good time for us.

I'm astounded that I just listened to an 11 minute video about the "financial crisis" and not one mention of Fannie Mae, Freddie Mac, The Federal Housing Administration, or Ginnie Mae. Well in excess of 90% of all home mortgages are either written or guaranteed by THE GOVERNMENT. Who is the real enabler of the crisis??? And contrary to the impression you gave at the beginning of this video, "things got better" only due to the fact that the Federal Reserve took unprecedented steps to kick the can down the road. Nothing was solved; it was only postponed. Have you noticed where interest rates have been for the last six years? When the next "official" recession takes hold, we'll see how "fixed" things really are.

@thingwrecker

8 жыл бұрын

+watcherjohnny My thoughts exactly.

@neeneko

8 жыл бұрын

+watcherjohnny Unfortunatly, while this is a popular idea in some circles, it never panned out in actual analysis of the collapse. It was an element yes, but its impact was really minor. But it is repeated in libertarian circles so often that many take it as truth.

@paulangeli9710

8 жыл бұрын

agreed. our government has the "midas touch ". everything it gets involved with turns into a muffler. lol

@BoffinGrusky

8 жыл бұрын

+neeneko Could you please provide a link to the analysis that supports your claim ? I'd be most interested to read it.

@BoffinGrusky

8 жыл бұрын

+neeneko May I refer you to this brief article that highlights the enabling effects these institutions provided in "the housing bubble": www.washingtonsblog.com/2010/10/christopher-whalen-freddie-and-fannie-helped-to-create-epidemic-of-mortgage-fraud.html

Very informative, thanks!

Very educating video . Thank you