"But they have an idea", that's where you know things are going south

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.

@PBPTLP

10 жыл бұрын

I saw it. Matt Damon knew how to calmly narrate a rather scary phenomenon.

@DVNeves_

5 жыл бұрын

@Richard Wilson yikes...chill man

@DVNeves_

5 жыл бұрын

@Richard Wilson wtf...dude chill the fuck out. Lmao whats wrong

@DVNeves_

5 жыл бұрын

@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

@DVNeves_

5 жыл бұрын

@Richard Wilson mom Jokes... Ok dude grow a pair of nuts and then come back. Actual 12 year old trapped in overweight senior body

Ive seen so many explanations of this crisis, but this is by far the best and most comprehensive one!

@rizzoeff

4 жыл бұрын

The others probably didn't understand the subject well enough to explain it in layman terms like this guy does.

@projectplight

4 жыл бұрын

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)

@ronakkothari5687

3 жыл бұрын

The Inside Job- watch it

@headoverheels88

3 жыл бұрын

An statistician here, and I was enraptured by how easy yet complete this explanation was. 3 cheers for data visualization. Wow.

i see the problem, they were paying $10,000 for a box. Thats where they went wrong

@o.t.5676

8 жыл бұрын

+Move Along nailed it

@nickshort1751

5 жыл бұрын

LOL! ;-)

@proogenji7526

5 жыл бұрын

totally

@lordapophis5723

5 жыл бұрын

Best joke I've heard all day! Thanks!

@bondi1987

5 жыл бұрын

JC Denton you never cease to amaze me.

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!

@MassEffectFan113

2 жыл бұрын

aren't you glad you paid $60k plus for the education that you could have got here for free?

@alexlamon7875

Жыл бұрын

@@MassEffectFan113 actually it was prob more than 60K

I just watched The Big Short and remembered watching this video from back when it was happening! So crazy!

@MichaelHolder24

8 жыл бұрын

+Eric Andal So much like for this comment. Same here.

@bilyonaryo

8 жыл бұрын

+Michael Holder Same here

@Sgt.Leonardo

8 жыл бұрын

+Eric Andal The SAME thing and thought happened to me today! I just got back from watching The Big Short.

@timcollier9461

8 жыл бұрын

+Eric Andal just sent this around to a bunch of people at work for the same reason

@fungfung90

8 жыл бұрын

+Eric Andal Same!

This is how economics should be taught in our schools. This presentation helps on so many levels. Thank's for this priceless video.

Giving credit to people to buy homes, knowing that they will never be able to pay it back. That's... fucking evil.

@drakesmith6132

9 жыл бұрын

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.

@elidrissii

8 жыл бұрын

Going into debt you know you can't pay off. Now that's fucking dumb.

@bobmamipoko

8 жыл бұрын

Ryan Yakov And yet, people accepting credit knowing they can't pay it back? that's fucking ignorance.

@Beltran15x

8 жыл бұрын

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.

@danielfinkelstein4978

8 жыл бұрын

+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.

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 👍

i watch this video any time i can’t sleep and it works like a charm

It's called don't buy things you can't afford.

@solangebarakat742

8 жыл бұрын

+Andre K my philosophy precisely!

@RatusMax

8 жыл бұрын

+Andre K If everybody did that the economy would die instantaneously.. PLEASE TELL ALL TO DO IT!!! We need to build a new system.

@iLykeCahrs

8 жыл бұрын

+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.

@TheJakesinthehouse

8 жыл бұрын

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

@iLykeCahrs

8 жыл бұрын

jake smitth Blame the banks! Blame the rich! Blame anyone, everyone, but yourself!

The best explanation of the credit crisis... A full semester worth of study summarized in a 10 minute video.....Thank you Jonathan Jarvis.....

In late 2008, I pulled an amount from my account for routine expenses. It was the only reason the economic crisis.

@MrClaudiuzz9

10 жыл бұрын

hahahaha

@christopherramirez9051

6 жыл бұрын

ahhahahahahaha

@elguapo3811

5 жыл бұрын

Your mustache trims itself though. What could that expense have been?

@fabulousdolphin4221

5 жыл бұрын

Fukin legend

@VeganSemihCyprus33

5 жыл бұрын

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.

Best explanasion of 2008 crisis i have seen so far!

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.

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

@lolbots

5 жыл бұрын

*2018

@davidcraig7771

5 жыл бұрын

@@lolbots still low sub prime mortgages.

@yashjaswal6709

5 жыл бұрын

@@lolbots *2019

@wadesultan5074

5 жыл бұрын

It's going to stay relevant for a long time.

@Jean-Poule_II

4 жыл бұрын

"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!

The only video that managed to explain this in a clear and simple fashion. Thanks!

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 very much for such a brilliantly presented video! Since 2008 I must say this is the best explanation I have seen. Well done.

I need to get me some of those boxes...

@TraderRoss

8 жыл бұрын

+Nikhil Autar I'll sell you a box of magic air for $1000. guaranteed invisible.

@phyeollorzhang3227

8 жыл бұрын

+Nikhil Autar hahhahaha

@Eric345

6 жыл бұрын

Warsrogue I’ll take 10! 💁‍♂️

@williamgoo7621

5 жыл бұрын

😂😂😂

@asdfgoogle

5 жыл бұрын

You mean the boxes with ticking time bombs in them? have at it, bro xD

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

Iv'e seen so many videos trying to explain the housing crisis. Ive learned alot from this video. Thanks !

thank you you actually explained something made complicated by everyone you condensed the big short within 10 minutes

Crystal clear explanation!! Thanks a bunch!

thank you jonathan jarvis. this was brilliantly done! really helped me get my head around what happened.

This is by far the best explanation I have ever seen on the subject. Thanks!

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 !

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.

Wow - this is amazing. I have never fully understood this phenomenon until now. Thank you!

I am showing this in my introductory macro course each year. Extremely well made! Thanks a ton!

Thank you for making an extremely confusing topic much more understandable!

I'm just glad they papered over the problem with more easy money. Hopefully this time it works out better.

@wayneruffner223

4 жыл бұрын

That's hilarious, blunt and to the point

@the_expidition427

3 ай бұрын

HE HE EHE EHEHEHEE that's hilariously sad @@wayneruffner223

The best video on subprime crises I have watched. Kudos. Brilliant job.

Such a lucidly told story. Thank you very much for this!

this is one of the most informative videos on youtube

Thanks for this video man, easy to follow and understand...

what an amazing presentation. Made everything crystal clear. Jonathan Jarvis thank you much for creating this amazing presentation and sharing it with the world.

You explain the Big Short so well. Thank you.

I bought a house when they were incredibly inexpensive right after the crash, AND I got an 8k tax credit that I didn't have to pay back if I lived in the house for 2 years ! ...I bought a house that had sold for nearly 400k and picked it up for 140k ( 132k after the tax credit ) it's paid off now and couldn't be in a better place financially...it's all a waiting game, save your money and strike when the irons hot

@filthbomb

4 жыл бұрын

@Gemma W true sometimes

@jericho9222

4 жыл бұрын

@@filthbomb Have a feeling the housing prices are going to start plummeting after this whole Corona ordeal. A good time to buy homes could be coming up in the next 6 months to a year

"Home owner"?? Not really, until the home is fully paid for you're a mortgage holder.

@alexc5369

4 жыл бұрын

I see what your saying, but you still own the house. The bank is not responsible for maintenance and repairs. You are

@bd5236

4 жыл бұрын

You never own your home. The government does. You will pay property taxes forever

@alexc5369

4 жыл бұрын

@@bd5236 the government does not own your home simply because they tax you.

@alexc5369

4 жыл бұрын

@Shawn Huffman you pay tax on almost everything, the government does not own those things.

@alexc5369

4 жыл бұрын

@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.

The best educational video about 2008 financial crisis. Thank you!!!

i remember watching this video in class with 240p on a projector. i’d like to thank you greatly for making this HD.

whoever made this video did an excellent job explaining something so complex

great vid best I ever seen on this besides inside job

probably the best visual explanation ever done. good job!

I have tried to learn so much about the mechanics of 2008 and this probably helped me understand it better than anything I've seen. Thank you-

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.

@darksunrise37

5 жыл бұрын

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.

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

@lolbots

5 жыл бұрын

chapter 11? what made you bankrupt

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

excellent explanation, the best I've seen for the 2008 economic crisis

This video should've been added to "The Big Short" movie 😂

@rawanmahmood914

3 жыл бұрын

honestly now i understand the movie

Well done video, verry well explained! Keep up the good work!

one of the best explanations I have ever seen on YT! Thanks!

I'm in 2021 right now and truly amazed to see this. Awesome work done in visualisation, Cheers!

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!

@mix3k818

Жыл бұрын

And a QE4 had already occured and we have COVID + the war in Ukraine.

Professional guidance brings about remunerative results in trading. Great job Payden, you exceeded my expectations. Thank you.

@margaretlou3993

3 жыл бұрын

I’m interested please. I want to build my portfolio, and trade profitably.

@gino14

2 жыл бұрын

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 🤔

The best explainer for the financial crisis I've ever seen. Sharing with my friends, subscribed. You nailed it!

I Appreciate your hard work. this is one of the best video I ever watched I keep re-watching over and over really well explained.

Which software was used to create this video? I really like the effects and the way the story has been told :) *hats off*

@rimomaguiar

4 жыл бұрын

Probably Adobe After Effects for the animation and Adobe Illustrator for the illustrations

@ScorpionXII

4 жыл бұрын

These types of videos are usually created using Adobe Animate

No jail time for anyone.. Free to do it sll over again.

@dragonore2009

4 жыл бұрын

If anyone should go to jail, it should be government officials that started this mess, not the banks.

@ultimatedude5686

4 жыл бұрын

@Martin Shepherd No, they understand. But they're corrupt af and being paid off by lobbyists.

@mdstmouse7

4 жыл бұрын

@Martin Shepherd people who made bad loans and took out bad mortgages should have taken a bath. fuck em

Fantastic explanation. I understand this a lot more than I did before now. Thank you.

The best explanation I have seen on the subject.

Amazing simplicity on the credit crunch

Great video

Amazing presentation of the crisis! Even with some knowledge of what's going on, the video gave me chills at the end. Excellent delivery!

Amazing video. Really helps understand the underlying issues that caused the crash.

I watch this video literally every other day. 🤦🏽‍♂️

@ScoopWinthorpe

5 ай бұрын

👀

I love Economics. :3

@hoangvu5233

8 жыл бұрын

this is finance

@mauricelumpkin7061

8 жыл бұрын

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

I am so glad to have found this. thank you so much. great job.

This was AMAZINGLY made, well done!

Nice video. Explained so well. 👌

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.

@romanhoax9014

8 жыл бұрын

+James Gant Most of the big name rating agencies are actually private companies. So this is not accurate.

@silviaconvertible

8 жыл бұрын

+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.

One of the best videos on this topic. Nailed it .

Thank you KZread algorithm for finally giving me a video worth watching that I didn’t have to search for myself

I you should credit some subscribers. You deserve a lot more!

@ollMariusllo

2 жыл бұрын

1 year full of ups and downs, ain't ya?

Here we are in 2019 and its all happening again.

@SurferTy

4 жыл бұрын

Zelcs dod frank is getting lose. Looks like ninjas are coming back

@drewpierce8788

4 жыл бұрын

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.

Thank you so much for the clarification, Jonathan.

One of the most informative videos out there.this is a excellent education on the subject

My teacher should have shown this video in economics. To bad I was in school when this was happening... and to bad KZread didn't really exist yet.

@hoangvu5233

8 жыл бұрын

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

@gadget00

5 жыл бұрын

You know youtube existed when this was happening, right??

@skidmark4307

4 жыл бұрын

be ready for 2019-2020 time to make $$ of the crisis

this is great!

Beautifully explained , thank you so much.... Finally feel like i understood the big short !!!

This was a very good video explaining the credit crisis and it really helped me get a better understanding. It kind of points out what being money hungry can cause.

@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

@residentevilfreakk55

2 жыл бұрын

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

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.

@teerificbitch

5 жыл бұрын

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.

@solidfuel0

4 жыл бұрын

You are not cheating the banks. Giving the money earlier than expected has value.

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.

Brillant. Thank you. So easily explained and a lesson for many academics

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.

@LeozinhoPlaybass

7 жыл бұрын

U mean the gov bonds could not be that secure?

@aerohk

7 жыл бұрын

Pio The Double X he mean buy gold and silver.

@CRPNW

7 жыл бұрын

+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...

@KrK007

7 жыл бұрын

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.

@killman369547

7 жыл бұрын

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

That's why I don't like having any debts

Thanks for taking the time to make this video!

I loved the music after "welcome.... to the crisis of credit". An under appreciated part of the video

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.

@LouigiVerona

5 жыл бұрын

Finally, a comment I can agree with.

@thegameoverchannel6666

5 жыл бұрын

Philip my god where were you all this time?

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 😂😂

AWSOME!!!!!Best explanation of the crisis ever!

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.

Lol! Love how they associate the irresponsible with a fat guy and more kids 😂

@BEAR-247MA

4 жыл бұрын

He and the wife were both big drinkers too.

The one that paid off their home, sleeps blissfully at night.

The best explanation I have ever seen! congrats!

watched at my freshman year and watched it again four years later great explanation video!