What really caused the economic crash of 2008?

A fucking leaf.

Trumped up trickle-down.

Yes, it's the same bubble that's forming with college loans right now, covered by the government, so everyone with shit for credit/money gets one and then they default.

We're looking at nearly 250billion$ default pretty soon and another bubble bursting.

he's mostly right
the government let banks do what they want, IF they would give mortgages out to low income people (minorities)
half of the houses foreclosed on were black or hispanic

Government practices that encouraged lenders to give loans to people who couldn't afford them in order to buy a house was certainly part of it, but the housing bubble was only one piece of the puzzle.

The problem was exacerbated by the fact that lots of people were making money off of this process

Dodd Frank wasn't passed until 2010.

this
cnn.com/2016/05/19/politics/donald-trump-2006-hopes-real-estate-market-crashes/
nbcnews.com/politics/2016-election/trump-2007-i-m-excited-housing-market-crash-n578761

lack of regulation and oversight of Wall St. caused it.

It wasn't really greed because there were laws forcing them to do it

The movie The Big Short is a pretty entertaining intro to the basics of what happened. It's even funny.

Bill Clinton.

If you thought that through for a second, you'd realize that is would be completely unsustainable for lenders to lone out money deliberately to people who couldn't afford them. The government forced them to do so under various laws that aimed to get more minorities into housing, and also because government backed institutions such as Fannie Mae and Freddie Mac had implicit guarantees on many of the loans.

He is kind of right. The Democrats wanted to see more minorities in their own homes but of course the banks don't lend money to people without the income. So they basically set up a government bank to buy up all those loans the banks could now hand out.

Because the banks were thereby operating without their own capital at risk they could hand out loans like candy. The problem is just that the bankers at one point drank their own Kool-Aid and thought these were valuable products they sold. That's how they started slipping each other those shifty loans.

it's blamed on the (((banksters))), but I believe it was the middle class being bled dry at the gas pumos to pay for the Iraq war.

Trillions of dollars... you think the faggots in congress got their wallets out to pick up the tab? Sheeeeeit.

See
Can confirm, great movie.

Laws saying its racist and we'll shut your bank down and fine you millions if you don't lend to worthless niggers caused it

No need to watch the movie. Just watch Peter Schiff give the same explanation he gave in 2005 one year before the bubble popped again.

>Peter Schiff Mortgage Bankers Speech Nov/13/06
youtube.com/watch?v=jj8rMwdQf6k

It's impossible to get more bluepilled than this post.

The cause goes further back. In 1999, Glass-Steagall was repealed, which allowed banks to combine their commercial and investment banking arms into one. What this essentially enabled was for banks to SELL DEBTS AS IF THEY WERE REAL MONEY. This created a nightmare of legislation which by 2008 resulted in banks reporting being worth trillions of dollars, but those assets were all virtual IOU's.

One of Bush's last major projects was pushing forward legislation that forced banks to only report REAL money as cash in hand. The banks collapsed overnight, preventing a much larger crisis in the future.

Housing just happened to be the most predatory kind of loan, really.

Because nu/pol/ is a bunch of faggots who are just here for the dank le alt right maymays

Your Dad is correct.

To allow the every American to "follow the American dream", i.e. owning a suburban house with a white picket fence, mortgage banks were forced to remove lending restrictions on subprime clients - or face penalties or restrictions in their main banking business. That was the primary mistake.

This would have primarily affected the US if shit hit the fan, but smart guys at investment banks realized they could buy these shitty loans up and repackage them into other structured investment products. And those structured products were then "reversed engineered" to still receive a triple A rating from rating agencies.

morons all over the world kept blindly believing in the rating agencies triple A, thus went the US housing bubble went shit it affected all banks around the world - especially governmental or regional government banks, as these people are the biggest idiots and thus the biggest believers in rating agencies.

Caused by them passing a law back in 1913 allowing the government to print money

Lol your dad is a retard

Loosening of credit and raising interest rates to topple the aggressive risk taking practices. i.e. compulsory underwriting of mortgage backed securities, lending out with ARMs, 5% downpayments, etc..

Behind every shit post there is a fucken leaf.

Caused by them passing a law in 1933 that redistributes wealth from producers to consumers.

This might be a stupid question, but why would you lend people money who you know won't be able to pay it back? How is that profitable? And how is that greedy?

yes

Caused by them passing a law in 1971 divorcing the usd from real money

You know you're supposed to be over 18 to post here right, Caleb?

You get a monthly payment from them with a huge interst rate, then when they default you get the property back again.

compare these two posts for content and see in a microcosm how it's possible for Hillary to have made it this far.

Fannie mae and freddie mac were democrat run government sponsored enterprises that mess up the housing market by eliminating all risk.

they backed and secularized all the bad mortgages and when they' failed, that caused the collapse.

Did you miss the part where the Dutchbro stated that they won't be able to pay the loan back?

They also got a lock of black people buying homes they couldn't afford by giving them all crappy adjusted rate mortgages.

They don't want it to be paid back, they want to receive interest forever. Eventually they make more from the interest than the amount of the initial loan.

But you do get a payment from them for some amount of time. And you get the property back eventually at no cost, allowing you to do it again and again.

This. This is all it was. Not even just dregs of society, but just a bunch of poor people who didn't know what they were doing.

Go watch The Big Short

Spics and niggers.

the property bubble meant even if they defaulted on the mortgage, the bank could sell the house at a profit

also, the government wanted blacks and mexicans to be able to buy houses

Profiting from the stupidity of others makes good business sense. In this case, the stupidity was that of the political class as owned by the bankers and people who borrowed more than they could afford to pay back, on that order.

When those debts were backed by the federal government, no one thought anything of it and these mortgage backed securities were given AAA ratings.

It all goes back to Bill Clinton and his desire to put every one in a home. The government backed loans that people had no business getting.

Banks were just trying to make money. The government made policies which caused the crash.

youtu.be/bNmcf4Y3lGM

This.

The bank reposesses the house, and sells it again WHILE THE FIRST OWNERS ARE STILL PAYING INTEREST FOREVER.

It's the kind of insane, dystopian profiteering that only (((finance))) majors could think of.

The Federal Reserve.

Clinton crashed the housing market. He passed a stupid ass law that forced banks to provide home loans to people that would otherwise be unable to qualify for those loans. This was fine and great in the Clinton era when the economy was amazing on it's own.

But when the economy hiccuped in 2008, interest rates on mortgages were raised, people lost their jobs, and the housing bubble burst because of that and made it even worse. If the Clinton administration never pushed houses onto people who couldn't afford them, the results of the economic downturn would have been minimal.

watch the documentary "The Four horsemen" and you'll know.

Only a retard would think that. It was the legislators, banks and mortgage companies that caused it. Trump was positioned to buy in after the crash which is the best time for any sane person to invest in real estate.

The money lent is just printed out of thin air retard. The interest is just free money.

basically years of terrible lending IE selling 450k houses to people who made less than 10$ per hour
Most of the loans contained balloon payments and when those kicked in no one paid them. The same thing will happen 4-8 months from now with 10 year 06-07 balloons kicking in.
Also the banks started acting like they had given out all of these amazing loans and thus leveraged as if the money was guaranteed to come back something like 100:1
Basically they claimed they had a ton of money but it was all in the form of debt AKA IOUs

Now the same thing is happening at a government level today. We have had interest rates at near zero for 7+ years now and when it comes time to raise the rates all lending will stop. People wont be able to pay off their low rate loans with more low rate loans anymore. Bubbles will burst in all loan based sectors(basically everything in america)
Pepper your angus because a bubble this size has never been seen before. The only way to pay anything back is with hyper inflation so the loans are worthless like the money.

You're right of course, but I'm just saying that it wasn't the sole mechanism of cause. The repeal of Glass-Steagall was done by a Republican congress.

But this is the kind of horrific synergy that our legislators need to watch out for. Like, holy shit.

Because the government was essentially the cosigner on the loan. Why wouldn't you loan money to the federal government? It couldn't get better than that.

bill Clinton removing the glas stigal act

Because the narrative was turned to White Privilege when it looked like people were actually organizing against the 1 percent

If you rent out an apartment and your tenant doesn't pay you, do you make a profit?

It's almost like people should diversify into some sort of high-value density tangible material to try and preserve their purchasing power or something. Nah, that's just me talking crazy. Nvm.

Because the money never existed to the banks. They got a zero intrest rate loan from the fed. ANY interest they receive is money in their pockets. Someone could take a loan on a 200k puts 10% down house and pay 1 payment and stop paying. The banks will still make money on that because they made money off the 1 payment. They then go in take the house and sell it back at auction or short sale for 180k(200k minus 10% down). No money was lost anywhere int he chain besides the buyer
Problem will be if they are sitting on houses that wont sell.

Between 1999 and 2008, yes.

Stores were letting people finance stupid shit in-store, knowing they could package the debt into bulk securities and make double profit.

Yup, he's right. They essentially made it law to loan amounts to people that they could never pay back.

It was made because, like usual, democrats decided to baby niggers. Niggers couldn't afford the big million dollar house in the suburbs, and the banks wouldn't loan them the money they needed, because they couldn't pay it back, so Democrats made it law that the banks had to loan niggers the money they needed, regardless of whether they could pay it back.

This eventually led to the crash.

government forced "equality" and demanded that low income blacks with poor credit ratings got big loans

you want to blaim a banker for getting a bonus because some low-class faggot wants a mansion with no accountability. I'll blaim the stupid over the cunning.

the real issue was that mortgage backed securities were being bought and sold and they were being overvalued because the govt encouraged banks to lie about how safe they were so poor fuccboiz could have houses too, because scarcity isn't a thing. the houses in the securities were being sold to a bunch of poor faggots who thought that buying a house and using it would appreciate its value like only a God damn idiot would and think they could then sell it for more than they bought it. Then derivative securities were made based on the previous securities so that the main securities were the lifeblood of the derivatives meaning if the mortgages defaulted, the securities and derivatives lost their value causing a total collapse.

That's just business. You're a shitty businessman if you purposely was finances on a higher-cost product. Low cost means more revenue.

This is the true root of the 2008 crash.

HE IS 80% RIGHT

Caused by them increasing the social security tax max in 1951, 1955, 1959, 1965, 68, 71, 72, 73, 74, 75, 76, 78, 79-81, and every year since until forever into perpetuity

Give it some more thought. They could make bad loans and then sell the right to collect on those loans (mixed up with good securities) to somebody that doesn't know they are bad. This is in their self-interest.

That's not how it works. The 10% down gets you equality, and it takes a while before they take your home. The paperwork to take your home, and to resell it is also pretty substantial. Finally it takes time to resell the home.

Because you can repackage those loans, and sell them to other people in the form of securities. If someone defaults now, the other people lose money.

But why is it double profit? Their security was the government guarantee, not the debtor. They didn't see money and the housing bubble wasted billions of money on houses nobody needed.

The packaging of the debts is also not a profit to them. Look at the development of the crisis and where those products ended up because they got shifted to all major banks. It's a poisened apple they brought into circulation but they bit of it themselves and some of those banks went belly up from those.

Those banks that weren't engaged in those shenanigans also didn't make those crazy loans to broke minorities.

If your point is that the executives running the show in those years made their salary than you are right and I agree.

It was not fiscal policy really.

Neither party helped in that regard. But an unregulated, autonomous monetary system and world bank that only profits the rich is the cause.

Allahu akbar.

Not what this guys says: It is due to something called "derivatives"... Roughly speaking when a bank lends someone money they can sell the loan to hedge funds. for example if they lend someone $100 and expect to get $200 paid back during the next 5 years they can sell it to hedge fund for $120 for instant money they can lend out to people again.

Hedgefunds trusted the banks so this was seen as sure money. But because bankers earned money by lending they started to not care who they lend to. Because they got the $120 instantly even if the guy paid back his loan or not. Eventually the hedge fund managers figured out that more and more people who lent money was not able to pay them back and the hedgefund managers tried to get rid of all these derivatives (which at the time was worth more than all gold on earth AND way more than the money available in circulation. (Just look at picture related) because it is basically just making up money every time (the extra $100 per loan as an example but usually much more) they lent money that did not really exist and nobody was willing or able to pay that money.)

Why is this video so A E S T H E T I C ?

It's a hell of a lot worse when you don't believe him and then years later he turns out to have been right.

This guy got the right idea.

Saudi Oil barons raising the price of oil per barrel to like 160$,

Coincedence that It was an election year and Obama was put into the Harvard Law review by Saudi prince Al-Waleed Bin Talal.

Also, the Saudi Royal family is Jewish.
themillenniumreport.com/2015/12/the-house-of-saud-its-jewish-origin-and-installation-by-the-british-crown/

This is correct as I understand it. This is also why Deutsch Bank is collapsing as we write here, and why there will be significant collateral damage.

Except that he's wrong. Most derivatives are worth almost nothing because are only worth something under certain conditions.

TLDR on this thread: Jew bankers and their clever jew tricks crashed the housing market.

>Thinking one recent policy caused a current economic incident
>not realizing that the inevitable economic collapse has been 100+ years in the making

>One of Bush's last major projects was pushing forward legislation that forced banks to only report REAL money as cash in hand. The banks collapsed overnight, preventing a much larger crisis in the future.

Was all of this really intended?

Don't listen to any of the armchair economists in this thread. They don't know jack shit about economics.

There's only one reason for the crash: the guarantee of a bailout. The banks knew that big daddy government would bail them out no matter what they did, since big daddy government (i.e. the Fed) had made them such an integral part of the economy. Now imagine if you owned a business and could do anything you wanted with no negative consequences. Obviously you would take on much more risk-high reward ventures than you normally would. Soon all those horrible business decisions catch up to you and you're left bankrupt... but it's OK because big daddy government is there to rescue you and start the cycle once again.

Everything leads back to the Fed. It is the single most destructive institution to ever exist in the history of humanity and the fact that so many people think the recession had something to do with the repeal of the glass-steagall act or whatever just proves the kikes are extremely effective propagandists. Shame on Cred Forums, you all should be able to see through this blantant kikery.

>complicit in perpetual devaluation of the currency
>wonders why there's financial hardship

Repeal of Glass-Steagall contributed

Also this

Pretty much this.

Thought Cred Forums was red pilled

Clearly this is not 100% how it works but the banks dont lose 200k if someone stops paying them.
One other part of the 08 meltdown was zero down payment loans
This meant the buyer had zero risk at buying. Banks scrambled to get the buyers to use them because tons of money could have been made if those people did pay the loans back. Problem is you cant have a $2,300 mortgage payment while earning $2,200 per month

Also don't miss out on Peter Schiff's reaction to Greenspan's explanation for the crisis.

>Greenspan Blames Housing Bubble on Fall of the Berlin Wall!
youtube.com/watch?v=IyiP74bPJtk

TOO MUCH CAPITALISM!

It's much more complicated than saying x policy caused it

It was a combination of factors, most prominent of which were excessively cheap debt (rings a bell? look at fed/BoE/BoJ/ECB interest rates), subprime mortgages going bust (which fucked up global derivatives markets big time) which in turn fucked big name insurers and reinsurers big time (AIG being the mother of them all, which'd have led to an even more massive meltdown if it hadn't been bailed out), excessively lax regulations making unsustainable practices legal, excessive leverage ratios among countless other factors

2008 was a simultaneous crisis in pretty much all aspects of the financial industry. Scary thing is, I believe the current trend of continuing QE, low interest rates, high debt are basically the same symptoms because the reaction to 2008 didn't solve the crisis but merely postponed the worst. We'll see tougher times ahead. Developing markets are already feeling it, but don't let this fool you-Europe and US are going to be the worst hit when the shit actually hits the fan.

>Pepper your angus because a bubble this size has never been seen before. The only way to pay anything back is with hyper inflation so the loans are worthless like the money.

But then?

We are really living in crazy times. I believe that the biggest problem today is that there are no major wars anymore. Thus, politicans/central banks CANNOT let asset price drop as would be needed to reach the real equilibrium, as there is no enemy to take the blame and loot from.

Since there is tangible scapegoat, politicans/central banks are trying to drag the collapse out as much as possible. And in previous times, it probably even would have worked - but due to truly seismic demographic shifts (and an ever increasing welfare state leeching the remaining few productives), it will simply not work in these times. See Japan, which is essentially the West just 30 years ahead in time.

Alas, unlike Japan, I do not see the West to have a peaceful 30 year decline. While Japan can allow itself to be a nation of peaceful sheeps, Europe cannot - it has invited the wolves into its country, Germany alone 1 million last year. When the sheep can't produce food for the wolves anymore, they themselves become the food. I don't even think there will be a civil war in Europe at this point any more. They will simply get removed.

Europe will become a second Japan - it will become a second South Africa.

Da joos

Fucking /nupol/ man.

It genuinely triggers me reading the explanations in this thread. It's like I'm reading a CNN article. Everyone is completely ignoring the elephant in the room.

>excessively lax regulations

when will this meme die

Many have different thoughts on the outcome of the upcoming war in Europe but I doubt it will leave a South Africa. There can only be one side that wins because once the front lines are clear how do you suppose the Muslims will hold their isolated islands in Germany? They can only do so if the state will have hedged his bets enough to convince its minions to fight for the intruders rather than their own tribes.

It's possible. Cops are basically fascists with no loyalty or decency or they wouldn't work for this corrupt system against their fellow men. But what is the future the state can promise them? When the charade collapses than human capital will be in demand and not paper money.

I don't worry about Europeans surviving. I don't even worry about some Germans making it. We had the Romans in our land, we had the northerners in our land and we had (and still have Slavs) on our land. There will probably b a Europe free from Moslems and Americans once again.

China (and dems)

Even if the underlying cause is the Jews (it is), it's worthwhile to try and understand the mechanisms they use. They are well hidden behind at least seven proxies.

>Trump reveals during the debates that he was all-in for the crash of 2008
>Hill shills think he has said something stupid and start spreading his quote far and wide
>Turns out it actually saved you guys from an even bigger crash
Jfc the Madman played everyone like a fiddle yet again.

You're simply not right. The government created a system that allowed banks to make money off mortgages that should have never existed.

You may be right about the fed, but without the government creating policies that allowed banks to make money off of shittt sub prime mortgages, the crash never would have been so severe.

Property values were already too high and that bubble was going to pop no matter what. This made it magnitudes worse.

>This might be a stupid question, but why would you lend people money who you know won't be able to pay it back?

The Jews literally just make up money. Loans aren't backed by anything. It just exists on a spreadsheet.

So they give that money to a bunch of immigrants, who pay for a while. That money is pure profit. If they default on the mortgage, PMI pays. That money is more profit. Then they re-sell the property to someone else for more pure profit.

Then, they take the defaulted loans and "package" them to sell to other more sucker Jews.

The "crash" happened when the worthless loans had been passed to the last person in line and they could no longer keep floating the losses. Meanwhile the top Jews made billions, and lost nothing.

Oh but when I tried to make up money motherfuckers wanted me in jail

Alright..

lets say a house cost $100k
marginally low income buyer somehow comes up with a $10k down payment
finance $90k at 6% for 30 years gets you ~$540 per month for a payment, most of which is going to be interest at the beginning
buyer is also paying all property taxes and insurance on the house now
now lets say that the buyer is barely able to make the payments and defaults 1 year down the road due to some unexpected medical and auto repair bills

On a $100k house, the bank made ~$15k in one year (down payment + interest), didn't have to pay any taxes or insurance on the house, and now acquires full ownership of the house once again so they can sell it to someone else. This works great as long as there are still plenty of other suckers out there to buy that house at $100k. When the pool of buyers start drying up and everyone had to keep lowering their asking prices to attract buyers is when everything snowballed and went to shit.

Okay here's what you have to consider...
Entire Stock Market is held up by Speculation.

Illusion.
Trickery.

The idea that "its a firm investment, it is safe to put your money into"

It doesn't matter if it Actually Is Not - as long as you and everybody else thinks it IS safe you will put your money into it.

But something unusual happened.

People started Shorting the housing market (betting against it, saying its built on horseshit). Because they found out it was only being held up by promises, smoke, and mirrors.

They had no reason to prior to that to consider the Housing Market to be vulnerable at all. It was historically nearly as secure as.

> but then we have all those unpaid mortgages that were just getting recycled into hedge funds, and people taking out multiple mortgages just to pay off other mortgages and buy even more homes.

Eventually this information reached a larger audience, doubt came about, and as soon as it hit a tipping point . . . . everybody tried to GTFO while they still had a shirt to wear.

Bunch of Banks went under because of this.

The biggest investors in the housing market... pulled their money and it all went overseas. Nobody knows where that money went.

Trillions of dollars flying out of the country.

Don't act morally superior,faggot.

If the government told you that you can go to Las Vegas, gamble all your money anf you can keep everything if you win more than what you started with but get bailed out if you lose money, I would bet my large 7" cock that you would do it.

Cont'd

TL;DR

the Housing Market had become built on an endless pile of horseshit without anybody really seeing it.

which is why it was called a Housing Bubble after the fact because it was doomed to becoming "popped" as soon as any serious number of people started smelling the horseshit.

doomed to fail, with no way to rectify it

though some regulatory nonsense in 2007 (ahem, Greenspan) is sorta what put a time limit on it falling apart.

> There's a movie about this, its called The Big Short

>muh bankers never did nuffin

...

No there weren't.
The government gave the banks guarantee that they can keep any profits they make and get bailed out if they lose money.
This is called arbitrage, as there was no way for banks to lose money if they gave sub-prime loans.

Think of it like the government promising to give you any amount you lose on Vegas but allowing you to keep any profits you make through gambling.
Everyone would do it, because the worst thing that can happen is you ending up with where you started.

Too much liquidity thanks to the Fed, coupled with too much encouragement of the housing market thanks to legislation from the 90s, HUD policy, Fannie Mae and Freddie Mac, and investment banks discovering a new type of cocaine.

>referee makes one team's goal twice as wide
>i-its the players fault for making so many goals!

As usual, he was well ahead of the curve. How can one man be so fucking based?

Globalism.

Everyone had jobs in the 1990s and early 2000s.

But NAFTA and global free trade made all the good jobs leave so people who had jobs lost them and couldn't pay mortgage.

But keep believing cuckservitives that it was niggers.

Thats because the banks felt Invincible about this shit - they dont lose more than a proverbial nickel because any Failure to Pay

> gets recycled into a repackaged Hedge Fund that people believe is Rock Solid when its in fact built like a Jenga Tower.

So you bet your ass they did, and Mortgage issuance also became really easy because of it.

Like no background checks or anything. People were even taking out mortgages in their Dogs' names (though thats probably more on the rare note, but it has happened).

It was all easy peasy because it was built on the False Assumption that Pure Speculation could keep it afloat.

> Like Wile E. Coyote still floating over the cliff because he believes he's still running on solid ground.

Also its worth mentioning that Banks were Selling Mortgages so they were getting the money back almost immediately while the buck got passed on to somebody else.

Mortgages and other Loans end up being passed to other organizations that were not the original issuer.

> Technically you can get out of a mortgage this way because if the agency coming to Collect on it is not the original issuer... they have no issue with that debt.

> Only the original issuer of credit can collect on it. If the Bank has already sold your debt to somebody else then you're absolved of it.

> Just be real careful trying to do that in court, because most people don't understand this including the judge, and they and their lawyers will fuck you up out of ignorance.

Oil prices caused a contraction in the spending power of the American people. They had to choose between putting food on the table, fueling the SUV at 100 bucks a stop, or paying the mortgage...while the company they were working for was laying off because of the downturn in the economy.

Run the fuel prices at the pump up over 4 dollars a gallon and watch it happen again.

Just having some knowledge of how stuff works and no desire to profit from this. The crisis of 2008 was happening by the book, all you had to do is watch and ignore whatever the (((economists))) were saying to you

This is by far the worst explanation of the recession I have ever read.

>my dad said it was caused by the democrats making a law where everyone could get a house back in the 90s or something, is he right?

Pretty much

youtube.com/watch?v=dmdcWBRpw6c

It was sad watching the MSM portray Dr. Paul as a loon who had no clue what he was talking about in the 2008 and 2012 primaries...

You must be an economist.
You can't discern the obvious.

the negroes caused the economic crash of 2008

You are an actual idiot
the fuel spike was long after the real estate crash

Clinton was leaning on banks to make loans to minorities then senator Obama was Suing banks for not giving loans to retarded niggers who couldn't afford them

Fair enough but rare nonetheless, especially in politics.

They were forced to you fucking leftist scumbag

Yes the Department of Justice filed a lawsuit against mortgage underwritters and banks for "discriminating" against niggers and other brown "people"

This effect combined with quasi state entities Fannie Mae and Freddie Mac that underwritted nearly all of those subprime loans caused the financial crisis. The Federal government guarantee enabled the regular banks and the investement banks to hold more of those securities as assets.

alan greenspan at the fed decided to keep rates low in the early 2000's. combined with the other factor that have been mentioned, it was a perfect storm. funnily enough, we are currently in a significantly worse situation right now. if this bubble pops, 2008 will look like sunday school.

Yes. He felt there was an impending crisis looming.

The government and FED are entirely responsible for the collapse in lending standards in 2003-2007.

I suppose you're going to present one of those charts showing there was no correlation between the rise in fuel prices and an economic downturn.
The one your brilliant economics professor hands out.

Yeah they were forced to with the threat of being beaten with giant bags of money. Get a clue.

>t. American intellectual
Correlation =\= causation friendo. Everything was bid up.

A rising tide lifts all ships.

Banks like Bear Stearns and Lehman were not "retail" banks. That means they didn't originate mortgages. Nobody was paying a mortgage to Lehman. Nobody went to the local Lehman branch to apply for a mortgage.

this

Stupid leafnigger

en.wikipedia.org/wiki/Fair_Housing_Act

Also the DOJ has filed hundreds of lawsuits against companies and banks for "discriminating" against minorities. The government is intentionally eroding lending standards so some retarded 80IQ sheboon can get a house with a government guaranteed "subprime" mortgage

Damn that picture confuses me

More or less pic related.

>forced into becoming rich by repackaging mortages to hedgefunds repeately for infinite profits while big daddy government waits to sweep up the mess and take everyone's houses.

Differense here is student loans cant be forgiven

But in the real situation the down payment would have to be higher than the loss of value of the house. The shenanigan was that the people bought houses as an asset they thought made them richer and they took out loans on houses (which they didn't own). This whole deal was a worm that bit itself in the ass.

It's not that the pool of buyers started to dry up but the real estate boom caused too many new houses being built because the Fed kept the interest rates so low that the borrowing could continue. You are correct within your example but this procedure only runs a limited amount of time because the value of the sold house decreases over time and the ratio of the payments was not nearly as close to the 15k/100k ratio you give. They sold bigger and more expensive houses for much less income.

And again, all the banks that took part in this practice are done.

Heres how i remember it
>living in Nevada
>influx of Califonia license plates
>houses start popping up like weeds
>a hill 1 mile away from my home was demolished with dynamite to make room for a road leading into a new housing community
>blast almost shattered my windows
>houses weren't sold, just built and left there
>housing community was basically an apartment complex but $10,000 a month while not being significantly better than the $1,000 month apartments i'd lived in

imho california did it.

>the negroes caused the economic crash of 2008

In a large part they did one dirty secret that rarely gets talked about were the NUMEROUS schemes the niggers were pulling off

Tyrone buys a house with no intention of every making a payment for 100K
a month later he puts it on the market for 140K

His buddy Deshawn buys the house for 140K with no intention of paying the loan and he and Tyrone split the 40K profit

Desawn then puts the house on the market for 200K and Trayvon buys it with no intention of ever making a payment they split the 60K and so on and so on.

This caused the prices of housing to skyrocket and look like a rock solid investment to people

He's got most of it, but the Fed also rowed the market. Trump warned us at the debates, it's coming again.

BAHHAHAHHAHAHAHAHAHHAHAHAHAH!

Blaming Trump for laws passed by regressive liberals. CTR is on complete suicide watch.

it died when/with OWS was co-opted by liberal nonsense

haha you dumb faggot
you too

Nobody will realize that you're talking about house flipping and that it's actually white middle class people that did this.

Seriously, as soon as I saw that people were making money by simply flipping houses, I knew the end was nigh. Normies ruin everything.

Blaming businessmen for recessions is like blaming gravity for plane crashes. You're completely ignoring the actual cause.

Businessmen will always pursue what is profitable. It's the lawmakers who determine what is profitable and what isn't.

>complaining about mortgages that
> ignores the fact that those mortgages are debt in currency that never should've existed

Basically, people living beyond their means, people wanting more for less, and people who were willing to give more for less.

the kenyan made banks give out affirmative action checks to niggers and spics who couldn't afford them to fight imaginary racism

The Kenyan in this particular instance being Alan Greenspan?

see

What are some in-depth reading materials on the causes of the financial crisis? LADS

The beast from Jekyll island is a good place to start.

thanks, I needed that

at first glance it made sense, they all want to have their savings in dollars, so they buy all those dollars away from the economy, so the fed needs to make more dollars

I'm just gullible.