The 2008 Financial Crisis: Crash Course Economics #12

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Today on Crash Course Economics, Adriene and Jacob talk about the 2008 financial crisis and the US Goverment's response to the troubles. So, all this starts with home mortgages, and the use of mortgages as an investment instrument. For years, it seemed like the US housing market would go up and up. Like a bubble or something. It turns out it was a bubble. But not the good kind. And the government response was...interesting. Anyway, why are you reading this? Watch the video!

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💬 Comments on the video

Who’s here during the great crash of 2020?

Author — Vinista


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

Author — Mr ThuGamer


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

Author — wav ❶


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

Author — Random Potato


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

Author — Jesse Forstmann


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."

Author — Jobey


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

Author — votekyle3000


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

Author — So to speak


Anyone watched "The Big Short" ?

Author — Christian Chan


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

Author — vaxen805


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.

Author — arthur morgan


We never Recovered from the financial crisis. In fact, the Financial Crisis was the just the result of all the blood thirsty bankers/ investors. Along comes the bailout and POOF, the crisis is "gone". Turns out that this was just a band-aid, as banks have inflated Home prices to above 2008 levels (also student loans, car loans, etc). Not to mention the Fed Res injecting Trillions of Dollars into the system, causing inflation and hidden inflation. Since 2008, my pay has increased about %30 (plummeted for about 7-8years first) but bills and expenses had increased %70(ish), while the national debt has ballooned past $20 trillion. That means that one man hour of work today has a lower value then a man hour to prior 2008. You have to work harder for less!

Our money is dying. Better get that burn barrel ready...

Author — The Off-Grid Guru


Imagine the great depression just happens again but with a virus that kills in a fast rate, 2020 is what you call a great virus crash.

Author — Anything_goes Anything_happens


You forgot to mention how the US government subsidised these sub-prime loans in the first place

Author — Ilan Koren


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.

Author — Stephen


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.

Author — Michael Geer


If you have 2 hours to spare, I recommend watching "The Big Short", it does an excellent job of explaining the 2008 financial crisis

Author — Taco The Cat


hahaha "government provided emergency loans to protect fundamentaly sound banks from collapsing" If banks are so fundamentaly sound why do they need a bail out every decade?

"Real wealth, of course, consists in what is produced and consumed: the food we eat, the clothes we wear, the houses we live in." -Henry Hazlitt

Author — TheFreePantheist


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

Author — Shaurya Pant


"Things got better". Lol, what the govt did was pushing back and postponing the crisis into another bigger and more dangerous crysis.

Author — Aditia Mokoginta