How it Happened – 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!

More Financial Crisis Resources:

Financial Crisis Inquiry Report: http://www.gpo.gov/fdsys/pkg/GPO-FCIC/pdf/GPO-FCIC.pdf

TAL: Giant Pool of Money: http://www.thisamericanlife.org/radio-archives/episode/355/the-giant-pool-of-money

Timeline of the crisis: https://www.stlouisfed.org/financial-crisis/full-timeline

http://www.economist.com/news/schoolsbrief/21584534-effects-financial-crisis-are-still-being-felt-five-years-article

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27 Comments

  1. Let me guess. None of those banks ever paid back those loans and are making more profit than ever.

    You would have thought 2008 was a eye opener on banks and how greedy they are but I guess we all forgot and let them get away with it all.

  2. This is great! Just the point I want to understand because of the movie Margin Call, I was not comprehending the definition of mortgage and why it was a concern in that company. It was a good movie.

  3. >>>>>>

    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>>>>

  4. 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

  5. We never recovered from 2008 we just kicked the van down the road , this economy has been busted for a long time. Just one big bubble economy

  6. 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

  7. Can someone explain why it took till the 2000s for this to happen? Wasn't there mortgages around in 70s 80s 90s etc? The idea only come to them at turn of the century?

  8. 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.

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