🏡⬇ Housing Bubble and the Great Recession | 2008 Financial Crisis

2008 Financial Crisis (The Great Recession) was initiated by bursting of the housing bubble. But why there was a housing bubble in the first place? What was the root cause of the crisis of credit? What was the government response?
Learn Austrian Economics in a fun way!

LINKS

★★★★★★★★★★★★★★★★★★★★★★★★★★

Music on CC license:

Artifact – The Dark Contenent

★★★★★★★★★★★★★★★★★★★★★★★★★★

[AdmiralYoshi]

Wow, what a great informative video. It helps me study a lot, but it also makes me feel awkward because many people still blame free market despite the fact.

[ALERAVERA]

Thanks for going to the root cause as opposed to just blaming greed

[vee]

Came here after watching the movie The Big Short. This was so informative. Thank you!

[TnaaT]

Throwing in your own personal opinion that some were quitting their jobs so they could get the break in not having to repay back the loan on their home. So glad that you knew what all Americans across the country were doing during that time. People were LOSING their jobs ALL OVER the COUNTRY during that time. I know because I was laid off from my job and lost all of my investments, others around me lost their jobs and some states had problems paying unemployment payments to people because states were having problems meeting the demand of high unemployment. Stick to facts as to what actually happened instead of assuming everyone is lazy and wants free passes.

[umangasarathchandra]

awesome man. keep up the good job and please upload more videos. very informative

[TheNORegretShow]

Well we are currently writing the sequel in the United States right now stay tuned. Its called credit card debt, auto loans, student loans and housing loans debt. I heard its gonna be a box office hit.

[bahaamadi]

finally some good austrian content, just discovered this channel and thank god i did

[kwennemar]

Corrupt appraisals inflated the values of the houses, consumers rolled their car loans and credit card debit into the mortgages and the loan issuers didn't question the value of the houses. I saw this in Florida and Colorado. Additionally gasoline prices spiked right at this time also so the fools driving large SUVs were getting soaked with fuel costs. They were not able to pay for all of their expenses. Broken ARM loans were also a problem but the spike in the petroleum market was a much bigger factor than it is given credit.

[ric]

Thanks for this, I'm slowly getting to grips with this subject.

[gentygenty]

Another great video! Keep them coming.

[signupstuff]

This video doesn't explain why investment banks like Bear Stearns and Lehman Brothers, two of the most visible failures of the housing bubble and which were under no legal obligation at all to fund flaky mortgages, did so anyway. They were not beholden to the CRA the same way commercial banks are. The fact that they're not called out explicitly in this video for analysis is suspicious, in a "I have a specific agenda" sort of way.

[remca]

Excellent production work. Bravo. I’m in the concrete pumping industry in Southern California and I lived through that experience and let me tell you it was very ugly.

[nelsonsequeira]

Your explanation and your examples was briliiant. I actually took 40 minutes to understand as I was repeating it to understand your accent. But it was very good . Thank you for the good work

[rolesk]

awesome video as always guys, keep the hard work!!!!

[bigbee]

Much of the housing built during the boom years was not only overpriced but also more house than you needed. We will need smaller and more affordable housing.

[nezra]

We have 74 realtors who watched this video. Lol

[HG_]

Very informative video, one of the best for sure! Thanks

[eggbertjohnson]

These videos are amazing but I really wish there was a citation list in the description of all the sources. For example the "25% of houses bought for speculation" i am unable to find a source

[BubbaShaffer]

Very well done, I would like to see Econclip video on the fact that corporations do not pay taxes only individuals pay them. Corp only collect them.

[gordonpaulsen]

Wow this is exactly what's happening in Australia right now. I wonder if the government is going to bail out the big four banks ? I think I know the answer.