What are Mortgage-Backed Securities? (2008 Financial Crisis Explained)

If you've lived through the 2008 and 2009 financial crisis or if you've been paying attention to the news recently, you likely have heard the term "mortgage-backed security." You likely know that it is loosely related to mortgages, but also, isn't directly a mortgage.

The rest, tends to get a little bit complicated in financial jargon. Mortgage-backed securities, or MBS, and the market that surrounds them are a major underpinning to the US economy, so it's important to understand them if you want to understand greater economic actions. Let's explain this market simply, in common terms so everyone can understand.

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[CowboyBurgerofTheWest]

I came here in order to understand the movie THE BIG SHORT

[Greggsberdard]

Amazing explanation !! I'm wondering if those who experienced the 2008 financial crisis had a smoother time compared to me at the moment. The stock market is causing me significant concern as my income isn't as high as it used to be. This worry stems from the fear that I might not have enough savings for my retirement since I'm unable to contribute more to my savings.

[ryandale]

Hands down the best and most simplified explanation of this content I've seen. Brilliant job.

[ClementRusso]

Basically, mortgage rates have reached their highest point since 1998, spanning 25 years. Considering inflation trends, there's potential for them to rise even further. Just a year ago, a 28year fixed rate was only 6%. This prompts the question: should I wait for a housing market downturn before buying or shift my focus towards the equity market?

[ezracappi]

well done dude, now i can understand it, i was confused when i watch the big short for the first time due to its complex terms.

[AverageEnjoyer]

This video is like a compulsory trailer for The Big Short, and I really glad that I've watched this before seeing the movie

[TheSuperZufan]

Best explanation on the 2008 crash and the different components that lead to and impacted the crash. I needed to explain this to someone and was looking for a simplified way to explain all of it. Now, I can just share this video with them.

[TheZorboidOrbb]

Great job with the video, breaking it down and giving right examples. I had about 20% understanding of what happened but now I think I am at 75%. Thanks!

[noymorgenshtein]

I've watched a few videos about this subject,
and yes I understood the basics and the background,
but man your explanation was as simple and sharp as it gets.
Very well done!
I had no way of leaving this video without subscribing.

[KFCJones]

As concise as possible, given the complexity... Clearly explained. Great video!

[mirdesai]

Your way of explaining is simply indescribable ....amazing work brother! Respect!❤️

[tgbyhn]

Just one word for the efforts you've put into making this video. WOW !

[jovial]

Excellent. Thanks for simple descriptive explanation, bcos this topics not easy to explain. Yet well done by you and your team.

[chaging]

This video was well- explained and well-thought.
I have learned a lot in a short video, plus your sequence of your explanations were clear and made perfect sense throughout.
I salute you for a video well done!!!

[shashikiranneelakantaiah]

Seriously even I'm here after watching the movie Big Short, as I'm not from US, I couldn't understand most of the financial terms used in the movie, but now I know what MSB is all about, thanks to you.

[omaimabentaleb]

This video is so underrated in term of views. Well done, you just make it easy to understand.

[ahmadkarim]

Ur just amazing you helped me alot with my homework and with understanding the big short ...keep ''learning things'' as u love to do and keep informing the new students with you amazing summaries ..Regards from middle east

[laurelharper]

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

[checksandbalances]

Wow that was great - just saw 2 other videos that didn’t really explain properly but this explained a lot -thank you !

[AbigailT]

Utterly enjoy this video. Simple and easy to understand.