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The 2008 Economic Disaster: Crash Course Economics #twelve





Right now on Crash Course Economics, Adriene and Jacob converse about the 2008 financial crisis and the US Goverment’s response to the problems. So, all this begins with home mortgages, and the use of mortgages as an expenditure instrument. For a long time, it appeared like the US housing sector would go up and up. Like a bubble or a little something. It turns out it was a bubble. But not the excellent variety. And the governing administration response was…attention-grabbing. In any case, why are you reading this? Look at the video clip!

More Economic Disaster Means:

Economic Disaster Inquiry Report:

TAL: Large Pool of Funds:

Timeline of the crisis:

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22 comments

  1. I learned more in this 11:24 video, than I did my entire semester of Economics.

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  2. take it john green! it's not in the stars! btw just kiddin, great series and great channel overall : )

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  3. 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

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  4. The guys belt-peice made me listen 😛

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  5. As a European, I would say
    The fault lies not in the stars, but in the US

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  6. Starts at 0:29 for those cramming P.S. you can understand words at x1.5 speed

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  7. AC/DC

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  8. Loans were given out so freely due to government subsidies

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  9. I didn't get that credit default swap???

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  10. Summary: Big Banks and Wall St. investors were greedy jerks and make millions off of the American people while crashing the economy, got a slap on the wrist and now are better off than they were. The deregulation of the Big Banks and repeal of Glass-Steagall helped with that. You can thank Bill Clinton for the repeal of Glass-Steagall. Also, Goldman Sachs was one of the biggest, if not the biggest, perpetrator in this scheme. None of those crooks got jailed. But we, the taxpayers, had to bail them out. Iceland did it right when they jailed the bankers and bailed out the people.

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  11. It's been getting better? That's a stretch if I ever heard one

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  12. Good thing the Dodd Franck Act will help prevent this in the future.

    …aaaaaaand it's gone

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  13. Isn't it the government who encouraged the banks to make sub-prime loans in the first place?

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  14. Didn't y'all promise in the introductory episode to give us both points of view? I feel like you've only shared one side of the story and I have to read the comments to get the rest.

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  15. Is it me or does it takes everyone else too, 5-6 viewings, to understand these economics videos.

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  16. The fault lies not in the/our stars, but in us

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  17. NECCCK.

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  18. Dodd frank was killed today by Donald trump.
    Hold on

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  19. How convenient that you forget to mention that the whole crisis was only made possible because of artificially low interest-rates and the government both forcing banks to lower lendingstandards and operating Fannie and Freddie which allowed for all the moral hazards to accumulate. Ironic indeed that possibly the two main villains of this drama, Alan Greenspan and Barney Frank are given positive coverage in this video.

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  20. I'll never understand why people on here are arguing about which party was to blame. This isn't a partisan issue. Politicians and influential bankers of all kinds proved themselves to be devoid of empathy and consequence when it came to their own fortune.
    This isn't about democrat or republican. This is about irresponsibility and greed at the top of society.
    The fact that it can be blamed on either side of the political spectrum is evidence that it was the fault of many.

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  21. Damn, that's exactly like Canada in recent years…

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  22. they should have let the banks fail

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