/biz/ - Business & Finance

>>16204210
the market crashed, some people sold the bottom and lost tons of money, others bought the bottom and made tons of money

>>16204210
tl;dr you are a slave and you always will aslong as democracy as it is exists.
If you are ahead of the bell you will always be outnumbered by the majority of dumb people rendering your brillance on the dark.
Heavy drawback on economic cicles are so harsh because people are dumb and politicians mediocre at the very least.

>>16204210
Jews did some tricks, wagecucks lost their jobs and committed sudoku

money was given to people who couldn't pay it back. simple as that really.

https://youtu.be/OqYTQB6lrQQ

You won't find any better

>>16204210
Banks let very high risk customers get securitised home loans.
They used Credit Default Swaps to insure against the customers not being able to pay, then unsold the loans.
But there was a lot more risk than banks and ratings agencies thought there was, as not everyone could honour their credit default swap agreements.
The problem got so bad it threatened the stability of banks.
It also made the bank suddenly switch from lending recklessly to being overcautious, denying credit to profitable customers.
This mean that there was less money coming into the economy, so it was harder to make money as well as harder to borrow it.
In most countries, governments tried to balance their budgets far too soon, which made things a lot worse.

>>16204210
Government forced banks to loan to niggers. Niggers don't pay bills. Economy crashed. Government hand-picked which companies/banks went bankrupt and which companies/banks experienced no discomfort.

>>16204356
sod off back to pol please kiddo.

>>16204373
Truth hurts. Feels good watching you squirm.

Anyone else thought the collapse was caused by Bernie Madoff? I was young and his face was all over the news back then. I didn't learn until recently that he just had an unrelated ponzi.

>>16204376
imagine saying this to a room full of adults. embarrassing anon, shoo.

>>16204210
According to the Austrian school of economics: the Fed controls the "federal funds rate" which is there rate Banks can lend reach other money. If Banks can lend each other money for cheap, they'll lend each other money more. With more "credit" available, Banks will make more loans for their members, loans like mortgages. They kept interest rates artificially lower than what the free market would have had it at. If a loan has low interest rates it means you'll end up paying less, so more people got in debt buying houses. So the banks lent to people with good credit, but since they still had money to lend, they started sending to people with bad credit. Add to this Clinton and Bush minority home-ownership quotas, and add to this Fannie Mae and Freddie Mac (literally government sponsored enterprises created to encourage home ownership) and you have a lot of people who shouldn't but a house, buying a house. So the cause according to the austrians was government interfering in the free market
According to the media: the cause was greed and free market capitalism

>>16204373
>forced
the rollback of government regulations over mortgage lending enabled the crisis to begin with

>>16204389
Writhe in pain.

>>16204210
too much leverage bit everyone in their bums

>>16204210
tl;dr, you know the head and shoulders?

we're on the second shoulder

that was the USA collapsing, we're currently being held afloat by proxy military action - US troop deployments to Africa all but confirm this

>>16204393
left out: the austrian school is considered a meme by every economist allowed into a college campus

>>16204345
OP, this is the correct answer

Just watch the Big Short.

>>16204510
Left out: Only Marxist professors are allowed on a college campus:

>>16204210
jew crash market. price go down. jew buy everything. price go up.

and the last line of this >>16204505

is because of the last line of >>16204345

>>16204510
So people who highly benefit from government think the school of thought that puts any level of blame on the entity they exclusively benefit from is wrong. Shocking.

>>16204210
>Banks already are selling mortgages to poor people as long as it's profitable
>Federal government (both Democraps and Repooplicans) imposes constantly-increasing quotas for poor-person mortgages on banks, explicitly because "muh American Dream" of homeownership
>With the government-imposed quotas, the banks are forced to scrape the bottom of the barrel and lend to people they would not lend to voluntarily
>The banks also engage in creative accounting and mislead investors regarding the prevalence of subprime mortgages in the market, by massaging the definition of "subprime" ("mortgages bought from 'subprime lenders', regardless of actual quality" instead of "mortgages to people with credit score under 660, including those not bought from 'subprime lenders'")
>housing bubble bursts, house of cards collapses

>>16204510
that just plays in favour of the austrians

>>16204389
Imagine hiding the truth from adults. Imagine being an adult and being offended.

>>16204731
children galloping around online asserting that they have secret forbidden knowledge which has eluded the world's greatest political minds but was revealed to them by a 15 year old on an imageboard, that is in fact offensive. you are acting like a child, you'd turn bright red and start crying should your nonsensical, braindead pol-rants were to be made public and you had to answer to grown ups. stop embarrassing yourself, it's painful to watch. thanks.

>>16204823
You sound like a massive hysterical faggot. Is the devil also trying to get you through the rock and roll?

>>16204839
i don't know what you're talking about. screeching racist babble like a furious preteen is what i take issue with. please go back to your containment board and circlejerk with the other ten-year-olds, biz does not need seething children pointlessly screeching it into oblivion.

>>16204855
It's all true, retard. Enjoy your brainlet life.

>>16204894
yes yes that's nice, run along now, there's a good lad.

>>16204899
You're dismissed, faggot.

>>16204510
85% of everything taught on college campus is retarded

>>16204210
Banks took out a multi-billion dollar fire insurance policy on the housing market and created a lending ecosystem that conveniently allowed it to burn down.

>>16204210
>investment bankers were rewarded when their risky actions paid off, weren't punished when they didn't
>they took higher and higher risks
>the losses (covered by no-one) eventually far outweighed the gains (paid by company funds)
>banks went bankrupt
>the FED printed more than 7 trillion USD to bail out banks "too big to fail"
>the next year, CEOs of bailed out banks received several hundred million $ bonus packages

>Bitcoin was born, so the government couldn't do this again

> to a brainlet
You guys did a poor job allow me op

>Big bank want dollars. Big bank want sell hous's
>Big bank realize many people in big debt
>Big bank have idea, let the bad credit score and debt ridden buy any hous as long as big premium is paid
>Big bank get even gooder idea let investmen buy ton of shit hous's without their knowing through cdo
>SURPISE. Many ppl lose home. No longer able to pay big loan.
> Investmen gtfo of hous market, and big bank lose money on bad loans. Good credit score people denied decent home becos bank scared.
>Gov. not at all prepared for this to happen.

I watched The Big Short first 10 min in, then stopped watching cuz didn't understand what's happening. After learning what credits, loans, and even how bank works, I can finally watch it like a breeze.

People got scared and started panic selling when the credit crisis reared its head and it was made clear that banks were making defaultable loans to poor people for houses they were never going to pay off. Market oversold, companies stopped receiving as much investment capital from investors and either stopped hiring or fired employees in order to minimize damage at their end. This all cascaded down to the average joe who gets hit by getting laid off, moved to a different position with a salary cut, etc.
This is less likely to happen in the future because loans are now being crafted without default options, so the whole cascade will get nipped at the root with the bank legally enslaving the people they've lent money to. In enough time we'll likely be hearing stories about Millenials being dragged off to work in debtor's prison over the student loans they weren't allowed to default on and how this prevented another credit crisis.