What caused the financial crisis?


#1

ECONOMY: People earning decent income don’t feel the need to borrow to make minor purchases

DEREGULATION why non-banks + FDIC banks could offer nonconforming loans to public

SECURITIZATION: Demand for junk/higher yielding paper increased demand for all loans, even bad one

etc.

10 years from Lehman. And nothing has been fixed


#2

#3

#4

This next upcoming financial crisis will be catastrophic but also it will be a catalyst for massive and global adoption.


#5

The short answer is banks and all other financial institutions making extremely irresponsible bets with everyone’s money. Instead of investing in a prudent and informed way, most financial entities were simply using the stock market, derivatives etc… as a giant casino. A casino that was usually rigged in their favor.

The crash occurred when massive bets in the financial casino came up as losses. Many due to bets related to mortgages and housing prices. Massive betting combined with mortgage loans being given to people who can’t afford them. Financial institutions betting on those mortgage loans not defaulting and down goes the house of cards.

Rinse, wash, repeat???


#6

Thanks for dropping this. The question REALLY is…

If the financial crisis happens… what will happen to Bitcoin?

:rocket:


#7

Boom!

Yes, a rocket ship


#8

watching this live with Peter is so much fun… now let’s dig in… will bring in some stuff


#9

https://www.infogristle.com/sheldon-emry/billions-for-the-bankers.html

took 3 days to read … and its free


#10

thanks @andyramankapu
Can you share why this is a good read?
And, a meta level summary?

Thanks.


#11

Coming up… This book shows how everything is IOU and everything is digital numbers… the thing is Private Bankers exert too much influence over Global Economy. It is because the way money is created. More than 90% of the money supply is digital mostly created by private commercial banks when they give or issue loan. The rest is cash + coins around 3-7%. Since 1913 money supply has been privatize through stealth.


#12

When Yaron is good, he is really good - this is one such example.


#13

Surprised to see you post someone from the Ayn Rand Institute. Isn’t Objectivism in conflict with Social Democrats? Yaron is a pretty big Hazlitt fan,

But Frank/Dodd and the rehiring of little Timmy was all we needed to know that nothing was going to be fixed.


#14

I’m not obsessed with labels the way you are. When someone says something that makes sense I share it.


#15

I don’t really care about labels either. I just thought in the Trump thread you said you were a democratic socialists which is quite a contradiction to Objectiviism. I am sure crazy Bernie would say ARI is wrong about everything and the issue was too much deregulation, which is laughable like Bernie.


#16

This explains it,not caught up on labels. What did Bernie actually say was the cause,has he said anything about that? Youcan’t say he would probably say this or that then attack his imaginary reply.


#17

That is cool, maybe someday a Social Democrat will say something that makes sense but I doubt it. If I remember correctly, Bernie blamed everything on the greedy 1%. Deregulation. Glass-Steagall. Nothing about artificial low interest rates, Fannie and Freddie or the FED. Though he pretended to back an audit until the last minute when he gutted the bill. Good Ole Bernie, he is nothing but a delusional old white man.


#18

With your pre-conceived ideas I also doubt you will hear anything that is outside your current worldview that makes sense to you.


#19

Pre-conceived? I came to where i am through study and observation. It is not like I find some quack online that list 12 lies about Social Democrats and try to paint them onto you. That seems more pre-conceived. I listen to Sanders and Cortez. I’ve listened to Reich. I have yet to hear anything that is worth a grain a salt…


#20

Bernie is a white man?.. I thought he was a shape shifting alien lizard.