What Caused The Financial Crisis of 2008?
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- Опубликовано: 13 сен 2024
- In todays video we will discuss the Credit Crunch, and the role played by credit derivatives and securitization.
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Credit Derivatives and the Financial Crisis of 2007 -2008
What Caused the Financial Crisis of 2008?
Easy availability of credit in the United States, fueled by low interest rates and reduced credit monitoring by financial institutions, led to a housing boom which facilitated debt-financed consumer spending. The existence of credit derivatives and securitization allowed financial institutions to make larger volumes of riskier loans than had been made in the past and consumers assumed an unprecedented debt load.
Between 1998 and 2006, the price of the typical American house increased by 124%. Between 1981 and 2001, the national median home price ranged from 2.9 to 3.1 times median household income. This rose to 4.6 times median household income in 2006.
When home prices declined in the latter half of 2007 and the secondary mortgage market collapsed, a global financial crisis was triggered. Credit derivatives were blamed by many for bringing about this crisis, or for intensifying it.
Credit ratings agencies are widely believed to have failed the markets in their calculations of credit risks on credit derivative products in the lead up to the financial crisis of 2007-2008. They relied on models that were given to them by the credit derivative issuers. The fact that they are paid by the security issuer, rather than the buyer, brought their impartiality into question. There is a structural conflict in this market whereby investors are the beneficiaries or ultimate end users of credit ratings calculations, yet the party paying for the ratings themselves is the issuer.
On the back of the financial crisis, politicians and regulators globally are pressuring originators to resume the former practice of maintaining at least some of the credit risks on the instruments they originate on their own balance sheets. Politicians face a trade-off of hoping to incentivize high consumer spending and home-ownership rates to boost GDP and achieve social goals associated with home-ownership while seeking to avoid the negative outcomes from widespread over-indebtedness from lax credit standards and real estate bubbles. Stronger credit controls stabilize an economy but reduce home values, decrease homeownership levels, and reduce an economy’s GDP growth.
Honestly, this looks like a hostage video. I'm glad you've taken pandemic time to upgrade audio and set decorations.
Maybe. But I hardly need set decorations to help me understand what happened during the housing crisis.
@@CJBroonie Cool story, man.
@@mastpg Even cooler when you realize that you spent the video paying attention to the (lack of) decoration instead of what was being said 😂
@@nonamernobrainer846 Don’t need a refresher on 2008. Got to watch some of the casualties carry their boxes out onto 7th Ave.
@@violarulez Ah, but we did get the joke!
Your channel is criminally under-viewed Patrick. I look at your channel almost daily hoping for a new video. Keep up the incredible work!
Thanks, will do!
Yeah. Even I enjoy it as a commie. Doesn't make any twisted neoliberal claims about it being the end of history, just presents it as it is. Dude aged a decade in a year from this video though, I think it's the beard.
@@bills.prestonesq.5905 awesome name!
@@exlibrisscientia6741 Be excellent to each other!
@@bills.prestonesq.5905 any impending cultural revolutions coming up? Overturning of the bourgeoise?
I refinanced my mortgage in 2006 and the loan officer was incredulous that I wouldn’t take a Variable Interest Rate loan. He tried super hard to sell me on a Variable. I didn’t take it but not because I foresaw a collapse but rather I would sleep better knowing what my mortgage would be each year.
if you're given that choice, take what's comfortable for YOU. those loan officers are TOLD what to sell hard. IN Canada we suggested to our three baby, young couple neighbour (we baby sat for them( that buying my friends modular on a nice corner lot (low low utilties and all new upgrades) would "fit" their budget. The big Canadian bank certified them for double the debt (drowning them). The big bank wants the NEW houses OFF their books so their contractors can keep building and/or cash out their temp. loan.....with the bank. they're not your friend. Get your own advice or listen to older people that have been there/done that and made it through the LAST five downturns.
These days most banks don't even offer variable interest loans.
@@samsonsoturian6013 really? I wonder if that was because of a higher level of defaults or just that the variable is so derided in the press.
@@ducknorris233 It's because the bank can hedge away that risk with an interest rate swap. They set their own interest rate, so they just price in their own insurance.
Or Intetest free/Endowment mortgages👌
Some are supportively mentioning how Patrick upgraded his videos. I like his recent videos but also love the older ones. They’re direct, informative, and educational. Don’t compromise the quality. It’s why I subscribed.
Buying our first home in 2004, we were more or less told that our application didn't matter and we should just write whatever we wanted. No income verification was ever done that I can tell. We were also told that a ridiculous loan-to-income ratio was fine. We weren't subprime in any way so it didn't matter and we didn't do any of that, but I can absolutely see how people were mislead.
Bought my first house a few months ago. The paperwork was rigorous but the interest rate was equal to the rate of inflation. The banker said they expected interest rates and inflation to fall and told me to simply refinance when that happened. They immediately sold my debt to an investment bank that's being a real jerk and won't let me pay ahead and wants me to trip up miss something so I'd pay late fees.
In both of our cases, the biggest loser are the people who happened to be holding the loan when things don't go their way.
Yet again, not a single minute wasted. Such purely good information....just excellent
going through the older videos and they are very informative, educational and to the point. Very undervalued Please keep the quality
I understood about 10% of this video
Me too but im seeking wisdom.
My younger brother is Seattle (in mortgage after market placement most of his life) lost his SECOND house and all the "family legacy' money playing options. In 2010 he "pronounced" that the Seattle housing market wouldn't recover for a decade. His house he lost recovered all it's value in less than eight months. So much for being an "expert" in his field.
Isn’t this whole video a cautionary tale about how experts can still be wrong?
@@haydens5321 In my little bros. case it seems being a SOCIOPATH comes to mind. I never saw it, but I didn't find out he had accessed the "family legacy" cash when dad started sliding into non-linear demenia. Fortunately, we have private USA medical and owned the house in the Trust clear title. I ASSUMED all the "kash" was inside the Trust. It wasn't. But mom is doing fine.
One of most underrated financial channel on youtube. Very nice and clear explanation of a somewhat complex topic. Thank you!
Patrick's channel and content is great - on the topic underrated - the absolutely most underrated channel on RUclips is "Tactile Trade" - look it up. That guy has extremely interesting content on how to calculate finance stuff. It is Amazing - sometimes I think that the "better" the content (hard core, really interesting stuff) - the smaller the user base, because not many understands it. Also the reason I love the markets - 99% are complete idiots 😀
Sounds like US student loans. The school's interests are not aligned with the student's ability to pay it back.
The day when BNP Paribas couldn’t value a CDO because the value was going down, values had only gone up previously.
That is the moment I would like to see discussed.
Even patrick's old vids are certified bangers, keep it going!
Some years ago I read a book called "23 Things They Don't Tell You About Capitalism" by Ha-Joon Chang (an economics professor in Cambridge UK) were he argues against the "too complex financial products" because few people really understand them (an their risks), so we end up with markets with a "herd behaviour" causing financial/economical crisis more often and more severe that probably wouldn't happen if "normal people" (polititians, voters, even "average-economists") could understand better what financial institutions are doing with everyone's money...
I am a Portuguese engineer and my country (and the whole of Europe) still hasn't fully recovered from the consequences of the 2008 crisis... (although most of the blame is due to our politicians)
Isn't he a communist? I started reading that book, but after the first few "things" were gotten wrong I gave up on it. If you want to learn about economics, try Basic Economics by Thomas Sowell or Henry Hazlitt's Economics in One Lesson.
Things that are complex tend to be that way for a reason. "I don't understand it" isn't a good enough justification to ban something. Do you know how to design a bridge? Perform brain surgery? Launch a rocket?
If governments & investors don't understand what banks & fund managers are doing with their money, they should first educate themselves on the financial system--there's a great RUclips channel right above that's a great help.
@@tianxiangxiong8223 government ministers barely even do their job they’d never do extra work
Shouldn't Mr Chang also pay close attention to the CENTRALIZATION of money? When you had Goldman Sachs selling sub prime mortgages .........to a village in northern Norway..........something not right. The centralization of money and power leads to leadership bailing, grabbing a chopper to get out, while all the lemmings they made money off of go over the cliff. Same can be said for the Crypto industry: a few names of guys with pimples controlling billions and billions. ? No.
@@rutessianLol, Thomas Sowell is a better economist than Ha-Joon Chang? The man who refuses to cite his sources and writes Austrian school schlock, who no real economist takes seriously? Very funny.
This is the earliest of your videos I've seen so far. Your recent work is very nicely produced. I don't say this to criticize your early videos, just to congratulate you on the work you've done on your platform.
And keep throwing in a little dry humor every now and then. You can be pretty darned funny.
Hi, Patrick. Love your channel! I worked in the mortgage industry before ‘07/‘08 and still do. IMO, the overall cause was wholesale abuse of credit by everyone with a stake in the system. This included brokers, lenders, borrowers, government, rating agencies- everyone. It was an orgy of borrowing and spending that spiraled further and further out of control until it finally collapsed.
keep the education coming Patrick. Thank you.
God bless you Patrick,so many will not understand your explanations bit the beauty is so many will be saved because you did such clear education.
Wow, you've changed so much in just three years..
Should make a video on why derivatives are even actually necessary... what value do they bring to investors and to society.
23:38 "The credit crunch was the most remarkable period that many investors may ever experience." It might be debateable but 2020/21 beats 2008/09 for me.
Video was uploaded 3 years ago
Generally I would say that these innovations give investors a false sense of security along the lines "this time will be different".
I started on a Mortgage Backed desk many years back. After the 08 ballsup I had an argument, forget the pub, in the City, slagging off the Engineering of Trash into Triple A - few of these "Engineers" had even taken O level Economics and had no clue what they were putting their names to, they turned out to be a Credit Structuring/Securitisation team, from a Swiss Bank, say no more, and to their credit admitted that most were real engineers, employed for their maths/modelling skills and no, had no clue what the products did in the real world. Silos may be good re the Chinese walls insider trading propaganda for the SFA, FSA, FCA - whichever name they had that week, but in fact mean unscrupulous issuers + rating agents etc who controlled the show had eager young minds ready to be manipulated who were unlikely to talk to many from other depts.
Are the public at large served by the constant creation of new financial products which certainly make their sellers profit?
Where have they moved too far from the real economy and serve the financiers and not the real economy?
I really enjoy listening to your knowledge Patrick. Thanks so much for sharing with us.
It seems like given how complex these derivatives can get and how difficult it can be to appropriately value them even with full information on the underlying loans that any investment on them is inherently going to be closer to empty speculation than a meaningful assessment of the market situation. There's certainly a lot of profit to be had and the basic concept of using financial instruments to spread risk rather than concentrate it seems like a good thing for both short and long-term value, but when squishy humans are working blind I don't think it's likely that we'll resist the urge to relax our overall risk tolerance too far.
Back then I foresaw the insustainability of the interest only mortgage payments. It was completely stupid. But I didn't know how to profit from it.
Thank you for such an informative session. It gives a worthwhile degree of both perspective context and realty.
i remember taking a mortgage refinance in 2006. i had 20% to put down since i had no recent experiences with mortgages. imagine my surprise when told the 20% was not needed. in fact, i might borrow 120% of the value of my property. i joked with the banker, "then what is to stop me from walking away?" they laughed. the punchline was in 2008. in case you are thinking we are smarter now, Bank of America just announced they are writing loans with no down payments for select customers this year.
The actually a good side to that in the USA (the freedom of money). We don't see that in Canada unless the big five banks get ALL YOUR EQUITY as collateral across the board. The problem is you need GREAT credit, usually have to have decades of future earnings years ahead of you (yeh, I know that's illegal but ) and solid financials. The banks also know you'll PROBABLY take that extra money and put it in into
house UPGRADES , raising the value.
Once again, wonderfully laid out presentation and content.
Holy shit. You can track market conditions by beard and baggy eyes alone.
You are my favorite financial channel by far.
The credit agencies lied. Why are they still in business?
I remember reading about the coming crisis in the German news magazine "Spiegel" probably a year before it finally materialized. Great channel BTW!
Excellent content, thanks!
Finance should be boring.
When it gets exciting, history proves we have problems.
Within five days of the New York crunch hitting, momies for all hotel and high-rise concrete stopped..................in Canada. It shows the exposure Canada has to New York money, and we went from a high rise concrete builder of 115 front office and management to 15 employees in five months, as we completed project but no others were coming down the pike. It took eight months to arrange other financing sources and FINISH those in demand hotels and condos in Vancouver, BC, a HOT MARKET that continued to be hot through th eWinter Olympics. It shows the vulnerability of MONEY even though we were going well and demand was there. If the money isn't there, it stops no matter what.
That was great . And the reason it was great is because I could actually understand it. Usually financial stuff just goes right over my head, and I never really understand it. But I was actually able to follow this. Which is good, because I've been wanting to know about this kind of stuff for the longest time.
When looking at the timeline of the appearance of credit derivatives it appears as if these were created _solely_ in order to satisfy *investor demand* for 'objects of financial speculation' (instead of e.g. a popular, political movement to widen access to capital or home ownership) - which begs the question if derivatives have a function beyond speculation, but towards e.g. raising capital for expensive investments (the equivalent to steelyards, shipyards, workshops and entire railroads in the 19th century which required ever larger banks and asset accumulation).
If investors seek nothing but higher yields through greater risks with their capital, potentially involving enforcement of 'free trade' across national borders ('open door policy') via military intervention (e.g. the Opium Wars) than investment banking is per definition _a destabilizing factor_ in modern economies - and the question would be what justification private ownership of capital could have from a political perspective (foremost the supply of capital for investment into the production of goods and the offering of services - that is *consumer demand* ).
The amount of cash being created by debt was crazy in the lead up to the gfc. The opacity of where the risk lay due to the complexity and interconnectedness created the subsequent liquidity crisis after the collapse of the underlying collateral for these instruments. No one knew who was left holding the bag.
Is there _a structural similarity_ between the *relaxation of lending criteria prior to 2008* in the US and the *'Japanese asset price bubble'* from the 1986 to 1991 ?
There is a lot of talk about models - there is no models in the video at all! Thanks for upgrading from this VGA camera bro :) Thanks for some high quality content Patrick.
I really hope you mention how the Govt kept pushing institutions to lower lending standards. Barney Frank kept pushing even when the Bush administration warned of a possible crisis in the making.
criminally under viewed.. lets keep it as our secret.. ah no.. anyone who asks me for help in the financial market i will always send them here.. this info Patrick gives is absolute GOLD.. most people i know think they know it all .. and good luck to them ,.. the only thing i am certain of in life is that I know nothing....Thanks Patrick!!
Amazing work man respect your knowledge.
If there's no mention of Freddie Mac or Fannie Mae I'm afraid the explanation is going to be incomplete. And fundamentally so! the video becomes a waste of otherwise good explanations and notions.
Smooth Patrick.
I think you are spot on when pointing out that the banks didn't really have any incentive to ensuring their loans were low-risk, as the market, fueled by erroneous or mis-calculated ratings, were just selling them off. I'm honestly surprised everybody didn't see this coming, but I guess hind-sight is 20/20.
It was worse than that. The banks were incentivized to issue high risk loans on the basis that high rejections rates in low income neighborhoods were a sign of racial discrimination. Banks maintaining safe lending practices faced law suites. Once they relented and issued loans to high risk borrowers, things went smoothly for a generation. Millions of new eligible borrowers, a new demand, increased house prices fast enough that banks were not losing money on high foreclosure rates. The crisis started when abundant supply caught up with demand in various locations.
@@alaindumas1824 Canada housing largely avoided that because Harper et al. DIDN'T open up the "sluice gates" of money. AND most Canadians that own housing have deep equity (the mattress joke endemic to old school Canadians). We also don't have an aggressive low end aftermarket (vacuum cleaner salesmen on money) that feeds into the freedom fry kind of economy like the US, and never have. We have conservative (small c)) financial peoplle, often from Scotland (bankers that are THRIFY), BRIT lawyers, Irish cops, and Welsh bus drivers and union bus. agents!!! Different culture. (except for Calgary, the only American city OUTSIDE the USA) I did three "tours" there.
It was me I'm sorry I've been trying to fix it for 15 years it's really hard and no one wants to help
This affected Canada directly. Within a WEEK of this going sideways all const. projects STOPPED IN vANCOUVER, bc WHILE access to money was straightened out. I showed to moi the INSANE centralization (of everything) and also saw it in the Olympic funding in 2010. Money shouldn't be so centralized (in another country) and the same can be said for another insanity: CRYPTO.
The Canadian and US economies are one and the same.
How much have you lost in crypto?
With the current global situation, it’s only a matter of time when finance channels will pop like this hidden gem
Great Channel I am young and your vids help me to find my way.
I am finding these videos very interesting and they have certainly made me far more cautious about where I invest money!
Thank you for the content!
Informative as always
I want an unsecured loan !
I predicted that no bankers would go to jail!
Great content. Can you please do a video about how you can follow these products in chart or data form..
Thanks Patrick. Great Idea, I will put that on my list of future videos.
thanks for covering this topic. if you look from previous crisis. it looks like its starting over again the question is where is gonna start? federal reserve keep saying the inflation is not here yet and they plenty of ammo to help the economy. but if you look around. commodities is going up and lots shortage is going on. for example
oil price hike, lumber shortage, consumer price hike, even starbucks is having a shortage with heir syrups and cups. which is never happened before. feds will be force to increase the interest no matter how long they wanna keep the interest low. media don’t really show to the people what’s really happening behind the scene. hope this inflation is not as bad what other may think of. 🙏🏼
and now a year later your prognostication is very much the large picture. THOUGH supply chain strangulation and food/hydro "inflation" started creeping up over five years ago. I noticed (Canada) that it wasn't worth it to shop an hour away as all the sales had gone, and prices (EVEN in discount stores) were evening out. It has to do (Canada) with billionaire control of our supply chain for food, and Hydro has always been a "dump" for jobs from govt. connections. In BC Hydro DIDN'T get gutted like medical or even academia during the "rrestraint" program of the eighties. At least then jobs were disappearing but we didn't get raises for a decade.
My Dad told me in the early and mid 2000’s that a big real estate correction was coming 🎉 man was he right
Where? Real estate hasn't "corrected" for decades except for some south side of the city (fill in big USA city here) crap hole.
@ 5:42 This was not only their belief, they also said as much at the time. This line of thinking and preaching was in direct contrast to the monetarist theory they also openly supported that stated there was no direct relation between M2 money supply and inflation. This is a direct indication that they were openly lying about the relationship between M2 money supply and inflation.
You've done a great job of stating all the symptoms. Now get into the real cause; the takeover of money creation by the debt-money system.
That's what all bubbles are. Turning everyday items into money printers by arbitrarily reassigning values.
When Germany offered Greece a 12 billion dollar loan and Greece took it, many say it was bad from the Greek side to take money and burn it partying, knowing full well that they would never be in a position to repay it, but the guilty party is Germany that offered money to a reveller of a country expecting a full bail out when that country didn’t pay.
What happened in 2008 is blamed on people that took money they couldn’t repay, but the true culprits are the banks that gave away that money and put credit default swaps on it and passed it along. Those bankers should go to jail but nah, they got bailed out and massive bonuses afterwards (and beforewards). It pays to be rich and have a strong lobby behind you
I was scratching my head when I heard some Norwegian village somewhere had all their cash tied up in American mortgage "packages". At the time I was working six days a week in const. and really didn't have the time to net surf and find out just what the problem was: New York and London money slagging off their portfolios to unsuspecting dweebs deep in some rural area.
James Bissonet did it. He wanted to see what he could do.
I’m about a third of the way through this and there’s no mention yet of the CRA’s part in the expansion of low income mortgage originations in the US. That is the primary reason you saw the rise in mortgages given to “high rejection” zip codes in the US. CDOs were a way to mitigate the risk banks took on to make those loans to keep the government regulators happy.
To add: US debt was artificially cheap for a time because China used T-bills as a foreign currency reserve and targeted an inflation rate above the US in order to encourage exports. In other words, China was lending to the US with printed money.
I still am a little confused how the CDO's worked. If I gathered up a bunch of mortgages and put them together and then sold them to a pension fund, was it simply because the pension fund had no place else to put the money that they bought the CDO? Did the pension fund get a higher interest rate than any place else? I can see how the banks made money on the subprime. But in the beginning the mortgage, loans were honestly assessed and people could pay.
I think you had better research lending criteria before the crisis creating sub-prime mortgages, NINJa mortgages, early short-term interest discounts in life of mortgages increasing to unaffordable rates after the discount period; liability-based investment practices; and how such liabilities are hedged.
😲 what a great video but I had to watch it like 4 times
People talk about the set, but the increased amounts of dry humour is the real improvement in my opinion. Also this thing looks like a deep, overly complicated rabbit hole lol
You made it just before the c-19 has started. Perfect timing!
Welcome to 2020-21
Amazing video
In 1999 I wrote my graduation thesis on Asset Backed Securitisation.
WE need a Uboob site on that: I did my Thesis twenty years ago, and re-read it today. What I did right/wrong and what I NOW know. !!!
If borrowers kept up with their payments would crisis have been averted?
@Patrick Boyle Have you read Financial Fiasco: How America's Infatuation with Home Ownership and Easy Money Created the Economic Crisis by Johan Norberg ?
I have not, but I have read a few of his other books.
@@PBoyle Wow, thanks for answering. If you had read I would have asked you what you thought of it.
Don’t forget Exxon’s $4/gallon gasoline which forced many to choose between making their mortgage or driving to work.
That's silly. No one defaulted on mortgages simply because gas is expensive.
@@samsonsoturian6013 Actually, they did. the choice presented many Americans was to either pay their mortgage, or fill up their SUV for that hour long commute from their sprawling suburban home to their work in the city. If they didn't show at work, they would be immediately fired. If they didn't pay their mortgage, it would be a slower and more complicated procedure to taking back their home. Thats a simple choice to make at 7am on a Tuesday morning.
@@arikkatzenberg4498 Put that back up your butt where you got it before your girlfriend does.
god damn this guy is smart
awesome
Seperb. Thanks
Might want to do some more homework, particularly the Eurodollar system. I suggest that if your explanation were true the world economy would logically get back on track. It hasn't, has it? The monetary system today is very fragile and is about to bust say within 9 months, most likely in 4-5.
awesome!
did you have your camera perched high enough you had to look up at it
Now Patrick, explain the 2008 financial crisis on under 30 minutes or you're dead''
Keep in mind that while housing was a "bubble" in 2006, house prices retraced and surged over 2006 by 2011.
In Seattle my little bro. lost his house (he had lost the OTHER five playing options) and told me it wouldn't recover for a decade. In ten months the lot value recovered, and the neighbor he didn't get along with bought it for cheap. Doubled back in value in less than two years. Probably the guy bulldozed the place.
All the effects of the crash were gone by 2012. Idiots were still insisting there was still in recession in 2019 because politics
I wish you were my finance professor right now :/
I know what caused the Crisis but I have to hear it from the Legend himself
The 2008 "financial crisis" was not a crisis of finance, it was a crisis of social engineering. The congress (Chris Dodd and Barney Frank) attempted to take advantage of the then-current belief that inasmuch as housing prices had not suffered a meaningful decline within their lifetimes, that they never would in the future. The hope was to move millions of poor people into the middle class by means of home ownership. They maintained that it would be safe to loan mortgage money to people with bad credit onthe theory that if the borrower defaulted, the house could always be re-sold (at a profit), and the mortgage paid off with the re-salle proceeds. Needless to say, that turned oudt to be untrue!
Greed & Currency.....
You mention that British regulators might look into market manipulation but make no reference to the removal of regulations.
The government debt issued to finance the bailouts has just delayed a further reckoning. The bailouts during COVID just delayed it again. But now that debt must be paid.
It is also notable that no senior executives were prosecuted. Why? Because, as Obama’s AG Holder, admitted they were “too big”.
The capitalist economy is dominated by finance capital which doesn’t itself create any value.
QUOTE
… In March of 2013, Attorney General Eric Holder responded to questioning from Republican Senator Chuck Grassley, who noted that there had been no criminal prosecutions of financial institutions or leading executives by the Obama administration. In response, Holder stated, “I am concerned that the size of some of these institutions becomes so large that it does become difficult for us to prosecute them, when we are hit with indications that if we do prosecute-if we do bring a criminal charge-it will have a negative impact on the national economy, perhaps even the world economy…”
13:05 *cough* Peter schiff *cough*
I thought your main goal in this Channel is rap and rap related news 😂
2 words you never want to hear together:
Creative Financier
That's an easy one, banks lying.
People like Michael Burry and John Paulson and Paulson's friend Green used CDS to good effect .
Years later, back to the same shit lol
That's humanity for ya. Repetition is inevitable. Rather than learning from the past to avoid repeating it, learn from the past to take advantage of it. :)
It seems nobody knew or cared to know how much of the borrowers will default. The whole shebang could've worked out otherwise.
No one can blame the ones who lied on their mortgage application forms because the lenders still failed or refused to do their due diligence because they recklessly abandoned the lending standards because they were incentivized to disregard the fraud to get more and more loans so the banks could turn them into securities. The only one more foolish than the one borrowing money they can't afford to pay back is the lender themselves.
and if that baby sitter or Mariachi player "reported" they make several hundred grand a year and THEN sell their house BEFORE the downturn they're then SET FOR LIFE. The Casino was paying off big time and they left before it turned sour. Good on them.
You can. It's called stealing.
The fact that grant cardone has more subs then you is mind blowing
What caused the sub-prime mortgage crisis?
I bet you it wasn't sub-prime mortgages .. oh wait.
I could never tell where you were from because of your rhotic „r“ pronunciation but then some British pronunciations on certain words
He’s oirish
Could someone please remind me which political party was in charge of America's financial system from 2000 to 2007? I'm thinking the Democrats because the republicans are such great conservatives. 😅😅
lol
Elected officials had very little control over these matters.