Stefan MolyneuxVerified account

I can’t tell you how many times I’ve had to explain this to people. They just don’t want to believe it. You can lead a horse to water but you can’t make him drink.

This was foreseen by the banks before it happened. That is why they wanted Gov backed mortgages, which happen, limiting the banks' risks, risking Taxpayers money, and CRASHING the housing market upon default

That explains the financial crisis of 2008 but nothing has been solved. The coming crisis will shake the foundations of societies.

My guess is the reason why there never were any prosecutions against any of the big banks. it their defense was to show they were doing what those in political power mandated...thus the bank bailout and let the tax payers be responsible for the acts of the establishment.

Sources?

The United States has become a lab in which is tested what happens if you give people from any place a universal citizenship while overall wealth is decreasing. I'm anxious to see the result.

Terrible explanation. It was a government created oligopoly (s&p, Moody's, Fitch) committing fraud. Full stop. Things like the CRA had small effects on the margins.

The government wants property owners because that stabilizies the society. It lowers the chances of sharp political changes. Lending in order to buy homes was encouraged by the government since the 1930s. On that frame, the crisis was the result of excess of money and derivatives

You’ve yet to explain the role of the Greenspan Put, the over-leverage of the American consumer, the financial services modernization act, the fraudulent behavior of rating agencies, etc etc Not that I expect you to do anything but regurgitate reductive takes anymore.

No, equity is a disaster.

Truth

That’s certainly part of it. It wasn’t just a minority problem, too many ppl in general over extended themselves with houses they had no business buying having to put little to none of their own money down, ppl bought multiple houses, they also leveraged into more credit.

This is cold, hard and the truth.

I can sum it up in one word: DEBT.

Things like this do play a role. Fundamentally though it was due to artificially low interest rates. The wealth they say was destroyed never actually existed in the first place, it was an imaginary bubble due to Fed actions It's not over yet either, all they did was reinflate it

All it took was less then 2 mins to explain,,,very well said