The Crisis of Credit Visualized (Why we are in this mess in the first place)

Fixed Link ^

[jongaltsr]

Really simple (and may I say - accurate) Easy for EVERYONE to understand - no matter your background, experience and IQ.

[RobRoy]

Forget that video. You want a real eye opener? And I mean a truly life changing event?

Watch the video here: http://www.chrismartenson.com/

Click on “Crash course” on the left side of the screen.

It’s actually a series of short videos.

It just may be the most important thing you have seen your entire life. I’m dead serious.

[Blue Collar Christian]

bfl Thanx RR

[grapeape]

Ok, cool. So there was a quota system. Didn’t the banks suffer if they didn’t meet those quotas? How did the government hurt them?

[jongaltsr]

"Ok, cool. So there was a quota system. Didn’t the banks suffer if they didn’t meet those quotas? How did the government hurt them?>
The government regulates ALL banks. They make the rules and the Banks have to comply. The banks provided the loans and benefited in the short term even if they knew in their mind of minds that this was wrong to lend to high risk borrowers. A few loans (ok) but not as many as congress kept pushing for (They were aiming for 70% home ownership I believe - or something close to that).
So the banks made the loans and for a (very) short term they made good money, then the $hit hit the fan. I know there were thousands upon thousands of bankers who swallowed hard and said - "I knew we shouldn't have made all those risky loans". but it was to late to do much more than update their resumes.

[grapeape]

Ok, if a bank decided not to lend money to someone what would the federal government do to the bank? How would the federal govenrment even know about the no-loan?

[WashingtonSource]

bump