A Simple Explanation of the Economic Crisis in the US

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This video offers a simple explanation of the economic crisis in the US, its causes, and potential solutions as well. To learn more, ask questions, or share your thoughts, visit our free learning community at InformedTrades.com.

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Category:

Education

Tags:

• recession
• depression
• crisis
• economy
• economic
• glass
• steagall
• housing
• meltdown

[churupaca1]

of course china will lend money to the u.s. their entire economy is dependent on spending in the u.s. more to the point if people stop buying at wall mart china is fucked.

[Bwahahahahahakangina]

Everyone has to realize that the US economy did not just collasped just because of WALL St. Corporations but what added to the injury was that the US Government got into war in Iraq, Afghanistan and Pakistan. Remember, the U.S. Government was spending 2 Billion dollars a week just to keep U.S. troops in IRAQ and Afghanistan and that went on for several years. Total cost is $3.2 to $4 trillion dollars. That is why the U.S. Gov't has NO MORE MONEY. Think about it.

[mybigtokachi]

You had pretty much all the way up to slide 13. The money supply grows because we have a fractional banking system - banks only have to keep a small percent of the deposits they receive (aka loans from depositors) to saticefy reserve requirements and they lend the balance out to borrowers at a higher interest rate than they pay on the deposits/FED loans. This geometric progression as these deposits cycle thru bank after bank is how the money supply grows. If you end this, what comes next?

[mikelsok]

Ask yourself this; Does the total monetary value of the US SubPrime market = The total debt now faced by whole countries like Greece,+ Spain+ UK+Ireland+UK+Italy?

Something doesn't quite add up does it.? If the Sub Prime fiasco was the start of the worlds economic downfall then it suggests to me that either the banks were lending to the all and sundry when they didn't even have the capital to do so in the first place. Why has not one single Banker been brought to justice yet?

[bteres2]

This guy is a complete moron and should not be listened to.

[88888FORCE]

A Simple Explanation of the Economic Crisis in the US Nov-24-2010--- A simple explanation of the economic crisis in the US, its causes, and potential solutions as well.

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[mlndstream]

Ad hominem

[mlndstream]

My problem is more with governments who profit from taxation and control of the masses, while also inflating the paper/digital money supply and so devaluing the money in peoples pockets, effectively robbing them of their purchasing power without them knowing, and then you have the Central banks as accomplices charging interest via income tax on paper they counterfeited in the first place...I'm starting to have more respect for 'The Mob', they taxed less and protected more?

[mlndstream]

Yes, nicely put, although at this stage I have no problem with people like Warren Buffett getting so rich, everyone knows the risks of investing in the stock market and everyone knows they could lose their money so it is consensual, Warren Buffett wins because he simply understands that if you buy the stocks (be greedy) of quality companies while the most of the rest of the herd is selling (being fearful)and therefore creating undervalued stocks, he knows he will win more than he loses

[truthadvocate]

The only way to win consistently at another's expense is to use coercion (ie robbing or conning people) These are criminal acts committed by government & private entities & should be punished

Large banks use coercion through the government to screw tax payers & fix the system. Without the State, they could not get away with it. They would be punished, not rewarded.

The people who lose big in the stock market are generally using it like a casino. It's their fault for gambling & taking the risk