PBS Newshour explains the 2008 credit bubble

Paul Solman uses a domino metaphor, taking the viewer step by step through how problems in the housing market spread into the wider economy.

Category:

News & Politics

Tags:

• News
• Credit bubble
• Bear Stearns
• Liquidity
• Sub Prime
• Recession
• Economy
• home loans
• Wall street
• PBS
• Newshour

[scorchedearthdj]

Excellent explanation. Corporate socialism will kill us all.

[bntyhuntress]

Would love to see more from Mr. Solman I get it now Thanks to this story

[XpEAnUTBuTtERsUckSX]

@ImAud1 The funny thing is we need fractional reserve banking to fuel our modern day hyper-capitalism.

[johndcqr]

When one has a financial system that encourages both creditor and debtor alike to be irresponsible, what would one expect? If one believes that one believes in fairy tales that one can prosper by borrowing then they deserve to be slaves. In fact financial institutions were encouraged to be in the welfare busines since at least the 1970's. Think of credit cards and loans as the new welfare.

[ImAud1]

also, i love how there is NO MENTION of the government backed guarantees for the Fannie Mae / Freddie Mac debt and the moral hazard in the real-estate market caused by those two GSE's

[ImAud1]

wow, no wonder so many people are confused to what happened in 2008-2009 with the real estate bubble. this broadcast is pure propaganda to support regulation and big government. THE TERM FRACTIONAL RESERVE BANKING didnt even come up one time in the whole video, thats how you know this whole thing is a farce.

[ananiasacts]

@bdsco777, exactly what I wanted to say!  So clear.

[bdsco777]

the best and clearest explanation for the crisis I've heard.

[rad4life1]

oh shit! I have been spelling mortgage wrong...and I just discovered what it accually means! hehe check it out MORT = DEATH GAGE = CAGE! HAHAHAHAHA!

[MyFreeCredit]

Nice vid. Thanks for sharing.

[jokertim777]

I don't recall Mr. Solman mentioning Fractional Reserve practices as a problem, nor did his "experts." He did say that people borrowed the money, not that the money was created out of thin air by a fraudulent system. In fact, in the beginning of his explanation, he implied that the money "didn't come from local banks, but foreign investors." Which is a completely erroneous and misleading explanation of what happened. If he can get this part wrong, then what about the rest...