Does YOU knows what is the causes of 2008 financial crisis?

[fallen1]

hahaha very confusing leh
they keep talking about PAP and temasek

Sinkies fault!
Govt will say this

 

[askxyz]

i heard is about lehman brother
but is which brother started it?

your little brother down there started it la

 

[Redberries]

see you is smart or not.
i thought nobody here knowing the real cause

LAYMAN brothers...

 

[jumping_pea]

your english

 

[theinquirer]

 

[rachdanon]

Cannot tahan TS title has 3 grammatical errors.

 

[BackgrounKoala_07]

First, the growth of global macro-imbalances and second, financial market innovations. Large current account surpluses developed in Asian economies such as China and Japan as well as in oil exporting economies. The counterpart to this was the growing current account deficits of economies such as the US and some European economies such as the UK. The surpluses had been used to buy large amounts of government debt in the US and Europe. The consequence of this was to drive down interest rates in these countries. Low interest rates in the US and Europe have also been a consequence of low inflation as a result of low cost imports coming from fast growing developing nations such as China. Low inflation has allowed central banks to keep interest rates low. One consequence of low interest rates has been a massive expansion of debt – particularly mortgage debt. A rapid expansion of mortgage lending by banks fuelled a property price bubble as house prices grew at very fast rates. This in turn led lenders to relax credit standards leading to a rapid expansion of sub-prime mortgage lending in the US (and in other European countries).

 

[jack-320]

People in USA default their housing loan

in which the loan is linked to some investment product

sounds correct?

 

[Tony.Manero]

see you is smart or not.
i thought nobody here knowing the real cause

chiobu Fannie and yandao Freddie

 

[ricohflex]

Greenspan loved the flattery.
He thought he was God.
Paul Volcker was a much better FED chairman.

 

[HandTired]

Only know crappy english when I see it. No wonder people think pee noise have better English than chao sinkies

 

[virus1988]

i heard is about lehman brother
but is which brother started it?

lehman's brother

 

[Johnpierpontmorgan]

Borrowers borrow loan from lending institution. The lending institution sells the mortgage to investment banks called Collateralized Debt Obligations (CDO). Turning point comes when borrowers are unable to pay for the loan because they even sell property to those who didn't have income (subprime mortagage). Then more houses up for sale become supply more than demand causing the house to drop.

In order to save the property market, government ask companies to buy the cheap houses so it will not drop so much in 2008. Now economy back to normal most houses own by companies instead of home owners. Companies can up their rent as and when they like. Plus many are not home owners.

Ultimately, it is greed that killed us all.

Gramm leach Bliley act - removal of glass stegall merger or commercial and investment yet retain the biggest moral hazard fdic in the bank act of 1933


Greenspan st rates suppression to help then gov on homeownership. Bush political agenda

these were the main causes. Your stating the after effects. See thread title. What r the causes

 

[Johnpierpontmorgan]

First, the growth of global macro-imbalances and second, financial market innovations. Large current account surpluses developed in Asian economies such as China and Japan as well as in oil exporting economies. The counterpart to this was the growing current account deficits of economies such as the US and some European economies such as the UK. The surpluses had been used to buy large amounts of government debt in the US and Europe. The consequence of this was to drive down interest rates in these countries. Low interest rates in the US and Europe have also been a consequence of low inflation as a result of low cost imports coming from fast growing developing nations such as China. Low inflation has allowed central banks to keep interest rates low. One consequence of low interest rates has been a massive expansion of debt – particularly mortgage debt. A rapid expansion of mortgage lending by banks fuelled a property price bubble as house prices grew at very fast rates. This in turn led lenders to relax credit standards leading to a rapid expansion of sub-prime mortgage lending in the US (and in other European countries).

Savings glut but however Greenspan suppress short term rates below equilibrium for couple more years. To help promote bush political agenda- George W. Bush broader “Ownership Society”

Grammy leach bliley act- which kills glass steagal yet retains fdic.


These are the main root causes. Your stating the process. See thread title/ what r the causes

 

[cai_png27]

Cos scrabby say market will be positive

 

[TANKOKBENG]

I does know.
Becos of covid08.

 

[Alphas]

You cannot differentiate between UST and USDT, doubt you can say the difference.