The Subprime Financial Crisis Explained Simply Part 3

Hi Dave,
Thanks for the video... really helped me understand the whole situation and put all the pieces together!

I have one question for you though:
You said in 2004, interest rates were increased aggressively. Why was this?

Thanks again!

Im a student taking entranceexams to b-schools in a while and an understandin of the crisis really helped.. really appreciate the way u;ve worded it - not overly simple that v dont understand when we read the papers yet not one term left explained. saved me a lot of time. thank you.

i have a question : couldnt the financial institutions like citigroup that were resellin the MBS as short-term low-interest loans continue to do that at low-enough interest rates , given there was a lot of money pumped in by the federel reserve.. which i assume would have helped keep the interest rates on the short-term loans low enough for people to stil buy them?

Thanks for posting the 3 part series. It was clear and easy to understand. Very helpful.