The Financial Crisis...Simplified

It is very tenable.

Yes, its correct that the first Community Re-investment Act was from 1970's. But the one I a referring to is the second one, from 1992. By itself the law is bad, but not a large problem. The 2nd, in conjunction with the other government programs caused the problem

The study you cite is from 2000, before the lending got out of control. Less than a year after Fannie Mae and Freddie Mac lowered their standards and a year before the Fed lowered interest rates to 1% for 2 years.

Good Explanation. You would think we all have learned that bad loans damage our economy.

So vlogbrothers, could you try to explain to us how one of our presidential candidates can actually be proposing to encourage banks to start giving out, get this, "Pay Day" loans?

You can see more about this illustrious idea by clicking on my screen name and watching a video called "Obama to the Rescue".

That was GOOD! That was GOOD! - Keep up the good Work - Best explaination on the web - yet

That was GOOD !

By contrast, in the 2002 to 2007 period, the acts enforcement was weak and its advocates had little influence with Congress. In 2003, President Bushs chief thrift regulator — holding a chainsaw in his hands as a prop — boasted of his plans to cut banking regulations, including the scope of the reinvestment act and his enforcement staff, which he carried out over the next two years.
By MICHAEL S. BARR and GENE SPERLING
Published: October 17, 2008

It is not tenable to suggest that the Community Reinvestment Act, which was enacted more than 30 years ago, suddenly caused an explosion in bad subprime loans from 2002 to 2007. During the 1990s, enforcement under the reinvestment act was strong, prime lending to low-income communities increased and it was done safely. In 2000, a Federal Reserve report found that lending under the act was generally profitable and not overly risky.

Good video but you forgot the government programs that lead to this mess:

The Federal Reserve which artificially lowered interest rates and flooded the market with cheap money, creating yet another bubble.

Fannie Mae and Freddie Mac lowering credit standards in 1999 and over the years guaranteeing $4 trillion of loans.

The Community Re-investment Act of 1992, which forced banks to make loans to low income and low credit borrowers.

A new systen without money and therefore any possibility of corruption that is...

ROFL

Great vid. Although the mortgage thing was just the tip of the iceberg. Seventy years of insane credit and debt expansion was bound to collapse. It always does. Time for a new system!

subprime mortgages are obviously a fraud
the big bank bosses got away with millions
they must be prosecuted
but no, the government prints more money for them, essentially robbing the whole country

09/10

ha ha!

that was good...bravo!!!

I think that the version for kid was better:P better watch that guys!!

u r ganna help me in my report on the economic crisis thanks alot

briliant!

brilliant!