Bonus objective: Explain how it relates to the systemic problems which come part and parcel with capitalism using similarly dumbed down language.
ITT: Explain The 2008 Financial Crisis Using Greentext
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Ok, I see this on every social media site i go on. What the fuck is up with the goddam writing prompts? Like, these stupid "what are your ten favorite albums starting with the letter k," "in 50 words or less explain what animal you'd like to be and why" types of posts. You cannot start conversation artificially like this. None of these types of posts ever get attention, minus one or two people (possibly the OPs) making a painful attempt to get the ball rolling but basically speaking to an empty room. It's sort of sad honestly. Are people these days so socially incapable and desperate that they go to the internet with the equivalent of coffee table topic cards? This is fucking depressing.
This reads like a fucking copypasta. All those characters wasted on doing anything but meaningfully contributing to the thread.
Never heard of the Chinese angle before. Sounds like it could be a conspiracy theory. Also, your flag makes you an inherently unreliable source of information.
The US "regulators" let Banks packages junk mortages with A rated ones for some reason and allowed them to sell them as "A" rated tranches despite not actually being at that level. So basically the US was selling junk rated bonds as A rated ones for years and no one said anything until it was far too late. America is a vile country.
That in itself doesn't explain why people started losing their jobs and businesses started shutting down left and right.
Also, why are market crashes like this not also a socialist problem?
Why do you think China owned so much American debt before 2015? It was because they bought the shares after the dot-com crash and 9/11 scared the crap out of American markets. The US ended up devaluing the US dollar and printing extra money to bail itself out anyway so the plan of cornering the American economy to bring it down didn't work.
wanted to link to the relevant section of this Adam Curtis documentary but Vimeo doesn't seem to allow that, it's at around 50 minutes.
Yes it does.
The deep reason for it was that prices were too high in comparison to output and capacity in the first decade of the 20th century. The financial bubble bursting was a trigger but not necessarily the cause of the thing; it could also be said that the housing boom mania had a great deal to do with trying to save off deflation as banks "gave out cheap loans like candy" ( ) in order to keep the housing market hot and avoid collapses in rents, mass bankruptcy and depreciation of equities. Ironically, they brought about the very thing that they hoped their practices would prevent.
it boils down to kill porky already for fuck's sake, it's been 170 years since 1848
TL;DR: Jews manipulate leftists and their shitskin puppets to steal land and money from the actually productive parts of America
tl;dr Fascists manipulate rightists and their nationalist puppets to steal land and money from actually productive parts of the world
So put in the most basic way possible the banks lent to deadbeats, the banks lost their money, the banks stopped spending money cuz they didn't have no more coming in and somehow the whole economy felt the sting of it?
This caused the disruption in the buying and selling capitalism needs to keep it's gears turning.
What would a socialist "economy" do different to prevent shit like this from happening though? The on and off every 7 years or so recessions part and parcel with capitalism that is.
In ☭TANKIE☭Land the state would provide everyone with housing so there wouldn't be a huge speculation bubble in the first place with banks pressuring low income families to sign up for houses they can't afford.
And banks in the capitalist sense wouldn't exist cuz capital accumulation would be restricted and usury banned. Basically, the banks' main bread and butter would be gone.
The banks losing their money meant that nobody could borrow, which meant that growth essentially ground to a halt. The crash of the housing markets also wiped out corporate profits and pensions invested in the housing market, causing their value to drop and beginning the downward spiral of layoffs which shrank demand, which creates downsizing, which creates more layoffs, etc. An economic crash will happen whenever there is a drastic drop in demand relative to supply for a product, be that an actual physical product, as in the case of a crisis of overproduction, or a stock value as in the case of a stock bubble.
What triggered the housing market drop?
I love how you guys are finding new ways to blame communism for capitalism's failures
blame China for capitalism's failures*
Nothing to with communism bruv
"communists make the best capitalists"
t. some faggots here
Most leading economists consider flawed financial sector regulation and supervision to be primarily responsible for the Great Recession: igmchicago.org
That’s Zizek’s quote
The fact that people were buying worthless properties secretly included in investment bundles for inflated prices.
Why did they take so long to find out though?
cuz housing prices like never crashed before ever in the entire history of the country so it was viewed as risk free
Whoops, should correct that. *Never fell significantly since the great depression*
A bubble popped. People had started buying houses, and banks had started to approve mortgages on houses, expecting to extract value from augmenting prices, which were only augmenting so much as they were because of all the new entrants into the market because of the before mentioned reason.
It's what you get when you let the invisible hand and animal spirits in stead of a central plan coordinate your economy.
The same shit applies today with Salle Mae but with student loans. This is where all of Ron Paul's criticisms of the financial sector have real traction, because Obama chose to continue all of the failed Clinton/Bush policies and not change how anything was done, which absolutely will facilitate another crisis at some point.
Communism has nothing to do with it, China simply wants to make money and US Treasury Bonds always pay out. It's a very stable source of income, a thing Beijing is in very short supply of lately due to their own mismanagement of the capitalist economy they created in China.