why and how the 2008 economic crisis happen?
In: Economics
For years leading up to 2008, Banks were intentionally giving out mortgages to people they shouldn’t have been in an effort to try to make more money. They were gambling that they would be fine. That gamble lost, big time, and worldwide governments were left with a decision: Bail them out from their gamble and have inflation go through the roof, or let them fail and have the public lose their money (savings, pensions, investments). They chose the bail out option.
(Theres actually a bit more too it than even that. As someone else said, The Big Short goes into details on it. But the output is the same: The Banks fucked around, and found out, and now were all poorer for it.)
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