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People absolutely saw it coming. I remember Geithner making comments to the effect of "we aren't ready yet!" when the bubble finally broke. The Fed was already
by AceJohnny2 9y ago
People absolutely saw it coming. I remember Geithner making comments to the effect of "we aren't ready yet!" when the bubble finally broke. The Fed was already making plans to shore up the affected banks, but hadn't yet built up the funds to do so effectively.
But then it depends on which timescale we're talking about.
- tehlike 9y agoWhen did they notice, and why did the housing prices go up and away years leading to 2008?
- AceJohnny2 9y agoIt's a long timeline, but I'd say things started getting specific late 2006: https://en.wikipedia.org/wiki/Subprime_crisis_impact_timeline#2006 https://en.wikipedia.org/wiki/Subprime_crisis_impact_timelin...
- newfoundglory 9y agoIn December 2007 in Australia I saw a presentation on the coming collapse of the US subprime housing market - in a lunchtime seminar given by a (tech) colleague for interests sake.
- jandrese 9y agoBasically, everybody wanted to ride the gravy train and nobody wanted to be the killjoy that pulled the brakes before it flew off of the cliff. There was a lot of money to be made and nobody thought they would be the ones left holding the bag. The movie The Big Short explained this pretty well.
- talmand 9y agoI suggest reading the book as well.