32 ms·

Explain the 2008 housing collapse mr free market. Millions are waiting

• zpeti 5y ago
  As a result of the tech bubble popping greenspan lowered interest rates for 10 years to almost 0, effectively meaning banks could lend any amount of money, but also couldn't earn any money from actual interest and needed to find all sorts of ways to make a profit, e.g. repacking and selling bad loans to other banks and pensions. I'd argue if we let the tech bubble pop properly, have a recession for 2-3 years, but keep interest rates at higher rates, it would have preventing a housing bubble. And that's down to greenspan, and government intervention, not the market.
• handrous 5y ago
  Every failure of capitalism is always the government's fault (as if those are separate somehow?) and any success is always despite government, not because of it. That's always the response to this kind of question.
• djbebs 5y ago
  Government pushed for higher homeownership by tinkering with mortgages, taxes and regulations which resulted in banks issuing increasingly unsafe loans. Government then bailed out the banks
• refurb 5y ago
  The comment was about CA’s high rent. What are you going on about 2008?