TruthNotBS
Gold Member
- Mar 20, 2023
- 3,363
- 1,265
JC456, it's ironic that you're lecturing me on understanding the term "root cause" when it's clear you’re only grasping part of the picture. Yes, bad loans were part of the problem, but to call them the sole "root cause" of the 2008 financial crisis is a fundamental misunderstanding of how complex systems work. The bad loans were indeed a trigger, but what turned that trigger into a full-blown crisis was the way those loans were bundled into mortgage-backed securities (MBS), given misleading ratings, and spread throughout the global financial system. It was the systemic risk created by these practices that led to the meltdown, not just the existence of bad loans themselves.says the guy who doesn't understand what the term root cause actually means. It's truly clear and is what factually occurred.
It's what the term root cause is. What created the demise. The fact bad loans existed created the issue. Perpetuation is a symptom of the root cause-bad loans. You aren't educated enough to understand. You're ahead of your skis.
means absolutely nothing.
the fk he wasn't. HE WAS SPOT FKING ON!!!!
Did that impact bad loans?
Hilarious. You know not what you're talking about.
I think you should get an actual education.
You dismiss the packaging and selling of these bad loans as meaningless, but that's where the real danger lay. Banks and financial institutions, driven by greed and enabled by deregulation like the repeal of Glass-Steagall, took these risky loans, bundled them, and sold them as safe investments. This spread the risk across the entire financial system and made the eventual collapse much more devastating. Without these practices, the impact of bad loans would have been much more contained. So, no, it’s not "hilarious" that I point this out—it’s a critical part of understanding what actually happened.
Your insistence that Todd was "spot fking on" doesn’t change the reality that he’s oversimplifying a complex situation. The crisis wasn’t just about bad loans; it was about how those loans were handled by a deregulated financial system that prioritized short-term profits over long-term stability. If you can’t grasp that, then maybe it’s you who needs to step back and get a real education on the subject. The worst economic disaster in modern history wasn’t caused by bad loans alone—it was caused by a system that allowed and encouraged those loans to be turned into financial weapons of mass destruction.