Comments by "Tomika Kelly" (@TomikaKelly) on "The 2008 Financial Crisis - 5 Minute History Lesson" video.

In short, banks irresponsibly gave mortgages to people who couldn't afford them to acquire a bunch of upfront cash. Once those people started defaulting on the houses because they couldn't afford them, the money stopped coming in. Once those banks and lending institutions stop pulling in money, other companies that are invested in them withdraw their money too. All in all, LOTS of people lost their jobs and times were dreadfully tight. Not for the CEOs and higher ups in the banking industry though. Despite laying off tens of thousands of people and repossesing millions of homes, they still gave themselves bonuses of millions of dollars...all while their employees were starving and some even homeless...(despite the fact that thwy were the ones who caused the crisis in the first place.) These CEOs got a bailout from the government and most didn't face any penalties for their greed. Moral of the story: don't approve someone for a loan you know they have no business having just because it's profitable for you right now.
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In short, banks irresponsibly gave mortgages to people who couldn't afford them to acquire a bunch of upfront cash. Once those people started defaulting on the houses because they couldn't afford them, the money stopped coming in. Once those banks and lending institutions stop pulling in money, other companies that are invested in them withdraw their money too. All in all, LOTS of people lost their jobs and times were dreadfully tight. Not for the CEOs and higher ups in the banking industry though. Despite laying off tens of thousands of people and repossesing millions of homes, they still gave themselves bonuses of millions of dollars...all while their employees were starving and some even homeless...(despite the fact that thwy were the ones who caused the crisis in the first place.) These CEOs got a bailout from the government and most didn't face any penalties for their greed. Moral of the story: don't approve someone for a loan you know they have no business having just because it's profitable for you right now.
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