Ali Zaeteri / @alizaeteri:
R to @alizaeteri: What caused the 2008 crash?
Banks gave out risky home loans to people who couldn't afford them.
Then they bundled those loans into financial products and sold them like they were safe.
But when millions of people defaulted, the system collapsed.
Millions lose jobs, homes and savings.
Wall Street is in chaos.
R to @alizaeteri: What caused the 2008 crash?
Banks gave out risky home loans to people who couldn't afford them.
Then they bundled those loans into financial products and sold them like they were safe.
But when millions of people defaulted, the system collapsed.
Millions lose jobs, homes and savings.
Wall Street is in chaos.
Ali Zaeteri / @alizaeteri:
R to @alizaeteri: Why did Lehman Brothers fall?
They borrowed massive amounts to invest in risky mortgage-backed securities.
When home prices dropped and people defaulted, those investments turned to dust.
Lehman owed more than it owned.
No one wanted to bail them out.
So they collapsed in the biggest bankruptcy in U.S. history.
R to @alizaeteri: Why did Lehman Brothers fall?
They borrowed massive amounts to invest in risky mortgage-backed securities.
When home prices dropped and people defaulted, those investments turned to dust.
Lehman owed more than it owned.
No one wanted to bail them out.
So they collapsed in the biggest bankruptcy in U.S. history.
Ali Zaeteri / @alizaeteri:
R to @alizaeteri: Lehman was leveraged 30:1 (for every $1 it had, it borrowed $30).
It was exposed to subprime mortgages, betting they'd keep paying.
When people stopped paying their home loans, Lehmann couldn't cover its losses.
No one loaned them money.
The government let them fall.
R to @alizaeteri: Lehman was leveraged 30:1 (for every $1 it had, it borrowed $30).
It was exposed to subprime mortgages, betting they'd keep paying.
When people stopped paying their home loans, Lehmann couldn't cover its losses.
No one loaned them money.
The government let them fall.
Ali Zaeteri / @alizaeteri:
R to @alizaeteri: This was never about saving the economy.
It was about owning it.
2008 was a transfer of power.
From one giant to another.
And the next transfer is coming.
We’re living through one of the biggest bubbles in history.
Bigger than the dot com bubble
When it bursts, markets will bleed.
Watch who comes out stronger.
R to @alizaeteri: This was never about saving the economy.
It was about owning it.
2008 was a transfer of power.
From one giant to another.
And the next transfer is coming.
We’re living through one of the biggest bubbles in history.
Bigger than the dot com bubble
When it bursts, markets will bleed.
Watch who comes out stronger.