What was the 2008 recession like? Oldfags please respond

>31% of all car owners owe more than the cars they are financing are even worth.
You just need to figure out how to get the banks to take your auto depreciation for you.
lol
You're not too smart. Maybe you're cute.

I'm smart enough not to finance a car.

I bet you pay full sticker price too

IIRC fannie was mentioned as the people who issued the mortgages.

>monetary policy
Paulson did nothing wrong.

>only 4 people
Quite a few people saw the housing bubble, not many saw the CDS which the markets had tremendous exposure to was incorrectly rated by the agencies.

I remember it being not as bad as people made it out to be.

My parents still had jobs. I was able to acquire like 3 jobs at a time. But they were all wagecuck jobs. Security guard, pet store job, and a waiter.

wat

was that a joke? if you're unable to pay down your auto loan, then you probably bought more car than you could afford which was your dumb move. the bank did nothing wrong

I'm good at negotiating. I sell stuff for a living.

Don't be mad at me because the interest payments on your prius is worth more than your prius.

yes, you can't really complain about debt/collateral ratios because almost all loans cost more than the secured property is worth.

so your complaint is with credit in general.
the recession of '08 wasn't caused by credit in general though.

owing more than the value of the secured property isn't actually the problem.

>you probably bought more car than you could afford
that's literally what credit is for.

>that's literally what credit is for.
False

I was in Canada. The systemic issues in the US did not really affect us, because at the time we had a less insane housing market (today we do, so here we go I guess...), and we had Harper and Marc Carney as PM and Bank of Canada Governor.

However the stock market crisis did hit us, which meant that the Big Five banks had a massive stock price hit, without cutting their dividends, so there was a huge buying opportunity. Their US exposure was very limited, this was obviously purely market panic. At one point BMO was yielding over 10%.

I bought a bunch of BMO in November or December, at which time it was yielding 6% and its price had cratered 20%. It fell another 30-40%, which was scary for me because this was my first stock market exposure (though not very scary because I was living with my parents and I didn't have a long life to have saved that money over), but I rode it through and made a tidy profit.

what are you pretending it's for then?

The cause was and is irrelevant. The fact is if people weren't so leverage they would have hardly been effected by it at all.

yes.
debt to income is a much better predictor of failure than debt to collateral.

Figure out what your payments will be after you take the loan, and make sure that you could make the payments at the rate or FASTER while continuing to save & invest like you originally wanted. If the monthly payments are too high to do that, then you have to buy a cheaper car or save for a bigger down payment first. If you get a loan with huge payment and something bad happens like you lose your job, then you are supremely fucked. That isn't the bank's problem, it's yours, so don't put yourself in that situation
>being that much of a nigger

you're still buying over time something you can't afford now.

credit is literally used to buy things you cannot afford.

You're arguing about future affordability which is the bank's job to worry about. You can't predict the future, you might be fired or disabled or bankrupted at any time for a multitude of reasons beyond your control.

I like your ideals of personal responsibility, but being conservative with money doesn't actually pay off unless you live to 90 with nothing exciting ever happening to you.

i had a job that wasnt affected. i was living well within my means and had no investments. it was interesting watching everything and everyone seem to slump around me though. big ticket items got CHEAP [houses, cars, stocks, etc etc etc]

bought a house in 2010 for way too little thats worth over double now, got into stocks shortly after buying that and did awesome, have been sitting investment wise on the sidelines for a year now though. shits too volatile.

i think the recession was great for me. i almost wish it would happen again.

>big ticket items got CHEAP
I forgot about that.

I bought two trucks and a car in 08-09. They were practically giving them away. I saw deals where you buy a new Ram pickup and get a free Avenger thrown in as a bonus.

Well the car is something you COULD afford over time, you're just using the loan to get the car now instead of saving up for it 100% before taking possession of it.

Anyway, the mortgage crisis was a problem because people would buy homes they never planned to pay off but instead planned to sell at a profit, hoping market values would go up. They bought homes they could NOT afford. That isn't what leverage should be used for thats my point

weird. i actually went to a dodge dealer in 08 09 to look at a dakota. i barely remember the figures but it was something like zero down, 149/mo. for a fully loaded new truck. if you bought it, they offered lifetime warranty. lifetime warranty on a vehicle! i fucked up on that.

i remember my realtor at the time saying her branch sold 100 homes a month and only 1-2 were NOT foreclosures/short sales.

people were also were getting starter homes for half million dollars - and they were all empty inside. remember the infomercials and shit for ez mortgages and loans? everyone and their mom was approved for whatever they wanted, interest only payments.

I live in texas. Texas barely felt the recession.

Bought my house for 1/2 of what it originally listed for. Retards who went in deep debt buying stupid shit got punished. It's about to happen again so get ready.

Margin Call was a lot better

Netflix when though

god damn that's my dream

>I just visited tents looking for passed out chicks to rape. back then I could hit 2 tents in a night. Now I fap once a week and I'm tired. it's fine
kek

Will happen in Canada soon. Get your chance in 1-5 years

Everyone knew about the "credit crunch" as early as 2007 but few reacted the way they should. Someone much smarter me mentioned he was putting his money in the equivalent of a "nuclear bunker" so I did the same instead of speculating, then after Lehman brothers and the crash followed by everyone ordering the first Iphones for christmas I used a slot for apple and did well. I still masturbate to the memories. The rest of my money did well too. If you were moderately competent you couldn't lose by buying the dip, it was easy mode and the gains offset the stagnation of the past 18 months. Happy days.

I'd probably check out the book before trying another viewing.

I was still pretty young. It was sudden. Like one day all shipping stopped. Everything stopped. Nobody had any money or couldnt borrow? My company gave everyone paycuts, stopped 401k contributions, and laid alot of people off. It was kinda surreal. I was in the middle of a paying project so got through it.

>Not rent-to-owning your led bedazzled hoverboard

its like you have no goals

No, it felt it. Oil crashed and a ton of companies got wiped out. The hurricane was a little bit of a distraction though. It didn't just completely lay waste to the cities though like other states.

>monetary policy
I'm not one of the tards who thinks the low interests caused the bubble, but you have to admit Bernanke didn't ease fast enough. That's one of the reasons why the crisis got to such big proportions, if the Fed had eased properly going into it, it would've been more manageable.

Paulson was at the Treasury anyway, you're thinking of Bernanke. I'm not against buying MBSs or anything lol.

>Fannie
My bad then, I must've missed the part.

>Quite a few
The issue isn't the CDSes in and of themselves, the issue is how they were used and specifically the fact that they were essentially the equivalent of insurance being sold by State Farm that State Farm couldn't afford to cover. There's no clearing for them and that was the central issue, not the derivatives in and of themselves.

>Anyway, the mortgage crisis was a problem because people would buy homes they never planned to pay off but instead planned to sell at a profit,
Undoubtedly some of it was.

I don't think everyone with an ARM and a balloon payment was actually planning on flipping their house though. People with bad credit were given those things like it was candy.

and no surprise, most of them defaulted. If the problem was purely speculators we wouldn't have seen so many evictions. I think I made a million dollars cleaning out foreclosed homes alone. Shitload of people lost the homes they were living in.

Many of those people have bought homes since then, with worse credit than before.

Is the market about to crash again? Just look at S&P. Excuse my layman's understanding of finance/econ, but it seems like the S&P is only this high because low interest rates are forcing money into the market, which is the only place you can make a decent return. Securities are massively overvalued and there is a bubble on the entire market itself. And when interest rates rise in the coming year, money will begin to leave the market and everything will crash. The 20 and 100 day moving average lines from 2010-2016 look exactly like they did in 1995-2001 and 2003-2008. Am I a retard or am I onto something?

Side question - how will bitcoin do in the event of another tech or MBS-like bubble?

>Many of those people have bought homes since then
what surprised me is that when a labmate tried to buy a condo in 2016 a lot of the old fuckery was back. there's some offer for first time buyers where you can close with only 3% down, and they were willing to give him a loan even though he didn't file his taxes in 2015. mind you he actually got paid, but he didn't file income taxes because the income was "tax free" (it wasn't, it was a fellowship, and it's your responsibility to file but colleges don't report it to IRS.)

imgur.com/a/SXgpj

Here are the 20 and 100 day moving averages for 95-00, 03-08, and 10-16.

i was just entering college at the time. Businesses all around were closing and it was kinda eerie driving past a line of closed businesses.
Took macroeconomics that year and when the **** hit the fan, my professor looked like he was going to kill himself. For the rest of the semester he looked depressed as hell.

It was certainly an interesting time to be alive. While i was mostly spared the initial destruction (being in college and not having any investments), but it sure as heck made it hard to find a job.

They wouldn't have issued them without the credit rating agencies triple A ratings. In their defense every other bank on Wall Street with the exception of Blankfein didn't see the rating agencies were crap.

You're onto something obviously. Historically every decade has one recession. The longest bull run was 16 years.

There's also a difference between a bubble and a recession. A bubble is overvaluation of an asset classes, a recession is when businesses produce less.

Yes there's definitely a bubble. The S&P is trading at 24 times P/E while the economy is in a slow period.