Join Date: Dec 2005
Total Points: 101,136,144,737,311.56
Originally Posted by arraamis
Pretty good documentary. It kinda over simplified the cause & effect. But the points raised, demonstrate how this recession took decades to finally happen. And because it was so catastrophic in scope, we still haven't seen the full effect of what is still to come.
Good watch .... 7 out of 10
From what I understand, basically it was about 3 separate bubbles. The housing bubble that peaked in 2006, the financial bubble centered on leverage and exotic financial products that peaked around 2007, and then there was also a emerging markets bubble, centered on Russia, China, India, Brazil that peaked somewhere 2007 and 2nd quarter of 2008.
And in 2008 all of them started to unwind quite badly.
We're also a majority service economy. Manufacturing, technology, agricultural are all secondary. And too many people went into the wrong careers that are service based. Instead of going to engineering where they would make things, they went into financial engineering. Too many people with a MBA degree, instead of going into farming. More people go into non-productive jobs than Productive ones, where you make things and sell/export them to other countries, which contributes to the trade deficit.
So it's not just that there was all this capital allocated in the wrong things like people building too many houses, it's also that there was a enormous misallocation in human capital with people going into the wrong careers.
And then there is the whole business about interest rates Blah! I'll give this a look. You have a link to the full version?