Confused how the credit crisis happened?

With all the news going aboout the bad state of the economy we are in you might be wondering how exactly we got such a bad state.  It can be quite confusing espicially if you don’t really know much about the finance world. Click the picture below to view the video:

If more people understand how we got in this mess then that will help prevent it from happening in the future.

Is anyone to blame? My personal thoughts on the matter is that no one in particular is blame, the lenders or the consumers, both are victims of greed. The lenders should not be giving loans to people who care barely afford to pay, they know better but it makes them a profit so they don’t really care. Consumers should be more aware of the risks involved when they get a mortgage they can barely pay each month, the amount you should be borrowing is what you can afford to live on plus some more for savings incase of a rainy day (such as loosing your job), consumers should be able to last for a few months at least with no income.

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