"The capitalism in the last thirty years has decreased the standard of living for everyone except at the top."
This was the statement of Louis Hyman, an economic historian. I'm mentioning this statement because it was in respects to the more surprising issue behind the '08 financial collapse. Everyone heard the term "subprime mortgages" and everyone believed that that was the core issue behind the '08 financial collapse. What I never heard was "income inequality" which was mentioned in "The Flaw."
When wages stagnate for the poor and middle class, the only way an economy can keep humming is through borrowing and credit, i.e. Debt. When debt increases so does spending which increases the wealth of the top 10%. Debt can only increase by so much before defaults happen and then it all comes tumbling down. But, as Hyman pointed out, it begins with outrageous income inequality.
Of course, there were a lot of other factors mentioned for the '08 crisis: CDO's (Collateralized Debt Obligations), sector rotation, asset market, and more. This 80 minute documentary was very informative and educational. It's been fourteen years since 2008, but it still seems like only yesterday. Furthermore, the way home prices have skyrocketed in the last decade I can only wonder what will cause them to plummet again, and who/what will be to blame this time. Again it seems like the government is behind the curve on the economy and does too little too late.
Free with Amazon Prime.
This was the statement of Louis Hyman, an economic historian. I'm mentioning this statement because it was in respects to the more surprising issue behind the '08 financial collapse. Everyone heard the term "subprime mortgages" and everyone believed that that was the core issue behind the '08 financial collapse. What I never heard was "income inequality" which was mentioned in "The Flaw."
When wages stagnate for the poor and middle class, the only way an economy can keep humming is through borrowing and credit, i.e. Debt. When debt increases so does spending which increases the wealth of the top 10%. Debt can only increase by so much before defaults happen and then it all comes tumbling down. But, as Hyman pointed out, it begins with outrageous income inequality.
Of course, there were a lot of other factors mentioned for the '08 crisis: CDO's (Collateralized Debt Obligations), sector rotation, asset market, and more. This 80 minute documentary was very informative and educational. It's been fourteen years since 2008, but it still seems like only yesterday. Furthermore, the way home prices have skyrocketed in the last decade I can only wonder what will cause them to plummet again, and who/what will be to blame this time. Again it seems like the government is behind the curve on the economy and does too little too late.
Free with Amazon Prime.