ilmscore | Prediction Details
"But then things started to shift. Lenders have less of a vested interest in maintaining higher credit standards because they bundle the loans and sell them off. So bankers and lenders were issuing out all these loans which are boosting the economy, making a lot of people rich because they didn't really care if you could pay back the loans. They just wanted to issue the loans because as soon as you sign the paperwork, they got paid. But that's when people started to get concerned. As we got closer to 2008, banks started to get concerned about people not being able to pay back their loans and mortgages. So, they started tightening up their credit. [...] So, many people were borrowing money to buy houses who couldn't afford to do so in the first place, which caused asset prices to skyrocket and eventually form a bubble. But the thing that popped, this housing bubble, this lending bubble wasn't a needle. It was that banks said, "You know what? We're not going to keep inflating this bubble anymore with more credit." And as soon as that credit started to slow down, people stopped buying the houses. People stopped buying so many houses, housing prices didn't keep going up, which meant the people that were buying houses that they couldn't afford now had assets that were losing value. And as soon as they had an asset that was losing value, now they're underwater. And now all these loans are starting to lose value. And that's what created a domino effect. and everyone realized that there was a lot of gambling going on behind the scenes with derivatives on top of derivatives which caused the housing market to crash and the economy to see the biggest slowdown since the Great Depression."
By Minority Mindset | September 1, 2025 | Pending
From video
The Last Time The Banks Did This… Everything Flipped 00:02:40 - 00:04:31
Interpreted Prediction
The practice of banks issuing loans without concern for repayment, driven by selling them off, led to asset bubbles and ultimately an economic slowdown comparable to the Great Depression.

Prediction Details

Topic
Economic Downturn

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