You do not need to know much about economics to discover what caused the mass destruction of the supplies of the World’s money. In fact, it’s best not to understand economics because, if you are an economist, it means you probably won’t be able to understand how this awful catastrophe has happened at all !
All the banks tried to put the blame on all those feckless people who borrowed money to buy houses to live in. The banks called it the ‘sub-prime’ crisis and said these naughty home owners were failing to pay their mortgages back to the kind banks that had lent them the money to buy their houses in the first place.
It seemed everyone believed the banks when they said this was the reason for Word wide financial turmoil, mass unemployment, mass home evictions and almost instant poverty for tens of millions of people. It was all the fault of those wicked individuals who borrowed more money on their mortgaged home they could really afford to pay back , the banks told us.
We were conned by these homeowners; they took advantage of us; they lied to us so they could borrow money they couldn’t pay back, the banks said. We believed the banks when they told us this. But we were wrong to believe them.
The banks were lying ! It was a craftily contrived excuse by the banks to find someone else to blame.
It was not the fault of the struggling home owners failing to pay back all that borrowed money, although the banks came up with convincing stories about how they were owed gigantic sums running into billions of pounds and they were all going bust because home owners were not paying their home loans back.
How could it be the home owners falling into difficulties with repaying their loans ? Why, the banks would evict them all from their houses in a trice and sell their houses to get their money back within just a few months from the first month’s missed mortgage payment.
No. In most cases the banks would get the full amount of the loan back as well as extra juicy penalty fees and imaginary ‘expenses’ they dreamed up out of thin air to squeeze as much money out of the poor home owner as they possibly could.
More on this subject later when I have the time – then I will explain exactly what happened.