Why this is not like 2008, and no housing bubble will pop!!
During the Great Recession, just over a decade ago, the financial systems the world depended on started to collapse. It created a panic that drove some large companies out of business (ex. Lehman Brothers) and many more into bankruptcy . The financial crisis that accompanied the current pandemic caused hardship to certain industries and hurt many small businesses. However, it hasn’t rattled the world economy. It seems that a year later, things are slowly getting back to normal for many companies. Why is there a drastic difference between 2008 and now? In a post from RealtyTrac , they explain: “We changed the rules. We told banks they needed more reserves and that they could no longer underwrite toxic mortgages. It turns out that regulation — properly done — can help us navigate financial minefields.” Here are the results of that regulation, captured in a graph depicting the number of failed banks since 2007. What was different this time? The post mentioned above explains: “In 20