The 2007 Housing Market Crash: Is another crash coming?

The housing market crashed in 2007 because banks were giving out mortgages to people who couldn't pay them back. The mortgages were wrapped into groups and bought and sold. CDOs were actually bets on the value of the group mortgages. Tons of money got wrapped up in this betting scheme. The wrapped mortgages were insured by the government. As more and more people failed to make their mortgage payments, mortgages that they couldn't really afford, the various low rated mortgages began to fail, then the AA and AAA mortgages failed, triggering the crash. It affected the entire economy. Tons and tons of people were affected, because the housing market was seen as highly stable and reliable, and it was, it was the go to for investments. It was very stable, until banks starting giving out mortgages to people who couldn't really afford them. This caused millions of average Americans to lose all of their savings. 6 million people lost their jobs in the crash, and 8 million people lost their houses. The government then bailed out the big banks with tax payer money. The big banks used the bail out money to give themselves bonuses and they also used the money to lobby Congress so that no reform would take place. Today in 2016 the housing market is again in a bubble, with CDO sales taking place more and more so again, just under a different name.