Was the 2008 credit crisis a scam on the America?

Answer 1

At least in part it was a scam on America. The exact economic term is "moral hazard". Moral hazard occurs when one person or company takes a risk and, if successful, will reap the reward. But if unsuccessful someone else takes the loss.

In the 2008 crisis AIG, for example, made bets on the credit market - bets that had been paying off for them as a company and as employees getting large bonuses. Yet when the bets became big losers the taxpayers of America were faced with a choice of bailing them out or dealing with catastrophic possible consequences. And the employees who took the risks still got huge bonuses.