Inside the US subprime crisis 01 April 2008

[flagship21]

The Big Boys sold the brockyn brigde

[bc5620]

can't always blame and point fingers at banks, you have to blame the borrowers too..they are adults they should find out all they need to find out before making their committment to signing the loan docs

[Corsaircid]

@bc5620

u r correct.However the lenders just wanted the sale for a fee.

"Everything will be just fine,Just sign right here."

Cheers!

[xpandergt]

When money becomes so cheap, the supply becomes more then demand. That supply of money has to go somewhere, the lowering of standards was the dam bursting to allow this to happen.

[saveurhomeplease]

Don't Get Foreclosed On Modify Your Loan go to homesaver(DOT)tk

[chewbaca1989]

Federal Reserve is at fault, usury.

[VillejeanRyder35]

guess what american childrens going to say for Halloween ?

surprise ? noo SUBPRIMES LOOOOL

[tellthetruthh]

HISPANICS were the major group to hold SUBPRIME LOANS. HISPANICS were given loans when other groups could not get them. Now they want to be bailed out of their mess!!!If they weren't so greedy they would not be in this situation. Most of them didn't even have SSN oe EINS.Now BUSH has made it possible for them to get bailouts without SSN or EINs!!!S0illegals aliens are milking the system again!!! While Americans pay the bill!!!

[BornInAmerica]

Adam, If you don't like the way things work in America, why don't you go back to wherever you came from?

[myhomefreevideo]

Reminds me of a line from the old TV show Taxi - "Every yutz with ears is into real estate".

[myhomefreevideo]

Keep up the good work there Adam.

[myhomefreevideo]

This guy is a genius. Yep. The problem was brought on by lower interest rates and the government encouraging home ownership. Youch! I think he's a perfect example of why Realtors have a bad name...

[myhomefreevideo]

B.S. The lenders targeted anyone with a pulse. You say that they took atvantage of minorities and then you provide no proof. I am a Realtor and title agent in Maryland. I can tell you that many lenders engaged in very irresponsible practices - but - they painted with a very broad brush (of course there are many exceptions to the rule). I feel that this guy's remark about targeting minorities is just as irresponsible.

[JohnDC11]

I also blame home builders, they over built so let them suffer now.

[clpsw7]

Thank you George Bush you have screwed this country royally. Yes it is your fault and that

of your greedy big business butt buddies.

[june201955]

Mosquito's to the flame!

[ofInterestNZ]

The global sub-prime crisis and the slump in the local property market have claimed another victim close to home with the closure of a Tower mortgage fund after a run on the fund and a sharp rise in defaults on residential and commercial mortgages.ING had to close two of its funds last month after a run on the funds, although those funds were exposed to US sub-prime and other complex derivatives, whereas this fund is exposed directly to New Zealand property.

[bacaca88]

Also, listening to the views of a 'poor' real estate ageng driving around in a big flash car is a bit sickening. I am sure that this man played his own hand in selling plenty of subprime mortgages to many and he is now feeling sorry for himself that he cannot replace his car with a new model this year (crocodile tears I think). Estate agents are the scum of the earth and not to be trusted. Be sure that they have played a big part in this crisis.

[AdamGCox]

We can go on like this forever, identifying all manner of bad people in the U.S.A. that abuse others for the sake of money. There has been a swelling of fantasy-land money ever since Alan Greenspan. But if you are happily watching as the financial system is brought to its knees, revealing the economic and political weakness of the U.S.A, then you have no idea what the revolutionary mission of the USA is. Maybe you do, and you're happy because you love the system of globalization.

[AdamGCox]

The Federal Government has a responsibility to protect the abused homeowners! Predatory lending is not the same as lending in good faith. The "general welfare" is part of the Declaration, the foremost authority on law. Given that we have lower standards of welfare than post-WWII, we can easily act with that historic precedent to put the Federal Reserve into bankruptcy organization and implement LaRouche's Homeowner's and Bank Protection Act!

[bacaca88]

Your elected president -Bush - encouraged subprime lending. You Americans did this to yourselves. If you want to help, why not lend money from your personal accounts to these poor people who are now suffering because you caused it? Balaming the Government is blaming yourselves without concience. YOU ARE ALL TO BLAME FOR THIS!!!

[AdamGCox]

You speak in anger, but you haven't considered how it is a people can actually be raised up to accept no less than the virtues of a truly sovereign nation-state. 

History will forever look back on the United States for electing that grand traitor of the Union.

The tradition of the American System of Political Economy is the tradition of the government being an essential tool for credit-for the development of life-supporting infrastructure. It is the greatest system of political economy ever.

[drpeper25]

Those who thought money was easy (free)to get, without strings attached were wrong-even foolish. I went out of my way to reduce my debt, no second mortgages, save money. I can read and use a calculator, many obviously cannot. With no down, floating "low" flex rate, What did people think? it could never go up? The even dumber people who leveraged consumer debt against rising values that soon went bust. They walk away owing more money. I do not wish to subsidize those who planned so poorly.

[ol0nny05]

He sounds/looks shady to me. I wouldn't buy a house from him.

[sugarpuddin88]

The Private Bankers who own the so-called Federal Reserve Bank are in the biz of making money for their shareholders

They are printing green-backs on their copy machines at a rate of 3 billion a day, (out of thin-air) Thus, devaluating the value of a green back

Also, the Fed lowers interest rates to tempt people who can't afford it to borrow money they can't pay back

The Fed doesn't care because they know the American tax payers will pay them back

[kggoh]

What can they do, since US national debt is skyhigh, only paying the interest of the debt is already a headache problem, they can't only print more dollar (without any gold backup), or issue more bonds. Countries like China and Japan will only take more bonds if the interest rate is high, becoz of the sub-prime, Fed has to cut rate to help those banks and buyers. Do u think bonds worth to buy? No, then print more dollar is the only way, but it will lead dollar devaluation.

[sugarpuddin88]

kggoh: Do EXACTLY as Abraham Lincoln did!

Follow the US Constitution; take the money press out of the hands of some private bankers who are in the business of making money for THEMSELVES (only) -- And let the US print its own money!

Easy as that! When we print our own money we have no interest payments to pay back!

Get it?!

[kggoh]

do u think your way is going to work? If US gov can print money any time without any consequences, then u won't have a problem on national debt, and also u american don't need to work, just line up at the bank, ask the gov to print u some money. Money does not come with no where, ppl must reconize your $1 dollar note does worth a dollar worth of goods, the value of your money determine by the international market, if supply more than demand, the value goes down.

[bacaca88]

Get this - those of us that are old enough have seen this all before and remember it very well; you are headed for a big recession cos your government and lenders encouraged and allowed plenty of you to borrow what you could not repay. Therefore you are screwed. This is the simple fact of the matter.

[kggoh]

look at sugarpuddin88's comment u know they r so naive, thought that US can print the dollar unlimited to have the problem solved. Currently, the Fed is trying to cut rate again, to help those buyer, they start to create another good environment for them to borrow money with low interest rate, and create another sub-prime in the future.

[sugarpuddin88]

kggoh - The FED is a private bank - look it up! It's in the yellow pages next to Federal Express

Their job is to maximize profit for their shareholders

They lower interest rates to seduce people who can't afford a loan, to borrow anyway, (which led to the so-called sup-Prime lending crisis)

As long as someone else prints this nations money, it will ALWAYS be in debt

In fact, they have to print more money just to allow for interest payments

It is a debt fueled economy that can NVR pay back

[kggoh]

sugarpuddin88, it does not matter if the Fed is private or not, anyone who authorise to print money, cannot unlimitedly print money without any consequences. The more money printed out there with no support, the money will devalue. This is just an excuse you gov is given to u that they r not the one who print your money. Almost all the countries in the world, the gov is responsible to monitor the printing of the country currency. If US is not like that, some conspiracy behind.

[sugarpuddin88]

bacaca - but unlike the 70s when the CPI was low, today the cost of goods is higher than it has ever been

Moreover, we have 10 trillion in interest; and 96 trillion pledged to SS and medicare

And the prime lending crisis, etc.

And now our yearly Fed budget is over 3 trillion a year

I'm going the say direction Wall Street Investment banker Jim Rogers is taking

[ConserveCompassion]

Your point is crucial, but too many people have no idea what you are saying, though. They don't understand that the Federal Reserve is actually a private institution and all that jazz.

[kggoh]

Actually, i found this country USA very funny country, i stay there for abt 4 yrs during my uni. life, their young man result like shit, but still their gov let them stay in the uni. but they screw around, having party often, after getting a few bottle of alcohol, they challenge each other to jump from the 5th floor to the pool below, I tried to call the cops, but they sounded like it was normal. With these young man, what do u think this country future?!!

[Fireme123]

the future for this country is to be the best place to live, criste jumping from the 5th floor to a pool sounds like heaven lol

[VonSchtepin]

ahhh u make intersting observation my friend. u sound u like from country mine in far east azerbajan. do they preach jihad in uni of ur country? i think maybe yeak, ok? in azerbajan we bring up child the correct way, we teach them how to kill christian and show them best way detonate bomba, u must be familiar with this practices? DICKHEAD!!.. US, Australia and UK are the land of the free, if u dont wanna jump off a 5 storey building then dont, if we wanna get maggot and get shitty grades we can!

[kggoh]

sorry, i m not from azerbajan, here we learn from our parents how to be a good man and be responsible and contribute our society. Study hard, then get a job, contribute to the economy. Not risking my life for 1 sec fun, jumping from a 5 storey definately not my choice, coz my life worth a lot more than that. My mom has suffered alot to bring me to this world, and my parents spent alot of time and money to bring me up, and now is my time to return their kindness, this is our value

[kggoh]

and if u said "US, Australia and UK are the land of the free", land of free does not mean your life is free. Your parents give u your life, it is not free. Your gov has spent lot of money to provide u education, it is not free. U jump from a 5 storey, and got yourself killed just for fun, this is wasting your parents' effort, your country tax payer money. U r making irresponsible statement here.

[kggoh]

If u think jumping from a 5 storey for fun is correct, i think u should go and kill yourself, since that why u stop yourself from wasting more of your taxpayer money, and let your parents know earlier they have wasted their effort to have u as their child. If u do it at age 15, they wasted 15 yr of effort, if u do it at 25, they have to waste another 10 yr more.

[kggoh]

in order to solve this problem, u have to solve it core, which is the lower your debt, so u don't have to deal with such high interest payment. If US dollar is not a international trading currency, with so much printed without gold backup, US dollar has been collapsed long ago. How to lower the debt, oh well, i think has to change your american way of spending, your military expenses 500b, more than half of the world combine. your use up 30% of world oil with just 5% of world population.

[sugarpuddin88]

kggoh - Unlike Europe, the Americans have not saved money - If you save money in this country you suffer a tax consequence

There is no benefit under this nations laws to save money - Rather there is a penalty in saving money

With the sub-Prime crisis, banks won't lend to many on 2nd mortgage; thus, Americans are borrowing more on Credit Cards to break even

The BANKS always win -- They are allowed to lend out 10 times more money than they actually have in their safe!

[kggoh]

"The Fed doesn't care because they know the American tax payers will pay them back", this is the mindset of all american have, they spend first, worry abt the consequences later. u see, knowing the tax payers will pay them back is a dangerous assumption, what if they don't, what if they cannot afford, do u have a backup plan? I bet this is why the reason the sub-prime happen too, they do first, worry later, for all parties, banks, agents, buyers, they all assume things will be just fine.

[thefrostflyer]

all very good points. I believe you understand the real reason the U.S. invaded Iraq. It was because Saddam started trading his oil in Euros instead of dollars. It is way The Bush administration wants to attack Iran. Because of Irans new oil excnange were they will not be trading oil in dollars in defiance of agreements made between OPEC and the U.S. Billions of dollars in revenew the Fed needs to write new loans. watch MONEY AS DEBT on google video.

[kggoh]

yes, i agree, to invade Iraq and trying attack Iran, these countries start to trade oil in other currency, this is one of the reason. But, i can tell u, no matter what they do, a change of using other currency as international trading is already in place, since the dollar keep on depreciating, i can see Euro, Yen and even RMB in the future has a chance to replace the dollar. If the US does not solve their debt problem, this is inevitable.

[sugarpuddin88]

As the banks and FED create more money out of thin air, the less our dollar is worth

It has devalued 40% since 2001 against the Euro

Thanks lil' Bush!

Took our money; took our liberties; made us hated in the world

It goes back to Grandfather Bush; then CIA spook Bush; then lil' Bush whose only money he ever made came from the Bin Laden family!

[sugarpuddin88]

thefrostflyer - You could not have said it more correctly!

Billionaire Wall Street investment banker Jim Rogers just sold his house and moved him and daughter to Singapore! He says bail now!

[Downfacingdog]

The Carpetbaggers won the second war of independance on American soil so none of this come as a real suprise to me. Nice video though. Thanks!!!

[kggoh]

US can only blamed themselves for this sub-prime to happen, not only they borrow so much money to buy houses, US national debt is at dangerous level. Yet, they keep borrowing, spending without worry abt anything. One of the most advance country but their saving rate is so low. US is using the dollar as an international currency and keep printing it without backup of gold, if this continue to happen, ppl might have to choose other currency as a trade currency, by then the dollar is doomed.

[Fixhist]

True ! Through and through.

[yu255673]

...We are loving it here in Canada...Our dollar and most international currencies have been gaining ground, its unbelievable...I remember buying 1000 US $ for 1400 Canadian now its almost parity...

[kggoh]

yes, but be careful, don't hold too much US dollar if u don't need that much now. US has overprinted the dollar along these few decades, u can view currency as a vouchers of a company, a $10 dollars vouchers can buy 10 item A for example at 2008, maybe 10 yr later, $10 dollars can only buy only one. To keep the value up is how much gold in hand that back up to print $1 dollar, for current market rate, US should have 1 ouches gold for 1k USD, but they printed 30k USD for 1 ouches. Careful.

[kggoh]

US gov have overprinted 30 times of the dollar compare to the gold they have in hand now. If the dollar lost its status as the standard trading currency, the dollar will depreciate at least 30 times, it means your 1k Canadian buy 30k USD. Thats why US gov in dilemma now, if they cut rate, the dollar down, ie. inflation and the highest USD reserver Japan and China might give up on taking more dollar, if don't cut rate, their economy will shrink and more ppl lost their job.

[jamal22066]

i sent $1500 USD to my bro in canada. He got only $1460 canadian dollars in return. WTF! US dollar is screwed.

[Fixhist]

Why it is hard to understand that,subprime mortgage is a nice way to described foreclosure of US macro economy.

50 Years of world supper power were based on fiat Paper money.

Neocons & Zions had fooled Americans for long with stories of communism & Terror fear or fancy donations abroad.Handsome payout of US$ abroad was for face keeping and market demand for fake paper money.

US macro economy has failed in debt servicing, China alone has over us$9T loan on US.

Can CIA work in Tibet get deferral?

[Downfacingdog]

Bravo!!!

[ofInterestNZ]

Goldman Sachs said in an analyst note released overnight that it saw global losses from the sub --prime credit crunch extending to US$1.2 trillion. US banks, brokers and insurers would eventually declare losses of US$460 billion. These institutions have only declared losses of US$120 billion so far.

[redflags123]

Excellent stuff.

[TYL3Rdurden]

Soooooo, why does Al Jazeera care about the housing market crisis in the U.S.? Is it only because there's a few Arab-American Real Estate agents? I don't get it. Please explain why this is news outside of this country if you don't have real estate holdings here.

[jcdobber]

Because the American economy influence the whole world, i live in Holland we watch it closely

[sLeepPastNooN]

This isn't about selling houses, it's about banks leveraging their assets in sub-prime mortgages and commercial loans. Look into Saudi Sovereign funds. The Saudis and other Arab countries are snatching up American Banks. Al Jazeera is simply reporting back to our new land lords.

[ahanni0]

yep jcdobber is right,anything that happens in the US makes an impacts everywhere in the world.

even here in the UK (u must have heard of NORTHERN ROCK) also look at the fuel price, gold and every other commodity is going up just because US economy is tumbling and so is the dollar. I pary to Allah it gets right soon.

hope u will understand now that its not just coz of Arabs(i am not Arab) there, but just the economic impact. :)

[TYL3Rdurden]

Thank you . . .

jcdobber

sLeepPastNooN

ahanni0

I guess the subprime loan problem with banks has a much larger impact than I expected. I now better understand why this is an international story. However, when American networks cover international markets, they rarely use an anglo transplant as a corespondent or for opinion. I guess that is just why I was confused.

Thanks again for setting me straight on this one and further opening my perspective.

[kggoh]

The problem of the sub-prime affecting the world because abt 50% of the money which the american bank lend to the ppl was from foreign banks which the american bank put them in some security bonds or financial tools, it means, the foreign banks lend money to american bank by buying the bonds. USB and northern rock r among the victim. When the sub prime impacts some of the banks in US to lost big money, they start to retrench and ppl lost their job, ie. US import will be affected.

[kggoh]

then, countries like China, Singapore, Japan, South Korea, which heavily depends on export their goods to USA will all be affected. Now, we just pray that the spread will be at its minimum, and US will not have a shrink in economy for this sub-prime, even it has, not for too long.

[trantrum]

Everyone's an expert.

[thefrostflyer]

Aljazeera this man made a huge mistake when he points his finger at the federal government for cutting intrest rates. The Federal Reserve is not part of the United States government. It is a private Bank owned by shareholders. With little to no oversight by our law makers. Please watch money masters on google video. If you like I will send you one of my copies.

Please watch money masters!!!!!

[ahanni0]

The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States.

[ahanni0]

You can divide the Federal Reserve's duties into four general areas:

1. Conducting monetary policy

2. Regulating banking institutions and protecting the credit rights of consumers

3. Maintaining the stability of the financial system

4. Providing financial services to the U.S. government

and guess who selects the FednGovernor?

[ahanni0]

and it will be of much help if u lookup Fed's own website on how it's run

[thefrostflyer]

I have researched the Federal Reserve extensivley The Federal Resreve is not a government entity. Please watch Money masters on google video. I am 100% certain of this fact sir! The bank manager where I closed my account with Chase Bank even confirmed this FACT! When the manager asked me why

[thefrostflyer]

I wanted to close my account I told him it was because I did not want to do buisness with a Bank owned by the Federal Reserve. I then asked him did he know that the Federal Reserve was a private Bank and he said yes!

[thefrostflyer]

WATCH MONEY MASTERS avery well done and thorough documentary specifcly on the Federal Reserve

[ahanni0]

In a sense it is right as the Federal Reserve is independent (at-least on papaers). But the governing body of Fed has got 7 memebers which are appointed by President of the United States (with approval from the Senate of-course)

Ben Bernanke is the current Chairman , he's replaced Alan Greenspan who was appointed in 1987 by then president Roland Reagon.

[thefrostflyer]

yes that is true there is SOME! oversight however the members of the board govenors are chosen from a list given to the president by the Federal Reserve members. The Federal Reserve also HEAVILY influences U.S. government foriegn policy. Which explains this empire building the U.S. is commiting all over the world. With the opening of the Iranian oil exchange recently you will see the U.S. get more and more aggresive towards Iran, China and Venizuela. They will not be trading oil in US dollars!!

[yu255673]

...If you look at the money, you will see on the bills it says Inc...It is a private entity...

[musyokat]

Buyers still have to take some responsibility surely.

[musyokat]

Sorry I take that back. He did say that he blames almost everyone.

[AirelonTrading]

Why doesn't the real estate agent just engage in short sales? Heck, he'd help resolve this mess much more quickly.

[flashfan2]

ya the low rate was idiotic but you cant give all the blame to the gov because companies bought the loans with out checking them

[kggoh]

oh well, when the agent know if he/she can sell 1000 houses per month, he/she will get 1 million in commission, do u think the agent will check? and getting loan is not a problem for the buyers, so neither the the buyers will check. Now, should the bank check? yes, i think they should, but the bank miss estimate the property price drop will cause an impact on their earning, they thought the property price will keep on raising, then it will be no problem

[kggoh]

even the buyers cannot repay the loan, the bank will just take back the property and sell it to cover the loan, but provided the property price won't fall, they can cover the loan. But now, the property price drop and this time because the rate is too high for buyer, and they stop buying, the price fall even further, now the bank cannot cover the loan after the property has been sold.