60 Minutes: A Look at Wallstreet's Shadow Market P2

[theflorgeormix]

Hidden leveraged bets - underlying risk - In poker its called the Suck out

[spencerchef]

this is why i own a safe with my money

[akaskyscraper]

if we have fractional-reserve banking system, how are credit default swaps even legal? you would think the same principle would apply across the board no matter what you decide to call something.

[olga2415]

People, you are looking at one of the Evil ones....did you see how he had no answer for who would affect change....since he himself is on the board? He knows the common people cannot do anything about it.....

[ruthc48]

What a sleaseball, look at that smirk.

[ruthc48]

They knew exactly what they were doing.

[citizenfitz]

I warned everyone about all this a couple years ago, but would they listen to me?

Nooooooooo....

[keflar5]

One word .....PLANNED

thats what is missing in this docu, very good one though cheers

[shakaama]

not only was it planned but they pandered to retirement funds, ira funds, pension funds... they knew this was going to explode, the pushed the button and swallowed up all these people's life investments.

They should be in jail, but they are the one's that invest in political campaigns more than anyone else.

[jbryant13]

"It's not only a shame - it's a crime"

And yet Bernie Madoff sits in his penthouse with an electronic ankle bracelet complaining about feeling "couped up". Lehman Brothers CEO sits at home in his mansion, Chris Cox at the SEC "loses his job" and Americans are lining up for food stamps.

Wake the hell up people ! We are being robbed at pencil point.

[SoldierAtBattle4us]

LOL i like the pencil point one. one thing is interesting, they (dont know what to call them, but yeah the evil 1's doing all this evil) say, after stealing peoples money with lies and putting us more in "debt", they want to blame ppl who are on aid, pinning them as the ones ruining the economy. omg, what about all the money they have after lying, this is nothing, they've always lied about things and taken money from everyone, and just how keflar5 said, 1 word, planned, i'll also add 1 world=nwo

[visco154]

If local banks were the only place to get home loans there would be no problem

[hkjonus]

We must be total fools to allow the balance sheets of a handful of large banks determine the financial well being of the country.

[FriedDaisy]

Gee Mr. Pickle. There's nothing wrong with Credit Swaps? Credit Swaps are snake oil. They are used to fool people into thinking that their investments are insured, but the so-called insurance isn't backed by capital. What kind of insurance is that?

[hkjonus]

If I rape your daughter but call it "love"......I guess I haven't committed a crime.

LOL

[freedomfighterone]

They are all criminals and should be arrested.

[shadone11]

hahahah, and you think democrats dont profit from this, WOW you truely are clueless. With all your liberal moralities and you are the only right people out there. Guess what your wrong, my house payment went up 450 dollars a month on a fixed loan because a Democrat raised, no doubled my property taxes, enacted by a democrat voted and passed by democrats, wait..oh yeah I forgot I am an American citizen and not an immigrant or a minority so of course I dont fall under a democrats version of help..

[phatcrackerr]

You need to re-read my post. Did I say Democrats? Did I say Republicans? No - this isn't partisan, but rather about ideology. If you're a student of history and political science you're aware that free market proponents are overwhelming conservative/right wing, as opposed to proponents of regulation, which are likewise, predominately liberal / left wing. Are there corrupt, free-mkt Democrats who profited from this? Absolutely.

[phatcrackerr]

The piece speaks for itself and silences the moronic, propaganda one can easily find elsewhere within You Tube, blaming the libs that forced the banking industry to provide loans to low-income minorities. The banking crisis isnt about affirmative action, but in fact has everything to do with those pillars of conservative philosophy: profiteering at any cost, greed, and yes deregulation.

[psyche1975]

Neither side is without blame.

[phatcrackerr]

Continued

If the credit default swaps had been indeed been regulated, we wouldnt be a broke nation right now. Chalk it up to yet another failed legacy of American conservative policy.

[shmoopygirl]

"We wouldn't be in any of this trouble right now if we just had underlying investments in mortgages. We wouldn't be in any trouble right now."

"It's all the sidebets?"

"It's the sidebets."

The subprime lending, while a problem, wasn't the main cause of this pickle. Robert Pickle was!!

[1978VIEWER]

Why is it a learning experience when a couple of greedy companies bankrupt the nation and we have a law that will incarserate a person for life for non violent offenses? Where is the logic in this?

[jaikwillis]

The idea that tax payers should then bail these morons out and keep them in their yachts and mansions is beyond the pale. Why would we not want these companies to go belly up ? They should, & others will happily replace them. In the meantime congress should be going after them with retroactive legislation and specific taxes to pull the billions these CEOs and board members have made on fraud. We are bailing them out so they can stay millionaires ?? We need some old fashioned pitchforks & torches

[Koolerice1]

preach it!!!

[CRAPCANNONS]

Technically, this is fraud.

You cannot sell something unsafe, on the pretense that it is safe.

You cannot say that you will insure for a loss, when you do not have the money to pay for the loss.

This is not neglect and incompetence; it is a deliberate plan to dissimulate and otherwise lie about what they were selling because they never suspected they would have to pay out.

These people should be tried and thrown into prison.

[Koolerice1]

you are right, but sadly they won't be touched because they give allot of money to the other crooks in Washington...

[ricepredator]

There are no specific regulatory agencies issued by government to supervise these transactions and therefore they are technically not illegal. As explained in Pt 1 of this video, these credit default swaps are completely re-packaged so that it will be viewed as investments in the eyes of laws of commerce; Technical terms and scientific calculations were hired to cover the big body of lies up.

[CRAPCANNONS]

The legal definition of `fraud' exists in circumstances which are unregulated.

Regulation (if the swap were called insurance) would be in place ostensibly to prevent fraud.

The fact that they took advantage of a loophole to avoid regulation does not mean that fraud was not committed under broader business and legal guidelines.

[ricepredator]

I agree with you, but I'm just expanding on the technicality of the definition. Yes, this is fraud under the impression of false pretense.

I am no way defending those bitches. In fact, this goes against a lot of principles upon which morals of commerce build on. I understand fully that if the terms were defined otherwise, nobody would even BUY those goddamn swaps that caused the meltdown in the first place. Subprime was a warning shot and we failed to see the underlying cause.

[CRAPCANNONS]

Agreed

[cindyvirgo]

This mess started in the seventies as a program to help minorities buy houses. Six years ago, Bush brought legislation to Congress to curb in this program because it was starting to be abused. Democrats in Congress shot down the legislation, claiming Bush's doomsday predictions were just cold-hearted Republican attempts to deny housing to minorities.

[bradzdanivsky]

Right, those damm minorities... its their fault, it is! Should all be put on an island and bombed.. make more room for the rest of us! (oh wait, as a white guy in Vancouver.. a 'minority' am I)

[cindyvirgo]

It is by no means the fault of any minorities, and that's not my point. Minorities were actually victimized by this well-intentioned but not well thought out program. By allowing lower guidelines for minorities, minorities were allowed to spend a greater portion of their income on buying a house, which led to more foreclosures for minorities and artificially inflated housing costs in minority neighborhoods. Social engineering in the culprit, not the victims themselves.

[joesatube]

I don't think you understood this video. This mess was not started by the program to help minorities buy houses 31 years ago. They clearly state that loan defaults/foreclosures by themsleves are NOT the problem. There is nowhere enough money in that, in itself, to cause this problem. It is the derivatives and the credit default swaps built on top of those shady loans which fueled the wreckless lending and eventual collapse we're seeing today.

[Koolerice1]

your an idiot!

[snwbnny9]

Thanks for posting this. There was a story about the 52 trillion in real estate derivatives in the New York times. Warren Buffet says they are bad bad stuff.

[derrobb]

Hilarious - little mention of Sachs and J.P - the largest peddlers of this crap - talk about subjective reporting. Regional banks, the ones that stayed out of this, are now being hammered and will be consolidated into the above mentioned consorts. Free market my ass!

[episteme420]

One could almost say this was the elaborate plan...

[dotnetprodev]

That is exactly right. The plan was to consolidate most of the financials into government owned entities. The guys in charge are stupid. You dont become a ceo of a bank/etc. by a walk-in job application. The plan is also to sink the dollar/etc.

[Mishpassion]

Having lived in Canary Wharf London - I used to watch the bankers go to the bars daily - snorting coke at their lunch breaks.

What you are hearing is totally true. The Directors knew what they were doing. they deliberately created a system to get around the laws. They have committed a crime of treason against their own people. No one - and I say no one in charge of selling them in the last 3 years is ignorant. This is called organised crime. Confiscate the benefits and send them all to jail.

[PhuQuangLe111]

@Mishpassion were they really snorting coke at their lunch breaks ? :)

[leepakim]

there is no future. this is the end.

[bassbusbass]

I see it too

[McCainTheTurdburglar]

Deer in headlights.

[swankrecords]

Watch him burn!

2:38

[likes2p]

WOW! Steve Croft is pissed off

[grabmail]

you piss me off