Understanding the Global Financial Meltdown - "What's Going On" - Still Think It's About Subprime?

[rmuller0727]

This global clusterfuck was hatched in the good ol' US of A and got its roots in greed and a massive absence of regulation and risk mgmt. This was Epic and it's not done yet; the fallout will reverberate for years in the US and beyond. To which I ask as a Canadian (and we need a strong US economy as much as you do): what the FUCK is being done about this? I'm beyond pissed at the winner-take-all-and-fuck-you mentality of Wall Street and the limp-wristed "regulations" coming out of Washington.

[651eddie]

I NEED SOMEONE TO TALK TO

im bored on cam tQ

[BillyJHoward]

Yea, that's good. That's real good. Thanks for posting...

[karmicdejavoodoo]

The subprime mess is only a small part of what caused this...it was simply the first domino that fell. Also... don't blame the poor for the subprime mess... the poor that bought homes under special programs are the ones that are NOT defaulting. We have not had the retail credit bubble burst yet... that is still coming. People getting foreclosed on (with ruined credit), plus the ones out of jobs, will default on credit cards next. That will collapse more banks and retail chains.

[karmicdejavoodoo]

Harry Dent predicted the "Next Great Depression" would hit in 2011 or 12 and he did it over 10 years ago. Dent has never been wrong, only slightly off due to factors he could not include in his analysis (he uses computer models and statistical analysis of data and trends to predict the economy). We are now getting the Depression early because of the credit problems. He predicted 7 years of Depression and about 18% unemployment then, before this event.

[chrissyf40]

yes this person does sound confused. Either that or they are an Obama supporter just trying to confuse people!

Not this girl.

[idiotfinder911]

Subprime is 10000000% the cause of this. If AIG backed $3 trillon and they only have 1 trillioon. Guess what????? Its down 2 trillion. But who covers that 2 trillion???? Not a god damn soul. Except tax payers. $700 Billion. But thats just AIG. What about every other bank in the US. And what about the packages that Morgages create.

SUBPRIME WAS the main reason for this. Whoever made this video is really really confused about why we are where we are.

[TruthPolice2008]

When I have a little more time I will help you really understand that your comment is factually absurd. 1. Total Subprime Loans in US $1.3 Trillion. 2. Delinquency rate runs 12 - 15 % nationally. Total US Residential Housing values - under $13 Trillion. Even if the properties backing these loans dropped by 50% the loss could not exceed $650 Billion. OFEO reports indicate that recoveries on foreclosures average about 40-50%. Now explain to me how there is $700 B losses on subprime loans.

[TruthPolice2008]

if you are actually looking for an idiot - just look in the mirror. The subprime loans are the canary in the coal mine. The housing bubble increased prices during 9.5 years prior to 08 by 84% excluding the impact of inflation. You think that the world wide financial crisis is the result of defaults and foreclosures on subprime loans? Really? Global losses exceed the total current value of US residential housing. All the result of subprime - get your facts straight. You are not even close.

[TruthPolice2008]

I just got your response asking the question how much debt AIG is backing. This question ignored the obvious fact that you cannot dispute that the subprime market is a fraction of this problem, not "100000000%" of the problem. If every subprime mortgage was backed by thin air and not homes(obviously including land) the maximum loss would still be only $1.3 B. And you claim AIG backed $3 T in subprime - absolutely ridiculous. For me, trading barbs with you is like I am dueling an unarmed man.

[therealcaptobvious]

BRAVO!!! APPLAUSE, Bravo! This mortgage bullshit isn't going to be resolved by selling unsecured derivatives unless the borrowers can make the mortgage payments. They can't do that without jobs. REAL jobs. America needs income, we can't back any more credit without it. THERE IS NO OTHER CHOICE. Trade deficit is flirting around $600-700 BILLION with China. 5 times more than the one with Japan, which was blamed for a 90's recession. No more wars until this is fixed!

[TruthPolice2008]

This global crash is not about subprime loans in the US. Check this out - Oct. 10 (Bloomberg) -- Australian stocks plunged, set for their worst week since the 1987 stock market crash, as a credit freeze deepened, worsening the outlook for the global economy.

``Investors are pricing in a reasonably significant and protracted recession,'' said Troy Angus, who helps manage $3.1 billion in Sydney. ``The market's anticipating corporate earnings in Australia to go down 20 percent at least. Subprime?

[ClownFight]

Australia tried sub prime lending 22 years ago in 1986. It was a disaster. Theirs was underwritten by the Government and was followed by what their Prime Minister called "The recession we had to have".

Australia has since tightened up their fiscal policies and their banks rate at number 4 in the world. In contrast, the US ranks 44, the UK @ 40 and Germany @ 39.

This is what will sheild some countries from the recession America had to have and may even change the balance of economic power.

[whispers83]

here come the unemployed... straight into the recruiters office

[dcintlesq59]

Right, the world is collapsing because we reduced our underwriting standards to increase homeownership. Hey in hindsight, a few years would have been alright - but a decade of pushing up housing prices by adding huge numbers of new borrowers was stupid. But, this was not the cause of the worldwide mess, this was more about slamming US citizens who have been squeezed hard by the allowing the world unfettered access to the worlds largest consumer marketplace nothing back but our own money in loans

[tenforten1]

We have allowed our critical infrastructure in the USA to decline to the point of failure of bridges, horribly aged rail systems, closed manufacturing plants, foolish reliance on foreign sources of energy and moronic choices in our private lives to consistently choose cheap junk from overseas, shipping jobs offshore along with the plant and equipment. Enough! Stop blaming the US subprime borrowers. Wall Street and the foreign banks/markets have run on greed, playing roulette with our money!

[tbackes]

As the weakening economy undermines consumers and businesses alike, governments are facing a rare confluence of declines in personal and corporate income taxes, property taxes and sales taxes. This is forcing officials to raise taxes and fees, lay off workers and slash spending - cutting aid to hospitals, schools, Medicaid and more.

[dcpolitico1969]

Right one Brother!