moral of the story is.............money is the root of all evil. I'm not religious but it's actually true. The system won't change so get as rich as you can and survive. PEACE.
@N330AA actually the opposite is true ! If money is a system for quantifying the value of things then why are things constantly rising in price but yet their "Value" remains the same . try thinking about what money really is !
The devil is losing and at the end will be judged for all the crimes. Live at the full in the freedom of GOD (praying in a right form, following the INSTRUCTIONS in the Bible - keeping the 10 commandments - including keeping the Saturday as the 7th day etc.) instead of in the incapacity and deception of devil. Jesus Christ is the savior, love and hope.
Excellent video. My only criticism is the fact that it doesn't mention the government's role in inflating the housing bubble by legally requiring banks to lend a certain percentage of mortgages to risky borrowers in an attempt to promote universal home ownership. It was a combination of foolishly defining homeownership as a right (hence, denying anybody a mortgage due to poor credit is a human rights violation) along with the misguided fiction that home values only ever go up (they go down too!)
@jadedmastermind House prices went down because the bubble burst. The bubble was created in the first place because everybody thought house prices would always go up. "House prices always go up" became a self defeating prophecy.
The Pope controls the NEW WORLD ORDER because he is the anti christ Daniel the lord JESUS and Paul warned us about. Paul warned us that satan would hi jack the christian church and would install a false religious leader. Rev 17 warns us that this false religious leader sits with a false Christian church in ROME and RULES OVER the leaders of the world. So far only the popes fit this description of anti christ. The pope controls the illuminati which are the elite satan worshiping families
when you see the history of our modern banking system, you won't have to be told what is at the root of this and every other financial crisis. it'll be obvious.
don't be duped into thinking the bankers made miscaluculations or mistakes; the ones at the top--those who own the FED and other central banks around the world--know exactly what they're doing.
check out history of bankers and you'll see this is an old trick on a larger scale
@DrStrangel0ve2 expect THEM to do the homework and see if I qualify for such a loan? WRONG !!!! how about the borrower DOES his OWN homework and see if HE actually can afford to payback the loan he is getting? the problem with Americans is that they just sign sign sign on loans they cant afford. The bank didnt put a gun to peoples head to take the loans ... People can always say NO. so boo effing hoo to them.
Now, can we stop blaming obama? You know who is at fault here.... You.. the irresponsible, i dont wanna read the fine prints and lets keep signing papers kinda guy. Lol
@silviasboy Remember all the ads for "No Money Down EZ-Mortgages" These were sold as the fast track into the American dream.
The people making the loans knew from their analysis of the application that these people would likely not be able to pay off the loan. They did it anyone because they were selling the debt to the next guy.
But yes, all poor people are shiftless trailer trash and all rich people are honest businessmen.
@DrStrangel0ve2 and the idiots who went for that had the fat ballooning principal explode at their faces !!! they caused responsible people with money to put out denied for loans they should have had. all these loser heads deserve to be kicked out and living in the cold this Xmas. boo effing hoo again and again.
@silviasboy I'm enjoying the troll, if you're serious I glad you appreciate how it's Christmas and you're laughing your ass off at people living on the street. I guess it doesn't matter as long as it doesn't happen to you.
@silviasboy So what's your solution? Put 65% of America on streets? Make the banks our corporate landlords?
And don't conflate "Obama" with the Recession. The policies causing this crisis are systemic of the neoliberal financial system. The seeds of this crisis were started to get us out of the last crisis (the 2001 Recession), and that decision was based on the ideas of previous leaders and so on.
@DrStrangel0ve2 im not a heartless person but there are people whom i would seriously feel sorry for. These idiots dont deserve jack rabbit's ass. Before the recession and even before Obama took office, 65% of Americans cant really afford to buy a house. The banks may have lied but they just did their job to sell loans. The wanna be rich bragging mopheads had their final signature on paper and they are the ones to blame. i rest my case.
Watch the video titled Peter Schiff was right! He explains this whole collapse back in 2006 on the news BEFORE there was even a problem. Others laughed at him.
@USTreasuryBond .. it is precisely because it is not a democracy that China will likely be so successful…What is of vital importance for economic success is economic freedom, meaning the protection of private property, the rule of law, and minimal regulation and taxation, not the right to vote.
- Peter Schiff Goldmember economist and aristocrat
He might see the problems, but he doesn't see the solution
@clkndggr Cheap interest rates, legislation requiring loans to unqualified applicants in the name of social justice, promise of bailout, etc. It was a bubble, the cheap credit created excess demand and raised these prices to artificial highs, then when people couldn't afford the new interest rates and defaulted, the foreclosed homes occupying the streets made other homes worth less than the mortgage people were paying. Demand dropped since we had more supply than demand, decreasing prices.
@ranged2hard Some of the reason is that investors and banks work in an international market and many of the investors themselves are countries and governments.
@ranged2hard a lot of european banks had a lot of money in these CDO's, much more than they could afford but they were just trusting the ratings and economists.
@ranged2hard The eurozone is more a case of exchanged loans, wherein, country A has lent to country B and B to C and C to A; Interest is the issue, the amount owed increases, with the governments only paying the bare minimum on the loan each quarter, padding the budget, making the country seem more attractive to investors. However, the minimum amount isn't enough to stay the interest and the amount owed goes up; eventually the loans are called in and the system collapses under its own weight.
Eurozone is also paying for another countries mistakes. The Netherlands has been a rich well faring country. Currently we're paying billions to the European Union for a stability fund and billions to countries on the brink of bankrupcy. Because we have no choice or something... So now we're not a rich country and everything gets more costly, huge cuts on everything, even school. Our knowledge economy will take a hit in the future. This is not over. it's faaar from over.
I don't really give a fuck about money I have hens chickens a cow and some turkeys one we cooked up yummy yummy and eggs all day! Now potatoes and tomatoes and of course everything for salad!
I think people are to blame more than the banks. Banks were more like the drug trafficker and the people were the ones buying the drug.
But thats a harsh scenario for the banks. I am sure a lot of people loved the fact they could buy a home. The banks loved the idea of making money and waiting for them to default and take their collateral the house while making interest.
Also not all banks were burned only a few of them. BAC also wasn't one of them until it made bad a bad acquisition.
These packaging of mortgages always existed. Also not all banks really amplified their leverage
The main problem is this
You give a bunch of loans to people who can't borrow backed by real estate that you never think will go down. The idea real estate won't go down was flawed logic because giving enough people loans inflates the price. Meaning real estate prices greatly decrease on default.
And now you lose the loan and the real estate thats
Ok ,we got home owners that own homes , then we got "Investors" who own money...Where did "Investors" got that money, If they dont own nothing to produce it? And who did tell them how will their money worth? Babylon?
This is a crisis, but I disagree that it's a "crisis of credit". The would-be "problem solvers" have tried to fix it by injecting liquidity and all that, but it hasn't helped. It's true that lenders have tightened lending standards, but it's not because they don't have the money to loan. It's because the people they would normally loan to, are basically bankrupt. They won't loan at ANY rate of return to someone like that.
This crisis is not one of illiquidity, but of insolvency.
The US gov should've let all those greedy banks go bankrupt, now looks what's happening to the US economy 15 trillion debt soon, can't rise taxes nor cut spendings. What's happening in greece is a foretaste of the upcoming meltdown in US. Dollar devaluation through printing will cause Armageddon in 2012 not the bullshit mayan calendar stuff and whatnot. My money's all out of the stock market and it's invested in tangible stuff may God help us all.
You left out the most important part of the explanation. The banks had an ace in the hole called a massive tax dollar funded bailout. They knew once their scam was up the Fed would bail them out and will go on bailing them out because if they don't there will be a worldwide financial collapse. 2009, just a year after the housing bubble bust, were some of the highest profits in banking history. The banks created the perfect strategy to keep the money flowing to them. Simple but genius!
I have a more simple explanation of the global crisis. Governments and banks have created a worldwide culture of credit junkies. These credit junkies now work just to keep up on the interest payments with no hope of ever getting out of debt. Even the non junkies are bailing out the junkies in the form of tax dollars in bailouts. It's now a perpetual cycle of new loans to pay off existing loans and interest. The banks have everyone on the ropes and will not let up.
Countries in Euro zone are deliberately bankrupting there countries to qualify for EU hand out. Euro died 20 months ago & now Euro have been cremated.
@agun17 in america no one want to rent a house coz they can buy it using mortgage loans and the mortgage payment will be equal to the rent fees per month
@agun17 Banks are in the business of lending money not in the real state business. Its not a bad idea, banks would just need to create rent/house management departments.
@agun17 That would be cool, even cooler if they rent me one for n more than $250.00 a month. LOL, there was this dude with a rent sign at a mobil home about 1 years ago. I called back then 7 he was asking $1,000.00 down & $990.00 per month. last time i check the sign still there & no one ever rented out. He should of taken my offer then, which was $500.00 per month. I called him about two weeks ago, but this time my offer was $250.00 per month. in two years, my offer will be less.
@agun17 The banks don't want the burden of renting it cost to much money without much return. Although they do allow rent to own. meaning you rent it pay the insurance and up keep but pay them a flat rate monthly. almost like buying but without the mortgage. and if you default on your payments then they have made money and move on to the next sucker...
what about the Toxic Mortgage-backed Securities GIVEN a AAA status by Credit Agencies in-bed-with Investment banks on Wall Street ; ) ? and what about the Derivatives self serving construct of investment banks that was a ponzi scheme, which is where most of the money went to ? ( bailed out by the FEDERAL GOVERNMENT : ) ?
The us goverment is controled by the secret society if you think thats crazy look at the dollar bill the eye of lucifer is on it that is the same logo of the freemasons and illumanati. but what you dont know is that the catholic jesuit preists control the secret socity they control all the us presidents and rich us families and leaders of the corporations in the us and europe. They are breaking the world economy so they can install the pope as the anti christ. The lord jesus warned us of this
FIRST he says "The devil is in the details"... and then he follows that up with THE MOST NON-DETAILED EXPLAINITORY NON-VARIABLE: "greed". (Self interest is a CONSTANT... and apparently so is the dullness fostered by our goverement mandated "education")
@WorldSacred Well, it helps that you have a country two thirds the size of the US with one tenth the amount of people. Your economy is being fueled by your vast amount of natural resources per person and your ability to sell them to eastern countries who are rapidly industrializing. Thats why you don't feel the effects of the global recession.
@pantheistprimate That doesn't explain why the United States refers to its own recession as a "Global recession". Asian countries also seem to be avoiding the effects of this recession going on in the United States. Friends of mine in the mining industry have said that they can't keep up with demand of minerals for export to Asia.
Capitalism is the wage slavery of the working class in a politically manipulated, tyrannical MARKET SYSTEM OF ARTIFICIAL SCARCITY and distortions, to perpetuate wage-slavery/exploitation in the interest of the OWNING/RULING CLASS. A socio-economic modality of production for profit as the sole consideration with devastating consequences of perpetual war,enviornmental destructions,animal cruelty and sufffering a MINORITY IMPOSITION of fear,insecurity,devaluation and dehumanisation.
You know as stupid as the bible is it does say a little about usury being a tax on gods creation and thus illegal . Usury is the root of all evil. Loans should only be made when the lender has a share in the venture that way banks will only loan money that they think can produce intrinsic wealth for the debtor and the lender .because the bank has no right taxing money the created out of nothing. If they want value credit then they should use the object the loan bought and collect a lien flat
@OneNationUnderCanada I don't think Usury is a problem. In fact, I think loans allow money which would otherwise be stagnant to flow into the economy. they allow people to start businesses and develop new technologies. Banks should be the "brain" of our economy, figuring out where to distribute resources where it can be used the best. However, when that brain makes a stupid decision, we all have to pay for it dearly.
@SENTRY000 Banks should pay more interest on deposits, that way people would have an incentive to save, but not only that, the existing money supply must stay stable so its value is preserved
Banks lend out money that they do not posses, then charge interest on it, this increases the money supply and dilutes its value, so people who save actually lose money but they call it inflation
Governments should not allow this, banks should not control the supply of money
Exactly. Low interest rates encourage speculation, which leads to malinvestment, which causes bubbles... Except, in this case the bubble is the dollar bubble. People think gold is in a bubble. Ask yourself, does everyone you know own dollars? Does everyone hold gold?
If the USD stops acting as world reserve currency (its gradually happening) what happens to all those dollars held as reserves? They will be spent = inflation.
@worldinformant you are totally wrong. banks do not create inflation, the money banks creating have nothing to do with inflation, money exchange rate or other sectors of economies. Do you know where the money banks create coming from? its from the debtors' assets as they have to pledge their unliquidity assets to get more liquid assets to do businesses in form of money(notes), check, virtual money... so banks just do a transformation, they didnt provide more notes to the economy.
@SENTRY000 The root cause is the entire world living outside of its means on borrowed money. Global population is now growing 1000 times faster than it did 500 years ago and less of these people are getting adequate educations. This means that the entire population is growing and at the same time getting dumber. More and more people cannot make a decent wage because there are only so many low-skill jobs to go around,causing a downturn in innovation and a dependency on welfare.
@SENTRY000 The root cause is that the people running the financial system assumed houses will always rise in value. Subprime loans should have never been given, and they should have never been thought of as safe by everyone who bought into the cycle. Everyone must have been able to see it coming, but thought they were smart enough to get a piece of the pie before it collapsed on everyone else. Some at the top managed to escape with huge profits, though.
CAPITALISM creates ELITE CRIMINALS. BANKERS. DRUG LORDS. INEQUALITY. INSECURITY. GREED. RUTHLESS COMMUNISM. NWO. NAZI. TERRORISM. LAZY PEOPLE. REBEL POLITICIAN. ANARCHY. worst is WAR etc.. etc..
CAPITALISM was designed only for CORRUPT OPPORTUNISTIC MANIPULATIVE LAZY POLITICIAN. BANKERS. LAWYERS. DRUG LORDS. JUDGES. CRIMINALS. DICTATORS. RULERS. KING. SULTANATE. EMPEROR etc. etc..
HARD WORKING PEACE LOVING HAPPY HONEST SOCIETY were always the slave victim and poorly starve to death. :(
@SENTRY000 Both; the federal reserve is fun primarily by ex-bankers, so everything it does is intended to help the banks; see - the federal reserve lending out about $16 trillion at virtually zero % interest (some of which probably won't be paid back). Unlike what Ron Paul folks say, the problem isn't the central banking system itself; it's the massive conflict of interest present among the Fed's employees.
@hannumanify False. What does us blowing up smelly brown people have to do with Greece/Spain/Portugal/Ireland/Italy's debt? Not very much. This is global, and some tiny ass "Wars" are not to blame.
Jonathan Jarvis, good work, have you seen the dollarmonopoly explanation of the difference between currency issuer and currency user? Craig Austin is looking for someone to animate the ideas for youtube vids and public education, it would be well worth you checking it out, more detail is available from modernmoney.wordpress
A helpful explanation, although banks don't need money to lend it, they happily lend to customers with good credit whilst the economy is growing as the loan becomes a deposit somewhere else in the banking/housing system.
Modern Monetary Theory is a real world alternative economic description that predicted the crash and the Job Guarantee is a practical solution targeting demand where it's needed and wlll be most effective at reviving the economy by hiring the 15% unemployed at decent living pay
@0ct0parr0t Central Banks in a Sovereign Floating Exchange Rate Monetary Political Economic system can create infinite money and should use this public money for public purpose to run things at full or near full capacity; dollar monopoly and modern money wordpress are good places to find out more about this. Take the Swiss National Bank, it said it could create infinite supply of Swiss Franc to fund foreigners net saving desires in that currency and the market believed them falling 8% instantly!
@7rancisco1 Yes,the sub-prime crises happened only in the usa, but banks are international, so they redirected their credits to COUNTRIES! Now some countries are considered sub-prime and things will happen at a larger scale, on and on until... world cglobal economy collapses!
@TheAussieRod Australia had mortgage-based crisis too but ours was more based on consumer greed than on housing need. THE GFC was predicted. eg Australia had record private debt back in 2005 (I also was in UK in2006 and heard the BBC announce similar for UK). GOOGLE Radio National Debt Mask or GOOGLE bbing_20050717 mp3
@7rancisco1 The housing bubble occured here in the us but beacause the banks in the united states are funded directly by the federal reserve with even several being bailed out from time to time that this debt crisis grows beyond our borders, spreading to all those to whom our nation is indebted through the dollars status as the worlds reserve currency. So long as other nations use a single fiat currency in which to conduct bussiness and trade then that currency will bind its problems to all.
What about Scums of the earth Real Estate agents who drive BMWs and Mercs?
Hahaha Do not believe what real estate agents' propaganda that house prices never fall. All real estate agents should be castrated and their tongue chopped off. Bankers, real estate agents, I never believed and respected them.
the conclusion missed the bit on how the banker cheated by buying credit default swap on CDO they know are going to fail and how the insurance industry were destroyed as well...
and "the australian" newspaper were telling how the taxpayers were being ripped off and the government said we werent. there must be something wrong with the system when the government backpedalled so much but still didnt get into any trouble. they should have held a transparent inquiry into all those contractors and gotten our money back from all those that overcharged...but nothing happened and they all got away with it. how did that happen?
and all the rappers and superstars live worry free
d8innose 3 days ago
greedy and explotation doesnt pay
trifulquita15 3 days ago
what software did you use? can anyone please tell me? it's aswome explaination.
thomasjiyuntang 4 days ago
@ItchyClickfinger You have wrongly assumed that the value of things remains constant.
N330AA 4 days ago
Very well explained, thank you.
paulinejcp5 1 week ago
moral of the story is.............money is the root of all evil. I'm not religious but it's actually true. The system won't change so get as rich as you can and survive. PEACE.
boldswede 1 week ago
@boldswede Human nature is the root of all evil. Money is just a system for quantifying the value of things - it's innocent.
N330AA 6 days ago
@N330AA actually the opposite is true ! If money is a system for quantifying the value of things then why are things constantly rising in price but yet their "Value" remains the same . try thinking about what money really is !
ItchyClickfinger 4 days ago
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The devil is losing and at the end will be judged for all the crimes. Live at the full in the freedom of GOD (praying in a right form, following the INSTRUCTIONS in the Bible - keeping the 10 commandments - including keeping the Saturday as the 7th day etc.) instead of in the incapacity and deception of devil. Jesus Christ is the savior, love and hope.
diptdipt 1 week ago
nice video, now i know more than just what other people tell me.. helped me a lot, thkns for the info..
cathycasis 1 week ago
thanks for the video, now i know..
flashlyt1 1 week ago
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what is the program used for this type of animation?
really want to learn it.
locololonumber2 1 week ago
Very well explained..I learn a lot on this video..thanks
thegreatalexa1 1 week ago
Good stuff. Its helped me understand why we are all suffering and why. Thanks
paulieeee1976 2 weeks ago
spectacular visual explanation. you forgot the part where the people got robbed though.
QofLife69 2 weeks ago
Great video thanks.
MrGamerDerek 2 weeks ago
great video my brother was one of those brokers and went bankrupt
drhector67 2 weeks ago
Excellent video. My only criticism is the fact that it doesn't mention the government's role in inflating the housing bubble by legally requiring banks to lend a certain percentage of mortgages to risky borrowers in an attempt to promote universal home ownership. It was a combination of foolishly defining homeownership as a right (hence, denying anybody a mortgage due to poor credit is a human rights violation) along with the misguided fiction that home values only ever go up (they go down too!)
jadedmastermind 3 weeks ago 4
@jadedmastermind House prices went down because the bubble burst. The bubble was created in the first place because everybody thought house prices would always go up. "House prices always go up" became a self defeating prophecy.
MrGamerDerek 2 weeks ago
Awesome video!! Thanks heaps :)
smartiex90 1 month ago
it is time to use GOLD and SILVER in our life.
godinez35 1 month ago
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INGDIRECT2012 1 month ago
Which application you use to create this video~??
blablahaha321 1 month ago
cooooolll! :))))
yanggymarie59 1 month ago
Really Good
DrGunnar95 1 month ago
Did economics in high school last year still didnt know what the GFC was about. Good vid
twentified 1 month ago
The Pope controls the NEW WORLD ORDER because he is the anti christ Daniel the lord JESUS and Paul warned us about. Paul warned us that satan would hi jack the christian church and would install a false religious leader. Rev 17 warns us that this false religious leader sits with a false Christian church in ROME and RULES OVER the leaders of the world. So far only the popes fit this description of anti christ. The pope controls the illuminati which are the elite satan worshiping families
vladimirkovalski 1 month ago
google:
history of the money changers (bankers)
when you see the history of our modern banking system, you won't have to be told what is at the root of this and every other financial crisis. it'll be obvious.
don't be duped into thinking the bankers made miscaluculations or mistakes; the ones at the top--those who own the FED and other central banks around the world--know exactly what they're doing.
check out history of bankers and you'll see this is an old trick on a larger scale
prinzdubs 1 month ago
For a nice solution of the economic global crisis, see the video ( 6 minutes) youtube.com/watch?v=fslmey589jE
cosacov 2 months ago
Thanks to this vid. I tried to read up the related articles few years back but could not understand a thing.
MrJohnShing 2 months ago
and the moral of the story. don't take out loans. if you don't have the money for it you don't need it. save to buy your home outright.
four2ten 2 months ago
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@DrStrangel0ve2 expect THEM to do the homework and see if I qualify for such a loan? WRONG !!!! how about the borrower DOES his OWN homework and see if HE actually can afford to payback the loan he is getting? the problem with Americans is that they just sign sign sign on loans they cant afford. The bank didnt put a gun to peoples head to take the loans ... People can always say NO. so boo effing hoo to them.
silviasboy 2 months ago
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silviasboy 2 months ago
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silviasboy 2 months ago
Now, can we stop blaming obama? You know who is at fault here.... You.. the irresponsible, i dont wanna read the fine prints and lets keep signing papers kinda guy. Lol
silviasboy 2 months ago
@silviasboy Remember all the ads for "No Money Down EZ-Mortgages" These were sold as the fast track into the American dream.
The people making the loans knew from their analysis of the application that these people would likely not be able to pay off the loan. They did it anyone because they were selling the debt to the next guy.
But yes, all poor people are shiftless trailer trash and all rich people are honest businessmen.
DrStrangel0ve2 2 months ago
@DrStrangel0ve2 and the idiots who went for that had the fat ballooning principal explode at their faces !!! they caused responsible people with money to put out denied for loans they should have had. all these loser heads deserve to be kicked out and living in the cold this Xmas. boo effing hoo again and again.
silviasboy 2 months ago
@silviasboy I'm enjoying the troll, if you're serious I glad you appreciate how it's Christmas and you're laughing your ass off at people living on the street. I guess it doesn't matter as long as it doesn't happen to you.
DrStrangel0ve2 2 months ago
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silviasboy 2 months ago
@silviasboy So what's your solution? Put 65% of America on streets? Make the banks our corporate landlords?
And don't conflate "Obama" with the Recession. The policies causing this crisis are systemic of the neoliberal financial system. The seeds of this crisis were started to get us out of the last crisis (the 2001 Recession), and that decision was based on the ideas of previous leaders and so on.
DrStrangel0ve2 2 months ago
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@DrStrangel0ve2 im not a heartless person but there are people whom i would seriously feel sorry for. These idiots dont deserve jack rabbit's ass. Before the recession and even before Obama took office, 65% of Americans cant really afford to buy a house. The banks may have lied but they just did their job to sell loans. The wanna be rich bragging mopheads had their final signature on paper and they are the ones to blame. i rest my case.
silviasboy 2 months ago
great video
eandrix1 2 months ago
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Thank you. I have a hard time understanding things relating to the economy for some reason and this helped mitigate some of that problem.
Ashmole3 2 months ago
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Ashmole3 2 months ago
Watch the video titled Peter Schiff was right! He explains this whole collapse back in 2006 on the news BEFORE there was even a problem. Others laughed at him.
USTreasuryBond 2 months ago
@USTreasuryBond .. it is precisely because it is not a democracy that China will likely be so successful…What is of vital importance for economic success is economic freedom, meaning the protection of private property, the rule of law, and minimal regulation and taxation, not the right to vote.
- Peter Schiff Goldmember economist and aristocrat
He might see the problems, but he doesn't see the solution
DrStrangel0ve2 2 months ago
Very informative, thank!
DancinCheek2cheek 2 months ago
So... Why did this video never answer the lynchpin questions:
Why did the prices of housing rise so quickly and drop so suddenly?
Government regulation and intervention? Woah... full circle.
clkndggr 2 months ago
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@clkndggr Why did the prices of housing rise so quickly and drop so suddenly?
the answer is Demand and supply
SparkMan1211 2 months ago
@clkndggr Cheap interest rates, legislation requiring loans to unqualified applicants in the name of social justice, promise of bailout, etc. It was a bubble, the cheap credit created excess demand and raised these prices to artificial highs, then when people couldn't afford the new interest rates and defaulted, the foreclosed homes occupying the streets made other homes worth less than the mortgage people were paying. Demand dropped since we had more supply than demand, decreasing prices.
USTreasuryBond 2 months ago
Excellent video. Thanks!
menzerna1234 3 months ago
This really helps explain what happened in the US, but how does this relate to the the crisis in the eurozone?
ranged2hard 3 months ago 2
@ranged2hard Some of the reason is that investors and banks work in an international market and many of the investors themselves are countries and governments.
skreppeknekker 2 months ago
@ranged2hard a lot of european banks had a lot of money in these CDO's, much more than they could afford but they were just trusting the ratings and economists.
Ihas3pair 2 months ago
@ranged2hard The eurozone is more a case of exchanged loans, wherein, country A has lent to country B and B to C and C to A; Interest is the issue, the amount owed increases, with the governments only paying the bare minimum on the loan each quarter, padding the budget, making the country seem more attractive to investors. However, the minimum amount isn't enough to stay the interest and the amount owed goes up; eventually the loans are called in and the system collapses under its own weight.
heath2357 2 months ago
Eurozone is also paying for another countries mistakes. The Netherlands has been a rich well faring country. Currently we're paying billions to the European Union for a stability fund and billions to countries on the brink of bankrupcy. Because we have no choice or something... So now we're not a rich country and everything gets more costly, huge cuts on everything, even school. Our knowledge economy will take a hit in the future. This is not over. it's faaar from over.
theforgecustoms 1 month ago in playlist Liked videos
@ranged2hard Europe lend from US, making us "home owners"
LordShiding 6 days ago
Very informative and easy to follow. Thanks for uploading this video.
octykucayank 3 months ago
I don't really give a fuck about money I have hens chickens a cow and some turkeys one we cooked up yummy yummy and eggs all day! Now potatoes and tomatoes and of course everything for salad!
klorel400 3 months ago
I think people are to blame more than the banks. Banks were more like the drug trafficker and the people were the ones buying the drug.
But thats a harsh scenario for the banks. I am sure a lot of people loved the fact they could buy a home. The banks loved the idea of making money and waiting for them to default and take their collateral the house while making interest.
Also not all banks were burned only a few of them. BAC also wasn't one of them until it made bad a bad acquisition.
marketsareopenmao 3 months ago
I don't like this video its simpler
These packaging of mortgages always existed. Also not all banks really amplified their leverage
The main problem is this
You give a bunch of loans to people who can't borrow backed by real estate that you never think will go down. The idea real estate won't go down was flawed logic because giving enough people loans inflates the price. Meaning real estate prices greatly decrease on default.
And now you lose the loan and the real estate thats
marketsareopenmao 3 months ago
now I understand. thanks for this "eye-opener" information. (he he)
18chrein 3 months ago
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OCCUPY WALL STREET
occupytheworld22 3 months ago
can some 1 tell me all the impacts of global credit crisis to a bank ( specifically northern rock)
wildcat221287 3 months ago
Outstanding!
Simple and efficient!
Well done!
umpandora 3 months ago
Ok ,we got home owners that own homes , then we got "Investors" who own money...Where did "Investors" got that money, If they dont own nothing to produce it? And who did tell them how will their money worth? Babylon?
Hrv4ch 3 months ago
STONE AGE WAS THE BEST. NO LOANS, NO INTEREST, FULL PEACE OF MIND AND FULL FREEDOM. EARN WHAT YOU CAN EAT AND NEVER STOCK TOO MUCH. SIMPLE AS THAT.
skayush 3 months ago
the federal reserve chairmen and the bankers are both to blame !!
timohype80 3 months ago
This is a crisis, but I disagree that it's a "crisis of credit". The would-be "problem solvers" have tried to fix it by injecting liquidity and all that, but it hasn't helped. It's true that lenders have tightened lending standards, but it's not because they don't have the money to loan. It's because the people they would normally loan to, are basically bankrupt. They won't loan at ANY rate of return to someone like that.
This crisis is not one of illiquidity, but of insolvency.
ATL45 3 months ago
seems like the problem only started once subprime mortgages came into the picture
retownsend 3 months ago
The US gov should've let all those greedy banks go bankrupt, now looks what's happening to the US economy 15 trillion debt soon, can't rise taxes nor cut spendings. What's happening in greece is a foretaste of the upcoming meltdown in US. Dollar devaluation through printing will cause Armageddon in 2012 not the bullshit mayan calendar stuff and whatnot. My money's all out of the stock market and it's invested in tangible stuff may God help us all.
realdeal987 3 months ago
I think I need an asprin.
Goodykos 3 months ago
You left out the most important part of the explanation. The banks had an ace in the hole called a massive tax dollar funded bailout. They knew once their scam was up the Fed would bail them out and will go on bailing them out because if they don't there will be a worldwide financial collapse. 2009, just a year after the housing bubble bust, were some of the highest profits in banking history. The banks created the perfect strategy to keep the money flowing to them. Simple but genius!
como651 3 months ago
I have a more simple explanation of the global crisis. Governments and banks have created a worldwide culture of credit junkies. These credit junkies now work just to keep up on the interest payments with no hope of ever getting out of debt. Even the non junkies are bailing out the junkies in the form of tax dollars in bailouts. It's now a perpetual cycle of new loans to pay off existing loans and interest. The banks have everyone on the ropes and will not let up.
como651 3 months ago
I think Ron Paul could solve this.
LeadingWay 3 months ago
THIS VIDEO IS AWESOME!!!!
lambergino 3 months ago
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Countries in Euro zone are deliberately bankrupting there countries to qualify for EU hand out. Euro died 20 months ago & now Euro have been cremated.
justicepartyuk 3 months ago
HOW ABOUT WE ALL GET TOGETHER AND KILL THE F.E.D...IM TELLIN YOU IT WILL FIX EVERYTHNG
MoeDollaz710 3 months ago
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the federal reserve is a privately owned company
jeepdude770 3 months ago
Great, a clear insight, most welcome. Ralph
ralphverusanimus 3 months ago
Fantastic explanation! :D
PeterGeorgeReport 3 months ago
Extremely happy I stumbled across this video! Great explanation of how CDO's and Mortgages work.
Cespasbeau 3 months ago
What if the banks rent these houses instead of trying to sell them?
agun17 3 months ago 14
@agun17 there called apartments
21boxhead 3 months ago
@agun17 in america no one want to rent a house coz they can buy it using mortgage loans and the mortgage payment will be equal to the rent fees per month
SparkMan1211 2 months ago
@agun17 Banks are in the business of lending money not in the real state business. Its not a bad idea, banks would just need to create rent/house management departments.
dc5636 2 months ago
@agun17 That would be cool, even cooler if they rent me one for n more than $250.00 a month. LOL, there was this dude with a rent sign at a mobil home about 1 years ago. I called back then 7 he was asking $1,000.00 down & $990.00 per month. last time i check the sign still there & no one ever rented out. He should of taken my offer then, which was $500.00 per month. I called him about two weeks ago, but this time my offer was $250.00 per month. in two years, my offer will be less.
argent2020 1 month ago
@agun17 the rents (monthly) dont even cover up a fraction of the interest that they need to repay. we're talking billions and are you kidding?
marcabane 1 month ago
@agun17 The banks don't want the burden of renting it cost to much money without much return. Although they do allow rent to own. meaning you rent it pay the insurance and up keep but pay them a flat rate monthly. almost like buying but without the mortgage. and if you default on your payments then they have made money and move on to the next sucker...
justneedemil1981 1 month ago
you forgot the part where the taxpayers are forced to buy the toxic assets that nobody else wants.
Trimbler00 4 months ago
Great video, very informative :)
andyjs2008 4 months ago
LMMFAO @ the catoon representation of The "Less Responsible" Family @ 7:14. Fat, tattooed, cigarette smokin', baby farmers. Too funny.
ricogoldstar 4 months ago
Corporations ARE The Government : Government by the Corporations for The Corporations .
chazmcneill 4 months ago
what about the Toxic Mortgage-backed Securities GIVEN a AAA status by Credit Agencies in-bed-with Investment banks on Wall Street ; ) ? and what about the Derivatives self serving construct of investment banks that was a ponzi scheme, which is where most of the money went to ? ( bailed out by the FEDERAL GOVERNMENT : ) ?
chazmcneill 4 months ago
''And then the Muslim said...'' (An Exclusive Must See!)
Nebulous1982 4 months ago
Im Occupying Wall Street Now!
nightmuffin937 4 months ago
Well done. I hope people use such simple representations as a springboard to learning WHO is doing this to us (Fed) and put a stop to it.
Mattclark2012 4 months ago
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The us goverment is controled by the secret society if you think thats crazy look at the dollar bill the eye of lucifer is on it that is the same logo of the freemasons and illumanati. but what you dont know is that the catholic jesuit preists control the secret socity they control all the us presidents and rich us families and leaders of the corporations in the us and europe. They are breaking the world economy so they can install the pope as the anti christ. The lord jesus warned us of this
vladimirkovalski 4 months ago
The devil is in the details. It's called greed.
MrDavito2 4 months ago
@MrDavito2
FIRST he says "The devil is in the details"... and then he follows that up with THE MOST NON-DETAILED EXPLAINITORY NON-VARIABLE: "greed". (Self interest is a CONSTANT... and apparently so is the dullness fostered by our goverement mandated "education")
Thyrdeye3000 4 months ago
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an anti wallstreet song
showing what really wallstreet does to the 99% of us
watch?v=h-mMzQePm2M
Please give a big PUSH_UP and FaceBook & Tweet it please
and what exactly happened , HOW we were stolen ,
it is so well explained in the maxkeiser report
ankhaton 4 months ago
thank you very much this is a great service to the community!
deadkip 4 months ago
VERY good vid, thank u.
ivovelo 4 months ago
What's so *global* about something that affects mainly the United States? I'm from Australia, and the economy is in good shape. Suckerrrrrs!
WorldSacred 4 months ago
@WorldSacred Well, it helps that you have a country two thirds the size of the US with one tenth the amount of people. Your economy is being fueled by your vast amount of natural resources per person and your ability to sell them to eastern countries who are rapidly industrializing. Thats why you don't feel the effects of the global recession.
pantheistprimate 4 months ago
@pantheistprimate That doesn't explain why the United States refers to its own recession as a "Global recession". Asian countries also seem to be avoiding the effects of this recession going on in the United States. Friends of mine in the mining industry have said that they can't keep up with demand of minerals for export to Asia.
WorldSacred 4 months ago
Like is always said "SHOOT IT IN THE HEAD!!" ......end the fricken fed.
ORACLE063 4 months ago
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Capitalism is the wage slavery of the working class in a politically manipulated, tyrannical MARKET SYSTEM OF ARTIFICIAL SCARCITY and distortions, to perpetuate wage-slavery/exploitation in the interest of the OWNING/RULING CLASS. A socio-economic modality of production for profit as the sole consideration with devastating consequences of perpetual war,enviornmental destructions,animal cruelty and sufffering a MINORITY IMPOSITION of fear,insecurity,devaluation and dehumanisation.
arzoyan 4 months ago
In my opinion its not that cut and dry, as far as I am concerned the credit crunch was manufactured
geezahh 4 months ago
You know as stupid as the bible is it does say a little about usury being a tax on gods creation and thus illegal . Usury is the root of all evil. Loans should only be made when the lender has a share in the venture that way banks will only loan money that they think can produce intrinsic wealth for the debtor and the lender .because the bank has no right taxing money the created out of nothing. If they want value credit then they should use the object the loan bought and collect a lien flat
OneNationUnderCanada 4 months ago
@OneNationUnderCanada I don't think Usury is a problem. In fact, I think loans allow money which would otherwise be stagnant to flow into the economy. they allow people to start businesses and develop new technologies. Banks should be the "brain" of our economy, figuring out where to distribute resources where it can be used the best. However, when that brain makes a stupid decision, we all have to pay for it dearly.
pantheistprimate 4 months ago
So is the federal reserve chairmen the root cause or bankers?
I'm confused.
SENTRY000 4 months ago 2
@SENTRY000 Banks should pay more interest on deposits, that way people would have an incentive to save, but not only that, the existing money supply must stay stable so its value is preserved
Banks lend out money that they do not posses, then charge interest on it, this increases the money supply and dilutes its value, so people who save actually lose money but they call it inflation
Governments should not allow this, banks should not control the supply of money
worldinformant 4 months ago
@worldinformant
Exactly. Low interest rates encourage speculation, which leads to malinvestment, which causes bubbles... Except, in this case the bubble is the dollar bubble. People think gold is in a bubble. Ask yourself, does everyone you know own dollars? Does everyone hold gold?
If the USD stops acting as world reserve currency (its gradually happening) what happens to all those dollars held as reserves? They will be spent = inflation.
023achilles 4 months ago
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@worldinformant so we need a new dollar that has no interest on it?
FreeWillyForMe 4 months ago
@worldinformant you are totally wrong. banks do not create inflation, the money banks creating have nothing to do with inflation, money exchange rate or other sectors of economies. Do you know where the money banks create coming from? its from the debtors' assets as they have to pledge their unliquidity assets to get more liquid assets to do businesses in form of money(notes), check, virtual money... so banks just do a transformation, they didnt provide more notes to the economy.
wildcat221287 3 months ago
@SENTRY000 The root cause is the entire world living outside of its means on borrowed money. Global population is now growing 1000 times faster than it did 500 years ago and less of these people are getting adequate educations. This means that the entire population is growing and at the same time getting dumber. More and more people cannot make a decent wage because there are only so many low-skill jobs to go around,causing a downturn in innovation and a dependency on welfare.
ttolmbrftttwtbopat 4 months ago
@SENTRY000 The root cause is that the people running the financial system assumed houses will always rise in value. Subprime loans should have never been given, and they should have never been thought of as safe by everyone who bought into the cycle. Everyone must have been able to see it coming, but thought they were smart enough to get a piece of the pie before it collapsed on everyone else. Some at the top managed to escape with huge profits, though.
pantheistprimate 4 months ago
@SENTRY000 YES! the fed prettty much lends out cash that is backed up by nothing. so theyre pumping system with worthless money.
maihan1989 4 months ago
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bankers+lawyers+police+judge+politicians+criminals+terrorist+gamblinglords
+rebelnarcopolitician+dictators+rulers+etc = DIRTY CAPITALIST SCUM PIGS.
BANKERS & DRUGLORDS screwed life & society in human history.
BURN THE BANKS. BURN DRUG LORDS ALIVE & OCCUPY THE WORLD...!!!
BURN THE BANKS. BURN DRUG LORDS ALIVE & OCCUPY THE WORLD...!!!
"GOD dont SAVE the LANDGRABBER PIG ROYAL FAMILY"
SAVE the ANIMALS & NATURE. END THE DEBT!!! END SLAVERY!!!
---- copy & paste WE ARE THE 99% FREEMAN ----
kopellhinex 3 months ago
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CAPITALISM creates ELITE CRIMINALS. BANKERS. DRUG LORDS. INEQUALITY. INSECURITY. GREED. RUTHLESS COMMUNISM. NWO. NAZI. TERRORISM. LAZY PEOPLE. REBEL POLITICIAN. ANARCHY. worst is WAR etc.. etc..
CAPITALISM was designed only for CORRUPT OPPORTUNISTIC MANIPULATIVE LAZY POLITICIAN. BANKERS. LAWYERS. DRUG LORDS. JUDGES. CRIMINALS. DICTATORS. RULERS. KING. SULTANATE. EMPEROR etc. etc..
HARD WORKING PEACE LOVING HAPPY HONEST SOCIETY were always the slave victim and poorly starve to death. :(
kopellhinex 3 months ago
@SENTRY000 Answer !! Both of the lying sceaming bastards
timohype80 3 months ago
@SENTRY000 Answer !! both of the sceaming bastards pardon my french...lol
timohype80 3 months ago
@SENTRY000 Both; the federal reserve is fun primarily by ex-bankers, so everything it does is intended to help the banks; see - the federal reserve lending out about $16 trillion at virtually zero % interest (some of which probably won't be paid back). Unlike what Ron Paul folks say, the problem isn't the central banking system itself; it's the massive conflict of interest present among the Fed's employees.
BenkaiDebussy 2 months ago
Was this all fucking legal?
ashutoshmikku 4 months ago
@ashutoshmikku of course, the lobbyists made sure of that
MrROTD 4 months ago
if there is so much excess liquidity in the world through all of this leverage. I Would imagine the cost of resources are not truely reflected.
WarrivarNeo 4 months ago
1 reason 4 all this shit? Americaz ivolvement in useless wars which iz converting its resources in smoke of explosives.
hannumanify 4 months ago
@hannumanify False. What does us blowing up smelly brown people have to do with Greece/Spain/Portugal/Ireland/Italy's debt? Not very much. This is global, and some tiny ass "Wars" are not to blame.
TumisHumis 4 months ago
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good job man..!!
rafsan300 4 months ago
sell a box, imfao?????
harrisonconstantinou 4 months ago 2
@harrisonconstantinou lol :)
worldinformant 4 months ago
Very good explanation must watch
PremAndShilpa 4 months ago
Jonathan Jarvis - Crisisofcredit(dot)com made this, not me
worldinformant 4 months ago
Jonathan Jarvis, good work, have you seen the dollarmonopoly explanation of the difference between currency issuer and currency user? Craig Austin is looking for someone to animate the ideas for youtube vids and public education, it would be well worth you checking it out, more detail is available from modernmoney.wordpress
WillOrng 4 months ago
A helpful explanation, although banks don't need money to lend it, they happily lend to customers with good credit whilst the economy is growing as the loan becomes a deposit somewhere else in the banking/housing system.
Modern Monetary Theory is a real world alternative economic description that predicted the crash and the Job Guarantee is a practical solution targeting demand where it's needed and wlll be most effective at reviving the economy by hiring the 15% unemployed at decent living pay
WillOrng 4 months ago
so then who bails them out? the tax payer, as in, the people buying the mortgages in the first place...
0ct0parr0t 4 months ago
@0ct0parr0t Central Banks in a Sovereign Floating Exchange Rate Monetary Political Economic system can create infinite money and should use this public money for public purpose to run things at full or near full capacity; dollar monopoly and modern money wordpress are good places to find out more about this. Take the Swiss National Bank, it said it could create infinite supply of Swiss Franc to fund foreigners net saving desires in that currency and the market believed them falling 8% instantly!
WillOrng 4 months ago
@0ct0parr0t
printing machine
SladkaPritomnost 4 months ago
Very nice animation. Good job.
orangeaspossible 4 months ago
GREAT JOB! I allways said that at university and allways get ridiculized.
Thanx!
frankyoriginal 4 months ago
great!
lxkhanh 4 months ago
Very informative. Thank you
MitochondriaDNA 5 months ago
amazing video! good job! :)
dyeanndiane 5 months ago
ummmm...... yeaaaaaaaaaaaaaaaaa.......were fucked 7 different ways to sunday
me213xtsk 5 months ago
This does not explain why we have Social Security for the rich, ie the bailouts.
sqgl 5 months ago
very good explanation video. I like it.
pohkhui 5 months ago
Great, video...
dlaskew2 5 months ago
So this happened at a global level, not only in the usa?
7rancisco1 5 months ago
@7rancisco1 Yes,the sub-prime crises happened only in the usa, but banks are international, so they redirected their credits to COUNTRIES! Now some countries are considered sub-prime and things will happen at a larger scale, on and on until... world cglobal economy collapses!
TheAussieRod 5 months ago
@TheAussieRod Australia had mortgage-based crisis too but ours was more based on consumer greed than on housing need. THE GFC was predicted. eg Australia had record private debt back in 2005 (I also was in UK in2006 and heard the BBC announce similar for UK). GOOGLE Radio National Debt Mask or GOOGLE bbing_20050717 mp3
sqgl 5 months ago
@7rancisco1 The housing bubble occured here in the us but beacause the banks in the united states are funded directly by the federal reserve with even several being bailed out from time to time that this debt crisis grows beyond our borders, spreading to all those to whom our nation is indebted through the dollars status as the worlds reserve currency. So long as other nations use a single fiat currency in which to conduct bussiness and trade then that currency will bind its problems to all.
CLeach13 4 months ago
Jeah, we are fucked.
zeeviz 5 months ago
doing an assignment on GFC and this is the best video to start my research XD
Xind0898 5 months ago
@Xind0898 same here im also doing an assignment on gfc..which uni u r from? n r u in australia!
crowsiz16 5 months ago
@crowsiz16 im in VIC Monash Uni, u?
Xind0898 5 months ago
@Xind0898 oh kool im at macquarie uni..sydney..! good luck 4 ur assignment..! cheers!
crowsiz16 5 months ago
@crowsiz16 same to u
Xind0898 5 months ago
This is an excelent explanation on financial crisis, puts together all the pieces of information that were available at that time in the press.
chmiguel 5 months ago
That can make sence to any dumb ass
pagemaster36 5 months ago
Lehman Borthers Collapse made simple!! Thanks!!
aquarist2012 6 months ago
wonderful explanation...
animabid 6 months ago
The global economic crisis a hoax !
WESAM400 6 months ago
@WESAM400 how so?
shtfrun2thehills 6 months ago
@shtfrun2thehills google it
WESAM400 6 months ago
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teddythebenny 6 months ago
What about Scums of the earth Real Estate agents who drive BMWs and Mercs?
Hahaha Do not believe what real estate agents' propaganda that house prices never fall. All real estate agents should be castrated and their tongue chopped off. Bankers, real estate agents, I never believed and respected them.
iprawiro 6 months ago
the conclusion missed the bit on how the banker cheated by buying credit default swap on CDO they know are going to fail and how the insurance industry were destroyed as well...
akinkhoo 6 months ago
and "the australian" newspaper were telling how the taxpayers were being ripped off and the government said we werent. there must be something wrong with the system when the government backpedalled so much but still didnt get into any trouble. they should have held a transparent inquiry into all those contractors and gotten our money back from all those that overcharged...but nothing happened and they all got away with it. how did that happen?
figbat1 6 months ago