Subprime US Banking Financial Crisis Explained Part 3

[Ypsi1952]

Thanks for your explanation. The one thing I did not hear is my understanding is the whole sub-prime was caused by congress and Barney Franks and Christopher Dodd. They required the banks to make loans which were outside the norm to allow people, specifically minorities or low income, purchase the American dream even though they could not afford it . Yes or No?

[defgill]

END THE FED!!!

[CanceledOut01]

ECONOMICS PERIOD 7-8 WOOT

[marston5000]

Thank you, David......You explained it very well. You talk about "sub--prime" meaning FICA below 620. Why then are there three credit agencies? Two agencies might have a high score, the third has low score. What acounts for this? We are nothing but a number to these banks.

[Jonchess]

Little mention of CDS(credit default swaps)which were an important factor in destabilising the financial system around the time of the credit crunch and insolvency of Lehman brothers and still are in other areas of securitiesand assets.

[indriani1012]

thank you very much.

[mackmoud7]

thank you very much

[Spjungen]

So from what I understand, a structured investment vehicle is really like a hedge fund in the housing market, only it derives its value from home equity, meaning that people basically traded securities of which the only real value was the market price of the collateral and the dept owed by the borrower, which he/she may or may not be able to pay? ...If that's correct than I don't see how it's possible not to expect a crisis from such a ridiculous investment vehicle.

[coriolanus78]

I have a question,why do we have to have an institution setting the interest rate rather than leaving it to the market,it seems to me that manipulating the interest rate by the fed is what got us in trouble to start with.I think it is impossible for anybody or any institution for that matter given the size and perplexity of our ecconomy to predict the best interest rate at any moment

[InformedTrades]

Hey Coriolanus, The thing is the FED actually does not "set" interest rates the way most people think. Basically since they are so big they buy and sell in the open market, causing changes in the money supply, which then causes changes in the interest rates. This is important because at some times we need lower interest rates than other, like right now for example, and the market may not dictate this at the proper times.

There are also about 500 other reasons but I'm out of comment room!

[BaldyV]

@InformedTrades lol The central banking system is the fed. The central banks adjust interest rates. They're set now by QE. Come on dude. Savings have nothing to do with it anymore!

[FloodPower]

@coriolanus78 Austrian Economics FTW

[kiztherain]

Thank you, nice job!

[shepm2002]

Great work Dave .knowledge is power, shep from Ireland

[crownofHisglory]

what do i need to study to be able to articulate this crisis the way you re able to

what would be a good major in school to take on

[kinw1234]

can anyone help me?

from what im aware banks took assets off balance sheets to avoid having to hold capital.

for that to happen it needs to be a true sale rite?

does this not mean the assets no longer belongs to the bank? how come it comes back onto thier balance sheet and gets written down??

[tyarikat]

Hello David, why did the Federal Reserve start to raise interest rates in late 2004?

[dubmaverick69]

2007 uptick rule removed - the gang bang by wall street started by targeting aggressively banking stock,

GS, BOFA, MS, MLYNCH, LEHMAN, BEAR STEARS

ask the fat cats they laughing their way to the bank everyday

[dubmaverick69]

The Commodity Futures Modernization Act of 2000 or CFMA (H.R. 5660 and S.3283) is United States federal legislation which repealed the Shad-Johnson jurisdictional accord, which had banned single-stock futures in 1982. The legislation also provided certainty that products offered by banking institutions would not be regulated as futures contracts.

[dubmaverick69]

please do us a favor and explain these which will answer all these question

1.The Gramm-Leach-Bliley Act, enacted November 12, 1999, is an Act of the United States Congress which repealed part of the Glass-Steagall Act of 1933, opening up competition among banks, securities companies and insurance companies. The Glass-Steagall Act prohibited a bank from offering investment, commercial banking, and insurance services.-

[irisqi]

You stated that as a result of the subprime mortgage crisis a liquidity crisis arose. Wasn't it more of a solvency problem?

[LoneOarman]

He omitted the fact that bad loans were insured in order to get a higher rating to make them look good; and insured again by speculators that did not even own the investment. Unregulated and perfectly legal insurance fraud (misrepresentation and casino gambing).

[elwalvador]

I say we remove Geithner and Mary Schapiro and appoint David Waring as the head of both the Treasury Department and the SEC.

[RyanBachoo]

Thanks mate ... my ticket to my 7000 word report on the financial crisis. :-)

[jxskillz82]

So why did the Federal Reserve increase the interest rate in 2004?

[jussittinherewatchin]

I was wondering the exact same thing. I'm no expert, but I think they do that to contract the supply of money in circulation, which in turn helps to control inflation and price increases. Someone please correct me if I'm wrong!

[LoneOarman]

Another video states that the Feds somehow lost control over the Federal Rate, and that's what blew things up.

[saintveil]

Feds lost control over the Fed Rate, according to this video:

v=bL0bgz_VHTo&NR=1&yt

[saintveil]

Feds lost control over the Fed Rate, according to this video:

v=bL0bgz_VHTo&NR=1&yt

[bleberlin]

thank you very much. i have a much better idea of whats going on .good job

[Guedingen]

Good man, many thanks - any ideas as to what can be learned from this fiasco and what legal checks can be put in place to avoid such a thing happening again?

[InformedTrades]

my pleasure thanks for the comment. If you look on the homepage of my site I have recently posted an article "7 solutions to the financial ciris" which covers this. Best Regards, Dave

[tre675]

Thanks for the videos. I learned alot.

[tflipnoy]

Dude, you're the man! You helped me out with my college paper.

[hatstandman]

Thanks Dave, this video really helped with my understanding of the crisis. Would it be possible to do an update on the financial climate a year on, and an explanation of whats going on at the moment?

[InformedTrades]

Hi Hatstandman, Glad you liked it and thank you for the compliment. Yes I think it would be a good time to do this so I will add it to the todo list. Best Regards, Dave

[sarandavaa]

thank you so very much.

U said some people are down for bailout and wants the government intervene, and some are against it so that the market works through the crisis on its own, But what is your opinion? Do you think the bailout could be a good thing, rather than just leaving it all alone?

[InformedTrades]

my pleasure thank you for the compliment. My personal opinion is that there needed to be some intervention however the money the government is spending needs to be offset in other areas which is not happening so the debt is just getting bigger and bigger. Best Regards, Dave

[snowtrot]

Brilliant. I've been desperately trying to understand this problem and your series here really helped.

Your video series is a great example of how we can maintain an informed populace and get around the manipulation of the media. Youtube can be a blessing if more individuals like yourself tackle meaningful issues in a smart way as you did. A truly positive influence you are on democracy. Thank you.

[InformedTrades]

Thanks for the compliment I am glad you liked it and agree that youtube is a great opportunity for individuals to empower themselves. Best Regards, Dave

[EdgeStormcrow]

As i understand it, the money for a 'bail out' is to be borrowed from the reserve bank of america. The interest on this loan will be paid off over a decade to the reserve bank.. the american taxpayer will foot the interest payments and principle on these loans for many years, sucking money out of the country.

Im not sure why america has to borrow money from iteself with interest to do this..

If im wrong plz explain otherwise, im not A+ on economics but thats what i thought.

[InformedTrades]

You are correct that the government will pay for the bailout by issuing debt however that debt will be bought by foreign and US financial institutions, governments, and individuals so this is who the interest payments will be made to. You are also correct that interest paid on debt bought by foreign governments, institutions and individuals will be money that is sent out of the country. Best Regards, Dave

[AndreasFrancis]

Hi Dave, thanks for explaining. I feel I got a fairly good understading of the sub-prime crisis now.

One question: Do you agree with those who say the bail-out plan is a big mistake (maybe even fraud)? Why, or why not? All I know of favor for the bail-out plan is I remember Palin saying, "well, we gotta do SOMETHING." From those against the plan it seems to be a short term solution that will make the crisis ALOT worse. You seem like a smart guy in this area so I'd love your opinion.

Thanks

[InformedTrades]

I think that the people who put the bailout together are generally trying to do good and I think that if the bailout was paid for by reducing spending in other areas of government then it could be a positive thing. Unfortunately however the government is not willing to do this so in the end it is going to create a huge amount of debt which could have very detrimental long term affects. Best Regards, Dave

[AndreasFrancis]

Thanks Dave.

I've seen several clips on youtube of economic wise men, like Max Keiser, Peter Schiff, and Gerald Celente, people who predicted the current crisis and former ones, say that the bailout will cause more inflation as they just print more money, and that more of that kind of bailout will eventually destroy the dollar. They have all gotten rid of their dollars. Even if the bail-out plan is well meant, how is it supposed to work?

[stokedfish]

Thank you, this was great.

[scpotts101]

very informative...thanks!

[sailinship]

Never mind the mark to market question. I found my answer in your next video.

[whythebailout]

Dude, again, thanks for posting a great explanation. I do have one question though. Could you explain to me how mark to market accounting effected this crisis?

[jdbosavage]

Thanks Dave, these were exceptional. I don't have a head for this and it made a lot of sense. One question: How is it that the pool of loans could be divided up and at least some of them given a AAA rating? Is it simply that those were the least risky of the risky loans, thereby "earning" that rating? If so, that's pretty crazy!-- Thanks

[InformedTrades]

Glad you liked it and thanks for the comment. They did this by taking a pool of mortgages that were of all the same quality, and then dividing them up based on who took losses first. The people at the top were the last to take losses so that slice of the pool got a AAA rating and then the people at the bottom were the first to take losses so that slice got a junk rating. Best Regards, Dave

[IntellectualSkillz]

thanks for this really helpful, if it's not too much to ask just what are the possible repercussions as a result of this, and their extent?

[MagikPoo]

That was the most informative explanation of the U.S. subprime credit crisis that i have heard so far.

Thank you so very much.

[InformedTrades]

my pleasure thank you for the comment and for watching. Best Regards, Dave

[kok3123]

sorry , i mean who benefits from the crisis?

[kok3123]

thanks a lot Dave, i am from Hong Kong. don't really know how the system work in USA. my question is how benefits in this crisis? the housing company?

and where did all the money go?

[mkadocs]

Great videos. I have two questions: (1)High risk mortgages and circumventing regulatory practices is a formula for cutting your own throat. Why would these "financial geniuses" put their own companies at risk by buying and holding onto these investments, and (2)many Republicans want to put the whole blame on the Carter administration. Why? It seems to me that the previous and current administrations thought they had a free pass and chose to ignore what was happening.

[InformedTrades]

Thanks for the comment I am glad you liked it. 1. Like in most bubbles, there was so much money being made while things were good that prudence went out the window. 2. A lot of the legislation that many feel started the fire here was put into place under the carter administration. Many also argue that the bush administration also tried to implement some new oversite of fannie and freddie and adjust some of these regulations but were blocked by the democrats. Best Regards, Dave

[whythebailout]

Do you think that is true? I saw a speech where Bush was saying that he wanted to increase housing. What is your feeling on the political agenda of the particular people in office over the last 30 years?

[bijukrish]

Hi bud...good job....u put everything in a nutshell....thanks for posting..appreciate it...

[williea55]

Your videos are great. You lay out this stuff simply and concisely. I'm clueless about the world of finance and your videos have been a big help as I try to wrap my mind around all this alphabet soup. I'm becoming more facinated by this crisis by the day and perhaps I will come closer to understanding the mind-set of the people who work in the field of finance. I mean, who thinks this stuff up?

[wellusee]

Very good . I think

thenaturalfl7 makes a good point see his / her comment below .

[glenmccracken]

Thank you

Thank you

Thank you for doing this

[MetalRiffery666]

It irks me how a small act like Greenspan raising the interest rates could not have been seen as a catalyst to this sharp decline.

This is what I gather from these 3 videos. If I seem misguided then please correct me. The scenerio which is upon us now although pretty bad is extremely interesting.

[MetalRiffery666]

Am I correct in saying that the fault lies within the banks then? If this barrage of overlending to subprime candidates didn't occur on the basis of repayment on such future vagueness, then debt wouldn't have been pooled and sold to make up for the risks in taking these subprime lendees when the interest rates went back up. If these banks have these people working for them with such great ideas on how to make money, why doesn't anyone safegaurd themselves against the risk of losing it all?

[thenaturalfl7]

I was wondering if you could make a video explaining to people what the bailout plan will do. This is another concept that has been relatively unexplained to the general public. It is important for people to understand the importance of getting the financial markets back on track and how the bailout will help in this situation. Thanks man

[thenaturalfl7]

Thanks for posting these videos. Before watching I had a mild understanding of exactly what occured that put our economy in the state that is today. It is a shame that no one from the media or even our president for that matter will explain these concepts to the genral public. I think it is important for people to understand what is going on and I am glad that you are helping people to do that. Thanks

[codex010]

We've been discussing this in Portugal also, and it's got a major part in all our news bulletins.

I understood your explanation better than so called specialists explanations.

I guess most of this crisis is still on the beggining and the riple effects of it are going to be noticeable for a long time, since there's just so much yet to uncover...

It's almost like a global natural cataclismic event...

[InformedTrades]

glad you liked it and thank you for watching. I also agree that I think we are unfortunately closer to the beginning of this problem than the end. Best Regards, Dave

[jaykay1975]

Dave, these videos are great for the common man to get a real handle on practical economics (what happens to my money when I give it to a bank, or borrow from them). No one else seems to be doing what you are, and it makes me feel good, to know that I have a better grasp on things when I listen to or read the media. Please keep it up.....

[InformedTrades]

thanks for the compliment and for watching I am glad you like it. Best Regards, Dave

[elijahgrey]

ok, I am notoriously bad at understanding economics and this actually made sense. Thanx! But I hear a lot about "short selling" on the news these and how traders have made the financial crisis worse by engaging in "short selling". Whilst I know what short selling basically is, how does it fit into what you have said and how does/did it worsen the problem? Thank you

[InformedTrades]

Glad to hear from you. There are people who believe that people betting on the decline in stocks have made the moves in the stock prices of financial companies more dramatic than they otherwise would have been. I do not believe this however as I believe that this is simply the markets way of showing which companies are good and which ones are not. Hope that helps. Best Regards, Dave

[dismutased]

Thanks Dave!

[Emotionengne]

very informative.

[mrdougmoodie]

One question: The banks were able to prosper over the last several years due to the large demand for homes. The demand grew from confidence that the home buyer would make money quickly from the rising value of the home. This feeling was created, at least in part, by low interest rates, as well as making mortgages available to a greater segment of the population. My question is, how is the bail out going to restore the demand for mortgages? And, if it does not, what good is it?

[InformedTrades]

The basic idea is that the financial companies have so much bad debt on their books that if they are not bailed out many will stop lending money all together making it much more difficult to get any type of loan, including a mortgage. So what proponents of the bailout are hoping is that by taking that bad debt off their books they will continue lending, making things much better than they otherwise would be. Best Regards, Dave

[mrdougmoodie]

Thanks. How about just starting fresh with new banks? I bet new bank investors will want lots of transparency and oversight. The market would create the solution. Is that too simple an idea?

[sundeepmehta1979]

These three lessons were very informative and i will recommend my friends links of these videos....Thanks Dave for simple and complete information

[snowmonkey0]

so now that lehman brothers has closed, what can we expect the trickle down effect to be on the rest of the economy, mainly the manufacturing sector?

[marshn]

these videos were really informative, thanks!

[InformedTrades]

Hi Marshin, Glad to hear from you and thanks for the comment I am glad you liked it. Best Regards, Dave

[akhare0419]

What about speculative investments, derivatives that originated from the boom of Mortgages.

[earthstick]

I've followed this for two years now. I understood it to be as you describe apart from one part. You say organisations taking out short term debt (low interest rate) buying long term debt (higher interest rate) and taking the difference as profit. I thought it was borrowing short term debt to lend as mortgages, making MBS from the mortgages, selling them to pay off the short term debt and taking the difference as profit. MBS market ended from subprime defaults, leaving short term debt?

[akhare0419]

yours is more rational

[darenwillcock]

If the government has the money to bail out failing banks, why does it need to borrow from them in the first place? Sounds like a scam to me. Correct me if I'm mistaken please!

[InformedTrades]

Hi Darenwillcock, Thanks for the comment. As the Fed controls the money supply technically they don't have to borrow from anyone, they can simply print money which is where a lot of the conspiracy talk arises from. There are tons of videos on this topic here on Youtube, put out by people who are much more knowledgeable than me on the conspiracy side of things. My goal for these videos is to learn how to trade what is, not what should or should not be. Best Regards, Dave

[cvalmart]

Enlightning for sure. Very good presentation. Question: Since there is no more market for the MBS, do you know how they value them ? DO they use an income approach (DCF method) and build models that resemble business plans ?

[InformedTrades]

Hi Cvalmart, Thanks for the comment am glad you like the video. I am not an accounting expert however as I understand it the regulators came out with a statement that basically told the banks they did not have to use mark to market accounting since the market is so illiquid right now and instead could rely on their models for valuing these securities. This as I understand would involve the use of DCF and forcasting methods for default rates of the underlying mortgages. Best Regards, Dave

[fourthcitizen]

Wow. I just finished watching all 3 videos on the Subprime Crisis and I now feel much better informed. Your desire to educate the public is to be admired and your ability to cover complicated topics with an absolute minimum of "showbiz influence" should make the networks concerned. I came looking for more information about the "crisis" because my 11 year old kept asking me, "How did this happen? What caused it?" and I really couldn't explain it to him.

Now I can.

Thanks

Thanks very much.

[InformedTrades]

Hi fourthcitizen, Thanks a lot for the comment and encouragement I really appreciate it. I also agree that the networks have turned to crap and that there is a big opportunity for self publishing in general which I am hoping to tap into so I appreciate your input. If you visit the free course section of my site you will find a course section there on the subprime crisis with lots more videos on the topic. Best Regards, Dave

[chasleo]

Wow - are kids smarter these days?

Very informative videos. Thanks for sharing.

[InformedTrades]

Hi Chasleo, Its an interesting point that you raise here. I don't know if I could call myself a kid but I do think that young people such as myself have generally leveraged technological advances better than older generations and therefore have an edge over those generations that was not there before. There are of course exceptions to this. Best Regards, Dave

[great6034]

I watched all three. Very helpful. Many thanks.

[InformedTrades]

Hi Great6034, Thank you for the comment am glad you liked it. Best Regards, Dave

[rkrishnacse]

Hello David,

I have one question, when every one took loan

for small interest why the FED has increased the rates? why to decrease them...and then gradually increase them? why cannot they keep it constant or low always

[InformedTrades]

Hi Rkrishnacse, Thank you for the comment. There are a number of varying opinions on this. I try to cover the basics of how the Fed tries to manage the business cycle in the free video course on InformedTrades. Specifically module 8 covers this. Best Regards, Dave

[ad2181]

Nice talk but, please draw or show some block diagrams or flow charts showing these relational concepts instead of talking eco double talk jargon. This would make your presentation more effective.

[madashelldude]

Hey David,

Really cool series, I finally understand some of the basics. Have you heard any estimates of how bad these SIVs are leveraged? I heard people say numbers like 1000:1, ie for every dollar in a real subprime mortgage there are $1000 worth of debt instruments just passed on to foreign banks, pension funds and townships. Is that true and how do you even begin to estimate this? Is this related to offshore bank secrecy, OTC derivatives and special purpose entities ala ENRON? if yes how?

[InformedTrades]

Hi Madashelldude, Thanks for the comment. I am limited to how much I can post here and as the answer to your questions are pretty in depth I have posted them on my blog in the comments section of the article "subprime crisis explained simply part 3". You can find my blog in the middle of the InformedTrades homepage and I will also message you the link. Best Regards, Dave

[PKATIYAR1981]

Hi David,

Great Videos!! Some places you have mentioned borrowers were expecting to refinance their asset expecting the valuation to go up which did not happen as the interest rates started to rise again. I could not follow how can a borrower refinance upon their asset if it is still hypothecated to bank ..???

Piyush

[InformedTrades]

Hi Piyush, Thanks for the comment am glad you like the videos. Lets say for example I want to buy a $100,000 house. I have $20,000 so I go to the bank and borrow the other $80,000. At this point I have $20,000 in equity in the house. If the value of the house then goes up to $120,000 I still only owe the bank $80,000 so I now have $40,000 in equity in the house. With this in mind I can go to the bank and get a more favorable loan because I own a larger portion of the asset. Brgrds, Dave

[PKATIYAR1981]

Thanks Dave!!!

I really appreciate your quick reply...Do you have any other videos related to current market trends etc. I am currently finding resources to read on Singapore based Temasek's offer to Merrill Lynch. Is it similar to Abu Dubai's offer to Citigroup..??? Any videos/resources you may suggest.

Holdings

[InformedTrades]

Hi Piyush, I will be doing soe additional videos on current market trends in the future however right now my other videos are all focused on trading education and not current events. The Wall Street Joural's website if you are a subscriber is an excellent source of info as is the New York Time's website which you can access for free. Best Regards, Dave

[jeevmania]

Hi David! How have accounting standards and rules contributed to this crisis? Aren't accountants/auditors responsible in making brokerage firms come clean on the real value of level 3 asstes and make the institutions declare it on their financial statement. Seems like another Enron/Accounting scandal coming up with ficticious asset and revenue values. Whats the role in accounting /accountants in this crisis you believe?

[InformedTrades]

Hi Jeevmania, Thanks for the comment. I am limited on space here and I see you have left this question on my blog as well so I have answered there. For anyone else who would like to join this discussion you can find my blog on the middle of the homepage at InformedTrades and the discussion is under the post "A Simple Explanation of the Subprime Crisis Part 3". Best Regards, Dave

[jeevmania]

Hi David, How were the Financial institutions allowed to create these OFF-Balance Sheet Entities. How come the regulatory body does not regulate these? I don't understand why they are allwoed not to disclose this on the B/S when they clearly own it, (even if it's like a subsidiary holding these SIV's). Do oyu know why it was allowed?

[InformedTrades]

Hi Jeevmania, Thanks for the comment. The short answer here is that off balance sheet entities are not inherently bad and do serve useful purposes such as separating business out that really should be separate from the parent company. So its not that these were clearly on the balance sheet, the issue here is that the banks were lenders to these SIV's so when they got into trouble the banks got into trouble just as they would have if they made bad loans to any entity and therefore had to bring

[InformedTrades]

them onto their balance sheets. So I think the answer to your question is that probably the regulators did not fully realize that while these entities were off balance sheet and therefore their risk was off balance sheet, the fact that these entities were clients of the bank essentially sent the risk back to the banks balance sheet. Hope that helps. Best Regards, Dave

[srinivas07]

awesome explanation!!! Can you explain how this crisis is playing a role in bringing the stock markets down worldwide?

[InformedTrades]

thanks for the comment and good question. The United States is the largest economy in the world and is also the biggest importer of goods made overseas in the world. As this is the case because this crisis has upped the chances of a recession in the US significantly worldwide stock markets are selling off.

[InformedTrades]

For a longer explanation of the link between sub prime and a recession in the US visit the "ask a question" section of InformedTrades. Let me know if there are any other questions. Best Regards, Dave

[srinivas07]

That was a very good explanation. So, what exactly happens if there is a recession. I mean what are the impacts? will there be huge job loss or will there be inflation?

[InformedTrades]

Thanks again for the comment. I am limited the amount I can write here because of space restrictions so I have posted my answer to this in the "Ask a Question" section which you can find in the middle of the homepage at InformedTrades. Let me know if there are any other questions.  Best Regards, Dave

[jim2090]

Hi, I was wondering if you could post any links explaining how the subprime crisis can lead to a rescession in the US.

Im finding it hard to make the link atm, cheers.

[InformedTrades]

Hi Jim2090, Thanks for the comment. I have posted a detailed response which I hope explains things clearly in the ask a question section on informedtrades and also messaged your the link to that response. If anyone else would like to see the response feel free to drop a comment here and I will shoot it over or visit the ask a question section on the homepage of my site. Best Regards, Dave

[fcccuh]

Hi, can you please send me this link. I couldn't find it on your site

thanks

[fcccuh]

also, can you please explain to me why some people are against the bailout plan??

thank you

[InformedTrades]

People who are against the bailout generally feel that we need to let the market work through these problems on its own and that while this may be more painful in the short term in the long run we will be much better off. They feel that the government intervening and not letting the market work things out on its own will cause the problem to be worse in the long run. Best Regards, Dave

[jemorris11]

Thank you so much for posting these lessons. I have searched far and wide for a simple explanation to the subprime crisis as I am an undergraduate business student and still have much difficulty understanding much of financial news. It is not as if the Financial Times would ever publish such an explanation. Thank you yet again and I will be advertising your weblinks to my co-students.

[InformedTrades]

Hi Jemorris11, Thanks a lot for the feedback I am glad you found the videos useful and appreciate you passing my site around. I am looking to create a community of people who can come together to discuss and learn things in an easy to understand way as I agree the current media companies do a great job of needlessly over complicating things. Best Regards, Dave

[mickeykozzi]

Thank you. It's good to get a feel for how financial investors see and use the market for future gains. Being a post grad student in the field of economics, we mainly focused on applied econometrics, but did not investigate heavily into the finacial investiment side of the market, which seems to be a teaching norm for Economics degrees world wide. I will watch your videos and if i have any questions I will contact you. Thanks for your help:)

[mickeykozzi]

As an Economist, its hard to get an explaination of such events, thank you:)

[InformedTrades]

my pleasure mickey and thanks for the comment. If there is anything that is unclear or that you would like clarification on anything regarding this or anything else I can help with on please feel free to ask. Best Regards, Dave