Who made money from sub-prime crisis? Credit Crunch winners and losers - bankers, hedge funds, speculators and investors. Economic trends keynote conference speaker Patrick Dixon

[pishdad]

What a shill! This is bunk. Don't believe a WORD of this guy!

[lamdawave]

I think the builders who collected full payments from the banks were the real winners, unless they were stupid enough to put their gains into bank stocks or CDOs.

[covingtonium]

good thing is im making lots of money paper trading on thinkorswim, and one day i will turn that into REAL MONEY WOOHOO

[housecash]

There is a whole young generation who've been waiting and saving up to buy for years - during your crazy boom when you were patting yourself on the back for house prices going up and up and up. They win when house prices are allowed to fall without all your calls for interference and market rigging and cheating. Can't afford your mortgage repayments? GTFO.

[lovinit19791]

So the banks have their fake money that they make.....and they now have a vast array of stolen assets...ie houses.

The banks didnt lose anything as they make up money as they go along. I think the ratio to deposits and lending is about 10/1 this means for every £1000 they have in cash, they can lend £100000. So they make up £99000 of cash.

Greedy greedy bastards.

Please look up FIAT currency if you dont believe me :)

[ricobeco]

I support all of the politicians of this country because they are good people and they have to make money.

This people never lie; by the way take the damn vaccine

[PhDEconomics]

People who made money: John Paulson, Phil Falcone, Kyle Bass, George Soros Jeff Greene (although he pinched the idea from John Paulson) just to name a few

[jeffinetly]

sub back please

[elwalvador]

A lot of hedge funds benefited (made millions of $) as well, by taking bearish positions on CDOs (Collateralized Debt Obligations) which where backed my mortgages, the so called "Mortgage backed securities". Also, a bunch of traders made huge money by taking bearish positions in the stock market by shorting stocks, or buying puts.

[hac5x3]

cheap money (fed cuts interest rates) + cheap credit = no where to lend it = lend it everywhere and then sell your worthless paper to investors on the secondary market (CDOS) = defaulted loans = bankrupt investors and bankrupt banks = criminals in the loop make billions = criminal immoral theft and fraud. Simple.

[thejobloshow]

Tony Robinson! I loved you in Black Adder.

[scamfighter100]

Stay away from Steven Craig Feldman. He is a crook!!!!!!!!!!

[nelson3300]

I like it when the English explain things to me

[chrislebensmother]

What Patrick forgets to mention is that the people who had poor credit rating were sold mortgages when the house prices were at their peak in order to keep the huge snowball rolling. The market relys on new buyers. Remember when Eastern Europeans were touted as the first time buyers who would push prices up further? If the buyers with poor credit had been given mortgages when the market was at the bottom then banks could claim they were innocent.

[whythebailout]

Look at youtube user informedtrades for a very concise non political explanation. And then go and post it on all the "burning down the house" vids. Open some eyes.

[whythebailout]

Ughhh, all my specific replies to people's comments got stacked up here. Play a matching game and see if you can figure who I was replying to.

[HughGQuipment]

Watching Obama & his crooked Democrats try to evade blame for this is a real hoot.

He won't explain why he DIDN'T sign this letter, back in 2006, warning about the FannieMae-FreddieMac disaster.

tinyurl (dot) com/3q6dc9 (fix the "dot")

19 Republican Senators signed the warning, saying FannieMae-FreddieMac was a disaster and needed fixing NOW! And this was over TWO YEARS AGO.

NO Democrat signed it.

Why not, Obama? Just tell us.

Too busy cashing those six-figure FannieMae checks?

[whythebailout]

Sir, I suggest you do some research, with an open mind. This was not caused by one party not signing this. And your statement is inaccurate. From what I understand this made it out of committee but not to the floor.

Please stop with your close minded B.S. This was not a fault of the C.R.A., the Dems or the Repubs or the poor minorities. This was the result of an unregulated market that was using poor book keeping rules.

[rbrucerye]

The truth is that were 2 main contributors to this mess

1) Was a push by previous governments (both dem and rep but mainly by dem's) for these sub prime(i.e. bad ) loans

2) Was a slow but sure degrading of regulations and restrictions in order to make 1) occur

Finally 3) is greed on the part of both banks/lenders and consumers ... banks pushed these loans to make money fast (trading them off to others) ... consumers pushed to get houses they couldn't afford

[rbrucerye]

I add greed in as a extra because it is the greatest strength and weakness of the capitalist system ... in order to be a strength it has to be restricted so it doesn't hurt society too much but at the same time can still push the system forward.

[GetShorties]

greed is actually number one. its a side-effect of the system. the govt didnt push subprime loans. banks who got into the industry during the low rate boom brought those in order to continue to increase profits in a market where the rates were rising. as a bank, with shareholders - you have to increase profits not just keep on earning. how do you increase the amount of people using your bank when all of the refi boomers already got their low rates? you expand your lending guidelines.

[Joyriser]

To condense it all down. Its all about Power games.Thats ALL Capitalism is! If youve got the money youve got the voice! The weak and the poor get the blame as the perpetrators stuff another wad into their back pockets.The nice people who want to create something better get trodden down by the greedy selfish and arrogant!MONEY TALKS AND MONEY RULES so it self perpetuates! Whatever system you believe in,many Humans are nasty selfish individuals! Thats why we are always in a mess!

[ioaytyay]

It's funny that people think they know how humans are, when the only humans they know grew up in a nasty, selfish culture.

[Joyriser]

Absolutely right and I think the very basis of certain nasty and selfish human nature needs to be investigated and exposed. Sure we all like to be comfortable if possible but some are are achieving this monetary wealth by deliberately causing the misery of others! Shameful and not only has it created this catastrophic mess, it will bring the World down with it!!

[oiuoiu988]

wow, more proof that an english accent by itself doesnt even make you SOUND smart. this guys ideas would only DELAY price discovery in the housing market. even if we could magically fix the housing market the economy will be ripped to shreads by the derivative problem unless the banks are allowed to go out of business. if anyone, including the guy who made this video is unclear about what im saying feel free to send me a message

[ioaytyay]

So let the banks go out of business. Banking is the least needed institution in the world. They produce nothing, they invent nothing, they don't even store money any more, they just steal.

[Zykos1s]

uh what? that's the most moronic thing i ever heard ioaytyay

[nelson3300]

If you knew how the Fed worked, you would remove both comments ;)

[GetShorties]

actually hes right to some extent. the banking system itself is to blame for the downward spiral that was effectively a "side-effect" of the way its all set up

[ubuibiok]

Bull Crap...the Fed did not drop ITS RATES Until way after the Real Estate Bubble Burst. The bubble burst in the 2nd Quarter of 2005 when the rising price of new and used home prices ran out of a Qualified Labor pools ability to pay on a mortgage and the national insurance rates started pushing the default rate up the scale.

The winners were the flippers and developers that got out before they lost back what they had made.

[pjvdixon]

The video refers of course to the very sharp Fed cuts in interest rates that happened after 9/11. These things happen in cycles.

[beancube2008]

Actually no matter what the management bugs the profitable and sells rest to the stake holders. It doesn't matter if it is government or ordinary business sector, it is the role. So you see bad managers are hot this day, the brutaler the better, they have gut to bring the whole ship down with him if people dare to fail him. Education system defenses the style and money is just a side product. Why should people live if they are not to fuel?

[Adabsiz99]

Karl Marx (1818-1883) must be smiling in his grave (Highbury Cemetary,London,UK) !!!

The USA (just like HUGO CHAVEZ!!)has nationalised private institutions while the Russians & Chinese are privatizing everything from energy to sport !!

The Capitalists rejoiced when the Berlin Wall came down, but .... have lost the edge now ...

WOW ! What a turnaround !! It is so cool to be around to witness all that in 20 years.

[STOLGUITARS]

GET READY FOR THE MELTDOWN

[ledfootsteve]

We need a president to abolish the federal reserve aka "Central Bank of America" and we need to get this country back on the gold standard if we ever expect our children and grandchildren to have a chance at a better life.

[naturevshumans]

Our government needs to print an extra 5 or so trillion dollars and pay off everyone's legit debts. We don't have gold to back up but a fraction of the money in supply anyway. The financial infrastructure is a farce.

pastor of Church of Common Sense

[megamarsvin]

Good idea, except that that would completely destroy what's little is left of our financial infrastructure. If you double the amount of cash in circulation overnight we'd end up like Zimbabwe, burgers costing a few million dollars and so on.

Regardless of material backing of the currency if you infuse a huge amount of it trust in the currency plummets and it loses all remaining value.

[naturevshumans]

You are absolutely correct. I was being sarcastic, because of the corruption that permeates the financial world. The fact that American icons Lehman Bros for example... and so on that have been in business over 150 years went whacky in just a few years proves that unscrupulous characters will show up anywhere. There just needs to be more oversight in the financial world. There are a great many uninformed citizens out there who are going to be robbed blind and great distrust exists anyway now

[projectdurden]

Even if you can afford your mortgage, its better to walkaway because you can find a bigger and better home for much cheaper and the house you own now won't be worth what you are paying for it. Interest is evil.

[tellthetruthh]

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

[baseballnolie34]

Hey idiot, they're not the ones getting bailed out. The banks that made loans to them knowing they wouldn't be able to repay it, with the assumption that they could foreclose and resell at a profit, those are the guys getting bailed out.

[Drewfus5]

P.S. The banks for forced to grant the subprime loans because congress passed a bill which said, banks had to give people loans who would have never had the money to pay for a home in the first place.

[baseballnolie34]

Ok, what bill was it and when was it passed?

[Drewfus5]

that's just ignorant

[megamarsvin]

This post really made me laugh out loud.. People really are desperate for a scapegoat ^^

[Shaft2009]

Hispanics and African-Americans are victims of this deliberate act of financial violence. Financial institutions realized the system was supported by leverage (paper and promise), they send the low level employees to go and seek poor victims to blame the whole thing on. Now everyone is blaming the poor for not being able to pay. The fact is the CEOs knew this day was coming, because the whole financial legislations are designed for them to take as much as they can, now blame it on the poor.

[whythebailout]

Yes those clever minorities, working those poor paying construction, hospitality & restaurant jobs when all along they had the power to topple the entire financial system. Blaming this on the poor makes me think we need to bring the guillotine back.

[completelynuts]

how is this worth 700 billion? how many houses could that buy?

[wilsparky]

Basically, we should all learn where these bankers and stockbrokers live and knock on their doors and ask them why they are robbing us and getting away with it. They live amongst us and make our lives a frigging misery. They should be brought to account for their crimes. They are morally bankrupt and they make us financially bankrupt. They are twats. Let's find out where they live, knock on their doors and ask them why they are robbing us?

[Shaft2009]

he did not answer his own question, who was the exact beneficiary??? In my opinion the CEOs and their entourages. They all received golden bonus and at the end of the day when government bails these financial institutions the same CEOs are going to be getting golden handshake with millions to their beautiful and worry free retirement.

[pjvdixon]

Beneficiaries are many of course - those who made money earning out of various activities like packaged loans, plus bonuses. But most was made by people who bought property when it was far cheaper, and sold it at or near the peak, fuelled by low credit costs, selling it to people who then watched their equity disappear as prices fell.... who lost their deposits if forced to sell.... with maybe the bank not being able to recover full loan (shareholder losses also). Complex.

[whythebailout]

"But most was made by people who bought property when it was far cheaper, and sold it at or near the peak," I disagree.

"Beneficiaries are many of course - those who made money earning out of various activities like packaged loans" Those are the people who made the money. The paper men, the guys who pushed the prices of phoney paper up and then sold it off.

[hoshiarpurPuttar]

perfect analysis, fits with Milionaire Mind.

[banziracer]

Great Stuff. Keep up the good work Patrick Dixon.

[john67elco]

I did make a ton... google "im short cfc" Shorted Countrywide March 2007. To bad everyone else was so blind ;)

[pjvdixon]

Thanks. Patrick Dixon

[covingtonium]

@john67elco i HATE YOU!!!!!!!!

[john67elco]

@covingtonium Keep kicking that ball around bro.I had videos on my channel about the housing bust since 06. Not my fault people were/are dumb.

[pjvdixon]

Thanks Patrick

[tyronebiggums3]

We know this. Go to Housing Panic and Calculated Risk. You'll learn more.