Would have been cool if they tied in the bubble to this and explained how the price got to high without the income base to support it because of the artificially raised prices so the demand eventually fell off a cliff at the same time as the foreclosing started.
Excellent video, and extremely accurate while remaining entertaining. I hope more people watch this.
Only one quibble; no mention of the government CRA ratings and freddie and fannie being used to pressure investors to make those sub-prime mortgages. Changes the drive and incentives of the lenders from greed to government pressure (with a sprinkling of greed :).
Thank you so much for this! Its great. Very informative, easy to follow and retain. We all have to do something about this and our personal finances. Education is first, so thank you for this!
This is one of the best derivatives break downs out there. But it still only goes so far. The bigger picture included robo signing and how the derivatives were sold to nations.
60 minutes did a bit on robo signing. But they didn't explain how the refinancing events were run by the banks because they lost the paper trails. Youtube search "60 minutes robo signing"
We need to share what each of us has learned to increase our knowledge base.
I really like this vid. The last few years I have been thinking of my grandmother (who lived through two world wars). She used to say: "if you want something you work for it, save money to buy it, if you cannot buy it? you just DO NOT BUY it". She bought her house with money made from mending clothes, saving these little sticker books (you get money when it's full) from grocery shops, collecting old paper, buying local and negotiating with farmers etc WE NEED TO GO BACK TO THIS MIND SET!
@eternity00000 I think you gotta have some skills with animation to do this! But there's this website I use where you can make some awesome presentations: prezi.com
People make remarks about greedy bankers, investors, and Wall Street. Others may say this entire thing started when the Fed messed with their interest rate to play God with the economy. One could frankly say they're both at fault - there's no such thing as a free lunch. No one, not investors, bankers, or politicians can play around with the economy without eventually getting burned. It's only sad that so many people have to pay for so few people's mistakes.
...and it is very sad that it is legal for the banks to rape this country dry, lose all of their money, expecting a free handout when they make stupid decisions... seems like the only people that get punished for their mistakes are the poor individuals getting lied to, tricked and then ultimately robbed by the rich banks that get a free pass... WOW im sure glad we deregulated them rich bankers... made it easier for them to fuck us in the ass legaly. fucking bullshit!!!
He forgot to mention all of the money lost by the banks by their own greed was lovingly GIVEN back to the banks at taxpayer expense because they cried like little bitch babies for, making stupid deals, not being able to pay back their debts... But when the same taxpayers that bailed them out call the same worthless banks crying that they cant pay ther ever increasing mortgage rates, because said banks keep hiking them up, the banks say sorry youre under contract... no mercy but for the banks...
El tema de la crisis es bien complicado; me costo harto tiempo reunir la información hasta lograr entender como funcionaba la cosa. Este video, en sólo 11 minutos, resume y presenta esa misma historia completa en forma clara, precisa y concisa. No deja nada afuera.
@tvswnet people are corrupt, and so long as their is a way to make money there will be people to exploit it- the only thing you can do is try to give everyone a fair shot at making a ton of money too, and that is only available in capitalism you bum
Don't let the financial crisis bring you down. I started working from home and I'm now making 200 dollars a day... Don't be the victim, create your own luck! It's really worth checking out the website below, this guy is amazing...
Go to 2012bestoffers(.)com & Click the guy in front of the lamborghine's...
Wow, this ACTUALLY made sense to me! But god why didn't anyone see this coming? The video makes it seem as if it was so obvious that this would happen!
So those so called "geniuses" didnt see this coming? Of course they did...in fact this was planned from the beginning. Wall Street made billions because of it. So whos going to do something about it??
So many people, myself included, didn't know the specifics of how the housing market crashed. This video really needs to go viral so the mistakes r not made again.
This is one of my "go to" videos when I try to explain the bankster scams to people. It is not the whole picture, however. Left out is how "robo signing" played into the scams and how foreign banks/brokers engaged in naked short selling to make money on the derivatives after they sold them to US 401Ks and greece and other suckers.
Search youtube for "60 minutes robo signing" for more insight into how these derivatives were inflated.
Economy is so complex it cannot be seen in simple market diagrams and linkings, everything effects everything. So we use simple models to describe them, but that fact is that we cannot comprehend how all the aspects has influence on the whole economy. So there is not a clear indication/prediction to suggest an economical collapse.
All that an economist does is make predictions, and after it happens he can tell you what (propably) happened, and learn from that.
Discover the few simple changes to banking that would reduce debt, poverty and economic instability and that would ensure that the reckless behaviour of banks could never threaten the global economy again.
Join the campaign for real reforms to banking at positivemoney
You see how easily the houseowners could have been offered the actual price for the houses at that moment, because the whole crisis would have been less awful had they no decided to stop paying and seeking other houses.
@tahseen1995 a solution is a international regulatory commission that monitors banks/investors and control their speculations. That's applicable though when the crisis is over. Ending the crisis though is a question for a trillion dollars.
We shouldn't have bailed the banks out. It was their risk and their responsibility.
Know what happens when a company screws up so bad they go out of business?
A new one replaces it.
We should have let the system self-correct, and because the bloated and inefficient government intervened, they're now in the position of dragging it around along with anyone who didn't get bailed out.
Over 1/3 of the forclosed homes were mortgaged by people with more than one home. Remember all those get rich in realestate jokers. The thing that industry capatilized on was the lack of accountability. Now if a large population plays that game(no accountability) instead of just the big businesses its gonna be a problem.
@dreamtiger347 the cdo is simply the purchased mortgages with an enumeration system that goes from safest to riskiest. the investor benefits from it when they purchase a mortgage, because the monthly payments that the home owners make will go to them. the mortgages are just getting passed along from the bankers to the investors.
Aren't the mortgages first packaged into mortage backed securities first, and then the mortgage backed securities are packaged into CDOs? Or am i mistaken?
@TaylorMoore42 The money has been turned into houses. The supple of houses is greater than the demand so the house price falls. That means that all of the speculative profit is taken out of the system. The more the house prices fall the more would be profit dissipates and instead begin to make a loss. Home owners loose money, banks, although holding houses, they are houses that nobody can afford as the business they work for has cut their hours and they are now earning less.
Good riddance. Money economies need to die already. They are killing us. Capitalism worked in the 50s, but it is quickly dying out as people get smarter to the ploys of marketers. We have no need of money.
@milesgti That which drives creativity and is the basis of humanity: one's personal freedom to explore what she or he wishes, within the limitations of the law, of course. A resource based economy works fantastically, though it would be a large shift in thought process, especially for Consumers. Look up the Zeitgeist Movement.
Central Banks like the Federal Reserve control national FIAT currencies and serve as interest-bearing lenders to private sectors during crises (see bailouts).
Federal Reserve posses no authority to curtail reckless or fraudulent behavior by other banks that may endanger the economy.
Central Banks in developed nations are independently-held, in so far as they operate under 'self-regulating mandates' which render them free from political interference, jurisdictional laws and government oversight.
Funny how all the comments here a acting like know it alls after the fact. 20/20 and hind-sight..if you people were so smart you should have made money off of it like others had he saw it WHILE it was happening
The USA is more than 15 Trillion in national debt... With a Federal tax income of around 2.5 T, and US Federal spending more than 4 T a year..It would be foreclosed on if it was a customer of the Bank: Like I would be, if I spent more than I earn and got into debt and could not pay my mortgage...
I would be living in a box!
Someone needs to step in and make laws or a treaty that will stop or limit a Government borrowing so much money that they go into debt so easily...
It's was all fine until greedy investors and bankers wanted more and more money. Prime mortgages were fine; everyone was making money. Selling sub-prime mortgages to those who couldnt afford to was stupid. You can't blame the people for accepting a loan like this. It's the responsibility of the lender to see if the borrower can pay the money back. It was always going to end in disaster. Greedy bankers. They're still getting their bonuses.
This video misses the point. Let's just cut through all the smoke and ask: What is it we actually use for money? How is created and put into circulation? How does that process effect our lives?
Why in hell can't you american democrats and republicans for the time being ignore your socalled democratic ideals. Get together and you would get the key to solve some of the present global economic crisis. Pull yourself together in the US!!!!!!! A point of view from Europe.
Great quick guide of the meltdown! Potentially the fierce anti-regulatory stance of the Alan 'Oops, I found a flaw in my ideology..' Greenspan and Wall Street could be added.
Red lining was about banks NOT lending to people (i.e.., minority communities) whose savings they held. Banks literally drew a red line around areas excluding the from loans for no other reason than these folks were black or brown skinned,
CRA is a favorite, but erroneous, right wing whipping boy. CRA defaults are less than 2 percent while mainstream mortgage defaults were above 7%.
Like it takes a certain level of genius to come up with this kind of system to make money. Honestly sometimes I have to admit, there are people who are borned to make money. Given life by God to make money on this Earth.
Considering that the CDO's were divided into 3 tranches at a minimum, that would mean that the AAA rated paper would have to see a default rate of 66% before it would lose a dime. Even the AA- paper would have to see a default rate of 33% before it got touched, and I don't know of any place that had a default rate that high. Besides the MBS's were spread throughout the US in case one area had a housing crisis. So how did the AAA paper lose anything?
@ltveco8 When people's investment's stopped returning money, and all those businesses went bankrupt, they started laying people off (or in the case of individuals, started spending less money). When a person gets laid-off, they spend less money (less money to spend). This creates a cycle of businesses losing money -> laying people off -> losing money -> laying people off. The cycle is only reversed when someone, or something (people/Government) create enough demand (spend enough money).
If mortages were cows, the Investment Bank is like a meat processing plant and CDOs are like hamburgers made from bits of dozens, if not hundreds of cows. Some hamburgers are great quality, others are bad quality (carrying the risk of food poisoning)
As an alternative to this being caused by the greed of capatilism, does it dawn on anyone that if people who couldn't afford mortagages didn't take them out that perhaps the evil cycle wouldn't have happened?
@k1ngross Obviously you didn't pay attention to the whole video... Usually banks want certain requirements to ensure you will be able to pay the mortgage... when this requirements were taken away because they wanted to broaden their market to gain more profits, they automatically appealed people who couldn't sustain the mortgage for long term... So, in reality, it WAS excessive capitalist greed the guilty of this huge bubble market.
@luciferiexcelsil so because I don't agree with you I didn't pay attention? That's your counter-argument? weak!
So you're saying that people are just sheep and whatever appears to be a good deal by the banks we are bound to take? Simple fact of the matter is that if people who couldn't afford mortgages wouldn't have taken them the banks COULDN'T have gotten into this mess. People weren't forces to take mortgages, it's like blaming the dealer for some idiot taking heroin.
@k1ngross Yep, people are sheep, Machiavelli said it. Herd mentality drove this financial crisis. The bankers and high-ranking officials knew it too. They tried to profit many times from this herd mentality; This time it backfired. People as a whole are stupid, it's a simple fact that you learn and accept more the older you become. The thing is, regardless of the buyers being irresponsible, It's much more the company's fault. (cont.)
@k1ngross Because the company would've suffered much more damage than the irresponsible buyers, and they knew this... It's like when you take a dog's muzzle off and it bites your hand. You knew if it had a muzzle then it was probably dangerous and bitten before, It would be your fault, not the dog's that your hand is bleeding!
@luciferiexcelsil so basically what you're saying is that if people didn't take the mortgages they couldn't afford then this crisis wouldn't have happened but people are too stupid to know this? Firstly, that's in stark contrast to your original statement which accused me of not paying attention after making the same claim.
So it's between greedy banks or stupid people? I'd take a greedy person over a stupid person any day, at least you know where they stand.
@k1ngross "so basically what you're saying is that if people didn't take the mortgages they couldn't afford then this crisis wouldn't have happened but people are too stupid to know this?" Yep, exactly, people as a whole are stupid. Why, you ask? That's American culture, you are British... So you may not understand how incredibly stupid a ultra-consumerist, credit-addicted society is. In the United States, the number of people who can manage their finances in a correct manner are far too few.
@k1ngross Or if the government didn't conspire with the fed to give out cheap credit and easy money for the banks to leverage up. Giving them incentives to make loans they otherwise would not have made in a free market with checks and balances that remove these types of incentives instead of supporting and rewarding them.
@USTreasuryBond Erm, that WAS the original statement, I said "as an alternative" to that. How can people complain that the government/banks/corporations fucked everything up when they themselves had a hand in it, there's NO way anyone can deny that people COULD have stopped this as much as the banks could have. It wasn't just the people handing out loans that were being greedy, it was also the people taking them, knowing full well they couldn't afford them.
@k1ngross What you have to understand is that if their were regulations in the first place it would not have happened. Compare to what happened in Canada. Canada had higher down payment minimums and Canada also doesn't allow for mortgage interest tax deductions and its banks hold onto mortgages instead of packaging them as securities. So basically Canada just didn't give out mortgages to people who couldn't afford them.
@k1ngross Based on this video, I believe the home owner is still not as much at fault for the outcome of the crisis. Although the homeowner is at fault for making an irresponsible choice, the people who provided the sub-prime mortgages to begin with carry the weight of the blame. It's not at all responsible to ask for any background information; that's why those rules and safeguards were there in the first place.
@k1ngross yes, but ultimately that is unrealistic. The fact of the matter is that many Americans are literally stupid and screw it up for the rest of us responsible citizens. That is why gov't intervention is needed to protect them from themselves. In a utopia this may not be the case, but unfortunately America is far from it. The same thing happened in the 1920's, people were we purchasing items they could not afford on "margin". This led to the Great Depression. We have a history of this.
@k1ngross People like you, or at least the people you're apparently supporting, like to have it both ways. On one hand you absolutely count on advertising and salesmanship to convince people to buy into ridiculous mortgages and home equity credit they might have avoided otherwise, after all, the media was flooded with such nonsense during the height of the bubble, but on the other you act surprised when people fall for it, and then play the "they were irresponsible" card. Nice try.
@k1ngross Sure, but the goal of capitalism isn't responsibility, it's too make the most money. The people who couldnt afford the mortgages had less to lose than the greedy "wall st" and wall st obviously had more to gain. Btw part of the reason the houses dropped was that a lot of young people couldnt afford the houses(since investors can make an artificial bubble). If there are less people buying the houses and more people trying to sell them. then the price goes down.
@k1ngross You're blaming the victim. Mortgage brokers & Investment Banks knew this was a hot-potato/ponzi scheme, not the hardworking (albeit gullible) homeowner. Buyers getting the blame is ridiculous, just think about who got bailed out? The Banks. They kept the profits during the balloon, and when loses were incurred the US Taxpaying Sucker got the bill... Privatize Profits / Socialize Risk. See how this works children????
All signs point to the banks being in serious trouble, which means, they didn't see it coming.
BofA sold their tower in NYC and will lease it back from whoever they sold it to. They have done numerous pay and job cuts and sold 5 billion in shares to Warren Buffet. These are NOT signs of a company prospering from some devious scheme.
And Chase isn't showing signs of confidence either. They could loosen up just a tiny bit on their lending policies and increase their returns, but I understand they're still getting settled in with their recent acquisition of Wamu.
14 IQ morons like RGOC2012 don't improve lenders' confidence, either.
@k1ngross Derp. Perhaps you should take some time to reflect on the term “fiduciary responsibility” and the differing roles/duties assigned to an average home buyer versus those of the financial professional. While it’s true that many that took these mortgages acted irresponsibly, has it ever dawned on you that by the very nature of the transaction, the lion’s share of the responsibility is assigned to the professional and not the lay person?
People need this.....
LivingWayProperties 2 days ago
Would have been cool if they tied in the bubble to this and explained how the price got to high without the income base to support it because of the artificially raised prices so the demand eventually fell off a cliff at the same time as the foreclosing started.
d3ltadrive 2 days ago
Excellent job.
DFWInvestors 3 days ago
Awesome... But forgot Fannie and Freddie
Texasreiguy 3 days ago
Comment removed
RemixedRock 5 days ago
Excellent video, and extremely accurate while remaining entertaining. I hope more people watch this.
Only one quibble; no mention of the government CRA ratings and freddie and fannie being used to pressure investors to make those sub-prime mortgages. Changes the drive and incentives of the lenders from greed to government pressure (with a sprinkling of greed :).
blackbishop37 5 days ago
How do you create the videos? Tools / software used?
zblack123 6 days ago
Thank you so much for this! Its great. Very informative, easy to follow and retain. We all have to do something about this and our personal finances. Education is first, so thank you for this!
neya292 1 week ago
I loved the sound of explosions the most :D
Vegetto507 1 week ago
Now look at the number of views for these videos vs. "baby farted and laughed" or whatever nonsense has fifty million views.
People deserve what they get for their apathy.
RichoRosai 2 weeks ago
Howdy.
This is one of the best derivatives break downs out there. But it still only goes so far. The bigger picture included robo signing and how the derivatives were sold to nations.
60 minutes did a bit on robo signing. But they didn't explain how the refinancing events were run by the banks because they lost the paper trails. Youtube search "60 minutes robo signing"
We need to share what each of us has learned to increase our knowledge base.
I will continue investigating.
henchman99942 2 weeks ago
Nice motion work. Clear explanation.
danjeroo 2 weeks ago
awesome. I finally understand it... a lil.
robocock100 2 weeks ago
Thanks you for the illustration ... Good job
MGOwYong 2 weeks ago
I really like this vid. The last few years I have been thinking of my grandmother (who lived through two world wars). She used to say: "if you want something you work for it, save money to buy it, if you cannot buy it? you just DO NOT BUY it". She bought her house with money made from mending clothes, saving these little sticker books (you get money when it's full) from grocery shops, collecting old paper, buying local and negotiating with farmers etc WE NEED TO GO BACK TO THIS MIND SET!
yukikaze2001 2 weeks ago 2
Simply amazing :)
TMYTKALYK 3 weeks ago
Well done!
sgtrobson1980 3 weeks ago
WHAT WERE THEY EXPECTING WHEN THEY BEGIN TO LEND WITHOUT PROOF OF INCOME AND NO DOWN PAYMENTS THIS WAS SO FUCKING PREDICTABLE IT HURTS
itssimpleiwinyoulose 3 weeks ago
@itssimpleiwinyoulose Gogogo USA
KingSizedSmoker 3 weeks ago
@itssimpleiwinyoulose they new exactly what was going to happen...they just didn't give a shit
cdspear 2 weeks ago
Brilliant!
ShunAce26 3 weeks ago in playlist Favorite videos
This video is awesome!! I just watched it in Economic class today! Thanks you guys!! <3
VocaloidAnime1924 3 weeks ago
Nice job. Just one question, how do you make stuff like that !?
pun1x 3 weeks ago
@pun1x Good question :) Please, drop me a line, if somebody recognizes it.
TMYTKALYK 3 weeks ago
anyone knows how to make a presentation like this? i don't think powerpoint could do the job
eternity00000 3 weeks ago
@eternity00000 I think you gotta have some skills with animation to do this! But there's this website I use where you can make some awesome presentations: prezi.com
give it a try...It helped me a lot!
joaoslpviana 3 weeks ago
nice
MearasMotorCo 3 weeks ago
@FoxifiedNutjob I first watched this video in my high school economics class last semester...
MrTylerWorden 3 weeks ago
People make remarks about greedy bankers, investors, and Wall Street. Others may say this entire thing started when the Fed messed with their interest rate to play God with the economy. One could frankly say they're both at fault - there's no such thing as a free lunch. No one, not investors, bankers, or politicians can play around with the economy without eventually getting burned. It's only sad that so many people have to pay for so few people's mistakes.
carolnegate 3 weeks ago
and thats why we pay taxes...
booyalakasha1 3 weeks ago
...and it is very sad that it is legal for the banks to rape this country dry, lose all of their money, expecting a free handout when they make stupid decisions... seems like the only people that get punished for their mistakes are the poor individuals getting lied to, tricked and then ultimately robbed by the rich banks that get a free pass... WOW im sure glad we deregulated them rich bankers... made it easier for them to fuck us in the ass legaly. fucking bullshit!!!
booyalakasha1 3 weeks ago
He forgot to mention all of the money lost by the banks by their own greed was lovingly GIVEN back to the banks at taxpayer expense because they cried like little bitch babies for, making stupid deals, not being able to pay back their debts... But when the same taxpayers that bailed them out call the same worthless banks crying that they cant pay ther ever increasing mortgage rates, because said banks keep hiking them up, the banks say sorry youre under contract... no mercy but for the banks...
booyalakasha1 3 weeks ago
nice work on the clip .
woodenmajor 3 weeks ago
El tema de la crisis es bien complicado; me costo harto tiempo reunir la información hasta lograr entender como funcionaba la cosa. Este video, en sólo 11 minutos, resume y presenta esa misma historia completa en forma clara, precisa y concisa. No deja nada afuera.
Felicitaciones a Jonathan.
lookalterno 3 weeks ago
Thanks for the video! American/European capitalism is utterly, irreparably corrupt...
tvswnet 4 weeks ago 2
@tvswnet people are corrupt, and so long as their is a way to make money there will be people to exploit it- the only thing you can do is try to give everyone a fair shot at making a ton of money too, and that is only available in capitalism you bum
alexjxcx 3 weeks ago
@alexjxcx You bum? You don't know me, junior...
tvswnet 2 weeks ago
Ron Paul saw it coming and predicted it.
MrCnipper 4 weeks ago
And it all starts with the Federal Reserve.
rnecas 4 weeks ago
Omg and is this what the Austrian economists predicted?
apell711 1 month ago
This has been flagged as spam show
Don't let the financial crisis bring you down. I started working from home and I'm now making 200 dollars a day... Don't be the victim, create your own luck! It's really worth checking out the website below, this guy is amazing...
Go to 2012bestoffers(.)com & Click the guy in front of the lamborghine's...
Enjoy life!
bewustwording 1 month ago
Wow, this ACTUALLY made sense to me! But god why didn't anyone see this coming? The video makes it seem as if it was so obvious that this would happen!
AnimeGirl1249 1 month ago
@AnimeGirl1249 Ron Paul did! People still don't believe him when he says the dollar is collapsing.
worldgovernor 1 month ago
@worldgovernor Hopefully it'll collapse soon...there's NOTHING about this system that worth saving (and in my opinion, good riddance!)...
tvswnet 4 weeks ago
Thumbs up if you were directed here for homework.
AnimeGirl1249 1 month ago
So those so called "geniuses" didnt see this coming? Of course they did...in fact this was planned from the beginning. Wall Street made billions because of it. So whos going to do something about it??
itssimpleiwinyoulose 1 month ago
So many people, myself included, didn't know the specifics of how the housing market crashed. This video really needs to go viral so the mistakes r not made again.
StealthZ117 1 month ago
best animation ever
crackedwaters 1 month ago
This is one of my "go to" videos when I try to explain the bankster scams to people. It is not the whole picture, however. Left out is how "robo signing" played into the scams and how foreign banks/brokers engaged in naked short selling to make money on the derivatives after they sold them to US 401Ks and greece and other suckers.
Search youtube for "60 minutes robo signing" for more insight into how these derivatives were inflated.
henchman99942 1 month ago
amazing!
TomfoxWiranata 1 month ago
I can't think of a video that explains better than this one!
hkjkw10 1 month ago
Superb Video! Thanks!
sam0123456789101 1 month ago
Turning point seems to be the credit default swap, one question : how do you add 'risk' to a mortgage?
matthijs122 1 month ago
Economy is so complex it cannot be seen in simple market diagrams and linkings, everything effects everything. So we use simple models to describe them, but that fact is that we cannot comprehend how all the aspects has influence on the whole economy. So there is not a clear indication/prediction to suggest an economical collapse.
All that an economist does is make predictions, and after it happens he can tell you what (propably) happened, and learn from that.
matthijs122 1 month ago
This has been flagged as spam show
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WUexp 1 month ago
Someone explain to me again how this is NOT a ponzi
koneye 1 month ago
Really well explained
Which program is used to do this animation please ?
MatrixPrisoner 1 month ago
Good idea I'll sell $10000 boxes by now !
MatrixPrisoner 1 month ago
Great explaination!!!
kida1818 1 month ago
Thanks, I never really understood what was f*cked with the economy, but this explained it nicely!
manc84 1 month ago
gonna write about this in my exam tomorrow! Thanks! Brilliant.
nk25490 1 month ago
Now do the car market!
Theonegamefreak 1 month ago
This has been flagged as spam show
Discover the few simple changes to banking that would reduce debt, poverty and economic instability and that would ensure that the reckless behaviour of banks could never threaten the global economy again.
Join the campaign for real reforms to banking at positivemoney
PositiveMoneyUK 1 month ago
end conclusion...poor poeple fucked it up
franceschini123 1 month ago
Comment removed
franceschini123 1 month ago
You see how easily the houseowners could have been offered the actual price for the houses at that moment, because the whole crisis would have been less awful had they no decided to stop paying and seeking other houses.
skinsvideos21 1 month ago
great. now i get it! thanks!
wehelp3 1 month ago
And that's it ??? This is the reason basically every country's economy got fucked up ? Or is there more ?
Great Video tho'
guisk8erbOY 1 month ago
Solution? A financial system without interest.
tahseen1995 1 month ago
@tahseen1995 I hear that a system as such has been available for many centuries now.
SHARIAH FINANCE?!
Now there's the solution.
zfqbtzvz 1 month ago
@zfqbtzvz Exactly what I was talking about
tahseen1995 1 month ago
@tahseen1995 a solution is a international regulatory commission that monitors banks/investors and control their speculations. That's applicable though when the crisis is over. Ending the crisis though is a question for a trillion dollars.
peshkohacka 1 month ago
We shouldn't have bailed the banks out. It was their risk and their responsibility.
Know what happens when a company screws up so bad they go out of business?
A new one replaces it.
We should have let the system self-correct, and because the bloated and inefficient government intervened, they're now in the position of dragging it around along with anyone who didn't get bailed out.
Guess who's footing the bill, taxpayer?
manictiger 2 months ago
Over 1/3 of the forclosed homes were mortgaged by people with more than one home. Remember all those get rich in realestate jokers. The thing that industry capatilized on was the lack of accountability. Now if a large population plays that game(no accountability) instead of just the big businesses its gonna be a problem.
chuckzimm1 2 months ago
Can someone explain how the investor benefits from the cdo's. And can you please explain what a cdo is thanks
dreamtiger347 2 months ago
@dreamtiger347 the cdo is simply the purchased mortgages with an enumeration system that goes from safest to riskiest. the investor benefits from it when they purchase a mortgage, because the monthly payments that the home owners make will go to them. the mortgages are just getting passed along from the bankers to the investors.
chadimus84 2 months ago
@dreamtiger347 Check out Inside Job, a documentary going into a lot more depth. (It focuses on the situation in the US)
bikerims4 1 month ago
Clarity at last!
sheewa25 2 months ago
Although I understood the basics beforehand this video was put together nicely to improve my understanding. Good job.
trekfoam 2 months ago
Thanks for the video, great visuals
jinya1004 2 months ago
So frustratring to see how we humans can walk into the same trap over and over again!
Great vid thanks !
Lapwings 2 months ago
fantastic video, thank you
CountryQuestion 2 months ago
And that's why I don't own a house
angrygreek1985 2 months ago
who would buy a 10,000 dollar box?
TheApang11 2 months ago 30
@TheApang11 no one said what the box was made of... :)
mynameisntscott 2 months ago
@TheApang11 If I knew someone who'd give me 11,000$ for it , I would.
hopaloop 1 month ago
@TheApang11 Depends what's in it.
bjarki3021 1 month ago
@bjarki3021 Not really if it's the box you're buying?
ohedd 1 month ago
@ohedd Maybe it's a gateway to another world.
bjarki3021 1 month ago
@bjarki3021 Like a wormhole? That would definately be worth 10k..
ohedd 1 month ago
@ohedd It would be worth 10 bill.
bjarki3021 1 month ago
@bjarki3021 Possibly.
ohedd 1 month ago
@TheApang11 the box could have some valuable items or products inside :P
i7lurve7u7q8 1 month ago
@TheApang11 people who thought they were going to make a profit off them :P
undertheradar713 4 weeks ago
@TheApang11
Obviously it depends of what's in it.
nitromaen 3 weeks ago
I looked away for two seconds to respond to a text... I am now completely lost.
HeatSroken777 2 months ago
Think the public school system would ever teach this? Hell no!! They haven't failed, they've worked perfectly to design idiot debt ridden slaves...
FoxifiedNutjob 2 months ago 6
That was surprisingly educational while also being easy to understand.
barrtender 2 months ago 2
great. now make a video for a solution
vince12345 2 months ago
Aren't the mortgages first packaged into mortage backed securities first, and then the mortgage backed securities are packaged into CDOs? Or am i mistaken?
neemx 2 months ago
That was incredibly well done. Thank you sir.
soccoboy28 2 months ago
Great graphics, knew how it worked but just enjoyed the stylistics
VideoFletcher 2 months ago
the only question i have is WHERE THE FUCK DID THE MONEY GO THEN?
TaylorMoore42 2 months ago
@TaylorMoore42 The money has been turned into houses. The supple of houses is greater than the demand so the house price falls. That means that all of the speculative profit is taken out of the system. The more the house prices fall the more would be profit dissipates and instead begin to make a loss. Home owners loose money, banks, although holding houses, they are houses that nobody can afford as the business they work for has cut their hours and they are now earning less.
bents2302 2 months ago
@TaylorMoore42
It never existed
M66rten 2 months ago
Good riddance. Money economies need to die already. They are killing us. Capitalism worked in the 50s, but it is quickly dying out as people get smarter to the ploys of marketers. We have no need of money.
divineagent 2 months ago
@divineagent What would be the motivation if not for money? Just curious on what your answer would be.
milesgti 2 months ago
@milesgti That which drives creativity and is the basis of humanity: one's personal freedom to explore what she or he wishes, within the limitations of the law, of course. A resource based economy works fantastically, though it would be a large shift in thought process, especially for Consumers. Look up the Zeitgeist Movement.
divineagent 2 months ago
Central Banks like the Federal Reserve control national FIAT currencies and serve as interest-bearing lenders to private sectors during crises (see bailouts).
Federal Reserve posses no authority to curtail reckless or fraudulent behavior by other banks that may endanger the economy.
Central Banks in developed nations are independently-held, in so far as they operate under 'self-regulating mandates' which render them free from political interference, jurisdictional laws and government oversight.
CorporateRule 2 months ago
Greed sux
quinnq18 2 months ago
what software is used to make this vid?
DJRoksor 2 months ago in playlist Meer video's van graphixmdp
Funny how all the comments here a acting like know it alls after the fact. 20/20 and hind-sight..if you people were so smart you should have made money off of it like others had he saw it WHILE it was happening
ubermisogynist 2 months ago
I would love to learn how to make a presentation/video like this one. Simply amazing! How do you do it?
almeidarfp 2 months ago
Great illustration of the housing crisis
MsCaramelkisses11 2 months ago
This has been flagged as spam show
The USA is more than 15 Trillion in national debt... With a Federal tax income of around 2.5 T, and US Federal spending more than 4 T a year..It would be foreclosed on if it was a customer of the Bank: Like I would be, if I spent more than I earn and got into debt and could not pay my mortgage...
I would be living in a box!
Someone needs to step in and make laws or a treaty that will stop or limit a Government borrowing so much money that they go into debt so easily...
AnonAvatar 2 months ago
Comment removed
AnonAvatar 2 months ago
this is an amazing video!
uraniumgum 2 months ago
Intersting and very easy to understand, thank you so much!
chuchovalbuena 2 months ago
What was the bust about??
OmgSqAids 2 months ago
lol
ThePlaneswalk 2 months ago
It's was all fine until greedy investors and bankers wanted more and more money. Prime mortgages were fine; everyone was making money. Selling sub-prime mortgages to those who couldnt afford to was stupid. You can't blame the people for accepting a loan like this. It's the responsibility of the lender to see if the borrower can pay the money back. It was always going to end in disaster. Greedy bankers. They're still getting their bonuses.
bodna03 2 months ago
Very good video.
splinter360 2 months ago
part two starts @7:28
LegendaryIpod 2 months ago
This video misses the point. Let's just cut through all the smoke and ask: What is it we actually use for money? How is created and put into circulation? How does that process effect our lives?
gs6285gs 2 months ago
Can anyone explain how this video was made? What software? What is the easiest&best way to make videos like this one? Thank you very much in advance.
File0903 2 months ago
Great video, very informative.
Pearade 2 months ago
Why in hell can't you american democrats and republicans for the time being ignore your socalled democratic ideals. Get together and you would get the key to solve some of the present global economic crisis. Pull yourself together in the US!!!!!!! A point of view from Europe.
juvel68 2 months ago
Great quick guide of the meltdown! Potentially the fierce anti-regulatory stance of the Alan 'Oops, I found a flaw in my ideology..' Greenspan and Wall Street could be added.
schatz87 2 months ago
Red lining was about banks NOT lending to people (i.e.., minority communities) whose savings they held. Banks literally drew a red line around areas excluding the from loans for no other reason than these folks were black or brown skinned,
CRA is a favorite, but erroneous, right wing whipping boy. CRA defaults are less than 2 percent while mainstream mortgage defaults were above 7%.
ckm842 3 months ago
Watching this beats sitting a 2hour lecture, thanks!
AnotherDouche 3 months ago 2
what software did you used?
tucotuti 3 months ago in playlist Uploaded videos
What a system rofl.
Like it takes a certain level of genius to come up with this kind of system to make money. Honestly sometimes I have to admit, there are people who are borned to make money. Given life by God to make money on this Earth.
Too bad they overextended.
LightBrand 3 months ago
Considering that the CDO's were divided into 3 tranches at a minimum, that would mean that the AAA rated paper would have to see a default rate of 66% before it would lose a dime. Even the AA- paper would have to see a default rate of 33% before it got touched, and I don't know of any place that had a default rate that high. Besides the MBS's were spread throughout the US in case one area had a housing crisis. So how did the AAA paper lose anything?
jjrglobal 3 months ago
Brilliant visualization!
scatterbrain73 3 months ago
Does anyone know what program he used to create this?
twinbornksgirl 3 months ago
What a stupid system!
kabbinet 3 months ago
Congratulations on this video. Well done!
TheHoarseMan 3 months ago
how did this effect the rest of the economy please help i got a project
ltveco8 3 months ago
@ltveco8 When people's investment's stopped returning money, and all those businesses went bankrupt, they started laying people off (or in the case of individuals, started spending less money). When a person gets laid-off, they spend less money (less money to spend). This creates a cycle of businesses losing money -> laying people off -> losing money -> laying people off. The cycle is only reversed when someone, or something (people/Government) create enough demand (spend enough money).
Ryumast3r 3 months ago
Here is another way to visualize it:
If mortages were cows, the Investment Bank is like a meat processing plant and CDOs are like hamburgers made from bits of dozens, if not hundreds of cows. Some hamburgers are great quality, others are bad quality (carrying the risk of food poisoning)
Runswithscissors111 3 months ago
How come?! This view counter is rigged. 1600 thumbs up and only 134806 views?!
szybkilopez566 3 months ago
Thank u! I could never get this, but now I did!
nne05 3 months ago
I have a question, could you mind explaing a bit more in depth, about Alan Greenspan and why investors said, no thanks?
xaxjx88 3 months ago
This is why I was at Occupy Oakland yesterday.
Masoncation92 3 months ago
This has been flagged as spam show
i understand this and im just 15
IguanoTwix6942 4 months ago
4 banksters did not enjoy the video!!
SapoArdente 4 months ago
As an alternative to this being caused by the greed of capatilism, does it dawn on anyone that if people who couldn't afford mortagages didn't take them out that perhaps the evil cycle wouldn't have happened?
k1ngross 4 months ago 6
@k1ngross Obviously you didn't pay attention to the whole video... Usually banks want certain requirements to ensure you will be able to pay the mortgage... when this requirements were taken away because they wanted to broaden their market to gain more profits, they automatically appealed people who couldn't sustain the mortgage for long term... So, in reality, it WAS excessive capitalist greed the guilty of this huge bubble market.
luciferiexcelsil 4 months ago
@luciferiexcelsil so because I don't agree with you I didn't pay attention? That's your counter-argument? weak!
So you're saying that people are just sheep and whatever appears to be a good deal by the banks we are bound to take? Simple fact of the matter is that if people who couldn't afford mortgages wouldn't have taken them the banks COULDN'T have gotten into this mess. People weren't forces to take mortgages, it's like blaming the dealer for some idiot taking heroin.
k1ngross 4 months ago
@k1ngross Yep, people are sheep, Machiavelli said it. Herd mentality drove this financial crisis. The bankers and high-ranking officials knew it too. They tried to profit many times from this herd mentality; This time it backfired. People as a whole are stupid, it's a simple fact that you learn and accept more the older you become. The thing is, regardless of the buyers being irresponsible, It's much more the company's fault. (cont.)
luciferiexcelsil 4 months ago
@k1ngross Because the company would've suffered much more damage than the irresponsible buyers, and they knew this... It's like when you take a dog's muzzle off and it bites your hand. You knew if it had a muzzle then it was probably dangerous and bitten before, It would be your fault, not the dog's that your hand is bleeding!
luciferiexcelsil 4 months ago
@luciferiexcelsil so basically what you're saying is that if people didn't take the mortgages they couldn't afford then this crisis wouldn't have happened but people are too stupid to know this? Firstly, that's in stark contrast to your original statement which accused me of not paying attention after making the same claim.
So it's between greedy banks or stupid people? I'd take a greedy person over a stupid person any day, at least you know where they stand.
k1ngross 4 months ago
@k1ngross "so basically what you're saying is that if people didn't take the mortgages they couldn't afford then this crisis wouldn't have happened but people are too stupid to know this?" Yep, exactly, people as a whole are stupid. Why, you ask? That's American culture, you are British... So you may not understand how incredibly stupid a ultra-consumerist, credit-addicted society is. In the United States, the number of people who can manage their finances in a correct manner are far too few.
luciferiexcelsil 4 months ago
@k1ngross Or if the government didn't conspire with the fed to give out cheap credit and easy money for the banks to leverage up. Giving them incentives to make loans they otherwise would not have made in a free market with checks and balances that remove these types of incentives instead of supporting and rewarding them.
USTreasuryBond 2 months ago
@USTreasuryBond Erm, that WAS the original statement, I said "as an alternative" to that. How can people complain that the government/banks/corporations fucked everything up when they themselves had a hand in it, there's NO way anyone can deny that people COULD have stopped this as much as the banks could have. It wasn't just the people handing out loans that were being greedy, it was also the people taking them, knowing full well they couldn't afford them.
k1ngross 2 months ago
@k1ngross What you have to understand is that if their were regulations in the first place it would not have happened. Compare to what happened in Canada. Canada had higher down payment minimums and Canada also doesn't allow for mortgage interest tax deductions and its banks hold onto mortgages instead of packaging them as securities. So basically Canada just didn't give out mortgages to people who couldn't afford them.
jamariogoon 2 months ago 2
@k1ngross Based on this video, I believe the home owner is still not as much at fault for the outcome of the crisis. Although the homeowner is at fault for making an irresponsible choice, the people who provided the sub-prime mortgages to begin with carry the weight of the blame. It's not at all responsible to ask for any background information; that's why those rules and safeguards were there in the first place.
Daykeem 2 months ago
***It's not at all responsible to avoid asking for background information
Daykeem 2 months ago
@k1ngross yes, but ultimately that is unrealistic. The fact of the matter is that many Americans are literally stupid and screw it up for the rest of us responsible citizens. That is why gov't intervention is needed to protect them from themselves. In a utopia this may not be the case, but unfortunately America is far from it. The same thing happened in the 1920's, people were we purchasing items they could not afford on "margin". This led to the Great Depression. We have a history of this.
DavidRK125 2 months ago
@k1ngross People like you, or at least the people you're apparently supporting, like to have it both ways. On one hand you absolutely count on advertising and salesmanship to convince people to buy into ridiculous mortgages and home equity credit they might have avoided otherwise, after all, the media was flooded with such nonsense during the height of the bubble, but on the other you act surprised when people fall for it, and then play the "they were irresponsible" card. Nice try.
nerfmyaccount 2 months ago 2
@k1ngross Sure, but the goal of capitalism isn't responsibility, it's too make the most money. The people who couldnt afford the mortgages had less to lose than the greedy "wall st" and wall st obviously had more to gain. Btw part of the reason the houses dropped was that a lot of young people couldnt afford the houses(since investors can make an artificial bubble). If there are less people buying the houses and more people trying to sell them. then the price goes down.
MoodyWoodyOody 2 months ago 2
@k1ngross
It works both ways too. If the banks didn't sell these subprime loans and lower their standards in the first place it wouldn't have happened either.
QuixoticMcGee 2 months ago in playlist More videos from graphixmdp
@k1ngross You're blaming the victim. Mortgage brokers & Investment Banks knew this was a hot-potato/ponzi scheme, not the hardworking (albeit gullible) homeowner. Buyers getting the blame is ridiculous, just think about who got bailed out? The Banks. They kept the profits during the balloon, and when loses were incurred the US Taxpaying Sucker got the bill... Privatize Profits / Socialize Risk. See how this works children????
Obama & Bush are the Same! RON PAUL 2012!!
LoneRanger2000 2 months ago
@LoneRanger2000 Yep, in the end it all boils down to the gullible homeowner... Or should I stay 'the solid/precipate'.
matthijs122 1 month ago
@matthijs122
There is a reason why we have a word for gullible and a word for deceit.
Bluefinger2009 1 month ago
@LoneRanger2000
I disagree.
All signs point to the banks being in serious trouble, which means, they didn't see it coming.
BofA sold their tower in NYC and will lease it back from whoever they sold it to. They have done numerous pay and job cuts and sold 5 billion in shares to Warren Buffet. These are NOT signs of a company prospering from some devious scheme.
They are signs of damage control!
manictiger 1 week ago
@manictiger ur an idiot
RGOC2012 1 week ago
@RGOC2012
Nice well thought out response, dip-shit.
If you were doing wonderfully well, would you:
A) Sell your prized tower in NYC?
B) Sell $5 billion in preferred shares of your company to an investor who plans to sell them back to you at 4 times the price later on down the line?
C) Buy a bunch of your shares back from the stock holders, open up a bunch of new branches and build another tower with all that money?
Dare I assume you can read anything longer than a single sentence?
manictiger 1 week ago
@manictiger
And Chase isn't showing signs of confidence either. They could loosen up just a tiny bit on their lending policies and increase their returns, but I understand they're still getting settled in with their recent acquisition of Wamu.
14 IQ morons like RGOC2012 don't improve lenders' confidence, either.
manictiger 1 week ago
@k1ngross Derp. Perhaps you should take some time to reflect on the term “fiduciary responsibility” and the differing roles/duties assigned to an average home buyer versus those of the financial professional. While it’s true that many that took these mortgages acted irresponsibly, has it ever dawned on you that by the very nature of the transaction, the lion’s share of the responsibility is assigned to the professional and not the lay person?
uberuserid 2 months ago