Understanding the Financial Crisis

[xXxDANMANxXx]

This is kind of what happened, but there's WAYY more too it, this isn't a simplified version it just doesn't share enough at all, I wasn't expecting much when I saw that it was a 2 minute long video

[oldereb38]

The Fed handled $8.4 TRILLION from the auctions of the Treasury securities and hid the money from Congress. The law, Title 12, section 247, requires the Fed to make a “full report” to congress. Hiding that profit from Congress sounds like embezzlement. Ref. 3w scribd dot com message 49040689

[144jr144]

I stopped a few seconds in. 'Toxic assets" are not the root of the issue, but a pattern of relating. That pattern of relating is unsustainable. Fortunately, that pattern is being interrupted. I could say much more, but that's all for now.

[cfrancis]

this video is retarded...When are we going to buckle down and talk about the REAL ISSUES....

....

...GAYS ARE GETTING MARRIED!

...

seriously this video is the retard version. terrible explination for anybody with a brain more developed then an ameoba.

[nbibby]

Stupid video, complicated visuals that distract from the core of the issues. Like eating candy floss for breakfast don't feel satisfied (cotton candy = candy floss for you dumb arse amercians that have your head up your arses)

[muerteverde]

This video is not entirely accurate and the bar graphs are a bit confusing. They don't mention the derivatives here and the roles that they played as the mortgage backed securities were sold, bought, bundled sold again at leverage and so on several times by a multitude of middlemen.

[Daystorm13]

Is it not accurate or just over-simplified? There's a difference. For a more detailed breakdown of the mortgage crisis, they created another video you can view in the responses section.

[muerteverde]

I see what you mean, but I think the oversimplification in this case amounts to inaccuracy because it fails to convey several key facts and the credit default swaps, which are highly leveraged, are the real heart of the problem. Making "bets" on the repayment of loans and then treating those bets as assets as well as circumventing insurance regulations, is what made some bad mortgages tear apart the entire system. I will watch the other video too, but I think the omissions here are glaring.

[BoxenRobl]

YES WE CAMP

[TheSubcultureexposed]

WHERES JOE THE PLUNGER AT?

[WolYou]

You can't avoid the next financial crisis. This is due to the scheme of interest rates. In order to pay off interest rates, your business have to grow at least at the same rate. But as we know, everything that grows must once stop doing so. And this is the point where the growth-driven delusion of "economics" produces the next crash. Money as such is not bad. But if money is treated as a good, the system becomes absurd.

[cartmansucks31]

not accurate but close enough!

the answer is simple!

the central banks NEVER make enough money to go around!

thus? nobody or any buisness can never ever pay back their debts due to not enough money being printed!

[Twinhit]

The US simply stopped manufacturing and this is what Americans deserves.

IF you cut your arms off, can you play a piano?

That's exactly what the US did!

It regulated itself out of business.

[malignantpoodle]

This is really close, but not entirely accurate :)

The banks themselves were lending to poor candidates and then selling off the securities to make their money. They were creating the false investment potential. It was investors that were hit first when the securities would not come to fruition, not banks. When investors pulled out, THEN the banks took a hit, due to that and that the banks were still holding a bunch of junk securities that investors no longer wanted.

[coach3majic]

no mention of the whole thing done on purpose though

BILDERBERG

[Twinhit]

Agreed.

I think the problem is multi-faceted as to causes, but in the US, manufacturing job exportations to the likes of China only to buy cheap, sell competitively, only added insult to injury.

I think it about moving in that global government direction. 1 world gov., 1 world currency, 1 world army.

I envision a lot of unrest coming.

Ordo Ab Chao

[peaceinunderstanding]

The mortgage crisis accounting for a mere $800 billion of the total banking crisis, estimated to be at least $20 trillion. This crisis was created by the Federal Reserve promotion of numerous bubbles and by the relaxation of laws that facilitated the ballooning of hedge funds. To blame this solely on mortgaged home owners is intellectually dishonest and factually inaccurate.

[vanityfox451]

This short version to the issue is an excellent soundbite and I give it praise for explaining such a difficult subject in such a short time-frame. However, if the long version is more up your street and this has wetted your appetite and you're needing more, why not Google:-

"Chris Martenson"

and complete the

"Crash Course"

...after all, with the financial world folding in on itself, don't you owe it to yourself in getting better informed on whats in store with your future???

[stick1to2the3issue]

The only thing that isnt true in this vid is the assertion that the government bailout will be funded by taxpayers. The government funded the bailout - not by printing more money or levying a special tax on the people, but rather by offering up bonds to private investors (offering interest as incentive) and using the capital to buy up bad mortgages in an effort to keep the industry solvent. Then the government would sell the mortgages and pay off the private investors with interest.

[CaesarXXIV]

Offering bonds seems to be borrowing money from private investors. Yet, isn't that a loss to "taxpayers" since they have to pay the interest. Borrowing $100K from you bank with 10% interest is not taking free money. You lose out on the 10%.

[stick1to2the3issue]

The thing to remember is that the gov't is using the money they get from private investors to buy up the bad mortgages and it's possible they could make a hefty return on the investment, which could potentially excede the amount of interest they pay to private investors, and end up making the taxpayers money. The other side of the coin is that they could lose big on the bad mortgage purchases, and then the taxpayers would be on the hook. What is most likely is that the taxpayers come out even.

[CaesarXXIV]

It's possible, but I think it's unlikely that the so-called "bad" mortagages which were abandoned by private investors would yield a "hefty" return. Although, perhaps the taxpayers would not lose that much.

[jpbalkenende]

Well it doesn't matter making profit from the indebted mortgages isn't the goal stopping the credit crisis and thus turning the economy around is the goal.

[umooDOTcom]

Another root to this problem is unrealistic exploration, in business you have to take the risk and look for the next big thing, but this was doomed to failure from the start. Thanks for this!

[mustardgreens2008]

These same bastards who are crying for help will have no qualms coldheartedly foreclosing on an elderly lady and kicking her out onto the street such that she attempts suicide out of desperation. (true story)

[mustardgreens2008]

In other words, greedy bastards trying to get rich without producing, or providing anything to society create imaginary wealth which eventually crashes like a house of cards and then the masses must bail them out so they can start all over and do it again.

[stick1to2the3issue]

I wouldn't go that far. In the beginning the mortgage business was very healthy. It was simply a business where since I don't have 100,000 cash to buy a home with,I paid someone to lend me the money so I could have a roof over my head. No greed involved,just two party's entering into a mutually beneficial contract. I get a home (when I otherwise wouldn't get one),they profit from interest payments. Whats described in the video is what distorted the process. Lenders and borrowers need to learn.

[mjamesb2008]

Bank of America????? One of the largest mortgage (Country-wide) and credit card holders............$3 trillion dollar company......will it survive...we'll see..in 6 months

[stick1to2the3issue]

They bought up country wide for dirt cheap tho. It might actually be a good move since it's looking like home prices won't fall beyond the bottem basement price BOA bought them at from countrywide.

[avidlurkviewer]

Nice way to tell people what is happening. There is more behind, but great way.

[utubeguri]

This is a GREAT way to explain the crisis. finally, some that explains this in easy terms!! Thanks, guys!!

[wendorama]

very nicely done -- quite informative

-Barry

[bobathome20]

umm u forgot to mention the 80yrs of slavery so *&^*& u :)

sincerely,  Not An. Idiot

p.s u break it its yours :)