Q: Why the houses that the banks have for sale generate an oversupply, if they are the same houses that prevoiusly were on the market (and that no one would have bought in the first place if it weren't for banks intervention)?
Don't forget that when Obama bailed out the too big to fail, the "bomb" was passed back to the tax payer. And the too big to fail where rich once again.
@ohedd the birth rates are declining in US and Europe. it means the demand for houses drops (since there are no people to live in houses). the house prices drop, so they are sold cheaper. since they are sold cheaper, investors are already loosing money, meaning that they have to cut spending in their other investments such as car factories ETC. making people loose their jobs. and a person without a job is not able to pay for his house and looses it to the bank. it's a spiral of credit.
@ohedd the way of stopping this is either re-thinking the whole system, or somehow increasing the number of people in some country by letting in immigrants, or encouraging cityzens to have more children.
@iDeathpool Ah you're right. And then it's the whole issue of paying for everyone's social security when they get old.. We need to make sure we don't bail out the banks to keep them from making the mistakes of loaning money to irresponsile people, because they are pretty much guaranteed a bail-out from the government at this point. Also lower taxes so people can afford to save their money and pay for their social security.
@ohedd social security is not really a big problem as long as people pay more taxses than they use social (even countries with high social like Sweden still keep this proportion, in the US social security is very low in comparison to Europe). and bailing out banks using public money does suck, but sadly is nesesery if we don't want a crysis like in the '30 - people literaly not having money for food. the fiscal responsibility of banks (AND the people) is a topic for a whole separate forum.
@iDeathpool Sweden is getting older as well and the way it looks today, there's no plan on how it's going to work out in 60 years, even though it's paid for through taxes. Don't you think that not bailing them out would scare them from taking the stupid risks of loaning poor people money? It sounds to me like people needs to take more responsibility for their own actions - where, to whom and when they invest. If the government helps cleans up for everybody, the money will run out.
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
if congress wasnt dumb and removed the legislation put in after the great depression this problem would never have occured. silly neoliberalists your voodoo economics dont work.
Or just find something else to use leverage on, meaning find something else investors could invest in for decent returns. Oversupplying 1 market dosn't mean you oversupply all. It has been tradition of calling this world for a casino since you have been able to invest in anything, for example the weather. They could make safer company shares for one example. Or the tresurery could have increased rates to decrease the amount of easy loans and increase the probability investors would invest in USA
Only a stupid investment banker would make a mistake as foolish as this. He could easily drop mortgage rates to prevent the over supply of houses, thus solving the whole problem.
This well done video does explain the credit crisis. What people need to understand though is that the government is broke as well. There is NO way in hell that we can even hope to pay our massive debt. So the question is what happens then? We economically collapse, that's what happens. At that time there will be no food stamps or unemployment checks. Prepare NOW. Not to do so is negligent and ignorant. You have been warned!!!!!!!!!!!!!!!
It needs to be pointed out that this end isn't normal and was called out over a decade before it all crashed by real economists specifically those from the Austrian School.
This isn't too bad, a tad simplistic, but there were a few more aggravating issues. The advent of NINJA loans, banks allowing buyers to purchase loans with no money down, when you used to have to put down 20%. Easing the rules made more potential buyers. That was the bubble before the pop. After the defaults began, banks reset lending standards, and the were more homes than qualified buyers.
@jkykwong100 Im in high school and still trying to figure out what to do with my life so im doing my best to get some education like this that will acually help me in life. Public school is just like a assembly line ran by the fedral government to train you like a pigeon so that you will be a drone. Not to mention we learn worthless stuff like angalo-saxon literature.
The only thing missing in the video- which is most important -is due to Greenspan's low rates a borrower could get a 4% mortgage loan which will adjust - go up to the market rate- after 3, 5, or 10 years. This is called an adjustable rate mortgage.Greenspan increased the interest rate by more than DOUBLE in under 2 years to 8.25%.This caused even responsible borrowers to default before they could refinance their loans to a decent fixed rate.Also the banks are required by the govt to lend to poor
they left out the part where the big banks planned not only this crisis but also the multi-trillion dollar bailouts that are also going to be paid by all those homeowners and investors that where not part of the scam
You forgot about the community reinvestment act which forced banks to make risky mortgages. Of course the banks weren't going to be left holding the bag and turned around and sold the mortgages (basically passing the buck)
God loves you, and Jesus Christ is the way to Him. Jesus died for our sins, was buried and rose again on the 3rd day so that all who believe in Him will be saved from Hell and have eternal life. Eternal life is a free gift from God to all who believe on the Lord Jesus Christ.
@TheHoboist - no, bankers and corrupt politicans allowed Wall St, IE, British agents to loot the workers (debt slaves of U.S. INC, because this is still a British colony and Great Britian is a agent of the Vatican who claims ownership of the whole planet.
@TheHoboist Yes, that is basically what it amounts to. Sadly, we are about to watch absolutely every aspect of our business, culture, and civilization meet the same fate and for all the same reasons.
this is great, but you forgot to add that the proper response to this is to bail out the people who caused the problem so that only every single fucking person in the entire fucking world OTHER than those who caused the problem ends up loosing out. wait a minute, what? fuck you obama and every other retard who agreed to the bailouts
And i still dont completely understand it all. But thats ok. All i need to know is that, well, everything in this video is reliable...unlike our leaders, both financial and economic
It is very important to try to understand it all, because as they say, the devil is in the details.
Money for the economy and people, is like blood for the body. Without it we die quickly.
Fractional Reserve money is like poisoned blood for the body. It has in itself the agents to eventually kill the economy and transfer ALL ASSETS TO THE BANKERS, including government assets.
SEARCH ---> Debunking Money - 1 Myth and Machiavelli so you can in a few minutes understand it
@etniks69 fucking right man. thanks alot. check out desteni.co.za and equalmoney.rg i think youl find it uite interesting. thanks again for the link to this videos
The most important piece of the puzzle is not even mentioned. The Fractional Reserve Banking System allows Private Banks to create money out of nothing. and charge interest on it. HE MISSREPRESENTS "LEVERAGE". ACTUAL LEVERAGE IS THE MULTIPLES OF TIMES A BANK CAN LEND OUT ITS BASE CAPITAL.
Bear Sterns bank had lent out 34 times its base capital when it collapsed in 2008.
THIS IS THE MAIN PROBLEM before all the others he describes.
Instead of clarifying the issue he perpetuates a MYTH.
Very nicely done, but a couple quick points you may want to consider. The mortgage brokers did not have any hand in ddeveloping the new mortgage products (SIVA, SISA, NINA, NR, NINJA etc) and I would love to see you add a piece on how some of the lenders actually developed these products and then created the CDS to insure against them knowing they were going to implode and made millions. Specetacular work
The Salesmen and the Manager who sold to unworthy homeowners are now jobless. Thanks to your greediness, it overpowered whatever you learned in College.
@audrey1053 Let me fill that in for you. The Govt passed a law back in the Clinton days to make banks supply mortgages to low income high risk people in order to boost home ownership - Fannie Mae and Freddie Mac become the biggest mortgage suppliers in the world on the back of this Govt created situation. At the same time Govt blocks any regulation of CDOs because the banks and Greenspam convince them that nothing can possibly go wrong. They also remove all limitations on bank leverage. BOOM.
@T1Brit What I wanted to said is...Or Jarvis just wanted to keep it simple and did not want to put a jugement on political issues or It's just trad Americain to do like the governement is not doing anything.
@zmolix The poor did not screw it up per se. The people with low or no income were enticed into taking up loans which they subsequently could not repay once the interest rates were lifted. No rational and prudent government would promote such a ridiculous program. This bubble was supposed to happen and the establishment of fannie mae and freddie mac provides clear evidence. The middle class bears the loss while the wealthy sweep up all the cheap houses on market. Clever scheme by the elite.
What people should take out of this lesson is this. The Monetary system is obsolete.Watch Zeitgeist Addendum and Zeitgeist Moving Forward and you will learn even more on how e are all getting scammed as well as learning more on what we can accomplish if humanity decides unite and solve most of our problems.
@Gamezero05 - investors are people that make a living by buying things (like company stocks, raw materials, property etc.) and selling them when they're worth more.
During the mid 2000s, many investors bought things that later decreased in value (eg: a lumber store that later couldn't sell wood because existing homes saturated the market). Since many homeowners also save money in the form of mutual funds (a bunch of investor-selected stocks) their investments became 'worthless'.
@Gamezero05 In the case of most ordinary people the investment was a 401 K plan which they put all their money into so they would have a good pension. The 401 K supplier is the investor who chooses where to put all the money that people pay into it to get the best interest on it. When the CDOs went bad, people lost all their savings and their pension too.
does anybody know where can I find an econometric ( quantitative ) model involving something related to the current banking crisis??? It does't have to be something state of the art... I need it for my dissertation. PLS !!!!!!
@smpxix I feel like those film have truth to them, but are for lack of a better word; Bullshit. You can find better information on youtube in videos such as this one about topics that are relevant without any mention of some New World Order, or religious corruption. Sure they're corrupt, but if you'll put all your faith in something that isn't real, what would you put into something that actually is?
Excellent video, explains the subprime mortgage fiasco well to a layman like me. Heres the big question? How do we fix the mess were in and how do we stop it from happening again? The financial system will always have it's element of greed. And the govt. relies so heavily on this system of banking! Until the greed is removed from the equasion this will happen again! (dot com bust, subprime mortages), whats next?
@beatman62301 next is a thing called derivatives ;) you will have alot of fun investigating what they are ... the derivative bubble is going to be the true cataclysm
I made a really short 45 second video explaining the dangers of the Federal Reserve. Hopefully with such a short message it will wake more people up in this age of sound bytes and short attention spans! Check my uploads and spread the word!
Video forgot to mention that those "sad" crying investors and bankers personally made billions of dollars so who fukn cares if their companies failed. CEOs made hundreds of millions of dollars each; then when their companies failed the government bailed them out. Genius.
As Far as I'm concerned Banks are one of the most negative entitities in the world. I've done enough education on my own to know its true, and that the whole credit system is scam. But the way the things are currently operating, we area all subject to its rules unfortunately, and must use the corrupt system.
BTW, I recommend these guys to you guys for credit repair. They are fantastic in doing all the legwork, and very cheap to boot. Call them at 888-338-3875
If you add this credit scam to our political system scam where banks and corporations finance political campaigns,you end up with homeowners looseing jobs and homes while banks and politicians get rich. Weve been robed leagally and no one went to jail. Experience demands that man is the only animal which devours his own kind, for I can apply no milder term to the general prey of the rich on the poor. Thomas Jefferson Government is suposed to protect us from theives not protect them from us.FAIL
The banks take no initial risk, they put up nothing for the loan, the borrower created the funds for the transaction, the bank only risks their fraud being discovered.... (and thats the O SHIT moment for the banker)
You can see this by the fact that banks are strictly forbidden (federal reg) from lending depositors funds/ and their credit, so they lend the borrowers credit back to borrower.
The banker created the problem, not the ignorant home owner....the banks knew the home owner would default
Civilization must not be allowed to crumble into chaos and mass dislocation for the sake of fraudulent paper. If we had a real president, he should have already issued an Exec Order forbidding foreclosure of primary residences! The E.O. would have a provision for means testing to determine what the homeowner can afford, even if it's only 10% of the original payments. No accruals or penalties for relief! The hedge funds deserve no sympathy. Bring back Glass-Steagall and nullify all derivatives!
In the stock market this is called "investing on margin." if i remember right, this was one of the triggers for the great depression? Well look where we're going now.
That's what happens when you gamble with debt... When you are looking for capital gains only, eventually you are going to hit the ceiling of that growth. It's unsustainable.
If you focus on cash flow and having good debt that isn't dependent on appreciation, then you don't care if your $300k house is worth $90k because you still get cash for it by renting it.
Never, EVER bet on prices to rise, you'll get burned. Focus on getting cash flow and interest, any appreciation thereafter is a bonus.
Gov IS evil. They FORCED banks into subprime (RACISTS!!!) and INSURED them (FREDDY & FANNY) or the fake rise in home value? I guess this is the statist version. Its not false, just 2/3 is left out.
holy shit...I actually understood this lol, although I hate stupid financial system shit aka the scam that was invented by some assholes...but...somehow you gotta give em props for coming up with a freaking complex system that only benefits them...kinda like you give some mad evil scientist props oO...or maybe it just shows the sad truth of how easily the mass can be tricked...nice vid.
Although, the thing which really let the problem spread were the credit default swaps, basically insurance on CDO's and loans so that invstors will view them as safer. But since the banks that sold the CDOs and the credit default swaps didn't keep enough cash on hand to pay the insurance if it was ever needed. It made it so that they lost even more cash on every CDO that went belly up.
There is also a responsibility to the general public as to how much credit you use, in balance with your income. We can't just point in 1 solitary central direction, and blame that for everything. Central banks are here, to stop excessive saving and deflation, to promote investment and spending, however they did a too good job, in the last 20y in USA
The main cause is the human desire for something better (or "greed) which is part of human nature to compete. The problem was that there was no regulation. There are of course problems with regulation, especially too much regulation, since it can also bog down the economy, but some agency, somewhere, was supposed to keep an eye on banking policies. Lack of regulation let Madoff get away with millions and investors lost millions. There is a similar scenario here.
We need banks... despite the terrible credit crisis that has transpired ..... the benefit of having banks far exceeds the cost of potential recessions that they may cause..
There are billions more good, altruistic human beings on this planet than there are greedy, selfish capitalists, i'm sure of that. How long will we let the stupid and emotionally retarded minority control us?
anybody who enjoys making money from money is lacking imagination, they fail to realise that after a certain point money and possessions no longer contribute to ones happiness, all you need is love. If everybody read a little about how the financial market works instead of monging out to x factor then we would have our revolution.
Entire Counties are Bankrupt, the Biggest Bailouts worldwide in history. Biggest gov spending budgets in history, uncertainty in all gov AT ALL TIME HIGHS; the reserve currency (US dollar) is declining every day, astronomical money printing. Countries around the world are in decline, along with their Real estate, commercial Property markets & retail sectors. Gold /silver/ other precious metals the “people’s security” is at all time highs & will go through the stratosphere
I just laugh.. You were so used to your miserable lifes that now you not even know what to do. Brazil baby.. Brazil! Everybody said that the WORLD would felt this crisys, etc etc.. RÁ! I´m just ok here, again.. laughing..
If the Glass-Steagal act were still in place (put in place after the first great depression to prevent banks from being involved in risky investments) this crisis would never have happened.
MINOR CORRECTION: what is ommitted in this video is that in fact the reason for more defaults when prices plummeted was NOT due to homeowners moving out for fun, but because they couldnt afford it due to the house price being used as collateral against remortgaging for so many people
need to expand on fannie and freddie as well as the federal reserves role (which you briefly mentioned) as the root cause of everything. also, it was the credit default swaps that really blew up the market, the losses from the housing bonds were really not all that bad. CDS's turned a crash into and implosion,
the only peace of information missing in this video is that these constructions were made in full knowledge of their risk, but the risk was offloaded on the tax payer through Fanny Mae en Freddy Mac. The coercion on the tax payer as a final 'buyer' of this crap is essential in the whole flow. No one would have bought them if there aw not a politician at the end who could shove the bill on the tax cattle under threat of force.
Q: Why the houses that the banks have for sale generate an oversupply, if they are the same houses that prevoiusly were on the market (and that no one would have bought in the first place if it weren't for banks intervention)?
FumTech 2 days ago
Don't forget that when Obama bailed out the too big to fail, the "bomb" was passed back to the tax payer. And the too big to fail where rich once again.
canadianmerchant 2 days ago
good work here
jessyjessy4 1 week ago
love the video man
MrJonkelp 2 weeks ago
Where did it go wrong then? When loans were given to irresponsible people? How to stop doing that?
ohedd 3 weeks ago
@ohedd the birth rates are declining in US and Europe. it means the demand for houses drops (since there are no people to live in houses). the house prices drop, so they are sold cheaper. since they are sold cheaper, investors are already loosing money, meaning that they have to cut spending in their other investments such as car factories ETC. making people loose their jobs. and a person without a job is not able to pay for his house and looses it to the bank. it's a spiral of credit.
iDeathpool 3 weeks ago
@ohedd the way of stopping this is either re-thinking the whole system, or somehow increasing the number of people in some country by letting in immigrants, or encouraging cityzens to have more children.
iDeathpool 3 weeks ago
@iDeathpool Ah you're right. And then it's the whole issue of paying for everyone's social security when they get old.. We need to make sure we don't bail out the banks to keep them from making the mistakes of loaning money to irresponsile people, because they are pretty much guaranteed a bail-out from the government at this point. Also lower taxes so people can afford to save their money and pay for their social security.
ohedd 3 weeks ago
@ohedd social security is not really a big problem as long as people pay more taxses than they use social (even countries with high social like Sweden still keep this proportion, in the US social security is very low in comparison to Europe). and bailing out banks using public money does suck, but sadly is nesesery if we don't want a crysis like in the '30 - people literaly not having money for food. the fiscal responsibility of banks (AND the people) is a topic for a whole separate forum.
iDeathpool 3 weeks ago
@iDeathpool Sweden is getting older as well and the way it looks today, there's no plan on how it's going to work out in 60 years, even though it's paid for through taxes. Don't you think that not bailing them out would scare them from taking the stupid risks of loaning poor people money? It sounds to me like people needs to take more responsibility for their own actions - where, to whom and when they invest. If the government helps cleans up for everybody, the money will run out.
ohedd 3 weeks ago
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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 3 weeks ago
For a crisis solution, see the funny and optimistic video at: youtube.com/watch?v=fslmey589jE
cosacov 1 month ago
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People on YT are smarter than stupid US government!
TWSceptic 1 month ago
Comment removed
TWSceptic 1 month ago
Europe is in part3 of this video
TheIvomendonca 1 month ago
now they just need to put that ingenuity that got the working system back to work to fix the broken system to get a working system back
floydstephman 1 month ago
if congress wasnt dumb and removed the legislation put in after the great depression this problem would never have occured. silly neoliberalists your voodoo economics dont work.
Zenithteal 1 month ago
Or just find something else to use leverage on, meaning find something else investors could invest in for decent returns. Oversupplying 1 market dosn't mean you oversupply all. It has been tradition of calling this world for a casino since you have been able to invest in anything, for example the weather. They could make safer company shares for one example. Or the tresurery could have increased rates to decrease the amount of easy loans and increase the probability investors would invest in USA
Jubiixd 2 months ago
Only a stupid investment banker would make a mistake as foolish as this. He could easily drop mortgage rates to prevent the over supply of houses, thus solving the whole problem.
2k11bomb 2 months ago
This well done video does explain the credit crisis. What people need to understand though is that the government is broke as well. There is NO way in hell that we can even hope to pay our massive debt. So the question is what happens then? We economically collapse, that's what happens. At that time there will be no food stamps or unemployment checks. Prepare NOW. Not to do so is negligent and ignorant. You have been warned!!!!!!!!!!!!!!!
TheCOMMONSENSEMEDIA 2 months ago
HIs voice is so annoying >___>
efroggys 3 months ago
It needs to be pointed out that this end isn't normal and was called out over a decade before it all crashed by real economists specifically those from the Austrian School.
ZombieX13 3 months ago
Everyone is to blame, not only the bankers.
Everyone who bought a home and thought it would always rise is just to blame.
Plus, the people who had no money and bought a house they couldn't afford.
SENTRY000 3 months ago
This isn't too bad, a tad simplistic, but there were a few more aggravating issues. The advent of NINJA loans, banks allowing buyers to purchase loans with no money down, when you used to have to put down 20%. Easing the rules made more potential buyers. That was the bubble before the pop. After the defaults began, banks reset lending standards, and the were more homes than qualified buyers.
nickburnin8 3 months ago
we need more education like this one to high school kids across the nation, less banker fraud on its own citizens by the financial instutions
jkykwong100 4 months ago 16
@jkykwong100 The guilty ones are the dodgy homeowners! Hang 'em high!
TheCentralServices 2 months ago
@jkykwong100 Im in high school and still trying to figure out what to do with my life so im doing my best to get some education like this that will acually help me in life. Public school is just like a assembly line ran by the fedral government to train you like a pigeon so that you will be a drone. Not to mention we learn worthless stuff like angalo-saxon literature.
MooseTomson 1 month ago
Good. You can also watch : Meltdown , Aljazeera. (onYoutube) for who plays the worlds credit game ..
jesus9689 4 months ago
The only thing missing in the video- which is most important -is due to Greenspan's low rates a borrower could get a 4% mortgage loan which will adjust - go up to the market rate- after 3, 5, or 10 years. This is called an adjustable rate mortgage.Greenspan increased the interest rate by more than DOUBLE in under 2 years to 8.25%.This caused even responsible borrowers to default before they could refinance their loans to a decent fixed rate.Also the banks are required by the govt to lend to poor
asuwish0000 4 months ago
Ohh Amazing video on Crisis of Credit.
BusinessesBrokers 4 months ago
nice work
TheChrisnach 4 months ago
they left out the part where the big banks planned not only this crisis but also the multi-trillion dollar bailouts that are also going to be paid by all those homeowners and investors that where not part of the scam
wiseorwiseazz 4 months ago
and nothing changed.. ah america were screwed
88roro11 4 months ago
great explanations! congratulations and thanks!
algloglo 4 months ago
You forgot about the community reinvestment act which forced banks to make risky mortgages. Of course the banks weren't going to be left holding the bag and turned around and sold the mortgages (basically passing the buck)
mtebor 4 months ago
1 HUF = 1000 EUR
sarkanydavid 4 months ago in playlist sarkanydavid kedvencekhez hozzáadott videói
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God loves you, and Jesus Christ is the way to Him. Jesus died for our sins, was buried and rose again on the 3rd day so that all who believe in Him will be saved from Hell and have eternal life. Eternal life is a free gift from God to all who believe on the Lord Jesus Christ.
JesusPaid4You 4 months ago
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GangsterBankster [] c o m
BlindMelonChitlins 4 months ago
Una forma natural utilisima de rueda, a la cual que yo llamo ONUTORO, también debe ser útil para lo mental.
La forma de un simple "salvavidas" bien aplicada puede ser la llave de la evolución universal. Ver fotos en la website:
webspace.webring.com/people/or/ramonetriu/onutoro.html
rrriu 4 months ago
Very nice job, but it scratches only the surface.
To really understand the error in our financial system look for:
"How Money Mechanic and Monetary system Work"
MrPhilos2000 4 months ago
@MrPhilos2000 Or watch the movie "Inside Job". It is more of a documentary than a "movie". Excellent!
hoooooaaaaa 4 months ago
i just learned more from these two videos than i did from a year of randomly reading up in newspapers and online.... good job
g4r8e9c4o 4 months ago
Very easy tro understand, humourous,,,,,,,well done!
WPalakovic 4 months ago
...so basically the reason why the economies are collapsing is because poeple became too greedy?
TheHoboist 4 months ago
@TheHoboist: Yes. That's pretty much it. And the rest of the world has to tolerate it. USA! USA! *facepalm*
ytcomposer 4 months ago
@TheHoboist - no, bankers and corrupt politicans allowed Wall St, IE, British agents to loot the workers (debt slaves of U.S. INC, because this is still a British colony and Great Britian is a agent of the Vatican who claims ownership of the whole planet.
ngonea 4 months ago
@TheHoboist Yes, that is basically what it amounts to. Sadly, we are about to watch absolutely every aspect of our business, culture, and civilization meet the same fate and for all the same reasons.
Dalagastia 4 months ago
Neither a borrower nor a lender be,
For loan oft loses both itself and friend,
And borrowing dulls the edge of husbandry.
Vote Shakespeare 2012!
eleutheromaniac 5 months ago
this is great, but you forgot to add that the proper response to this is to bail out the people who caused the problem so that only every single fucking person in the entire fucking world OTHER than those who caused the problem ends up loosing out. wait a minute, what? fuck you obama and every other retard who agreed to the bailouts
yngvaibucketrucci 5 months ago
funny how yall depicted sub primers with bunches of kids and smoking cigs lol
missmith0529 5 months ago
Deceptiveness will work sometime only . Any work should be based on some ethical values.
danam4buddy 5 months ago
Good job, I have tried to explain it to people...now i will just show them this. there are only so many pieces of pie to go around...thx
trishseal 5 months ago
Or you go to a good school...
jaries12 5 months ago
I like the part where broker is kicked out :D No Thanks!
ratulupadhyay 5 months ago
amazing video !!very well explained..cleared all my questions!!
virengu 5 months ago
And i still dont completely understand it all. But thats ok. All i need to know is that, well, everything in this video is reliable...unlike our leaders, both financial and economic
bananaman123445 5 months ago
@bananaman123445
It is very important to try to understand it all, because as they say, the devil is in the details.
Money for the economy and people, is like blood for the body. Without it we die quickly.
Fractional Reserve money is like poisoned blood for the body. It has in itself the agents to eventually kill the economy and transfer ALL ASSETS TO THE BANKERS, including government assets.
SEARCH ---> Debunking Money - 1 Myth and Machiavelli so you can in a few minutes understand it
etniks69 5 months ago
@etniks69 fucking right man. thanks alot. check out desteni.co.za and equalmoney.rg i think youl find it uite interesting. thanks again for the link to this videos
MarcusDuffy1 5 months ago
The most important piece of the puzzle is not even mentioned. The Fractional Reserve Banking System allows Private Banks to create money out of nothing. and charge interest on it. HE MISSREPRESENTS "LEVERAGE". ACTUAL LEVERAGE IS THE MULTIPLES OF TIMES A BANK CAN LEND OUT ITS BASE CAPITAL.
Bear Sterns bank had lent out 34 times its base capital when it collapsed in 2008.
THIS IS THE MAIN PROBLEM before all the others he describes.
Instead of clarifying the issue he perpetuates a MYTH.
etniks69 5 months ago
Please make a video on the current crisis!
masterstroggo 5 months ago
VERY well done and thank you for this public service.
davidvine 5 months ago
We are an interesting generation..
first we saw downfall of Communism
and now
We can see the downfall of Capitalism....
In the words of Sheldon from Big Bang Theory 'What is right, what is wrong... How can one know' :P
dhingchak123 5 months ago
Very nicely done, but a couple quick points you may want to consider. The mortgage brokers did not have any hand in ddeveloping the new mortgage products (SIVA, SISA, NINA, NR, NINJA etc) and I would love to see you add a piece on how some of the lenders actually developed these products and then created the CDS to insure against them knowing they were going to implode and made millions. Specetacular work
johnchime 5 months ago
dawm men you make economy look easy... can you please make more videos explaining economy for the non economyst? thanks!!!!
radelgratereaux 5 months ago
Your video is awesome! Really well done! Can't wait to see what you will create next.
rebpouget 6 months ago
@rebpouget Tottally agree, please more videos explaining more in economy!!!
radelgratereaux 5 months ago
All thanks to low interest rates. Got it.
jasonofcompsci 6 months ago
Thinking about all stupid chicks and dudes around the word who dont know a shit about this...
swedishmetalupyours 6 months ago
Superbbbb !!!!
GREAT work JJ :)
meetpram1987 6 months ago 24
Superbbbb !!!!
meetpram1987 6 months ago
The Salesmen and the Manager who sold to unworthy homeowners are now jobless. Thanks to your greediness, it overpowered whatever you learned in College.
xllenz 6 months ago
haha brilliant when the houses flip over!!
djiggawhat 6 months ago
It's really good, but it totally neglected the role of governement.
audrey1053 7 months ago
@audrey1053 Let me fill that in for you. The Govt passed a law back in the Clinton days to make banks supply mortgages to low income high risk people in order to boost home ownership - Fannie Mae and Freddie Mac become the biggest mortgage suppliers in the world on the back of this Govt created situation. At the same time Govt blocks any regulation of CDOs because the banks and Greenspam convince them that nothing can possibly go wrong. They also remove all limitations on bank leverage. BOOM.
T1Brit 7 months ago
@T1Brit What I wanted to said is...Or Jarvis just wanted to keep it simple and did not want to put a jugement on political issues or It's just trad Americain to do like the governement is not doing anything.
audrey1053 7 months ago
I knew that the poor people will screw up the world some day !
zmolix 7 months ago
@zmolix The poor did not screw it up per se. The people with low or no income were enticed into taking up loans which they subsequently could not repay once the interest rates were lifted. No rational and prudent government would promote such a ridiculous program. This bubble was supposed to happen and the establishment of fannie mae and freddie mac provides clear evidence. The middle class bears the loss while the wealthy sweep up all the cheap houses on market. Clever scheme by the elite.
Dejz06 6 months ago
Very well done.
dhinz23 7 months ago
cheers for vid mate helped with exams
tomds99 7 months ago
Very educative....Thanks.
ErlWable 7 months ago
What people should take out of this lesson is this. The Monetary system is obsolete.Watch Zeitgeist Addendum and Zeitgeist Moving Forward and you will learn even more on how e are all getting scammed as well as learning more on what we can accomplish if humanity decides unite and solve most of our problems.
Soonerg2121 7 months ago
I'm a complete noob with this... what do they mean when they say "the investor calls up the homeowner to tell him his investments are worthless."
Who are investors? And how do they relate to homeowners.
Gamezero05 7 months ago
@Gamezero05 - investors are people that make a living by buying things (like company stocks, raw materials, property etc.) and selling them when they're worth more.
During the mid 2000s, many investors bought things that later decreased in value (eg: a lumber store that later couldn't sell wood because existing homes saturated the market). Since many homeowners also save money in the form of mutual funds (a bunch of investor-selected stocks) their investments became 'worthless'.
landongendur 7 months ago
@Gamezero05 In the case of most ordinary people the investment was a 401 K plan which they put all their money into so they would have a good pension. The 401 K supplier is the investor who chooses where to put all the money that people pay into it to get the best interest on it. When the CDOs went bad, people lost all their savings and their pension too.
T1Brit 7 months ago
does anybody know where can I find an econometric ( quantitative ) model involving something related to the current banking crisis??? It does't have to be something state of the art... I need it for my dissertation. PLS !!!!!!
kla7848 8 months ago
I like this video.
jasperwillis5385 8 months ago
Crisis of subprime is very cautious.
jonathondixon859 8 months ago
Thank you for this video. This video is data about crisis of credit.
claircote4416 8 months ago
Your video is great.
minami935 8 months ago
Thank you for sharing.
kopi5896 8 months ago
all comes down to greed really...
tommy34543 8 months ago
problem with debt is, there is no underlying ASSET to begin with. LOL.
nafism6969 9 months ago
what a beeeeeeeeaaautiful explanation. i hope the lecturers at those universities look and learn.
nafism6969 9 months ago
good video...!!
SixBillion 9 months ago
I showed this to college students when I was teaching about financial system as substitude. Video had a great sucsess! I got only good feedback.
KurreOravainen 9 months ago
Great vid, I also recommend the Zeitgeist films for a more in depth look at the failings of the monetary system =)
smpxix 9 months ago
@smpxix I feel like those film have truth to them, but are for lack of a better word; Bullshit. You can find better information on youtube in videos such as this one about topics that are relevant without any mention of some New World Order, or religious corruption. Sure they're corrupt, but if you'll put all your faith in something that isn't real, what would you put into something that actually is?
TumisHumis 9 months ago
Very nice.
themoneygene 9 months ago
Excellent video, explains the subprime mortgage fiasco well to a layman like me. Heres the big question? How do we fix the mess were in and how do we stop it from happening again? The financial system will always have it's element of greed. And the govt. relies so heavily on this system of banking! Until the greed is removed from the equasion this will happen again! (dot com bust, subprime mortages), whats next?
beatman62301 10 months ago
@beatman62301 next is a thing called derivatives ;) you will have alot of fun investigating what they are ... the derivative bubble is going to be the true cataclysm
carenza6969 9 months ago
I made a really short 45 second video explaining the dangers of the Federal Reserve. Hopefully with such a short message it will wake more people up in this age of sound bytes and short attention spans! Check my uploads and spread the word!
federalreservedebt 10 months ago
Amazing
OliverAyto 10 months ago
Video forgot to mention that those "sad" crying investors and bankers personally made billions of dollars so who fukn cares if their companies failed. CEOs made hundreds of millions of dollars each; then when their companies failed the government bailed them out. Genius.
MrDaNiElKuNz 10 months ago
@MrDaNiElKuNz HA! nice one.
YaronYT 9 months ago
@MrDaNiElKuNz
"CEOs made hundreds of millions of dollars each; then when their companies failed the government bailed them out. Genius."
Only borrowers who were in negative equity should have been bailed out, not the lenders.
NearAbbeyRoad 8 months ago
This has been flagged as spam show
As Far as I'm concerned Banks are one of the most negative entitities in the world. I've done enough education on my own to know its true, and that the whole credit system is scam. But the way the things are currently operating, we area all subject to its rules unfortunately, and must use the corrupt system.
BTW, I recommend these guys to you guys for credit repair. They are fantastic in doing all the legwork, and very cheap to boot. Call them at 888-338-3875
addiebauneww 10 months ago 6
You should create more of these type of videos. They're great and very educational.
evreazn 10 months ago
awesome, so the reason once again for economy collaspse is GREED
vaccumtube10 10 months ago
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und3adg4ming 10 months ago
That's all....
TheTitaki 10 months ago
why am i paying to go to school ??
i hope this guy is teaching somewhere
mindyfully 10 months ago 106
@mindyfully
If school costs you money, you are living in the wrong country.
Janusha 5 months ago
@Janusha what is the worth of something you dont pay for ?
mindyfully 5 months ago
@mindyfully
So.. you would rather pay then ?
The result is.., that those that cant afford, have less opportunities in life.
Janusha 5 months ago
@Janusha see the nice thing about where im from is that they are going to lend money to anyone willing to go. So basically will comes before money.
mindyfully 5 months ago
@mindyfully
I know Canada has a perfectly fine system. However countries like England and USA dont.
Janusha 5 months ago
@Janusha here we agree
mindyfully 5 months ago
Comment removed
eightypuff01 4 months ago
awesome
xknowledgeisfreex 10 months ago
@dariothompson111 Sounds a little too good to be true.
oizz 11 months ago
If you add this credit scam to our political system scam where banks and corporations finance political campaigns,you end up with homeowners looseing jobs and homes while banks and politicians get rich. Weve been robed leagally and no one went to jail. Experience demands that man is the only animal which devours his own kind, for I can apply no milder term to the general prey of the rich on the poor. Thomas Jefferson Government is suposed to protect us from theives not protect them from us.FAIL
dapop1001 11 months ago
So what about credit default swaps-I thought they helped hastened the boom to bust cycle?
Jonchess 11 months ago
2:00 "He calls up his buddy the investor to sell his CDO, but the investor isnt stupid!" lmao
ULTIMATEACE8 11 months ago
there always terrorist. Blink! every one free Mar bars
Insomaniaartist 11 months ago
The banks take no initial risk, they put up nothing for the loan, the borrower created the funds for the transaction, the bank only risks their fraud being discovered.... (and thats the O SHIT moment for the banker)
You can see this by the fact that banks are strictly forbidden (federal reg) from lending depositors funds/ and their credit, so they lend the borrowers credit back to borrower.
The banker created the problem, not the ignorant home owner....the banks knew the home owner would default
Dre4dwolf 11 months ago
This makes me sick :/
herbivore007 11 months ago
Leverage turns good deals into great deals :)
maaslax8 11 months ago
@maaslax8 only if it goes ur way. otherwise, it will turn a good deal, into a nightmare.
nafism6969 9 months ago
Civilization must not be allowed to crumble into chaos and mass dislocation for the sake of fraudulent paper. If we had a real president, he should have already issued an Exec Order forbidding foreclosure of primary residences! The E.O. would have a provision for means testing to determine what the homeowner can afford, even if it's only 10% of the original payments. No accruals or penalties for relief! The hedge funds deserve no sympathy. Bring back Glass-Steagall and nullify all derivatives!
InfiniteMushroom 1 year ago
In the stock market this is called "investing on margin." if i remember right, this was one of the triggers for the great depression? Well look where we're going now.
a10fjet 1 year ago
That's what happens when you gamble with debt... When you are looking for capital gains only, eventually you are going to hit the ceiling of that growth. It's unsustainable.
If you focus on cash flow and having good debt that isn't dependent on appreciation, then you don't care if your $300k house is worth $90k because you still get cash for it by renting it.
Never, EVER bet on prices to rise, you'll get burned. Focus on getting cash flow and interest, any appreciation thereafter is a bonus.
Forsakren 1 year ago
Gov IS evil. They FORCED banks into subprime (RACISTS!!!) and INSURED them (FREDDY & FANNY) or the fake rise in home value? I guess this is the statist version. Its not false, just 2/3 is left out.
Dauist34 1 year ago
35 bankers watched the video
Joker6149 1 year ago
Anyone who thinks that bigger government can stop evil bankers are idiots. Big bankers and politicians are not rivals and will never be.
madass888 1 year ago
holy shit...I actually understood this lol, although I hate stupid financial system shit aka the scam that was invented by some assholes...but...somehow you gotta give em props for coming up with a freaking complex system that only benefits them...kinda like you give some mad evil scientist props oO...or maybe it just shows the sad truth of how easily the mass can be tricked...nice vid.
mongolenpup 1 year ago
Somehow the randroids and libertopians seem to come out of the woodwork for every one of these videos.
phuturephunk 1 year ago
Although, the thing which really let the problem spread were the credit default swaps, basically insurance on CDO's and loans so that invstors will view them as safer. But since the banks that sold the CDOs and the credit default swaps didn't keep enough cash on hand to pay the insurance if it was ever needed. It made it so that they lost even more cash on every CDO that went belly up.
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merrieminchewchd 1 year ago
Couldn't have said it better myself! - Residental Broker.
guess5250 1 year ago
There is also a responsibility to the general public as to how much credit you use, in balance with your income. We can't just point in 1 solitary central direction, and blame that for everything. Central banks are here, to stop excessive saving and deflation, to promote investment and spending, however they did a too good job, in the last 20y in USA
3waybar 1 year ago
Most billionars would sell their own mother for ten bucks = greed.
TheoneGodfather 1 year ago
fascinating and brilliantly explained video
blzm8 1 year ago
you all fucked up! ha! ha! XD
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tiblon1 1 year ago
The main cause is the human desire for something better (or "greed) which is part of human nature to compete. The problem was that there was no regulation. There are of course problems with regulation, especially too much regulation, since it can also bog down the economy, but some agency, somewhere, was supposed to keep an eye on banking policies. Lack of regulation let Madoff get away with millions and investors lost millions. There is a similar scenario here.
redarrowhead2 1 year ago
We need banks... despite the terrible credit crisis that has transpired ..... the benefit of having banks far exceeds the cost of potential recessions that they may cause..
iamborghini1 1 year ago
@iamborghini1 Savings banks, sure. They operate on money they actually have. This idea of crediting money that doesn't exist is what we hate.
RottenSquash 1 year ago
There are billions more good, altruistic human beings on this planet than there are greedy, selfish capitalists, i'm sure of that. How long will we let the stupid and emotionally retarded minority control us?
jasonmann23 1 year ago
anybody who enjoys making money from money is lacking imagination, they fail to realise that after a certain point money and possessions no longer contribute to ones happiness, all you need is love. If everybody read a little about how the financial market works instead of monging out to x factor then we would have our revolution.
jasonmann23 1 year ago
“HOW MUCH EVIDENCE DO DOES ONE NEED TO BE CONVINCED”THIS IS A REVOLUTION.
BullionLimitedotcom 1 year ago
@BullionLimitedotcom I'm up to start one. I'm sick of the things we let them get away with. We all need to join up.. somehow.
RottenSquash 1 year ago
Entire Counties are Bankrupt, the Biggest Bailouts worldwide in history. Biggest gov spending budgets in history, uncertainty in all gov AT ALL TIME HIGHS; the reserve currency (US dollar) is declining every day, astronomical money printing. Countries around the world are in decline, along with their Real estate, commercial Property markets & retail sectors. Gold /silver/ other precious metals the “people’s security” is at all time highs & will go through the stratosphere
BullionLimitedotcom 1 year ago
ahuahuah
I just laugh.. You were so used to your miserable lifes that now you not even know what to do. Brazil baby.. Brazil! Everybody said that the WORLD would felt this crisys, etc etc.. RÁ! I´m just ok here, again.. laughing..
lixeir0 1 year ago
Gotta have those tulips, ya know!
emmy1cat 1 year ago 6
@emmy1cat: Bingo!
pbageant 11 months ago
If the Glass-Steagal act were still in place (put in place after the first great depression to prevent banks from being involved in risky investments) this crisis would never have happened.
artmancheno 1 year ago
MINOR CORRECTION: what is ommitted in this video is that in fact the reason for more defaults when prices plummeted was NOT due to homeowners moving out for fun, but because they couldnt afford it due to the house price being used as collateral against remortgaging for so many people
vanja123 1 year ago
what is missing is you caused the lending? Who brought the basics for housing investment?
The Government caused the crisis, beacause they set the rules, like low interest rates, Freddi and Faennie and Ninja loans
READ AUSTRIAN ECONOMICS !!!
Windchilly 1 year ago
@Windchilly
NOBODY WANTS TO PAY UNREAL PRICES FOR PROPERTY! TOO HIGH PRICES - the last treaks from HUNGRY SHARKS, which
lost profit from colonization, "peacful" wars and warking class expluatation!
NOBODY WANTS FUCKING EATH IN THE SHARKS COUNTRY! LIES! NO MONEY COLLECTION FOR THEM! WE NEED to take OUR MONEY BACK!
We should take it FROM HUNGRY SHARKS!
Latvianstyle 1 year ago
How did the government play a role in all this?
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christmariyan 1 year ago
good voice
880728leonjf 1 year ago
very good job
Seanbijanjohn 1 year ago
need to expand on fannie and freddie as well as the federal reserves role (which you briefly mentioned) as the root cause of everything. also, it was the credit default swaps that really blew up the market, the losses from the housing bonds were really not all that bad. CDS's turned a crash into and implosion,
anryth 1 year ago
I love it... And I wonder what app did this guys use to make such a beautiful animation?
cratesors 1 year ago
I guess i see why it's better not to make your mortgage payments
boipinoi604 1 year ago
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I like this video. Thank you for your sharing. Hope to see next your video.
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this just shows how we have all become slaves to the financial system
Talentz92 1 year ago
Thank you. Your video is great.
saijai587 1 year ago
Fuck the banks. They've been fucking us for years and it's sweet poetic justice to see them get fucked for a change......
fasteddie847 1 year ago
this video is great! it makes all the terms understandable. thanks!
Ic3yColdFir3 1 year ago
the only peace of information missing in this video is that these constructions were made in full knowledge of their risk, but the risk was offloaded on the tax payer through Fanny Mae en Freddy Mac. The coercion on the tax payer as a final 'buyer' of this crap is essential in the whole flow. No one would have bought them if there aw not a politician at the end who could shove the bill on the tax cattle under threat of force.
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aweinsto 1 year ago
nice one....
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