Sub Prime Mess Explained Beautifully!!!

[mrscarrey]

Um, 93% of this crap happened from PRIVATE companies - not from govt companies, like Fannie and Freddie. That's made up BS to try and blame the govt for PRIVATE BUSINESS UNETHICAL PRACTICES.

[1Rhythmystic]

At 04:40 "Office of Czar of accounting":::: "Blow Me"

roflmaopimp.

[Jonchess]

What is/was the total value of the sub-prime loan market in the US surely it is not as much as the amount of the bail-out of the US banking system?

[bandclinens]

love it guys!!! I wish they would show this on the News so that people would stop blaming poor people and put the blame where it belongs. I've been trying to explain this to a family member for years and he still doesn't believe me. Granted, he does watch Fox exclusively. Maybe that explins it.

[lnfiniteKnowledge]

This was actually an extremely accurate depiction of what happened.

Excellent!

And it was about six months before shit really hit the fan!

[CardinalRaker]

Only time I want to hear or see or read about a banker is in an obit

[Tomminightmare]

Dam good predictions mate.

[gotmyfingerrscrowsed]

I liked the Norwegians hat :)

[1965ace]

You missed the most important part. The Government encouraged secondary market, the GSE's Freddy and Fannie and the CRA. The Government encouraged the bad loans and created the secondary market rules that caused all the irresponsible lending. THAT IS THE POINT, GOVERNMENT CAUSED IT.

[spriggangt]

@1965ace Government was undoubtedly a huge player, no argument there. But to they caused it, that they are the root of it, I would say is incorrect. In my opinion it starts with the people who bought houses knowing they couldn't pay for it. Either willingly ignorant at best or knowingly unscrupulous at worst are just as much the root as the government. Everyone is trying to make everyone else the scapegoat for this rather than fixing the part they played in it.

[1965ace]

@spriggangt You are correct but it is impossible as a group to rely on all people to exercise self responsible restraint. The only way to right this is for banks to assume full responsibility for future loans and the free market will regulate the risk. The net result is bad loans will not be made to people who cannot afford them. Maybe it sounds unfair to the progressive communists but a merit based society encourages exellence while being fair stifles achievers and rewards irresponsibility.

[spriggangt]

@1965ace It is impossible to rely on all people agreed but this was far from an issue of a "select group" of people who borrowed irresponsibly. Had the group of people been small it wouldn't have caused a issue this big. The root of the issue goes back to America's lust for everything and in world with out fiscal responsibility people do what they want till it's too late. America's people, her businesses and Government all need relearn what those who lived through the depression know so well.

[1965ace]

@spriggangt That is why I'm saying the CRA by the government took the risk out of lending and permitted irresponsible lending by rewritting banking rules (secondary market). Just because some of the people were allowed to be irresponsible the rest of the country does not have a lesson to learn. We knew this was happening and the government wouldn't stop. The federal government is gonna learn a lesson and the voters are going to teach it.

[spriggangt]

@1965ace It wasn't just "some people" it was a HUGE number of people. It was US the people who those people in office, it was US the people who borrowed irresponsibly. Were it just "some people" who borrowed irresponsibly this wouldn't such a huge issue but tons and tons did. Just because the government had a part to play in this doesn't absolve the many many many people who borrowed irresponsibly, or the institutions that took advantage of the Gov. lackadaisical stance on the matter.

[1965ace]

@spriggangt It was the ignorant masses who elected these professional politicians because of their lies. Especially the poor ignorant democrats who can't see the liberal hand outs from the government are what keep them in bondage (mortgages for everyone). Lackisidasical stance? It was the government that CREATED fanny and freddy who in return made many of them rich. End government greed and you solve the problem. No bank would have taken the risk on their own.

[spriggangt]

@1965ace Government needs to be held accountable but so to do the people ignorant enough or simply crooked enough to borrow when they couldn't afford it. I am not trying to absolve the Government of their part in it, I am only saying that every party involved was at fault and blaming the whole thing on the government is irresponsible.

[spriggangt]

@1965ace The banks would have and did take the risks prior to this. The type of loans that created this issue have existed quite a while now. I know this since I work for a bank (chase) in their mortgage center. They didn't create fanny and freddy. They were owned and operated by investors until the government found the crooked accounting going on then they took the reigns.

[spriggangt]

@1965ace Anyhow that isn't so important, basically what I am saying is you take out ANY of the three main players, the borrowers, the bank or the government and suddenly it's not a problem anymore. The issue exists with everyone involved.

[atongsantosi]

Greed, things the last decade went incredibly fast.  What about the Credit Bureau they have a great part in all of this mess, their words are investors God. If they say thumbs up they buy it.......

[Jeffff23]

hehe well done!!

[coldrisk]

Just never forget where the scene started. A guy giving a loan to a guy who knew he couldn't pay it and neither of them cared.

[velusdarkbind359]

Exactly. You are 100% accurate. We can blame the government all we want, but people do not realize how connected we are. We do NOT live in a zero-sum economy. Which means that, yes, indeed, what we do affects the guy next door in a small, but real way. By being an unscrupulous asshole with our finances, we have deprived the world of stable economy. But the law should protect us from people that supersede the rights of others, as it tries to do already. So ultimately I blame the government.

[velusdarkbind359]

Correction, I meant we DO live in a zero-sum economy.

[tiki2188]

@coldrisk

Its true, no one will want to admit it...but some American people are to blame as well. I've known some personally, and heard stories, of buying crazy houses and being told "dont worry about it" or even "the government will take care of it" Me? I'd say noooooooooo. I know, we like to live outside means, we want a nice big house, but holy hell...all the fat cats should pay for this but I hope people learn their lesson! be smart! Dont live so outside your means!

[easyrider24857]

F*cking brilliant, thank you for this. If only the media would tell it like it is. more chance of seeing pigs fly.

[salahuddin786]

How stupid can you get?

House Prices ALWAYS GO UP - this is TRUE but only in the LONG TERM which is at least over a DECADE and they go up in a certain fixed manner - they do NOT go up SUDDENLY with MASSIVE SPEED as we witnessed - by 200% in 5 Years as then they come DOWN at the SAME SPEED until it comes to its NATURAL/REALISTIC PRICE based on AVERAGE INCOME of the nation.

So the Property Bubble of the West FUCKED UP the WEST and some of the World!.

How fuckin stupid are the banks,Govt etc

[timedilations]

Sorry, there is no perpetual motion machine which generates an ever-rising path for prices of homes.

It's thinking like this that inflates the bubbles.

[Chatranx]

Just hear the part: "Boss, u are a genious" ... "I know"....

Actually, their personal assets are very good... some ppl got very very rich... I guess that from now, we will be more careful, even if the market is not...

[SonofLiberty039]

Just to clarify - The price of all houses may increase with inflation, but the real value of a house does not increase unless there is demand/supply situation in which buyers have increasing demand AND a legitimate ability to pay. In an economy with no bubble there should be enough construction to maintain an essentially constant price unless you live in Manhattan or some similar situation. In an inflationary situation houses will rise no faster than any other commodity.

[marky1333]

Yes and all these bad loans have been insured by (Credit Default Swaps)and not just on houses, bad bonds, bad loans $64 Trillion of them and guess what that insurance has just been passed on to the US taxpayer. Yes $64 Trillion!!!!!! America is going suffer financial collapse in months not years

[TruthPolice2008]

Finally someone explains the subprime market issue so that anyone can understand this methodology. Great job!

[nkawkawkaw]

Ha ha ha ha ha! What a useless Fed, Treasury, Rating Agency and George Bush! Shame on them all!

[obmij17]

yeah would be funny if i had a chance ot read the bloody thing.....slow the transition down

[donodina]

may i suggest the bloody "pause" button

[ProtaganistLee]

This is a brilliant well put together video. I really thought this world was too far economically advanced to see another depression but it seems that I am wrong. I really hope we don't see one. And what's caused all this? Greed.

2vintage68 got it spot on when he says the same players in the video want to dump all the losses on us, not them. If the world economy melts down then we are all fucked.

[snipo101]

nj man, that was hilarious.

[simplulo]

Oops--no mention of the federal government's role, e.g. Fannie Mae and Freddie Mac. At least the creator got half the story.

[MisterGreen777]

Half the story? Look at when this was created sim... 6 months ago! Long before Fannie, Freddie, Lehman, Merril and all these politicians now screaming armageddon... this was when they were still yapping about "The economy is sound, go out & buy more stuff." I'd say it was a hell of a forecast...

[primesteak]

That was bomb.

[inapcha]

brilliant!!!!! haha

[PatrickWJ]

thanks for covering this...

this press in the US forgot to...fucking assholes, I'm gonna fuck some shit up!...sorry.

Great Video!

[szzlrfrank2003]

If these sub-primes fail. Who do we pay our mortgages to.

[mongobobo]

da gubbament

[2vintage68]

Yea, This video would be funny except for the fact that the corrupt process so accurately depicted is in the early stage of bringing down the world financial system and the same players depicted in this video are right now hatching schemes to saddle you and me with all the losses. Think about that as you suffer through the Great Depression starting in 2009.

[dangusdoug]

Thats was funny but very true. Greed and dishonesty is destroying this great country.

[scudder91]

that was ace. we all spread our crap around. adam smith did a brilliant riff about "raising money by circulation" in wealth of nations. no one ever learns.

[greatmovieclips]

Very crude drawings but funny, especially the ending.

[ThaSilverSurfer]

haha brilliant!

[alphadawg44]

The best video I have seen to date. Well done.

[Joyriser]

Absolutely spot on! Spot on my friend! You could not have put this better! They have been getting away with it for far too long! This time enough are finally,thats FINALLY waking up to the "creative accounting" that is our economy here in the UK and in the US!The proof that this is going to be a biggy is already there with banks failing and governments panicking! People have made money out of a situation fuelled by unacceptable greed! As they escape, a huge dollop of shit has hit the fan!!

[ITILII]

wont see this in the major media...why, because it's the TRUTH

[frontier1701]

I was a Broker for 20 years and this is exactly how it works.... Fantastic explanation!!!

[declarkson]

Geez that is funny but sad too, no wonder we're all cryin ...........

[naverave]

lol fantastic ending

[TheAnarchist33]

Thanks for making it understandable for those of us without accounting diplomas! ;)

[Majellanz]

Excellent

[boncrys]

funny as hell, I'm still cryin