Subprime US Banking Financial Crisis Explained Simply Part 2

[toddclemmer]

So in other words leftists within the government used the "poor" to collapse the housing market.

[unknownfakename]

The second video lesson lost me big time... :(

[FreeFOREXautoROBOT]

i got 100% free EA... 87% real wins

[rhrful]

An excellent, non-frilled explanation of this issue. Refreshing to get clear, concise info without music background etc. Thank you.

[mofoheltahskeltah]

Thank you for this insightful video.

[Catchetat]

Is the securitziation thing the CDO stuff they talk about?

[kobrakai213]

wow. you are a genius. i understood everything you said. I applaud you!!

[SpdRacerT]

GREAT JOB EXPLAINING THIS CRISIS!

[virindi73]

Huh? I need charts... or pictures drawn on an ink board at least...

[brunoblindado01]

Oh My god.. we lost!

[grayshorts]

Why cant the news papers or TV pundits explain this stuff like you do?

I have spent hours listening to these people and understood very little and in 7 minutes you cleared all my questions up.

[irisqi]

Cheers!

[sugutash07]

Hey David I just want to let you know that I admire the fact that you are very articulate and knowledgable regarding trades, Foriegn exchange,... and everything else you do.

Becuase of your knowledge and ability to share, you have allowed dimensions to create itself in my brain regarding Finance, and it continues to grow as you teach me.

I appreciate it and thank you

[ozzycriss]

Also notice last year all the experts on fox etc kept saying all is well , They knew what was going on , and where positioning themselfs , while the average smuck was still plowing cash into the market . Retail goes next then commercial will go

[vostev91]

dude you are a genuis, im doing an essay on the financial crisis and this helped me alot to understand better thanks 5 stars lol

[kanellla]

You are the best:)!!!!Thanks for your lessons so much

[TadRapidly]

So the Fed sets things up a certain way knowing that the greed of the bankers will eventually engineer their own demise and then JP Morgan (Fed) can go in and scoop up the remains at pennies on the dollar. is that about right?

[TadRapidly]

There's a lesson here, folks!: Don't spend what you don't have. If you don't have enough, get more. If you can't afford it, you don't deserve it. If you think you deserve it anyway then you have been "brainwashed" by popular culture. Live simply, save instead of spend, count your blessings and you will experience a whole new paradigm of peace and plentitude.

[Fightoo]

AMEN!!!

[whythebailout]

Again thank you so much for this non biased review.

[cliffwalkinfool]

Is there any reason you appear to be wearing a prison uniform in this video?

[whythebailout]

I gave you a negative, but it was kinda funny. Hopefully you were being funny and not making any allegations.

[FastMoneyTrader]

that was funny! lmao....i'd give you thumbs up but they took the rating off....keep up the good jokes....

[cliffwalkinfool]

U. they took the rating off

I. Interesting, 'cause I got six (count 'em) thumbs down ratings on this one -- enough that I need to click "Show" in order to see it on my own browser!!

I must be getting rusty or something; they don't laugh like they used to.

Either that or I touched a raw nerve, here!!!

Six thumbs downs!!! Haa ha ha ha ha ha ha haaaaaaa!

Wheeeeeee!

[FastMoneyTrader]

i still think it was funny and i'm sure david would think so too..

[cliffwalkinfool]

U. I still think it was funny

I. Hee, hee, hee, hee, hee, hee, hee, hee!

= = =

U. i'm sure david would think so too

I. He's too smart not to; that was my initial impression, which was my primary motive for writing it in the first place. However, in the sweat of the moment, when I noticed the quip was hidden (I was too much of a noob to know if it was his doing or from the six thumbs), I quickly dashed out an oblique apology on his home page, just to make it official: I meant no harm.

[hotboiuofm]

I am curious to know how the banks' combing all these pools relate to economic unrest? 700 bailout?

[wdflannery]

Then, are different types of shares created, that relate to exposure to default loss. Is it really necessary to explain this? We just need to know the basics.

So, then someone (Citibank) borrows short term to buy these mortgage backed securities. Do they pay a dividend? Where are they traded? Who collects the mortgages? Who pays the dividends?

Please re-do. Break it way down. Avoid jargon. Explain the basic mechanism without frills, variations, etc.

When do credit swaps come in?

[wdflannery]

Way too complicated. Way too much jargon. Don't give a poor explaination of something complicated and then say it's not important. Keep it simple without extraneous stuff.

So, they bank pools mortgages to created a mortgage backed security (MBS). Then is sells it? To whom? As an entity, or are shares sold?

Who is responsible for collecting the mortgage payments for the mortgages in a MBS.

Does an MBS pay a dividend? Who pays it?

To be continued.

[followyourgut]

Hey Dave, just a couple of questions..? Where exactly did the leverage occur? Did the financial institutions leveraged over the SIV´s?

Thanks

[stevohorn]

My explainantion..

Ordinary folk being screwed over by fat cat financial "wizards" playing with other peoples money.

As per friging normal!

[brillur]

Greed. Unregulated greed..

[eeshanbc]

Hi Dave, this an informative episode. However I would like to know whether, US Requires a Standard similar in the lines of SOX for Mortgage, aimed at borrowers alone? Will Fiqu Rating be suffice if Banks just follow them cursorily? In India the Market is regulated in a manner, which minimizes the chance of exposure towards such crisis. I also believe that the US Govt. should have stepped into the picture much before.

[Jeddawy20]

i got lots of quistions , what determin the fiqu score , and how u become cridet worthy ?

[okydarmaputra]

Thanks for the explanations dave, you give a clear picture bout what's currently happening in the market. Just a short question how did the financial institutions that issue s/t securities while on the other hand they invested in l/t securities manage the mismatch or the maturity gap between those two securities? thanks heaps

[InformedTrades]

hi, Thanks for the comment. Your question lies at the heart of the problem as the institutions had to obtain new financing every time their short term loans expired. As the crisis has escalated many have not been able to obtain that financing. Best Regards, Dave

[okydarmaputra]

Alright, that's cool. A simple suggestion, I think it'd be better if you also explain the roles of insurance companies with their credit default swaps that jeopardized the financial system even more.thanks again

[Jzeaser]

nice choice of wardrobe-looks like your broadcasting from jail

[lfg323]

this is so simple. kudos for the SIMPLE EDUCATION.

[InformedTrades]

glad to hear it and thank you for the comment. Best Regards, Dave

[therealcaptobvious]

since we're talking about lenders, how do these institutions have so much inventory? Marketing a new product in mass quantities, were they using any economic forecasts or anything of the like before they created so much toxic paper?

[InformedTrades]

they did have economic forecasts called models for determining what the likely hood of the loans being paid back was. Unfortunately for everyone however their models have proven to be very wrong. Best Regards, Dave

[therealcaptobvious]

me thinks they were intending on using the inventory to further push speculation on real estate. Like a game of musical chairs with who got left with the debt if they were not sold. The fundamentals of the economy like a lowered value of the USD should have triggered some caution. It's hard to say, but $85bil debt with AIG is A LOT of value to mismanage. Just my 2 cents. Thank you for your response. :o)

[InformedTrades]

yes there are a lot of people who feel that way and its definitely not a stretch to see why. Best Regards, Dave

[FloridaRaider]

nicely explained. Thank you

[dismutased]

This is great. I'm learning so much more than I could have trying to decipher this system from text or news snippets.

[danimc1]

Dave,

Elementary my dear Dave...Great job in breaking it all down into layman's terms. I've been in the business over 30 years and found your video well articulated.

danimc

[InformedTrades]

glad you liked it and thanks for watching.

Best Regards,

Dave

[resevile36]

So SIVs were borrowing on the short-term to buy MBS/ABS/CDO from firms such as Bear Stearns?

[yoschroe]

It's remarkable that hours spent in front of the television can offer the average American viewer very little understanding of the current economic crisis. These six to seven minute snippets, on the other hand, serve to clearly explain the credit crisis in a manner that any interested viewer could benefit immensely from. It's a shame that CNN, MSNBC and other news networks don't show these clips to the American viewers. Thanks so much!

[Emotionengne]

Very nice....I really like it.

[banziracer]

excellent information much respect to guys like you for sharing the knowledge the eventually leads to significant wealth.

[InformedTrades]

Hi Banziracer, Thanks for the compliment and for watching I am glad you like the videos. Best Regards, Dave

[gaud123]

Hey Dave, thanks for the videos. But what do you mean by "issuing short-term debt" and how does that allow a company to buy the securities?

[InformedTrades]

Basically I mean companies will borrow money short term at low interest rates and then use that money to buy longer term debt that pays a higher interest rate. Hope that makes sense. Best Regards, Dave

[gaud123]

It does. Thanks Dave :)

[pwanidibent]

Good job David, i have benefited from your lessons thus far.Don't no your motivation for doing this but whatever it is, just keep it up cuz as u know, knowledge is power and i feel empowered by the wealth of knowledge i now possess from your videos.Simple, straight forward and educational,a job well done.Thanks.

[InformedTrades]

thanks for the comment and for watching I am glad you liked it. Best Regards, Dave

[chasleo]

Haha. You are Nostradamus... Did you really see it coming?

[InformedTrades]

Hey Chasleo, Thanks for the comment but I can't really take credit for that as we were pretty well into the crisis when I did this video;-) Best Regards, Dave

[naverave]

thanks for the videos dave. I also really liked your website and joined it since I am interested in learning abt stock investments. There is a lil problem I was having. Its not easy to concentrate if your going to talk for that long. Its not because of the way you present but its jus a natural thing. May be you would want to use a mini white board or something just to keep the viewer watching the video. Anyway keep up da gud work n thanks for sharing the power of knowledge :)

[InformedTrades]

Hi Naverave, Thanks for the comment I am glad you like the video. Also thanks for the input I will keep that in mind for future videos.

Best Regards,

Dave

[eddiezoom1]

Thanks Dave. This is great. Very informative and easy to understand.

[InformedTrades]

Hey Eddiezoom1, Thanks for the comment am glad you liked it. Best Regards, Dave

[andresmolinski]

I think you did a great job there. I live in Europe and because of the impact on the global economy and European stocks I was interested in the American situations and its details and I thought you did a great job getting the message across.

[InformedTrades]

Hi Andresmolinski,  Thanks for the comment am glad you liked it. Best Regards, Dave

[garit32]

These videos are very helpful. It is difficult for "unsophisticated" investors to piece together the mess that is the subprime crisis from random newspaper articles, and your videos give a holistic view in a concise manner. Bravo.

[InformedTrades]

thanks a lot I am glad you liked it. I feel that the major financial publications to a great job of over complicating things unnecessarily so hopefully with the internet they will be forced to stop doing that. Best Regards, Dave

[AirforceMook]

I've seen information regarding these before, so I had a basic understanding of them. I like the fact that you're putting out these financial videos, however. It's good to try to explain complicated financial instruments to us all so we have a better grasp of why this is happening and how to avoid it in the future!

[InformedTrades]

Thanks a lot for the comment I am glad you liked it.  Best Regards, Dave