Sub-prime crisis - what next in banking? Credit crunch / sub-prime crisis and mortgages, interest rates, share prices, house prices. Comment by keynote conference speaker on Future of Banking and Financial Services - Dr Patrick Dixon

[pjvdixon]

Sub-prime crisis has since become a national debt crisis, which in turn could turn into a second global banking crisis - but this time most governments will not have enough money to bail out their banks, and will be unable to raise more without paying impossibly high interest rates because investors will fear not getting their money back. Therefore expect some nations to print cash, deflating their currency and their debts, providing "free" money to prop up banks.

[ManufactureBelief]

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[Rob187ok]

Nothing is safe. They want to bring the system down. They will keep trying tio chip away at it in any way they can until it fails and the problems get real bad

[AdmiralBoom76]

You don't know anything, just like your audience.

"I'm not an economist or a banker" LOL! Like if you were it would make any difference. "when I started to lecture hedge funds". If only you knew how stupid you sound!

By the way, Dixon, you're talking about fraud in its simplest form!

[TheQuesoviejo]

Once upon a time buying a home in the USA

required a 20% down pmt. Various government legislators & special interest groups complained that lenders discriminated against minoritys & low income families. Lenders came under increasing pressure,

& new kinds financial products were devised.

For a while it worked and everybody made money. As long as prices were rising you couldn't loose. It's the nature of all bubbles to burst eventually.

to lend to this demographic

[rupertmja1]

No - regulation is not the answer. There is enough regulation - trouble is, people trusted it and therefore, went in head first without thinking. There needs to be less regulation, which would force the punter to do a bit of research and come to better educated decisions.

[thouston7]

If there was regulation in place to keep people from getting massive housing loans without verifying their income, this would have never happened.

[acrowBruto]

visit imsuccsyst . blogspot . com or watch my videos and know how to be a successful manager

[ne1l007]

Very true. This is exactly what is happening, this is why we are seeing prices in certain commodities surge such as oil, gold.

[zillypaul]

@ne1l007

lool.. the price of gold is going up because paper money is bull shit, and more and more people are coming to realize it. You think gold is high now? Keep watching.

[ne1l007]

I think the price of gold has reached it's peak. The next general trend will have a negative gradient.

[PeelTower]

I never heard so much said about so little by someone so unknowledgeable.

We know that the rich lent to the poor and sold on the debts to the unsuspecting. There is one and only one answer to prevent this sort of thing again and that is regulation. It won't happen and the greed merchants who gamble with others' money will continue to con and lie their way to personal wealth at the expense of the rest of us who actually work for a living.

[bigfishn]

When the bill came, I decided not to tip the waiter because he was wearing an Obama T-shirt. I explained to him after i ate that I wasn't going to tip him but I was going to redistribute his tip to someone that I deemed more in need, specifically the homeless guy outside. He stood there in disbelief, then angrily stormed away.I went outside, gave the homeless guy $5 and told him to thank the waiter inside.Wonder how the waiter liked that "change".

[gonadsintexas]

New unearthed evidence,obama says subprime even after it failed was a great idea, and we have this subhuman picking the drapes for white house, America is going to hell in a handbasket

[whythebailout]

This gentleman may be correct, but this video is not very informative.

[TankMonster105]

While Obama & the Democrats were cashing their big paychecks from FannieMae, McCain and 18 other REPUBLICAN Senators loudly predicted this disaster and tried to STOP it.

Their letter (5 May 06):

tinyurl (dot) com/3q6dc9

(fix the "dot")

Note that NOT ONE DEMOCRAT signed this letter.

It was published in the NY Times, LA Times, etc.

Where was Sen. Obama that day? Running for President, too busy to care.

He did no favors to those unqualified borrowers. The chickens came home to roost.

[MagikPoo]

My Dear Dr. Dixson you are a goldmine pardon the pun. I was looking for a REAL way to explain to my family what this whole credit fiasco was all about and you sumed it all up in a simple answer no one knows exactly what they are doing. Thanks doc im cured.

[pjvdixon]

Thanks very much.  Patrick

[geejun30148]

Great stuff Patrick, I wish I saw this last year, it would have reinforced my vague knowledge of what was happening .

Anyway guru, what is your view of the next 6 months ahead.

[pjvdixon]

Thanks - look at the latest videos - turqouise button top right. Patrick

[tellthetruthh]

HISPANICS were the major group to hold SUBPRIME LOANS. HISPANICS were given loans when other groups could not get them. Now they want to be bailed out of their mess!!!If they weren't so greedy they would not be in this situation. Most of them didn't even have SSN oe EINS.Now BUSH has made it possible for them to get bailouts without SSN or EINs!!!S0illegals aliens are milking the system again!!! While Americans pay the bill!!!

[lfg323]

you are so right on this. it sux that my people were sold into these type of loans due to ignorance. cash is king, cash is king. its all a transaction business!!!!!!!

[edward1melnik]

Tellthetruthh, change your username to -Idon'tKnowwhatI'm saying. I'm not hispanic,I'm european temoporarily residing in US & I know that you're totally wrong about everything you wrote. First of all, Hispanics were not given preference to get Mortgages, everyone who could breath and had $20 could get it,secondly and most IMPORTANTLY no person may get any loan even for 1 dollar & especially a Mortgage without SSN. Same as no person may get any SS Benefits without SSN.Check at SSOff before liying

[valhala56]

Great reply edward to this rabble rouser tellthetruthh. I suspect that as the US economy implodes he will be a loudmouth rabble rouser scapgoating Hispanics. This kind of thing always happens with angry people looking for a group of people to point their sticky fingers at.

[investur]

You mean the foreigners who have been lending America for 30-40 years are paying for it when America collapses. Most americans have been living beyond their means on the backs of non-Americans.

[tvklaus]

The subprime crisis was spotted, f.e., in 2003 by the german magazine "konkret". But the first who spottet the general development of, let us say, capitalism, was old good guy K. M.

[BubbFromGEI]

The subprime crisis could have been spotted one or two years before it came, using the most simplistic analysis. Anyone who missed it must have beeb rather thick, or was blinded by greed. Packaging toxic waste, only looked complex, because it was designed to blur the risks. Stay away from what you do not understand.

[pjvdixon]

I am not so sure actually, having met a few. Banking products have become so complex that they are very hard to keep track of and CEOs of entire banking groups have vast numbers of issues to manage. This is why it is now such a risk for a non-executive director to sit on a bank board. They are liable for things missed - but hard to keep watch on every front.

[detriplea]

offcourse the CEO know exactly what they do.... and the problem is that they care more about the profits than their emplyees understanding of their work

[jurgenphd]

inaccurate bullshit

[southdakota1001]

Question: Will all of this lead to world-wide economic collapse?

[pjvdixon]

Possibly - biggest impact comes from combinations of events..... at present for example sub-prime crisis in combination with soaring energy prices, food prices and so on.... If there was another independent event... for example a big US military strike into Iran, or an outbreak of a mutant form of bird flu killing several thousand people, then the combination would be powerful. If there are no more destabilising events over the next 12 - 18 months the global economy should weather these storms

[southdakota1001]

So, if the US bombs Iran, will that then be the final straw?

[pjvdixon]

No..... I am just saying that the global economy is vulnerable at the moment to anything that would add to the feeling of uncertainty. Any further shocks to the system will have a larger impact if they happen soon than if the same events were to have happened - say - two years ago. The future is about emotion, and emotional reactions to future events are more important than the actual events themselves. Markets are driven by mood.

[DeltaNC]

I find this video very true, all to often I see people working away in ignorance. It seems most people are only concerned with taking home a wage packet at the end of the week and have no real interest in what it is they are doing.

[pjvdixon]

Thanks - Yes there has been a lot of very short term thinking encouraged by annual bonuses that bear no relation to longer term impact of decisions made.

[DeltaNC]

"You get what you measure" is one phrase I always remember from university. I had to make a talk on metrics within software project management.

My bank account is with RBS. I was asked a few weeks back if I would complete a short 9 question survey in my branch. When I expressed some dissatisfaction with the service I receive as part of my response to question two the staff member diverted the conversation, apologised for the problems, and then terminated the survey.

[Barcoachguru]

I enjoy your presentations. I'm watching and learning.

Thank you,

Laura

[pjvdixon]

Thanks Laura for your kind comments. It is time consuming to do it all and to keep satisfying over 11 million unique visitors to my sites. Comments help me to understand if it is worthwhile - please do help others to find what YOU think is helpful by always remembering to rate videos (top left star button) and your comments also help search engines work out what adds value. Thanks! Patrick Dixon

[pjvdixon]

Not yet - what do you want me to record?

[Nisreen4HKJ]

Thats absolutely true

Many complicated financial products especially certain types of complicated derivatives will threaten the stability of many financial institutions in the future, but still no one can deny the fact that big bank holding financial institutions and big investment companies that its big shareholders are the real shadow rulers in this world cannot play it wrong,these big gurus hire the real genuis people who knows what these complicated products are and where the economy goes!

[mosullivan511]

Google, The Creature from Jeckyl Island and the work of Edward D Griffin. Fractional Reserve banking so favors the owners of Central Banks and has nothing to do with the pensioners/owners. Imagine a business where you can leverage yourself beyond belief 10/1 and then when your bad investments go awry, you simply inflate them away to the populace. The profits of this system are not realized by the masses. I love this country. The only way this will ever change is when people wake up to it.

[LaRoucheisright]

Lyndon LaRouche is the only one with a solution that will save the real productive economy, by putting a firewwall between the speculative debt that is collapsing, and the savings of the average family. larouchepacdotcom

[kng863]

banking is inflating worth by printing money. banking is bailout by the fed.

[pjvdixon]

Well try to imaging a world without banks. Life becomes very tough. Just talk to those in the poorest nations in slum areas most of whom have no bank accounts and no means of protecting their wealth, and no means of raising capital. They have no protection against being robbed of their entire wealth on a daily basis. Banks are vital to security and well-being of every nation. Patrick Dixon

[LaRoucheisright]

You are correct to make the point about the necessity of banks. The only legislation on the table now to keep homeowners in their homes and save the banks, so we will be able to rebuild the countries infrastructure. Look to LaRouchepacdotcom and read the progress on passing"The Homeowners and Bank Protection Act"

[ubornthick]

Patrick ,many poor people in poor countries are now even poorer on account of monies theoreticaly borrowed them [via their corrupt governments]that somehow found their way back[like spawning salmon] into westearn bank accounts particularly Swiss ones and from there onwards and upwards to USA via the AAA'S

Poor people need credit unions that keep money and dept within their communities .

The terminology [defying rationality] used by bankers cannot but invite accusations of sorcery

[pjvdixon]

Yes credit unions are wonderful things and microfinance groups also. But we do need traditional banks also - without them for example it is very hard to make business transactions across borders. Corrupt governments is a different issue altogether I think. Patrick Dixon

[ubornthick]

Banks[at the moment] are the modern equivalent of pirates ,making blackbeard look like a philanthropist

How can banks help the world when they themselves are aproaching insolvency through their own greed and stupidity ,paying themselves bonuses on inflationary gains that were inevitable until the baby boomers retire and wish to draw out their savings, which for a time inflated investment vehicles.

[pjvdixon]

That is a little unfair! For a start, 70% of banking shares are owned by pensioners....they are run on behalf of customers and shareholders and if these groups feel the bank is run badly, they take their money elsewhere. Patrick Dixon

[ubornthick]

Patrick ,Robin[G] hood probably gave to the poor and i dare say Black beard looked after a few old age pensioners ,if banks did not appear to look after the present pensioners how would the working generation be persuaded to buy into their ponzi schemes ,only to walk the plank in retirement ,fools never take their money away from the promice of greater returns .

How many pension funds have bought into the AAA'S

[ubornthick]

I can explain in one sentence what banking is about ie.

exchanging money-[aces] that comes in, into bonusses for bankers and jokers for deckheads

[HAZMOLZ]

Patrick, what are your thoughts on accelerating change? - do you agree with futurists such as ray kurtzweil and the technologial singularity. His theories may be exstistentially based on current rates of cange, but in doing so, propose a pretty bleak future (economicall, environmentally, socially etc.) please help

[pjvdixon]

Every generation things the world is changing faster but it depends on your perspective. You could argue for example that the speed of change in former Soviet bloc nations during the collapse of communism was faster than most social changes seen today. Greatest changes are usually during war or political chaos. If you leave in a peaceful nation it is unlikely you are experiencing much change at all in comparison.

[pjvdixon]

Thanks very much - many risks remain in global banking due to complexity of products and failure of boards and regulators to understand what is going on. Patrick Dixon

[Nkatsikanis]

Yahoo, good to have you back on YouTube with your wisdom!!! Enjoyed it much.