House, MD - The Real Cause of the Current Financial Crisis

Well, very true but you fail to point out how banks (the big ones like JPM, GS, CIT) are using our own government against us and that through their political connections forced a gargantuan trillion dollar bailout on everyone which if we decide not to pay will certainly result in VIOLENCE. I don't think the police are going to storm the bankers houses any time soon but I'm sure people in default through no fault of their own will be. Your story is too simple.

16:58

Awright, that's lunch.

you're also incredibly naiive if you think banks and evil bankers aren't to blame and that they were just innocents. you clearly don't know how the world REALLY works - try reading some sigmund freud, its a good start. watch some documentaries by tony curtis. you are clearly some old twat who bums free market probably.

"you are clearly some old twat who bums free market probably"

What the heck does that even mean?FYI, I actually do read sources that disagree with me but your incoherent,sophomoric posting style suggests that you're some crank who read an article in the Financial Times or The Economist and decides he now has the creds to call everyone else an idiot. I tried to be as civil and non-demeaning as possible, but since you want to make it an insult contest, you are a pompous asshole.

A salient point that I forgot to mention earlier was, ironically, one mentioned in this video, that default rates were roughly equal in prime and subprime markets, suggesting the problem stemmed mainly from house-flipping in easy-credit-induced bubble conditions rather than fancy repackaging of loans.
"Read Sigmund Freud".
Uh, okay. That's a complete non-sequitur.
I never claimed bankers were helpless innocents, either, just not the key or prime movers of the false boom and eventual bust.

you're the one living in a cartoon world because you don't know what happened lol. im not going to waste my time on here going into how MBS's, CDO's etc.. actually function. You can find that out for yourself. im not going to get sucked into a youtube debate with someone who knows nothing about the intricate causes, and im not gonna write a thesis on here. you just need to open your eyes and learn a lot more about it. start with some finance journals.

You haven't gone into a clear explanation of cause and effect here. I understand basically how MBSs and CDOs work, and their role in the financial crisis, but I have also explained why I think their role is secondary and does not account for the genesis or perpetuation of the economic distortion that resulted in this recession. All you have done is talk about MBS without explaining why investors bought said assets and how the necessary economic distortion occurred in the 1st place.

well. it did. deregulation allowed banks to make and sell loans in ever more complicated financial packages to investors around the world, full of bad loans. the sooner you accept that the closer you'll get to understanding what happened. by thinking that is a weak cause, i immediately recognise you dont have a clue. do you even know why lehman brothers collapsed? do you know how to read balance sheets? i get the impression you have no financial knowledge whatsoever.

Damn. Almost 1500 and I haven't eaten lunch yet.