how greed led to the global economic crisis (& insurance ponzi scams etc)

http://jrfibonacci.wordpress.com/2012/01/18/greed-economic-crisis/

NOTE: the following text is just a summary. The video below details a demonstration of the conclusions or presuppositions referenced below.

Greed is a form of fear. When one fears losses, one hopes for gains. When the hope for gains extends beyond one's awareness of risk, then one can be surprised at a sudden recognition of risk. When greedy, one neglects risk. When greedy, one is afraid of recognizing the actual risks and so one is vulnerable to pretense.


Gamblers study risk, accept risk, and accept their results as the results of gambling. The greedy hope for someone to guarantee them opportunities without risk, then blame others for the natural results of taking naive risks, then hope for sympathy and salvation from others.

The video essay touches several subjects including investor psychology, the similarities and differences between casino gambling and gambling on real estate and stock markets, how greed can be considered the source of the global economic crisis, and how the insurance industry is a legally-protected Ponzi scheme.

www.TheDominOILeffect.com

www.OneEyedKingsWealthClub.com

http:/jrfibonacci.wordpress.com

Category:

Education

Tags:

• gambling
• greed
• greedy
• ponzi
• ponzi scheme
• risk
• crisis
• insurance
• scam
• aig

[jepst41]

The real estate crisis was caused by liberalism. "Social justice" drove the real estate bubble. When the Democrats took over Congress in 2006, they pressured Fannie Mae and Freddie Mac to mandate that 55% of all mortgages be given to people below the median income! Since a lot of those people don't qualify, Fannie and Freddie removed the qualification. They discounted human nature. It blew up in their faces. Lucky for them, GWB was at the helm.

[144jr144]

@jepst41

Thanks for your reply. As one of many who forecast the real estate decline, I may have been watching for it earlier than you. 1st, it was not specific to the US. 2nd, in the US, it began in mid-2005 in the sprawling desert metro areas of Phoenix and Las Vegas. Why? I assert that the rising price of energy was the primary economic factor, such that as monthly summer electricity bills in Phoenix passed $300, $400, & $500, that reversed the boom. Also, HGX peaked in '05. Do you know HGX?

[ChucksterJax]

@jepst41 "Lucky for them, GWB was at the helm." Glad you pointed that out. You don't have to look any further than YouTube.

Search for the video "Home Ownership and President Bush"

[jepst41]

@144jr144 Yeah, I did. I left real estate in 2005. I was, at the time, a neural net modeler, with a PhD in Mathematics & Statistics. Now I've gone into traditional IT. I make more money, and I don't have to uproot my family every time I want to change jobs. Looking forward to more of your videos!

[jepst41]

Liberalism can ignore reality, but it can't ignore the results of ignoring reality.