Financial Derivatives Explained in Ten Minutes - Re: Derivative Markets and the 2nd Great Depression

The Financial Meltdown Explained in Ten Minutes

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  News & Politics

[pacom590]

8.14 to 8.25, Excuse me sir, but wasn't a mister Baraq Obama an attorney involved in getting those laws passed by the Carter/Clinton administration? Please Respond.

[JiveDadson]

You may be thinking of his economic adviser, Larry Summers. Obama was young.

[CaptainToucan]

YOU'RE ONE OF THE CRAZIES

[hackersgalley]

4 layers of derivatives...worse than inception

[john galt]

very true.. i was wrong about derivatives... they were originally good tool.. but have "polluted" by blatant abuse on wall street... greedy fools they are.. i feel derivatives market is way outa touch with reality these days.. but your right i shouldn't give up certain finical freedoms

[Zurb Sporbs]

I think by forcing, he means, laws were passed allowing companies much more breadth to give mortgage credit, and in the public securities markets, the company that did not engage in this activity lost market share, revenue, and profits to other public companies. And when you do that as CEO, you will not be CEO long.

[Zurb Sporbs]

I have traded derivatives in my personal account. Only stock options though. But, I know that options on currency options exist. Talk about risky!

[Zurb Sporbs]

You are right to be mad about the use of your tax money to bail the institutions out. However, why would you want to reduce your own freedom to buy financial insurance product (derivative)? Instead, you should outlaw the government's ability to use your tax money to bail out institutions. Since governments are corrupt and don't care what you think, how will do this? The second amendment.

[Zurb Sporbs]

I am fairly certain they also realized that government had passed laws that allowed themselves to backstop the housing market, greatly reducing the credit risk in that market. If your dad always pays your speeding tickets, will you ever stop speeding?

[skiguns4ever]

This is an excellent explanatory talk

[ChrisMillerLite]

very informative but blaming Government sponsored affordable housing acts as forcing the banks to make mortgages that they otherwise would not have made is not entirely correct. Armando Falcon, Director of the Office of Federal Housing Enterprise Oversight testified that these programs had little effect on the banks lending. Banks would not engage in any activity unless there was a profit to be made. They saw the dollar signs of linking up derivatives to mortgages and ran away with the idea