Bailout 9: Paulson's Plan

What Paulson wants to do and why I don't like it.

Category:

Education

Tags:

• credit
• crunch
• moral
• hazard
• paulson
• treasury
• bailout
• finance

[elM4gor]

you shoudnt make such a videos, you cant understand economy at all, because economy is social science. Markets are about beliefs and hopes. This is just useless mathematical exercise. If markets are on descending spiral all assets comes to be priceless, so without bail out the amount of problematic CDOes would be enourmous. So bail out is great to start markets again. But there should be also some systematic changes to prevent such a situation in future.

[khanacademy]

Paulson's bailout is almost identical to the what the Japanese did 20 years ago. Look into how that turned out. We need to get capital flowing back to the real economy. Pumping money into zombie banks with shrinking assets won't help (and will only suck money from real projects)

[andrewedwardjudd]

hang on here! If i am a little old lady saver with the bank i am recorded in the books as a lender to the bank or a risk taker with the bank along with the other liabilities! How come i get to be some worthless thing who deserves to be wiped out??? Otherwise you are doing great work! ;-)

[khanacademy]

You won't be wiped out because your deposits are FDIC insured.

[MCsunday1508]

Thank you very much for making these videos, I believe Im begining to have a better understanding of some of the terms that are used in the debate about the economy and what the key issues are. I will certainly watch the other vids aswell.

[Arlemagne]

They can't liquidate D's assets? Maybe they can try liquidating doze assets?

Thank you. I'll be here all week. Be sure to tip your waitress.

[arlenschmidt]

@elM4gor

Have a cry

[frother]

@joehlbm

He said in previous videos that the smelly CDOs are specifically packaged to contain the highest-risk mortgages that are likely to default

[derirfan]

I am about to write an essay on the whole bailout issue and luckily found ur Channel which gives a very intuitive introduction to the topic!

Thumbs up!

[bry3921]

This gangster is bald, tall, white, and gravitas in his voice. Pulls up the truck to haul away half a billion, then comes to the people as the shameless rats finish up the ruination of two nations, 3 page document in hand demanding 700 billion for greedy devils. Hand it over! He should have yanked a child from a mother and hacked her arm off, threatening to do the next. "epistemological"? please, think papa and baby doc in Haiti.

[joehlbm]

Sorry, but I'm very new to this but something about this scenario seems wrong to me. The CDO's are representing mortgages. The government is the only party that has the ability to buy these, incur the loss for a longer time, but hold them untill their value reaches the hold to maturity date. If the CDO's represent a mortage on a home, that has some value, although not in this market, couldnt the government hold them (DCO's) untill their value rises to the bought value?