☆☆☆ - The Crisis of Credit (Visualized) - ☆☆☆

[r33p04s]

Originally Posted by NT OG

Originally Posted by KanyeWestJayZ4life

Originally Posted by NT OG

SuperAntigen wrote:

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NT OG wrote:

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at how this video blames the financial system for being greedy.










Blame the people who borrowed money when they couldn't afford to pay it back.

No doubt the individual people that defaulted on their credits are to blame...




However, the financial system is responsible for the whole situation because they created an incentive for people to burrow.




Comon, they could've easily rejected those applicants that were "risky"...but they chose not to simply because it was all about the money...




I'm oversimplifying the situation but that's pretty much it...

So...




Adam and Eve eats the apple.... Blame God?




I'm not religious btw.

I just didn't like how they didn't place any of the blame on the borrowers.

The smarter person has more leverage. They gave all the poor minded weak peoples loans when they knew they could afford them. Which in ethics is wrong.
With the adam and eve thing, God stated "Do not eat the apple on the forbidden tree." Did any of these financial institutions state anything of the sort. "If you take our loans you will go into default."

The reason we blame the financial markets is because they are 5 steps ahead of everyone else. Now for the most part they are ahead of the uneducated, which is a lot of people.




So....

Adam and Eve eats the apple... Blame God?

If the financial market is 5 steps ahead of everyone....surely they must have seen this whole mess coming right?

If they saw it coming, wouldn't they have tried to stop it?
no one is absolving the people who accepted those loans but the brunt of the responsibility for this mess fall on the people who created thesystem...the banks/investors...without them deciding to package and sell their "risk" there is no mess....if they don't LEVERAGE their position10x what they were actually able to spend on these risky investments this situation wouldn't happen...dumb assumptions and arrogant know it all attitudes(which run rampant in wall st) jumped into something without too much thought assuming things aren't going to change (which they inevitably and alwaysdo)...regardless of what you want to say or argue the majority of the blame falls on the ones who organized this....

 

[ady2glude707]

awesome post! thanks this makes things a lil clearer

 

[illionaire]

Originally Posted by DAYTONA 5000

bump

 

[tbone95860]

Originally Posted by NT OG

Blame the people who borrowed money when they couldn't afford to pay it back too.

 

[mf doomer]

Goodlookin on this.

 

[throwedindagame]

I blame the idiots who bit off more than they could chew.

Mortgages and car notes that are out of your league to keep up with Mr. and Mrs. Smith is not responsible.

 

[toy collector123]

Originally Posted by ThrowedInDaGame

I blame the idiots who bit off more than they could chew.

Mortgages and car notes that are out of your league to keep up with Mr. and Mrs. Smith is not responsible.

Word, i don't see why you need to buy a new 2007 car and not even fully own it...

 

[jcuk3tm0]

bookmark for later.

 

[coogi sweaters]

Home owners are partly responsible, but your ignorantly assuming that every person who was trying to buy a 400,000 house was working at Best buy.

This video clearly shows that the greed these dudes had consumed their rational and logical thought process giving people loans, THEY KNEW could not pay back.

A LOT of people were taken advantage of simply because they wanted to live a better life and move out of the slums. I'm sure there were others who wantedto buy houses just for profit as well.

I find it funny that all republicans preach personal responsibility, but only in the case of the people BUYING the homes and not the people who have the powerto deny them. The lenders are obviously smart enough to know when someone is especially RISKY, yet they didn't care. They were making their money andpassing them off onto someone else.

 

[redrum sb]

That was a good vid.
I actually understood it.

thanks op.

 

[Betonblck]

Great video. Being a finance guy I already knew this but it is great for those that don't have the time to really read up on the crisis.

When you allow people to buy houses with no money down, it's almost like renting. If you tell the average person they can "buy" a million dollarhome and they only make $50K a year, they will most likely buy it, especially if they have nothing to lose(no down payment). For many of the homeowners, it waslike being at a casino and playing with the house money.

Two of the main reasons for the credit crisis are the Federal Reserve(including Alan Greenspan) and the repeal of the Glass Steagal Act.

leverage = Federal Reserve raises reserve ratios and interest rates
Glass Steagall = allowed more commercial banks to get involved in risky derivatives that wouldn't have been able to before. Thus making the credit crisiseven more severe.

 

[rko2004]

I blame the people who borrow and can't pay the loan back. I blame the FED and Gov with their interest rates (Wasn't God against interest rates?). Alltogether there are so many at fault. Sad.

 

[sorkoram]

Look no further than the Gramm-Leach-Bliley Act sponsored by none other than John McCain, written by his economic brain, PhilGramm. Basically taking out the separation of investment banks and commercial banks. By requiring commercial and investment banks to remain as separateentities, the Glass-Steagall Act(passed during a time of crisis) made sure that the markets for products such as mortgage-backed securities weretransparent.

FDR's administration and it's financial dealings is a completely different and LONG story in itself.

Had the secondary-mortgage market remained transparent, buyers of asset-backedsecurities would have immediately known the value of the product they were being sold. Damn the system.

 

[sorkoram]

double post

 

[liljrdn]

Interesting

 

[abstrack]

Great video.

 

[drsfinest72]

credit cards are not good man

you borrow money, if you cant pay it back it can easily double the amount you owe every two months. before you know it you owe 10,000 dollars. when you onlyused 1,000 on your credit card. i say its unfair with these apr ratings.

 

[freddypee]

Great Post....


hmmmm so basically people like me who live in an apartment have nothing to do with why this happened....

dammit man

 

[los cientos]

beast i just learned something

 

[changethegame]

Good *%+ illy...

 

[monday22]

very educational post - thank you

now, can u post a video on restructuring a home loan

.... i need to refinance my house but dont really know how ??

 

[in the line for viis]

Originally Posted by cguy610

and the repeal of the Glass Steagal Act.

Very good point.

As far as who is to blame, I think a little bit can be placed on the lenders, but I think more of the blame can be on the people who accepted the burden ofthese Jumbo, no down payment, Adjustable rate type mortgages.

Think about it: anybody, who's selling ANYTHING is going to tell you that you can afford it. Its a salesman's job to sell, its up to you to research, know your limits, and decide whether to buy or not.

 

[jfmartimcdandruff]

Greedy ppl FTL

Great video, i've been looking into the situation beforehand, and now everything is a lot clearer