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Old 05-13-2019, 09:13 AM
Status: "Any Russian written here is for the benefit of trolls" (set 12 days ago)
 
Location: Proxima Centauri
4,645 posts, read 1,913,407 times
Reputation: 5071

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I watched the documentary with great interest. I took notes and came up with 29 separate facts that were directly or indirectly related to the crisis.


Since I paid such close attention to the video, I must note that the documentary barely touched upon the fact that these carelessly conceived mortgages were bundled into securities and rated AAA by the rating services.


Thank you for pointing out the documentary.
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Old 05-13-2019, 09:15 AM
 
8,818 posts, read 3,853,782 times
Reputation: 1713
Quote:
Originally Posted by Tonyafd View Post
I watched the documentary with great interest. I took notes and came up with 29 separate facts that were directly or indirectly related to the crisis.


Since I paid such close attention to the video, I must note that the documentary barely touched upon the fact that these carelessly conceived mortgages were bundled into securities and rated AAA by the rating services.


Thank you for pointing out the documentary.
And those 2 points were absolute keys!
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Old 05-13-2019, 09:50 AM
 
Location: Riding a rock floating through space
1,762 posts, read 488,707 times
Reputation: 4373
Quote:
Originally Posted by RationalExpectations View Post
LOL! No mainstream economist believes in tying the quantity of money to a shiny metal you dig out of the ground.
It kept everyone from printing money out of thin air and adding it to a debt that will never be repaid, and kept everyone on the same standard of value. It's a hell of a lot better deal than we have now, which is a runaway train heading for the side of a mountain.
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Old 05-13-2019, 09:57 AM
 
8,818 posts, read 3,853,782 times
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Quote:
Originally Posted by duke944 View Post
It kept everyone from printing money out of thin air and adding it to a debt that will never be repaid, and kept everyone on the same standard of value. It's a hell of a lot better deal than we have now, which is a runaway train heading for the side of a mountain.
No, not better than what we have now. Not nearly as many of us would get rich if we were on gold. There is not enough gold to go around. Too unwieldy and not easily exchanged/transferred.

Now one could certainly create fiat based on gold. But then there we go again....
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Old 05-14-2019, 10:03 AM
 
Location: Washington state
5,282 posts, read 2,672,144 times
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Quote:
Originally Posted by Hoonose View Post
And those 2 points were absolute keys!
Both points were well covered by the movie The Big Short.

People like to blame a lot of the problem on loans going out to people who couldn't afford them. It's inferred that those were the people who caused the problem and that could be true. However, we need to understand two things about that. 1) Those people wouldn't have gotten those loans without the help of greedy bankers and 2) once the housing crash hit, it it cascaded and hit almost everyone who had a mortgage, whether he could afford his loan or not. And that is the big thing.

You can't ignore what happens to fools and poor people in this country and think you're immune from anything that's happening to them. If you have a mortgage and you lose your job, you, also, can't afford your loan. People with good jobs and mortgages they could afford were complacent in 2008 and unaware of the situation they could be put in.
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Old 05-14-2019, 08:26 PM
 
4,684 posts, read 2,567,300 times
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I was told to watch the inside job supposed to provide a pretty good perspective on the events that took place.
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Old 05-15-2019, 06:33 AM
 
4,684 posts, read 2,567,300 times
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Quote:
Originally Posted by SWFL_Native View Post
I was told to watch the inside job supposed to provide a pretty good perspective on the events that took place.
Here is a link to the inside job that pretty much undoes the “hero” perspective of Hank, Tim, and Ben in HBO’s docuseries. I’m pretty sure you can pickup on the “political bias” that each documentary brings. Develop your own opinion but mine is that the truth is somewhere in the middle of these two documentaries.

http://watchdocumentaries.com/inside-job/
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Old 05-15-2019, 10:43 AM
 
Location: plano
6,433 posts, read 7,969,982 times
Reputation: 5640
Default Fed Gov leaders and lying citizens

I blame the real estate crisis on both parties in DC and citizens who took advantage of a bad policy to file dishonest mortgage applications. The banks and AIG and rating agencies made things much worse than they had to be but without the liar loans, inflated home appraised values and mortgage brokers supporting the uber high risk loans this would not have happened.

I had no idea that FHA etc had been authorized by both parties to buy up liar loans where no down payment was required until this mess propagated problems through out our financial system rocking my first 12 months of retirement living. The flawed logic that to give more access to home ownership to those not fully qualified through zero down, no doc loans stating higher incomes than was true then bundle these high risk loans together and call them low risk makes zero cents. Alan Greenspan was on board with this too. I am assuming there were loan applications signed by citizens with the encouragement of the loan officer and with the knowledge that every body was doing it. The fed gov approved this process but without borrowers mis stating things to get a loan they know they could not pay over a long enough term to flip the house worked until it didnt. When it crashed our whole system nearly came down with it. The breath of the risk was due to banks and rating agencies but would not be possible without the liar loans.
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Old Today, 11:10 AM
 
3,875 posts, read 3,210,195 times
Reputation: 11000
If it (the recession) wasn't such a damaging period in American history we could all have a good belly laugh at the incredible amount of political and corporate hubris it took to get that economic albatross up and flying. The criminal dynamics of that period will most likely be frosted over with the usual crap-speak that supports the notion of plutocracy as a well oiled system bringing prosperity to all.

Like the Vegas casinos that parade the winners for all to admire, while tossing the losers out of the picture, the American economy is largely about winners and taking risks. And there were plenty of winners in the 08 debacle, with taxpayers covering the risks, and corporations taking the winnings. And most of us, incredulously, are still enamored of that system.

Unlimited debt, and a worsening rise in mindless consumerism seems to be the order of the day for most of America. People have asked what could have been done to avoid the kind of economic disaster we experienced, but few were ready to accept the notion that these events are simply an integral aspect of crony capitalism, a deadly and decaying plutocratic system which stands as an opposite of theoretical capitalism..
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