- 1
- 678 484
Michael Liparteliani
Ireland
Registrace 1. 01. 2017
This channel is for those that are courageous enough to take a stand towards changing their lives and chasing their dreams.
What is a CDO, CDO squared, Synthetic CDO and how did the 2008 crisis happen
Short description of CDO (Collateralized Debt Obligation) and what caused the 2008 collapse --- 5 trillion dollars in pension money, real estate value, 401k, savings, and bonds had disappeared. 8 million people lost their jobs, six million lost their homes. And that was just in the USA.
#Finance #CDO #Financialcrisis #Collateralized #SuccessExcellence
#Finance #CDO #Financialcrisis #Collateralized #SuccessExcellence
zhlédnutí: 678 905
you just re-edited the big short movie nice!!!
Lol CDO into BTOs bachman turner overdrive 😂
#sadbuttrue
Remind me again, why is USA the greatest country???
at time 4:14 you get to learn that nothing changed and that it could all happen AGAIN... (AND no one went to jail, seriously? No one)
Meh you're bleeping out the r-rated words I'm out. And you're blocked.
Cringe
Shame you've not got more subs, You have mine - expose them, not that it will matter, but do the good that needs to be done.
Amazing, I never knew thew ends and outs of this Disaster. Before my time in the Crooked Market.
Never understood why Obama’s DOJ did not prosecute anyone. I would not have expected Bush or Trump, they think we are suckers. This is when I gave up hope. Too late for me to become a capitalist. Just hanging out in Heavens waiting room. If only I had no children whom I love, I would release my cosmic energy back to the source. This movie is the most depressing ever.
I love stupid people. Somehow you cannot what you make to what you need to pay out per month? Amazing. Somehow it's some else's fault. 😂😊
Your grammar is phenomenal, it really shows what kind of a person you are insulting others with the skill set you have.
@@Xxkiller914 funny how whoever calls others stupid is always the stupidest one
You made nothing Michael, you only put up video clips from a movie. Loser
The saddest part of this film is this part. We shouldn't get complacent. It's a disgrace
The mortgage idiots were perfect.
yea... I'm just not gonna play into the system. I'm keeping my money under my mattress
So the mortage market crashed because people defaulted their loans... and in return the housing market roared and basically made living too expensive to do? Alright then, sounds legit.
The advertisement straight after this - one solution for all traders. 🤦🏻♂️
Hahaha, these scenes are so clichee. Old fat men, thinking about nothing but making money. So boring.
Eat the rich
National debt in 2008 - $9 T. In 2024 $36+ T. And people think there's no crash coming? America pays out over TWO TRILLION every year just on the interest of the debt.
And guess what, soon other dipshits will choke on people's money and the next crisis will arise.
The second downfall of the Roman Empire is coming. It’s just been repackaged and given a different name.
I have to say something unpopular. This is same as saying drug dealers are bad but drug addicts are not at fault. Let's face it. Drug dealers exist because some people want it. Wall street is neither good or bad. It's the same reason as people think Machiavelli/Machiavellian means evil, even though all of them are just pragmatist, tools available to do either good or evil. Just like Bill Gate who used it to mass massive wealth, he also used it to give away half of his wealth. Sigh. As I become middle aged, I wish to hang on to the idealism of my youth, yet I'm also every learning that pragmatism is the realth truth how almost everything works. This is why the young don't run the world, the old don't inherit the world, it's really those who are caught in between that are forced to choose what's right for themselves vs what's right in what they once believed.
The piece of this that’s missing is the 1998 Fair Housing Act that forced banks to give home loans to people who wouldn’t normally qualify. The government assumed that the banks were withholding loans because of racism, and that needed to be corrected. It turned out, a lot of the people that traditionally got turned down for loans really couldn’t handle paying a mortgage. The government expected the banks to just soak these up; instead, the banks just packaged loans that were going to go bad with good loans and sold them off as investments. As long as the default rate stayed under a certain percentage of the total collected debt in any given bond, then everyone could make money. But people started to go nuts with the mortgage approvals because the money started flying around like crazy. It blinded people. So it’s all over, but the Fair Housing Act of 1998 never got repealed. The government never admitted that their policy started this whole thing, and so the policy continues. The banks sort of shaped up, they reined in the insane mortgage approvals, but now there’s always going to be a higher than acceptable rate of mortgage failure, the market is much more risky and unstable than it should be.
That's correct. Barney Franks was the main driver behind that act. The banking queen as Rush put it in a great parody of Dancing Queen by ABBA,. The "red-line" method of eliminating potential borrowers was deemed racist. Who's fault is it that certain groups didn't qualify for home loans? The crash was inevitable and clearly seen by bankers especially the very big ones. Hundreds of small banks closed all around the country consolidating power into the hands of fewer and fewer people. Congress is more corrupt than anyone imagines. And the Federal Reserve is off the charts evil.
Guess the movie didn't mention it because it goes against Hollywood's narrative of painting race based legislation as anything but perfect and absolutely required, damn the consequences
How does that apply to the UK? Where the economic crash also happened?
What? That act was from 1968. It established housing (renting or selling) discrimination illegal. In 1988, they just gave the power of the federal government the power to enforce the law. I looked it up and it specifically states that there can be "lawful discrimination" for the following; people who can't pay the mortgage, people who can't take care of the property, people with bad credit and people suing Section 8 vouchers (though that last one almost reads like there is a lot of grey areas). There is plenty of blame to go around but the Fair Housing Act shouldn't take any blame.
@@Payton3434It sounds like they are talking about the Community Reinvestment Act that pushed banks to meet the needs of borrowers in low-income neighborhoods. It was meant to stop discriminatory credit practices. Ron Paul said the CRA forced banks to loan money to people who would typically be denied due to poor credit.
GUYS STOP WHATS A SYNTHETIC CDO????
And then Occupy Wall Street popped up, to critique the banks and corpos that ruined America's economy. And then the corpos introduced DEI pawns, at the time just social justice warriors, to claim the real culprit was White America, the Patriarchy, cis heteronormativity, whatever they needed to keep OWS fractured and bickering over insipid culture war hogshit as the corpos revamped to do this all again. And now we are here.
IBM and Microsoft
I like when Lewis Raneri thought it up he was actually 33. (Note it was only really allowed by the insanity of Congress in the Tax Reform of the 80s that made it tax deductible and basically illegalized blue sky laws.)
CDO are nothing but bunch of small cap high risk high return stocks that are bundled together to look like psuedo large cap stocks but rating is below senior stocks i.e Blue chip stocks.Of course returns are lucrative but it's nothing but "big ass fart".
Nothing is coincidental.. 🤭🤭🤫
2023, it's coming again folks.....anyone?
2024 here. It will soon but it will be blamed on Russia
We get it, the ones to blame for the crisis were the ones who took loans and didnt paid back: poor people and immigrants, mostly....
fuck people's Mind = money = bond = CMO = CDO = ... = politics = banks
You really should clarify that you stole all of this footage clearly, instead of poorly trying to make it look like you some how made this with only 298 subs
I’m here because of phase 6 🔥🔥
I am trying to understand the synthetic CDO. It would seem to me the collateral supporting the loans (however much there is between the actual equity and mortgage insurance) resides in the CDO but the synthetic CDO is merely a gamble as to the performance of the referenced parts of the CDO. That seems like gambling to me and not real money making. Am I understanding the synthetic CDO correctly?
So according to this video. A synthetic CDO, is when default swaps are pooled together and packaged as a CDO. So think of it like this. The mortgages make up mortgage bonds and parts CDOs. Credit default swaps are like the insurance policy against those CDOs to which if the CDO fails to perform and pay to investors, the credit default swap pays to investors. BUT, the investors have to pay premiums on those swaps(just like actual insurance). It’s those same premium payments that allow the money making from swaps to happen(again just how an insurance company takes premium to cover your risk. Or how your mortgage payments are paid out to investors of mortgages bonds). Now take those SAME default swaps, bundle THEM as a CDO…that’s a synthetic CDO. Just how a CDO full of mortgages pays out to investors because of the mortgage payments from consumers…synthetic CDOs pay out to investors because of the premium payments Swap holders make. So really the SIMPLEST way to put it. Imagine your insurance company took you and everyone else policies…bundled them up, and sold them. That is what a synthetic CDO is
@@RexiRexx87 Great explanation. I finally understand with the concept of insurance. I guess this is why they regulate insurance products and even have insurance commissioners in all the states. Someone has to mind the mint.
@@RexiRexx87 great explanation, could you explain what happened to the synthetic CDOs when the credit default swaps that they were made up of started requiring money to be paid to the short position holders because the mortgage backed CDOs that the credit default swaps were insuring became worthless?
the whores at the rating agency
"Who the hell doesn't pay the mortgage?" Pure business dogma
That was true in the 70s, cause mortages was cheap. anyone with a minimum wage job could afford a house. Not anymore.
@@AllenHanPR Literally this. American corporatism is so blindsided towards reality. They keep extracting more and more profits without thinking that people won't be able to pay their loans anymore. Profits soared while wages stagnated, and they still think that people still pay their mortgages. It's disgusting. I feel sick just thinking about what happened. And the banks couldn't even give a shit. At this point it's pointless to blame the banks. They only operated based on the 40 year old assumption of "who doesn't pay their mortgage?", when year after years, and entire cohort of generation x and millenials couldn't do that shit.
Now I think equity is safer than bonds
if the banks weren't bailed out, maybe a bunch of people - both bankers and customers - would've learned valuable lessons...yes, it would've been painful, but what we're about to go through would've been prevented
They learned those lessons back in '29 but lobbied away all the safeguards put in place to prevent that from happening again. This time they merged themselves so large that nobody could afford to allow them to fail, which basically gave them an open door to rewrite economics in their favor.
Lol if the banks weren't bailed out we would have had it far worse.
As overdone as Hollywood sequels are, the real life sequel to the GFC will be truly massive.
@@Ballcheese289yes but just a temporary fix that history shows us doesn’t work so just keep passing the burden on the next generation
ok mr economist
So how does a CDO filled with "dog shit" get AAA credit rating? That's the real question.
Dud they meet because of the wrong phone call?
synthetic shares.....
I invested in mortgage mutual funds before. It was 1986 or 1987 in a group RRSP with my employer.
Americans blamed it on Greece 😂😂😂
Nobody talks about the N.E.S.R.A. NOBODY will speak of it... Recently updated by the Obama administration to the National Economic Security Restoration Act... Nobody's being told what new UPDATES in the legislation have been added... The N.E.S.R.A will happen... This Economic fallout provision introduced into the 104th Congress has been known for some time. I have an old copy... BUT nobody will speak with me about it...
MBS per se isnt bad. Its a brilliant idea. Rather than waiting for decades to get your capital back get it back now and also distribute the risk and returns. Its the bad construction that spoiled a good thing.
Because ppl are to busy of dreaming being rich quick or buyin stupid expensive bad bunny tickets
That exactly was my reaction while studying for CFA ABS . This is shit ABS is shit.
Do you consider yourself a law abiding citizen? Does it help?
This is why everybody should murder bankers, politicians, and every other mother fucker that thinks they own you.