What is a CDO, CDO squared, Synthetic CDO and how did the 2008 crisis happen
Vložit
- čas přidán 12. 03. 2019
- 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
This reminds me of an old joke I once heard: Give a man a gun and he can rob a bank. Give a man a bank and he can rob the whole world.
It's not a joke. It's reality.
Reality mate
A lawyer with a briefcase can steal more than 100 men with guns
@@hunterscrackdealer6650 Don Vito Corleone was a wise man...
Bank exists because, in short, people have faith in the future and growth. IOUs and debt existed more than 7K years ago, but banks only took off recent 500 years. Their existence is a sign that things are getting better. They are part of the growing pain. Before we start throwing terms like "central banks" and "fractional reserves", a quick digression, your immune system is mostly there to kill your own cells, there are 10 times bacteria/achea/potozoans living inside of you than your own body cells. Just because you didn't know, doesn't mean things are not working as intended.
This just reinforces how insulated big banks and government officials are from any consequences. I'm sure the Mafia is deeply envious of this kind of high level organized crime, especially when the U.S. taxpayer is paying for all of it.
There's a Russian TV Series about government officials doing anything they want, plus using the mafia for their own benefit when they see fit.
As supposed to the Mafia, banksters and politicians legalize a lot of their criminality so we have "campaign contributions" as legalized bribery. Then, laws are made to favor those who contributed with the "campaign contributions". A lot needs to change in terms of laws and banksters.
Would be nice if only the US taxpayer had to pay for it all, in a globalised economy unfortunately, every fucking taxpayer in the hole fucking world has to pay for it !!!
It was like this in the 1930s, in 08 and will be like this in the future.
Only cause the US government and public are more focused on everything else, rather than to regulated a few greedy fucking bankers at Wall Street.
Envious? The mafia is PISSED! They literally taught the gobment everything they know! Al Capone WROTE the prohibition policy for the gov't back in the 20's...Even WORSE, a majority of you imbeciles actually trust these people to perform a medical experiment on you, with no questions asked...Where the box insert is literally BLANK!
Big fish eat the little fish. Way of the world
This movie was really good , being in my early 20s I learned a lot from this movie lol
What the movie didn't teach you was the central role that the government played in creating this mess.
You really think the banks asked the government to force them to give mortgages to people who could not pay them back? Where have YOU been?@@darktagmaster1861
This all comes down to the fact that the rating agencies were corrupt. We trusted them and we probably still do.
Don't forget the government was pushing for home ownership also
@@fartface5172 That's true.
So, the government was pressuring the rating agencies? You have any documented evidence of that? What specific legislation was enacted to push home ownership? @@fartface5172
Private agencies who is the idiot idea
@@kreb7 What?
13 years later, right back where we started.
Zillow is trying to unload 7000+ homes at a loss.
This isn't even remotely true.
Not even close.
15 years later it is happening again. Land prices are soaring and housing values are through the stratosphere, even with raised interest rates. It's not just inflation either. A bubble is growing again.
"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.
Any organization does this. They tell the employees to game the system. And when they do, to get good ratings at work to compete, THIS is the kind of thing that happens. And that happens everywhere, every single day.
Enron did this with Mark to Market accounting when their profits were just sales projections.
any? 😏
Why does this not viral? It's a perfect description of everything.
From a movie
The movie did okay but, for the most part, no one wants to hear it.
@@napoleonsolo5929 Stupidity is not a criminal offense. Also, it is illegal to order a decimation of the employees of the bond rating agencies, however much we might like to watch it. Wanting to punish things like this is what sent Maximilian Robespierre to the guillotine.
This guy didn’t tell the banks to fraudulently rate bad mortgages. This was actually a good idea
@@shivabarod9208 from an accurate movie
The guy who made this video did a great job 👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻
It’s from a movie, The big short.
Real talk. He cut it beautifully
Banks and hedge funds give donations to politicians, politicians bailout banks, taxpayers payed for everything. Any other questions, I am here all week.
Sounds like private gains, public loses. We’ve been living in a hybrid socialist nation for decades. Getting rich ripping off hard working people is the human way.
@@dewfall56 Utopian socialism for the rich ... unfettered free-market capitalism for the peons.
@@BradenENelson but then with the free capitatim for the poor, they can get rich and then are subject to socialism that hits the 1%. obviously anybody who wants to make money doesn't want uncle sam reaching into their pockets so they'll either stay content with being poor, or they will be encouraged to scam the ever loving shit out of the system again.
Exactly. It's a bitter pill to swallow for most, but all you have to do is get the socialism out of the system and everything will start improving overnight. "Capitalism" is just the name sneering marxists gave economic freedom to make it sound vaguely bad. 👍
they are not bribes, they are political contributions and donations from donors, I mean ugh....their constituents, yes.
The people who lost their homes are still trying to recover and the CFO's of companies live in mansions.
That's how it is and will always be. The Hunter Bidens of the world can fuck up as much as they want, they'll always get a big bailout at the end of the day.
@@theskiesaredark wait. What did Hunter Biden do? He took some coke and made some nude pictures of himself which was founded on a laptop with a vague story no credible journalist wanted to post.
You know the 2008 crisis happened when the Republican president Bush was in office. A president already heavily under fire because of his foreign policy and lack of legislation which made go every mortgage go out as a triple A mortgage. Even ninja mortgages.
Geez you guys would blame Biden even for killing Jesus if your lord and savior Tucker Carlson or Donald Trump would say.
@@theskiesaredark the Hunter Bidens of the world...jesus fucking christ, where do you clowns come from?
@@theskiesaredark tell me you're american without telling me you're american...
@@theskiesaredark
Freedom intelligence
I just love the jenga scene
And it’s going to happen again, but this time because of synthetic shares and naked shorting.
Shady brokerages are lending out synthetic shares to hedge funds who are borrowing money from the banks to borrow shares. Synthetic shares are shares that are completely made up, but exist only because books aren’t checked for during electronic trades. Hedge funds are shorting companies using synthetic shares causing the stock price of said company to tank down into oblivion. When said company goes bankrupt, the hedge funds don’t have to cover their shorts and everyone makes a fuckload of money. However, when retail investors start buying truckloads shares of a company that is being naked shorted, suddenly the hedge funds can’t rely on the company going bankrupt to avoid covering their shorts and the stock price of said target company goes up. The hedge funds then borrow more money from banks to borrow more synthetic shares to short, but the retail investors keep buying the shares keeping the share price stable or going up. This cycle continues until hedge funds are forced to cover their shorts at which point the share price will skyrocket because of demand and the supply of shares is owned by the retail investors.
This is why I HODL
Didn’t this happen to gamestop?? Just curious since it sounds similar
@@LuisGonzalez-dx2cy It's pretty much exactly what happened
Can someone put this in English?
I mean…hedge funds do more than just short stock lol
This is by far my favourite and the scariest horror movie out there
Lehman had $600 billion on its books... Evergrande (China) just missed a $800 billion bond payment. Hmmm....
@@BlackMan614 Yup, it's all happening again 🙈
@@danielarchila738 Keeping my cash $$ ready for the crash!
God I love that I lived through 2008, it was a moment in history where *WE* fucked up.
We weren't attacked by and outside source, We just turned a blind eye and let all our chips fall.
To every small ape that lost stock, lost capital holding at 60 to 70. hold
Especially if you cannot close or open trades from a specific broker (e*trade webull ally etc.) (or if it's related to "free" apex clearing firm force feeding data to hedge funds like citadel securities, etc.)
(they are using"secret algorithm" AI + HFT scrapers to profit from stocks - legally they will try to blame the algorithm which in reality they are doing this illegal shorts while doing proxied calls or buys through retail by hiding it)
This is illegal insider and market manipulation:
1.) File a case/tip on FINRA SEC FBI
2.) join the class action lawsuits on GME AMC KOSS BB NOK SENS ETC. from law firms like Rosen Law and Shumaker Koop & Kendrick
3.) notify other goveenment entities about this if possible send tips.... korean indian european aus ph governments doesn't even fully know yet that there are shareholders of this stock that is being illegally naked shorted on dark pool. help small apes, join the fight
they did this since 1930 2007 2008
this is the one of the main causes/correlation of mass suicides, hunger and homelessness
whale firms of real-estate have been buying homes at a higher price since covid19 now they are inflating every subdivision and condos, so that they can manipulate stock prices
#NEVERAGAIN
more than 10+ trillion of pension funds, retirement, and individual retail investments lost to date as of coordinated naked shorts and synthetic shares and owning the media through investments (look it up all rich semites that will scapegoat the poor jews refugees or 6 million if you call them out)
No we just got shafted by the very banks and politicians who are suppose to look out for our best interests
@@alikhoukon7533 yeah like what more than 5+ trillion, then more than 10 million jobs layed-off, also affected other business?
And we do this repeatedly. Wall St and investors get impatient, try and make banking sexy, then it comes crashing down. Then we elect politicians that deregulate so any watchdog agency can do nothing to prevent it from happening again.
"We weren't attacked by and outside source" plot twist you were never attacked by an outside source, all along your own goverment and the psycopaths in control of your country had been making you believe that the whole world is against you americans and thats why you need to start wars. Mean while most of the politicians that tell you that own a big chuck of the military complex and make a sh1t load of money off that, also make a sh1t load of money off the countries invaded etc etc etc. Its a big business and you aint in it
Aside from this accurate insight, once you know this it's important to realize the urgency of BUYER BEWARE and also EACH ONE TEACH ONE to educate yourself and help people you care about, since clearly no bankers got penalized and regulations are a joke. Hence, the shadiness continues on Wall Street. I mean shit, Bespoke Tranche Opportunities just replaced CDO's. Tread lightly with anything bank related.
This is why I HOLD. 🦍🚀🚀
He hodl’s for me, and I hodl for him.
@Himmat Dhaliwal 👆what this fellow ape just said. We all just really like the stock.
💎🤲
We just like the stock. Never fold just hold
@Himmat Dhaliwal Check out what’s been going on with AMC stock. Right now there’s a lot of potential to screw over some of these big hedge funds through a short squeeze. Our goal (Apes) is to encourage people to continue buying and holding the stock. By doing so, hedge funds will have to buy back the shares they shorted for an astronomically higher price, which is already the case. This, compounded with the running theory that there are millions of naked shorts, an illegal practice used by big institutions to help drive stock price down and bankrupt a company, that have yet to be covered has lead to AMC becoming yet another company to potentially see an absolute skyrocket in price.
Apes stronger together.
Amazing, I never knew thew ends and outs of this Disaster. Before my time in the Crooked Market.
I invested in mortgage mutual funds before. It was 1986 or 1987 in a group RRSP with my employer.
The first ever bank was the Templar knights someone that could be trusted with your money.
6 years later i still can't believe this movie was given the green light and that there wasn't open riots in the streets after its release.
That's because they incorrectly placed the blame on the banks, lol. Go around and make a movie telling the truth, that the Federal government forcing banks to lower their lending standards and give out bad mortgages, the mortgages that failed causing all these MBSs to fail, and see how many people youll have up your ass lmao
@@IIReAzOnZII Fanny Mae/Freddy Mac was a small part of it. This shitstorm started when we went off the Gold Standard, the crazy spending of the 50's and 60's, off Silver, then "Voo-Doo" economics starting in the early 80's Then the master POS Greenspan and his insane interest rates in the 90's and the deregulation of Wall Street put the lunacy into overdrive.
Occupy Wall Street was the closest gripe Americans did.
@@eyeseer1 or buy GameStop u idiots, u have once in life time opportunity
@@rachitanandhiremath2234 Get real - buying stocks of one company on one market isn't going to do shit. It's a feel-good move with no follow-up.
The advertisement straight after this - one solution for all traders. 🤦🏻♂️
This time they are gonna blame the retail investor
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.)
Happening all over again. Just worse.
And theyre back at it now ...
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
Private Equity firms are buy up houses, people are buying houses to rent to people either as a short term or long term renter's or as Airbnb's, we're in an age where the middle class is disappearing and the poor class is increasing, and no one can own anything significant. Houses that used to cost $60,000 in the 90's are now $600,000.
And thats basically happened in all western countries. Where I live you could buy a newly built completed house on a nice property like a decade ago. Now you are lucky to even get to buy the empty property next to the chemical plant for that price because as soon as it is put on the market there will be a dozen idiots willing to overbid themselves before even negotiating with the seller.
My coworker sold one of his real estates last year he already put an asking price on it which he thought was ridiculous. But guess what happened it took him not even a week to sell it for even more than that. But he was able to choose from three different buyers that offered to buy it for an even higher price before they even talked to him lol
When he handed over all the paper work and keys and shit they already had an u haul on the way to move in lmao
Whats mysterious about this situation tbh is how can people be able to spend this kind of shit load of money nowadays but the inflation rate did hardly increase in any way. Like hell they even had to cap interest rates to prevent deflation. Like people did not spend money for years on anything and now dump it all on real estate.
So where is the fkin comin from? Wages did not increase significantly. Is there like a secret club or something that hands out free money?
But the system is stupid anyway.
Technically I am in credit card debt. But through some transactions, delayed credit charges and postponing techniques my balance shows up positive. In contrast my credit score even goes up because on paper it looks like I am paying anything on time, do not even have to pay interest because of that and I probably would be able to increase my credit limit no problem.
You can slow it down considerably - demand full payment in cold, hard cash only.
Trillions just...gone
It never existed in the first place.
Now I think equity is safer than bonds
People, aren't you FED up with that shit?
No. People won't blame the right things because it will force them to do some serious introspection and realize they are being lied to. People would rather walk off a cliff again.
This time the crash will be blamed on a disease spreading across the country instead of the banks.
Gas inflation, Covid recession but nobody will challenge Trump’s tariff policies on market manipulation
@1:01 Thats a "Devil's Lick" right there. Nicely made this scene, I must say.
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?
Almost 2022 and it’s about to repeat, repeat, REPEAT
It's always been on repeat throughout history - best be on the profit-taking side when it happens.
As I recall it, there was no blaming immigrants and poor people. We all knew it was a financial disaster created by US federal government actions and amplified by Wall Street investment firms. We also know that the investment forms and banks received huge bailouts from the same federal government that created the conditions for the collapse in the first place. Both the Tea Party movement and Occupy Wall Street protested against the bailouts, but to no avail.
Donald J. Trump
Nah, I always blame immigrants and peasants for everything.
One guy went to prison for 30 months after this.
Ewwww, 30 months. Scape goat for someone higher and probably lived like a millionaire while there.
@@dewfall56 yep! Plus probably had a bag waiting for him when he got out for taking the charge.
Was prison house arrest?
@@alphach1mp most likely. Rules are for thee but not for me.
And this is a major reason the country is turning into a cesspool.
GUYS STOP WHATS A SYNTHETIC CDO????
Come full circa 2021 and it’s happening all over again 😖
Yep, here in the Midwest the housing market is Bozo bonkers. I can't speak on commercial real estate but housing is just fucking unreal...2007 all over again. Can't wait for the next crash and see what it gets blamed on this time.
Trump being a realtor wouldn’t made it easier. He referred to his tariff regulations as a trade war and now supply chains are slow topped by Covid recessions and gas inflation after withdrawing from Afghanistan .
It's nothing like it was back then.
So how does a CDO filled with "dog shit" get AAA credit rating? That's the real question.
I’m here because of phase 6 🔥🔥
2023, it's coming again folks.....anyone?
2024 here. It will soon but it will be blamed on Russia
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.
Housing market with such mortgages is just a ticking bomb.
That just plain stupid, if people losing house the gov lose money because the lost income from housing or property tax
The government never loses money. The federal reserve prints our currency and the IS treasury borrows it and issues out bonds to investors. And it’s the single fact that the Fed has a printer that the government is never short money. Granted inflation and interest rates may fluctuate or coke to bite us in the ass. But if the US government needs money, the treasury just borrows from the fed however much it needs
@@RexiRexx87 well look on how, if you print so much money without consideration & have so much debt.
If Fed can't control it this time, US will go into recession.
Dam iPods are obsolete now
The saddest part of this film is this part. We shouldn't get complacent. It's a disgrace
13 years later, here we are in 2021 and things are much, much, very much worst than how it was in 2009.
Trillions in debt, MBS purchased monthly by the federal reserve, a stock market that goes up on bad economic data and a market that hasn’t enter a bearish period since 2008.
Folks, the next black swan event and crisis will be the bursting of the bubble of everything. We’ll look back at 2009 and think it was a walk in the park...
So should I feel guilty helping pump up the price of GME and AMC?
@@brandonhallam51 calm down bro, we all know you invested the allowance your grandma gave you for mowing the lawn. Your contribution of that pump was negligible. Stop acting like a baller. 🤣😂🤣😂
@@brandonhallam51 no you shouldn't if these rich semite owned banks and hedge funds doesn't owe up what they earned during 1930+ 2007 2008
To every small ape that lost stock, lost capital holding at 60 to 70. hold
Especially if you cannot close or open trades from a specific broker (e*trade webull ally etc.) (or if it's related to "free" apex clearing firm force feeding data to hedge funds like citadel securities, etc.)
(they are using"secret algorithm" AI + HFT scrapers to profit from stocks - legally they will try to blame the algorithm which in reality they are doing this illegal shorts while doing proxied calls or buys through retail by hiding it)
This is illegal insider and market manipulation:
1.) File a case/tip on FINRA SEC FBI
2.) join the class action lawsuits on GME AMC KOSS BB NOK SENS ETC. from law firms like Rosen Law and Shumaker Koop & Kendrick
3.) notify other goveenment entities about this if possible send tips.... korean indian european aus ph governments doesn't even fully know yet that there are shareholders of this stock that is being illegally naked shorted on dark pool. help small apes, join the fight
they did this since 1930 2007 2008
this is the one of the main causes/correlation of mass suicides, hunger and homelessness
whale firms of real-estate have been buying homes at a higher price since covid19 now they are inflating every subdivision and condos, so that they can manipulate stock prices
#NEVERAGAIN
more than 10+ trillion of pension funds, retirement, and individual retail investments lost to date as of coordinated naked shorts and synthetic shares and owning the media through investments (look it up all rich semites that will scapegoat the poor jews refugees or 6 million if you call them out)
czcams.com/video/7s9w6h5E8v4/video.html
This time the crash will be blamed on a disease spreading across the country instead of the banks.
@@eugkra33 I don’t think you understand the concept of a black swan event. It’s NOT going to be a disease, that’s far too predictable.
The reason why the 2008-2009 crash was a black swan event was because less than 0.000001% of the population of the world knew what was happening in the housing market before it entered the lips of the mainstream media and the minds of the American populous.
The pandemic crash of 2020 was NOT a black swan event for the markets because the economies of the world were manually shutdown by the governments of the world to induce a market crash and the markets in the US recovered to all time highs only 5 weeks after the 30% market drop...that’s neither a black swan event nor a bear market.
Hold , they stole from our parents
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)
He filled out a mortgage application using his dog's name........ Wow. Reality surprises you more than any fiction can.
#sadbuttrue
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.
Total return swap
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....
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.
So the big banks got bailed out, but there is discusses about canceling all debt thinking 🤔
Do you consider yourself a law
abiding citizen? Does it help?
Next he can tell us about dark pools.
I'M SO GLAD THEY CENSORED THE WORD SHIT
What you essentially need to understand is what a CDO is when they put enough shit in a mystery box. They sell it to you and you think it's a good idea cause it's a cheap deal, but inside is a bunch of socks and a basket inside, instead of an Ipad.
I wouldn’t call it a mystery box. More like a mislabeled box. CDOs and MBS themselves weren’t the issue. the issue is that rating agencies weren’t rating them properly as well. It doesn’t matter if shit or gold is in the box, as long as you knew what was in it. Now yes, if you knew shit was in the box then you would avoid it. Which would sort of defeat the purpose of even packaging shit. But that’s exactly why the banks needed the agencies to rate them higher than they were. Because they knew that shit wouldn’t be off their books
No talk about the central banks role in all of this? Of course, the movie was made by the same system they seem to be denouncing.
This isn’t a documentary it’s based on one person’s perspective and the parts he was involved in. Take your tin foil hat off
Lol CDO into BTOs bachman turner overdrive 😂
The mortgage idiots were perfect.
This is why I hold. 🦍
What does this mean. I keep seeing this everywhere
@@robertomurri1278 basically means that He has either a Long Position, implying that He expects an Asset or Stock to increase in value or a Short Position, anticipating that the Asset or Stock will decrease in value. If you have a Long Position in an Option contract, it means that you own the Asset, whereas If you have a Short Position you sell a Security First with the Intention to Buy it Back later at a lower price
anyway, I have to get up at 5am tomorrow to go to do my shitty job and come back naked after 12 hours.
You're a stripper?
IBM and Microsoft
Dud they meet because of the wrong phone call?
yea... I'm just not gonna play into the system. I'm keeping my money under my mattress
Communism - shit
Capitalism - behind the scenes shit
Actually capitalism works great when the government doesn't get involved in it. A free market only works if it's actually free. But here, the US government influenced the housing market quite a bit by inciting banks to lend to subprime borrowers they would never have approached under normal circumstance through the Community Reinvestment Act, Fannie Mae and Freddie Mac. They actually had a quota of subprime loans they had to fill.
So what did banks do with such a high volume of loans they didn't want ? They found a way to make a profit off of them of course. That's what they do for a living after all.
That's not to say that a good portion of the bankers who profited off of those crappy CDO didn't know exactly what they were doing, and deserve to be in jail (especially rating agencies), but none of this would have happened if the government had stayed out of it.
@@TheOsydius Thank you!
@@TheOsydius "Actually capitalism works great when the government doesn't get involved in it."
Bull-fucking-shit. Unregulated capitalism is almost as bad as Soviet-style communism. If companies are completely free to do as they please, that's exactly what they will do, whatever the fuck they please.
@@antred11 First, nobody ever said that companies needed to be "unregulated". That's not my point. Companies need to follow the law and there has to be some rules in place to allow for free competition as well as regulations regarding for instance environment or sensitive technology (such as defense technology, etc). But the point is that you should never mix power (i.e., the executive branch of government) with capital. Otherwise what you get is corrupt politicians being lobbied by rich companies to basically disrupt the market to their advantage. This is how you get into this "too big to fail" crap, which end in bail-out BS and so on (all of which would not happen under pure capitalism btw as "too big to fail" can only exist with the government support).
The moment someone in power can use that power to offer undue privileges to third parties in exchange for compensation is the moment you have an issue. In a pure capitalist system, lobbying does not exist. It only happens in systems (such as ours) where money can buy regulations, and regulations can buy reelections.
Case in point: the 2008 crisis happened because of the politicians' will to increase home ownership for people who could not buy homes. The politicians wanted that out of the goodness of their hearts, of course, and not because it would obviously improve their chances to be reelected. They then pressured the banks, through various means, to do what they would not have done in a normal market, i.e. lend to people who cannot repay their loan (what a business model !). The regulation they created to disrupt the market did just that, it disrupted the market. With the support of the Fed which artificially maintained low interest rates, this created a market of "unmarketable mortgages" (banks trying to pass on the loss since their business was, and still is, to make money) which lead to the crash of 2008 when the real estate bubble burst. This type of situation, i.e. creating a market of unmarketable products, can only happen in 2 cases: (i) fraud, which is already covered by the law and needs no more regulation, or (ii) government involvement. You can tell the 2 apart because when disruption is caused by the government, nobody goes to jail, unlike in situations caused by fraud.
But in any case, how can you compare even unregulated capitalism (whatever that means) with Soviet-style communism ? I mean, imagine you deregulated restaurants for instance, what would happen in your eyes ? I can imagine some of them cutting cost by buying not so fresh food, sure. Then their clients would get food poisoning and never come back, and they would find themselves out of business. Even big companies such as Apple or Amazon, if they cut corners on let's say employment regulation or product standards, what do you think would happen ? Do you think that, in any way, it would compare to the hundred of millions of people who died of starvation or in gulags that were brought by soviet communism ??
I mean remember that unlike a government, a company only does business if the people are willing to buy its products. You don't like amazon, don't shop there ! If enough people dislike it, the company crashes, end of story. Under a communist regime, you have no choice on the matter. If you don't like it, your only other option is to die.
So even if we agreed on a definition of what "unregulated capitalism" is, I don't see how you could compare it to the freedom destroying nightmare that is soviet-style communism.
@@TheOsydius So there is no such thing as a free market.
AMC shorts now are a pile of blocks
cringe
The GameStop short squeeze was refreshing in 2021.
And when the fallout settled, people voted Trump because f-you, I lost my house, everything should burn.
Yes, exactly. Call them delusional but it makes complete sense when everything about the last decade of your life, hell maybe few, has just completely degraded. And the sad thing is they didn't even have it the worst. Ryan Goslings character honestly has the most similar attitude to the whole trump ethos, when the whole world seems corrupt and self absorbed the one who's the best at that and is willing to tell everybody that the sky is falling seems like the only person worth listening to.
No its fking awesome.
Whats the movie?
The Big Short (2013)
@@eyeseer1 thanks!
Aaaaaaand IT'S GONE
The second downfall of the Roman Empire is coming. It’s just been repackaged and given a different name.
they blamed immigrants and poor people = they voted in trump
sigh, prediction spot on...
Technically, Russia installed Trump and Big Banks bought Trump up.
@@eyeseer1 dude , rich people like goldman sacs , whos ceo and Steven mnuchin was in trumps cabinet as finance minister
Ninjo loan = No INcome, No JOb.
Hold amc and take some of this money back.
It’s happening again….
never sign a mortgage you can't afford :- 1
Also never give someone a mortgage by convincing them they can afford it, just because you're selling the risk off to big banks and investors.
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.
That exactly was my reaction while studying for CFA ABS . This is shit ABS is shit.
synthetic shares.....
It’s coming again! Different scenario but same thing! Hodl all your DeFi crypto cuz they just keep printing and giving away $$’s.
Anyone who uses "hodl" unironically is an idiot who shouldn't be handling their own money. Doubly-so for idiots who think crypto is an investment and not the 21st century of a tulip bulb.
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.
When I heard some village in northern Norway was deep in bad area USA mortgages I realized what was driving it was profit.........Made in New York and London. Profit that STAYED in NY and L. no matter what happened down the pike either in Norway or some US craphole. Stay away.
ok Algorithm
AMC TO THE MOON! #amc #amcstock #amcshortsqueeze #amcstrong
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.
Nope, still dont understand it
Just holding my AMC so we can finally show the suits what time it is.
You're being taken for a ride.
@@Banzai51 I sold after I made $35k on the jump up to $71 a share. Nice try though
@@bovice1766 Wow, you took profit - how stunning and brave of you; the big boys shiver in fear.
@@0daadaadaa0 They should I rebought at $15 and they still haven't covered their short position. This isn't rocket science
Makes me really hope there is a God in Heaven watching it all, so those responsible get the damnation they deserve. Live it up while you can.
if there was a “god” up in the “heavens”
he must be a shitty one letting all this damnation take place.
There is no god lol
@@SomeAftermath God gave human free will..These MFers knew what they were doing..They didn't care..
Not sure why this guy would be explaining anything to financial guys. Dumb questions written in the script for the audience, much like this entire movie. Financial people and high government officials knew this crap was going on and DID NOT CARE!
This is one of the best movies ever written. Stop teaching wokism to our kids and teach them about THIS. Otherwise, we'll be watching them go through this in another 8 years. Almost lost the house...and I had NO investments in any of this. Now, these democrat run cities are bleeding our country dry. Greed is bad, mmmkay?
And Republicans too. Both are same side of the coin.
@@daveblue3733 Good luck in your demonrat run city. I hope it works out for your. I just need you to know that I'm an American and I don't want you to hurt or fail. Remember America? LOL.
@@mcseforsale If you think issues like these come from one side of the political aisle, then you're grossly misinformed.
Nothing is coincidental.. 🤭🤭🤫
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
just look how ' they' handled Elliot Spitzer. they destroyed a powerful man with ease
Because ppl are to busy of dreaming being rich quick or buyin stupid expensive bad bunny tickets
Remind me again, why is USA the greatest country???