RSS FeedsSubprime US Banking Financial Crisis Explained Part 3
September 7th, 2009
http://www.informedtrades.com/
The 3rd and final lesson in a series on the subprime mortgage US Banking financial crisis explained.
Duration : 0:7:16
Personal Internet Banking
Personal Internet Banking
September 7th, 2009
So from what I …
So from what I understand, a structured investment vehicle is really like a hedge fund in the housing market, only it derives its value from home equity, meaning that people basically traded securities of which the only real value was the market price of the collateral and the dept owed by the borrower, which he/she may or may not be able to pay? …If that’s correct than I don’t see how it’s possible not to expect a crisis from such a ridiculous investment vehicle.
September 7th, 2009
Hey Coriolanus,
…
Hey Coriolanus,
The thing is the FED actually does not “set” interest rates the way most people think.
Basically since they are so big they buy and sell in the open market, causing changes in the money supply, which then causes changes in the interest rates.
This is important because at some times we need lower interest rates than other, like right now for example, and the market may not dictate this at the proper times.
There are also about 500 other reasons but I’m out of comment room!
September 7th, 2009
I have a question, …
I have a question,why do we have to have an institution setting the interest rate rather than leaving it to the market,it seems to me that manipulating the interest rate by the fed is what got us in trouble to start with.I think it is impossible for anybody or any institution for that matter given the size and perplexity of our ecconomy to predict the best interest rate at any moment
September 7th, 2009
Thank you, nice job!
Thank you, nice job!
September 7th, 2009
Great work Dave . …
Great work Dave .knowledge is power, shep from Ireland
September 7th, 2009
what do i need to …
what do i need to study to be able to articulate this crisis the way you re able to
what would be a good major in school to take on
September 7th, 2009
can anyone help me? …
can anyone help me?
from what im aware banks took ets off balance sheets to avoid having to hold capital.
for that to happen it needs to be a true sale rite?
does this not mean the ets no longer belongs to the bank? how come it comes back onto thier balance sheet and gets written down??
September 7th, 2009
Hello David, why …
o David, why did the Federal Reserve start to raise interest rates in late 2004?
September 7th, 2009
2007 uptick rule …
2007 uptick rule removed - the gang bang by wall street started by targeting aggressively banking stock,
GS, BOFA, MS, MLYNCH, LEHMAN, BEAR STEARS
ask the fat cats they laughing their way to the bank everyday
September 7th, 2009
The Commodity …
The Commodity Futures Modernization Act of 2000 or CFMA (H.R. 5660 and S.3283) is United States federal legislation which repealed the Shad-Johnson jurisdictional accord, which had banned single-stock futures in 1982. The legislation also provided certainty that products offered by banking institutions would not be regulated as futures contracts.
September 7th, 2009
please do us a …
please do us a favor and explain these which will answer all these question
1.The Gramm-Leach-Bliley Act, enacted November 12, 1999, is an Act of the United States Congress which repealed part of the Glass-Steagall Act of 1933, opening up competition among banks, securities companies and insurance companies. The Glass-Steagall Act prohibited a bank from offering investment, commercial banking, and insurance services.-
September 7th, 2009
You stated that as …
You stated that as a result of the subprime mortgage crisis a liquidity crisis arose. Wasn’t it more of a solvency problem?
September 7th, 2009
Feds lost control …
Feds lost control over the Fed Rate, according to this video:
v=bL0bgz_VHTo&NR=1&yt
September 7th, 2009
Feds lost control …
Feds lost control over the Fed Rate, according to this video:
v=bL0bgz_VHTo&NR=1&yt
September 7th, 2009
Another video …
Another video states that the Feds somehow lost control over the Federal Rate, and that’s what blew things up.
September 7th, 2009
He omitted the fact …
He omitted the fact that bad loans were insured in order to get a higher rating to make them look good; and insured again by speculators that did not even own the investment. Unregulated and perfectly legal insurance fraud (misrepresentation and casino gambing).
September 7th, 2009
I was wondering the …
I was wondering the exact same thing. I’m no expert, but I think they do that to contract the supply of money in circulation, which in turn helps to control inflation and price increases. Someone please correct me if I’m wrong!
September 7th, 2009
I say we remove …
I say we remove Geithner and Mary Schapiro and appoint David Waring as the head of both the Treasury Department and the SEC.
September 7th, 2009
Thanks mate … my …
Thanks mate … my ticket to my 7000 word report on the financial crisis.
September 7th, 2009
So why did the …
So why did the Federal Reserve increase the interest rate in 2004?
September 7th, 2009
thank you very much …
thank you very much. i have a much better idea of whats going on .good job
September 7th, 2009
my pleasure thanks …
my pleasure thanks for the comment. If you look on the homepage of my site I have recently posted an article “7 solutions to the financial ciris” which covers this. Best Regards, Dave
September 7th, 2009
Good man, many …
Good man, many thanks - any ideas as to what can be learned from this fiasco and what legal checks can be put in place to avoid such a thing happening again?
September 7th, 2009
Thanks for the …
Thanks for the videos. I learned alot.
September 7th, 2009
Dude, you’re the …
Dude, you’re the man! You helped me out with my college paper.