How we got into this financial mess...Explained

[mrfuni]

Simple and historic documentary on how we created the housing bubble and the collapse of the financial system:



Pass it along..Joe

[beezer]

Thanks Joe

[dantama]

A more accurate description is that this is a McCain campaign ad. It even begs you to post it on places like this because the Bush only needed 500 votes to win and you might convince people to vote McCain. There is no mistaking that the only purpose of this is to get people to watch a McCain ad.

So I wish your description was more accurate. That said, the first half was very informative. The last half was only a campaign ad and nothing more. When I'm given information with a very strong agenda and spin, I know that it is partial truth spun to make me think a certain way.

I wish this was a PBS documentary (this wasn't documentary at all, it is only a campaign ad). It it was a PBS one, it would only have a little bit of spin, not complete spin.

The first half did give me an indication of why housing prices spiked so much. I assumed a loan in 1990 that was 7 years old. I only had to come up with $7,000 dollars to come up with all 7 years of their equity. I sold it 8 years later with $100,000 equity. I couldn't figure out why. Same thing happened with the next house.

The first half did a pretty good job of explaining why that was.

I just feel a little used when I'm told it was a documentary, rather than an honest description that it was a campaign ad.

If I vote for McCain, I won't need to be tricked into it. :)

[ponch]

You are assuming PBS is objective...At this point, I am tired of the BS. I am pretty sure most people know who they are going to vote for. It's not like these candidates are similar in any way ideologically. Have a Happy November 4.

Originally Posted by Dan Lund

A more accurate description is that this is a McCain campaign ad. It even begs you to post it on places like this because the Bush only needed 500 votes to win and you might convince people to vote McCain. There is no mistaking that the only purpose of this is to get people to watch a McCain ad.

So I wish your description was more accurate. That said, the first half was very informative. The last half was only a campaign ad and nothing more. When I'm given information with a very strong agenda and spin, I know that it is partial truth spun to make me think a certain way.

I wish this was a PBS documentary (this wasn't documentary at all, it is only a campaign ad). It it was a PBS one, it would only have a little bit of spin, not complete spin.

The first half did give me an indication of why housing prices spiked so much. I assumed a loan in 1990 that was 7 years old. I only had to come up with $7,000 dollars to come up with all 7 years of their equity. I sold it 8 years later with $100,000 equity. I couldn't figure out why. Same thing happened with the next house.

The first half did a pretty good job of explaining why that was.

I just feel a little used when I'm told it was a documentary, rather than an honest description that it was a campaign ad.

If I vote for McCain, I won't need to be tricked into it. :)

[texasfisherdude]

Pretty much said the same on TBN Hal Lindsey yesterday

[mrfuni]

Dan,
I posted it for the historical value in the first half of the video, not as a campaign plug for McCain.
I'm in the Financial Services industry, and I thought it was a pretty good historical account of what transpired.
Regards..Joe

I can't believe the industry couldn't see the writing on the wall. In 2004 My wife worked for a subprime lender as a loan processor. It was their policy to times by 25%, all welfare income since its not taxed. Its like they were trying to do anything to get anybody qualified for a loan. That company is now out of business BTW.

[glwilson]

I have an education in economics and economics is the comnom denominator of all of the daily activities/actions in my profession.

Whether anyone likes or believes what was said -- the truth was basically told in the first part of this video.

There is plenty of blame to go around for the problem escalating to the point it did -- including those Americans that didn't practice fiscal-responsibility within the home -- but no one dare talk about that because it would be too politically incorrect.

Americans as a whole have become a spoiled breed without a wish to be responsible for their own actions. It is always someone elses fault. Stupid does as stupid does.

Sorry; but I have had enough with all the BS also.

[blowndodge]

My Economics professor (tried to hire me as an Securities Analysis) asked me to give a lecture at my old Alma Mater in 2005. I told the class to save their money because the housing market, oil demand and the banking industry will be in ruins in 2008. Kind of creped me out that it all came true.

He asked me to do this because we used to debate about "intrinsic value" all the time in class.

funny thing about math........... it's always true....

[glwilson]

I could post a lot more information about economics and some of the reasonable forecasts -- however I don't believe most would want to hear it -- let alone believe it.

It has been my experience that most would just rather ignore it -- which on that I rest my case on just how we got to where we are.

[blowndodge]

I know how you feel glwilson. Finance is boring to most. I loved it in school.

When the mortgage affordability index starting dropping like and rock and people were jumping into real estate to become the next Donald Trump I laughed.

Or because their friends told them that if they didn't they would never be able to afford a home I knew doom was coming. Just as sure as a pyramid scheme fails to the last person in line. I'm not sympathetic to anyone losing a home in this market nor banks failing.

It's because of "liar's loans" that brought negative back securities that were broken down and sold off to Freddie and Fannie. Too bad so sad.

Problem is is that the one's responsible for this will not be prosecuted.. ever. I just keep banking the bucks.... waiting for the fire sale...

[texasfisherdude]

I'm starting to think like Micheal Savage do a investigation and throw all the crooked politions involved that made lots of money in jail.

[glwilson]

Originally Posted by Blowndodge "Darksider"

I know how you feel glwilson. Finance is boring to most. I loved it in school.

When the mortgage affordability index starting dropping like and rock and people were jumping into real estate to become the next Donald Trump I laughed.

Or because their friends told them that if they didn't they would never be able to afford a home I knew doom was coming. Just as sure as a pyramid scheme fails to the last person in line. I'm not sympathetic to anyone losing a home in this market nor banks failing.

It's because of "liar's loans" that brought negative back securities that were broken down and sold off to Freddie and Fannie. Too bad so sad.

Problem is is that the one's responsible for this will not be prosecuted.. ever. I just keep banking the bucks.... waiting for the fire sale...

Agreed

Originally Posted by glwilson

I have an education in economics and economics is the comnom denominator of all of the daily activities/actions in my profession.

Whether anyone likes or believes what was said -- the truth was basically told in the first part of this video.

There is plenty of blame to go around for the problem escalating to the point it did -- including those Americans that didn't practice fiscal-responsibility within the home -- but no one dare talk about that because it would be too politically incorrect.

Americans as a whole have become a spoiled breed without a wish to be responsible for their own actions. It is always someone elses fault. Stupid does as stupid does.

Sorry; but I have had enough with all the BS also.

+1 sooo TRUE

In 2007 My gut instinct was telling me something bad was going to happen. I sold my house and bought a cheaper one where the net on 1 weekly paycheck would be more than my monthly mortgage. I'm sitting good right now but I wish I would have rented for 6 months and then bought something with cash.

[glwilson]

Smart move Wolfman. Too bad a lot of others didn't think with their heads on this also.

I have a neighbor that is going to lose their house because they weren't smart enough to realize they couldn't afford to buy it in the first place. Now all they do is blame everyone else for "putting them in the situation" (including the government -- as if anyone was there twisting their arm).

I can hardly keep my mouth shut around people like that. Now my taxes are going to be higher because of the several million "idiots" out there just like them.

Again, while there is plenty of blame to go around, my neighbors; like millions of other Americans that put themselves in financial jepordy, should put themselves first in line for the blame of their own situation.

And I think the "bailout-plan" should keep records of all Americans that benefit from it for future repayment to the taxpayers that financed their bail-out. Maybe make them help repay the taxpayer if or when ever their home is sold above their debt balance. I would also disallow any home equity loan for these people also; until they first repay the taxpayer.

Kind of rough -- I know -- but I really don't care. I didn't do it and lived within my means and now am having to pay for this mess with higher taxes.

"You can't fix stupid." - Ron White