Burning Down The House: What Caused Our Economic Crisis?

[Kat]

Burning Down The House: What Caused Our Economic Crisis?

[youtube]H5tZc8oH--o[/youtube]



A highly informative video that traced the cause of our current crisis that had its roots planted 12 years ago.

 

[DiveCon]

very interesting
i wonder how many will just ignore this

 

[Kat]

very interesting
i wonder how many will just ignore this

I have a feeling a lot will..no guts to see the truth.

 

[Chris]

McCain's Economic Adviser is ex-Texas Sen. Phil Gramm. On Dec. 15, 2000, hours before Congress was to leave for Christmas recess, Gramm had a 262-page amendment slipped into the appropriations bill. It forbade federal agencies to regulate the financial derivatives that greased the skids for passing along risky mortgage-backed securities to investors. And that, my friends, is why everything's falling apart. That is why the taxpayers are now on the hook for the follies of Fannie Mae, Freddie Mac, Bear Stearns and now the insurance giant AIG to the tune of $700 billion.

 

[DiveCon]

McCain's Economic Adviser is ex-Texas Sen. Phil Gramm. On Dec. 15, 2000, hours before Congress was to leave for Christmas recess, Gramm had a 262-page amendment slipped into the appropriations bill. It forbade federal agencies to regulate the financial derivatives that greased the skids for passing along risky mortgage-backed securities to investors. And that, my friends, is why everything's falling apart. That is why the taxpayers are now on the hook for the follies of Fannie Mae, Freddie Mac, Bear Stearns and now the insurance giant AIG to the tune of $700 billion.

you are wrong again, as usual

 

[oreo]

Freddie & Fannie started during the Carter Administration. In an effort for lower income people to obtain home mortgages. It worked O.K. in the first years.

Over the years deregulation set in, with sub-prime mortgages supported during the Clinton adminstration. Cash flowed in abundance to banking.

What's facinating--there were many warnings, including from President Bush starting in 2001 regarding the size of these agencies. McCain warned again in 2005 & each & every time, democrats who were "worried" about not being able to supply money to people who could not afford to pay it back, BLOCKED EACH & EVERY EFFORT TO REIGN THESE AGENCIES IN.

It is a fact, that democrat Barney Franks & democrat Criss Dodd--who is associated with Country Wide mortgage & are on video tape for saying years ago, that there was nothing wrong with Fannie & Freddie--Democrats on the hill didn't want to investigage or regulate Fannie Mae & Freddie Mac. Barack Obama is also the second largest donor receipiant of these two agencies.

 

[Chris]

Warren Buffett, the billionaire investor and long-time chairman of Berkshire Hathaway Inc. (BRK.A), is a man who speaks his mind. I'm not sure whether he's always been that way, or whether it is his exceptional wealth or his age -- or both -- that emboldens him to cut through Wall Street B.S. like a hot knife and expose the bloody truth about the foibles of modern finance.

Whatever the case, his comments on derivatives, in particular, have been always been especially enlightening -- and entertaining -- because they expose this supposed risk-sharing panacea for the house of cards it has become. In Derivatives Cause 'Mass Destruction', the Wall Street Journal reports on the 'Oracle of Omaha's' latest thoughts on the subject.

Earlier Saturday, Mr. Buffet repeated his warning on the dangers of derivatives, saying that excessive borrowing by traders, investors and corporations will eventually lead to significant dislocation in the financial markets.

In fielding a question about derivatives, which he once referred to as "financial weapons of mass destruction," Mr. Buffett told shareholders that he expects derivatives and borrowing, or leverage, would inevitably end in huge losses for many financial participants.

"The introduction of derivatives has totally made any regulation of margin requirements a joke," said Mr. Buffett, referring to the U.S. government's rules limiting the amount of borrowed money an investor can apply to each trade. "I believe we may not know where exactly the danger begins and at what point it becomes a super danger. We don't know when it will end precisely, but...at some point some very unpleasant things will happen in markets."

Buffett On Derivatives: 'A Fool's Game' - Seeking Alpha

 

[DiveCon]

Warren Buffett, the billionaire investor and long-time chairman of Berkshire Hathaway Inc. (BRK.A), is a man who speaks his mind. I'm not sure whether he's always been that way, or whether it is his exceptional wealth or his age -- or both -- that emboldens him to cut through Wall Street B.S. like a hot knife and expose the bloody truth about the foibles of modern finance.

Whatever the case, his comments on derivatives, in particular, have been always been especially enlightening -- and entertaining -- because they expose this supposed risk-sharing panacea for the house of cards it has become. In Derivatives Cause 'Mass Destruction', the Wall Street Journal reports on the 'Oracle of Omaha's' latest thoughts on the subject.

Earlier Saturday, Mr. Buffet repeated his warning on the dangers of derivatives, saying that excessive borrowing by traders, investors and corporations will eventually lead to significant dislocation in the financial markets.

In fielding a question about derivatives, which he once referred to as "financial weapons of mass destruction," Mr. Buffett told shareholders that he expects derivatives and borrowing, or leverage, would inevitably end in huge losses for many financial participants.

"The introduction of derivatives has totally made any regulation of margin requirements a joke," said Mr. Buffett, referring to the U.S. government's rules limiting the amount of borrowed money an investor can apply to each trade. "I believe we may not know where exactly the danger begins and at what point it becomes a super danger. We don't know when it will end precisely, but...at some point some very unpleasant things will happen in markets."

Buffett On Derivatives: 'A Fool's Game' - Seeking Alpha

yeah, funny how he is making a killing on this disaster
dont ya think?

 

[Chris]

The derivatives that McCain advisor Phil Gramm made legal are the reason for the collapse because they allow corporations to lend more money than they actually have. That's why Warren Buffet called them "financial weapons of mass destruction."

 

[DiveCon]

The derivatives that McCain advisor Phil Gramm made legal are the reason for the collapse because they allow corporations to lend more money than they actually have. That's why Warren Buffet called them "financial weapons of mass destruction."

wrong, it was the push to give loans to people with poor credit that caused this
the government exerting pressure on the private sector

 

[DiveCon]

[youtube]H5tZc8oH--o[/youtube]

 

[Chris]

wrong, it was the push to give loans to people with poor credit that caused this
the government exerting pressure on the private sector

Wrong....

It was companies lending money they didn't have using derivatives. The same thing happened in 1929 when people were buying stocks "on margin" with very little colateral.

Warren Buffett knows better than you.

 

[DiveCon]

Wrong....

It was companies lending money they didn't have using derivatives. The same thing happened in 1929 when people were buying stocks "on margin" with very little colateral.

Warren Buffett knows better than you.

Warren Buffet is making a killing off this
as far as i can see he was part of making it happen so he could profit off it
you continue to show what a complete moron you are

 

[Kat]

Wrong....

It was companies lending money they didn't have using derivatives. The same thing happened in 1929 when people were buying stocks "on margin" with very little colateral.

Warren Buffett knows better than you.

Everything...EVERYTHING shown in that video was proven. You can spew all you want...won't make it less true.

 

[Chris]

Everything...EVERYTHING shown in that video was proven. You can spew all you want...won't make it less true.

Sorry, you are wrong.

When companies lend money they don't have, that is when they fail.

Clinton - Eight years of peace and prosperity

Bush - Eight years of war and debt

 

[DiveCon]

Sorry, you are wrong.

When companies lend money they don't have, that is when they fail.

Clinton - Eight years of peace and prosperity

Bush - Eight years of war and debt

thus proving once again why most people think you are a total moron

 

[Kat]

Sorry, you are wrong.

When companies lend money they don't have, that is when they fail.

Clinton - Eight years of peace and prosperity

Bush - Eight years of war and debt

Nope..you are wrong. And I am not sorry.

WATCH THE VIDEO.

 

[HoleInTheVoid]

Remember kids:

LIBERAL AXIOM A: Republicans hate poor people because they won't give poor people money they didn't earn; they only love corporations.

LIBERAL AXIOM B: Republicans are to blame for the mortgage bust because they gave poor people money they didn't earn and couldn't repay to the corporations they love.

See! It just sounds stupid.

 

[Kat]

Remember kids:

LIBERAL AXIOM A: Republicans hate poor people because they won't give poor people money they didn't earn; they only love corporations.

LIBERAL AXIOM B: Republicans are to blame for the mortgage bust because they gave poor people money they didn't earn and couldn't repay to the corporations they love.

See! It just sounds stupid.

 

[editec]

More specious logic from our resident Republicans

The majoirty of homes in default are NOT in slums.

They're in solidly middle class neighborhoods filled with McMansions.

Most of them are in the suburbs. Most of them are ALSO in the sunbelt.

Per usual the Republican partisans are grasping at straws, They're seeking anyway they can think of to blame the Democrats for the problems that the banking community actually caused to happen because they were greedy and shortsighted.

It's totally pathetic.

But what I find most pathetic is that I have not a doubt the people posting these silly arguments actually believe them.

Tell you what, kids..

Check out where the defaulting mortgages are happening, and what sorts of homes are in default and get back to me.

You so don't know what you're talking about, and my explaining it to you won't do you as much good as you doing your own researxch to test your erroneous hypothesis.