Financial Crisis Explained

[Pilgrim]

This video takes a few minutes to watch, but it's worth every minute. It's a good documentation of how this subprime lending mess was transformed from a small government program into the cancer we now have in our banking system. Be prepared to use your pause button so you can make notes on the different websites and sources noted as references.

YouTube - Burning Down The House: What Caused Our Economic Crisis?

 

[blueblooddog]

Excellent video. Fox news should play that news report every hour so everyone doesn't miss it and know the truth. Barney Frank and Charles Schumer should resign their positions.

 

[theBeemer]

Are you fellows sure it isn't something like this ?


It Is All Fairly Simple

Lehman Brothers' stock collapse, and lost $40 billion dollars in investors money. Think of this is terms of gold coins. Mr and Mrs Christian American invested 10,000 gold coins in Lehman stock. Mr Abe Lehman took the coins and gave the couple 10,000 paper shares of stock.

The coins didn't vanish, but the stock did, and the investors have nothing. Money doesn't vanish, it merely changes hands.
...................................................................................
Now multiply that where it reaches lets say a small amount of 700 billion dollars....By the time its all done just a trillion..We taxpayers have to pay.....
Where did all that money go?

 

[bludragon13]

Are you fellows sure it isn't something like this ?


It Is All Fairly Simple

Lehman Brothers' stock collapse, and lost $40 billion dollars in investors money. Think of this is terms of gold coins. Mr and Mrs Christian American invested 10,000 gold coins in Lehman stock. Mr Abe Lehman took the coins and gave the couple 10,000 paper shares of stock.

The coins didn't vanish, but the stock did, and the investors have nothing. Money doesn't vanish, it merely changes hands.
...................................................................................
Now multiply that where it reaches lets say a small amount of 700 billion dollars....By the time its all done just a trillion..We taxpayers have to pay.....
Where did all that money go?

nice analogy except mr.&mrs. christian america never had 10000 gold coins, they bought with paper that is as worthless as the stock,-paper money has no real value just as stocks have none it is all an illusion that people have to buy into to make it work,wall street just quit buying into the illuision and now there is a crisis, another republikan attempt to fix the current election that they are losing badly in,their only hope is if those nude pics of palin ever show up on the internet-oppps thats a state secret!

 

[theBeemer]

I have to agree with you Bluedagon13 to a point...So lets just say the equity of Mr. and Mrs.America was put in the worthless paper then?
......I think we both can agree its a big scam and nothing but a scam where a few got very rich from it, and those few have the gaul to ask for 2 billion more....Let them fold and rebuild from there

 

[highway star]

Barney Frank and Charles Schumer should resign their positions.

Schumer has no real redeeming value, but we should keep Bawney Fwank around because it's a hoot making fun of the way he talks!