Thought that this might be a good video for those of us who aren't investment savy or have no real understanding of what has happened.
http://vimeo.com/3261363
http://vimeo.com/3261363
Credit Crisis Visualized
- Thread starter Jetpilot3
- Start date
Excellent use of graphics to portray and simplify a complex problem. However, the author neglected a key player in the problem.
The Federal Government.
The gov't mandated by Law that lenders had to make a percentage of loans to risky, poor borrowers - people that would banks would have not normally lent money to.
The government attempted to do some noble social engineering through Fannie and Freddie but as you know, it just didn't work. This story wasn't simply about greedy bankers running amok in a uncontrolled environment, as is often the case our government played a role as well.
There seems to be an attempt to rewrite history so as to eliminate one of the main reasons for the "Tipping Point". Some people hope you all will forget about Fannie, Freddie, Chris Dodd, Barney Frank, Franklin Raines, Jimmy Carter and Bill Clinton and their efforts to give mortgages to risky borrowers.
http://en.wikipedia.org/wiki/Fannie_mae - Read the section on "Contributing Factors" for more info.
The Federal Government.
The gov't mandated by Law that lenders had to make a percentage of loans to risky, poor borrowers - people that would banks would have not normally lent money to.
The government attempted to do some noble social engineering through Fannie and Freddie but as you know, it just didn't work. This story wasn't simply about greedy bankers running amok in a uncontrolled environment, as is often the case our government played a role as well.
There seems to be an attempt to rewrite history so as to eliminate one of the main reasons for the "Tipping Point". Some people hope you all will forget about Fannie, Freddie, Chris Dodd, Barney Frank, Franklin Raines, Jimmy Carter and Bill Clinton and their efforts to give mortgages to risky borrowers.
http://en.wikipedia.org/wiki/Fannie_mae - Read the section on "Contributing Factors" for more info.
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Not a bad video. Missed a few key points though like the SEC removing leverage requirements foolishly and the federal government making a large portion of the sub prime market exist.
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