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The Fed Under Fire Posted by: AmericanNewsProject
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Latest comments made on this video:
By: 5147848amp. on 21 Nov 11, 04:42:18
Dude, man. Thanks for putting up with my beginner status. Untangling all of this stuff - all of the lingo alone -? is causing brain pain. I've read through your response once. Another few times and it'll start to sink in! (You've got your own special folder on my desktop!) Anyhow, once again, gurt thanks for the reply. Here's to the end of the bankster occupation!
By: mandelman. on 15 Nov 11, 09:30:51
Continued... 10. Last one... When countries get into financial trouble, they have 3 options: 1. Devalue currency, but Greece can't because it's part of the Euro. 2. Slash interest rates, but Greece? can't because rates are set by the EU Central Bank. 3. Print money and buy up debt, but Greece can't do this alone because of the Euro again. 4. A Bailout... that's where we are today. OR... Greece leaves the EU, defaults on its debt, and tells bankers to go fly a kite. Hope it helped...
By: mandelman. on 15 Nov 11, 09:23:55
Continued... 9. In the case of Greece... Goldman Sachs helped Greece borrow, which countries do by selling bonds that comprise the National Debt. Interest payments on that debt? can get quite large, and countries often have to sell more bonds to pay the interest payments. Goldman helped Greece right into the poor house and as the country's credit rating fell, it was forced to pay higher interest rates to sell more bonds... until it was in a death spiral.
By: mandelman. on 15 Nov 11, 09:05:18
Continued... 8. With no market for mortgage-backed securities, there was no secondary mortgage market, and then no mortgages, so housing prices went into a free fall... and foreclosures increased, which caused housing prices to fall further, which lowered spending, which made unemployment rise... which increased foreclosures. We entered a downward spiral, and we're still in it today. The only lending? going on today as far as mortgages are concerned comes from the government.
By: mandelman. on 15 Nov 11, 09:01:24
Continued... 7. By the summer of 2006, Greenspan has raised interest rates 17 times in a row in an effort to cool off the heated real estate market and the adjustable and teaser rate loans jumped? up, and foreclosures started in the third quarter of 2006 as a result. By July of 07, S&P and Moody's, two credit ratings agencies that rate bonds, downgraded the ratings on 1,032 bonds and investors panicked because they no longer trusted the AAA and BBB ratings. Everything froze.
By: mandelman. on 15 Nov 11, 08:58:08
Continued... 6. One type of derivative is called a "collateralized debt obligation," or CDO. Think of a CDO as a tower of BBB rated middle slices of mortgage-backed securities. Another was called a CDO squared, which was a CDO with even more leverage or borrowing employed. The banksters sold these type of investments all over the world to pension funds, European banks and sovereign wealth funds, which are a country's investment funds.?
By: mandelman. on 15 Nov 11, 08:54:58
Continued. 5. The banksters created derivatives out of mortgage-backed securities. Derivatives are securities whose values are "derived" from other securities. Mortgage-backed securities were divided into "tranches," which is just French for "slices." The top slice was rated AAA, meaning it was supposed to be safe, but paid the least amount of interest. The middle tranche? was rated BBB, so it paid more interest, but was riskier. And the bottom slice paid the most, at the most risk.
By: mandelman. on 15 Nov 11, 08:48:49
Respond to this video... ? Continued... 4. Wall Street's bankers would like us to believe that it was the "irresponsible borrowers" who are responsible for the crisis. It is nonsense. The bankers caused the crisis in every sense of the word. Imagine one loan for $100,000 being the collateral for $4 million in leverage. When the $100,000 loan defaults, it's not the $100,000 that matters it's the $4 million.
By: mandelman. on 15 Nov 11, 08:45:20
Continued... 3. As long as things went up no problem, but when things went down their leverage wiped them out. Imagine investing $10 and earning 10%. You'd have $11. Now imagine investing $10, but also borrowing $90 so you invest $100. If you made 10% you'd have $110, and? after you re-paid the $90, you'd make an additional $10, which means you doubled your money. But if you LOST 10%, you'd lose $10, and be wiped out, because you only had ten bucks to begin with. That's leverage!
By: mandelman. on 15 Nov 11, 08:38:42
Continued... 2. BUT... the global financial crisis WAS NOT CAUSED BY BAD LOANS. The meltdown in the fall of 2008, was not a function of bad loans, it was the leveraged securities that blew up Wall Street's investment banks. Inside a mortgage-backed security, you might find 5-10% actual loans, and 90-95% leveraged securities.? Leverage is "borrowing". Wall Street's bankers borrowed against the securities they created in order to amplify their returns.
By: mandelman. on 15 Nov 11, 08:35:38
In the interest of keeping this simple: 1. Wall Street investment bankers, not investors, wanted "bad loans" because they were betting that the bonds into which they placed these loans? would default. A credit default swap allowed an investor to "short" the sub-prime market, by betting on a given bond's default. Credit default swaps also allowed investment bankers to believe that their positions were perfectly "hedged," which means protected in case of default.
By: 5147848amp. on 28 Oct 11, 02:53:43
Could someone give me a short tutorial.? I'm, like, no economist! First, why would Wall Street investors want anything to do with bad loans? Second, do these subprime loans have anything to do with Greece/the recession in the? Eurozone? Much oblige.
By: theelbowfromthesky. on 08 Oct 11, 03:12:19
...and even after all this? time... the criminals are still getting away with it
By: Beingreal40. on 26 Jun 11, 16:59:55
In California, there's a fiduciary law that the mortgage broker is to serve the client in their best economic interest.? But as you've seen in the crisis, who really follows the laws anymore.
By: JipJDB. on 26 Jun 11, 08:50:07
Sad but true. If the? buyer had no outside knowledge about what was going on, they (buyer) would tend to trust the "expert". After all, the "expert" is ALWAYS right and can be trusted.
By: myabuses. on 20 Jun 11, 23:11:14
Still going, going... See ikeepmyhome site for all you can? do about this crap.
By: farmboycarl. on 31 Mar 11, 13:09:54
Many Americans had started making their homes the center piece of their finacial planning, so Wall Street had to destroy homeownership. First they pumped the market by building millions of unneeded new homes, and creating easy (but dangerous) financing for anyone with a pulse to buy them. Then they created Credit Default Swaps to capitalize on the? collapse, and started manipulating interest rates and lending standards to pull the rug out from under the whole thing. It's TREASON pure and simple.
By: spectrum0590. on 18 Jan 11, 17:52:07
Great video! Informing everybody about this? scams.
By: Gioxtream. on 20 Nov 10, 21:32:52
Mortgages that were based on Fraud?? I think. I want my house back.By The way... a multi million dollar law suit and Jail time for all those who create the terms of? those bad agreements. PERSECUTION.
By: GThomason. on 28 Oct 10, 20:28:07
Bank of America is CRIMINAL. Besides all the things they do to credit cards, they are the MAIN PERPETRATOR of Foreclosure Fraud, throwing people out of their homes by forging the documents. DEMAND that your bank produce YOUR ORIGINAL mortgage note with your "wet ink" signature (a copy is insufficient, just like a copy of a dollar bill is not a dollar). If the bank cannot produce YOUR original signed note, they can? be sued for the mortgage amount +3 times the amt. They've been caught FORGING.
By: NOTSODOTCALM. on 25 Oct 10, 16:53:57
fuck them all FUCK FUCK FUCK FUCK FUCK FUCK FUCK?
By: rbrouwer5. on 24 Sep 10, 21:30:56
same situation....get an attorney..to much corruption in the paper system and mers...fight these jags. F@#k Chase and all the other banks.. They make way more on foreclosing then modification. thanks to? the bailout to AIG and big banks.The Gov allowed this because all there buds (big banks ) were making huge money...and now with the biggest financial heist in American history they have hedged there bets and made money on? the bailouts. For the people by the people.nope. For the Gov. by big bus.
By: Orical001. on 05 Jul 10, 16:05:24
my god the first? time I heard a black lady being so articulate...
By: StopTheOilSpillNow. on 18 Jun 10, 23:42:07
great? vid
By: msbearpaw. on 18 Jun 10, 10:32:09
With 700,000 claimants in the? recent Ameriquest MDL class action settlement not many of the claimants are aware that we will only be getting around $30 each in the settlement after lawyers fees and other agreements in the suit. It is not fair! I am hoping the Judge agrees and the suit starts over.