They were loose with a few of their descriptions.

Yeah they always explain it only in context of the '08 crisis

Technically speaking, all insurance is a form of gambling

@@LIONTAMER3D it can be used as gambling tool but it can also be used to hedge lol

Wrong, it was ENRON and Phil and Wendy Gramm that mostly wrote CFMA of 2000, they are Enemies of the People. it was all of the policies of the right, the deregualtions from CFMA of 2000 allowed the banks to do whatever, no mortgage checks, just get the loans out, people defaulted, and more and more foreclosures, CFMA also made legal again betting on Wall st and a few in the know bet that foreclosures would rise, they bet billions, and they won, now assholes Phil and Wendy Gramm and ENRON who wrote the law had no regulations on the betting, and Wall st did not have the money to cover the bets these peope won, so they raided our 401ks etc and said it was lost, everything started to crash, In order to prevent what Federal Reserve Chairman Ben Bernanke referred to as a “global financial meltdown,” the Bush administration authorized a massive federal intervention to mitigate the worst effects of the crisis, in February 2008, President Bush authorized a $168 billion economic stimulus package, which consisted largely of income tax rebates. The Emergency Economic Stabilization Act of 2008 included $700 billion to fund the Troubled Assets Relief Program (TARP), which provided loans to troubled banks. At the same time CFMA had also deregulated the commodities market so big oil could then and still does set it's own prices and they artifically raised prices for Cheney and Halliburton because fracking isn't profitable when oil is below $90 barrel. The legalized betting on Wall st was legal in the 1800's up to the crash in 29, they were called Bucket Shops then and were the cause of the crash, actually several. Now they are called credit default swaps or derivatives

@@905Alive Bill Clinton removed the insurance that would have kicked in if the CMO failed. Period. Blaming it on Enron, which was a disaster, 7 years previously is a clown of an argument. And the Politicians blamed the Banks, because the Banks cannot defend themselves. Our politicians were the ones tasked with oversight, and they joked about not seeing a financial statement from Freddie in years. b.t.w. I worked as a peon, with CMO's. I have paperwork, that's been revised after the crash, but I have the copies before it was revised, from government agencies. But..no one really cares. The next housing crash will happen 25 years after the last. Nothing is fixed. It's just a kicked can.

Pockets of the executives as bonus

Very true

Companies like AIG were selling CDDs without owning the funds to honor them, they could do this because CDS aren't regulated like insurance. So yes, they DID in fact make the Financial Crisis that started as the Subprime Crisis with MBS, CDOs etc failing. The CDS (and by that also synthetic derivatives like Synthetic CDOs based on CDS) blew up the market of CDOs, MBS, etc EVEN MORE. You don't have to have a stake in actual MBS/CDOs to speculate on CDS/Synthetic CDOs, so the bubble that burst got "synthetically" bigger by these "side bets" and "insurers" who did not have the money to pay out at credit events. CDS in itself aren't all bad and they have their place in the market but they should be better regulate.

@@Hamboarding Unfortunately I didn't write that part here but basically my point is that regulation is actually the root cause of the problem. The only reason why someone would trust this investment are the ratings. When things are regulated, people get into a false sense of security. This provides them with enough bias to ingore some obvious problems. Those who are critical can see it immediately. However, those who are blind are usually in the majority and the majority still has a lot of purchasing power so even being smart isn't easy.

If the credit bubble didn't exist, no one would have wanted CDS in the first place. This video makes it seem like CDS were the problem instead of the credit bubble. The banks got over confident is what happened. If they knew what was in those MBS, no bank would have issued CDS.

Nah they still would have probably. The regulation here is making sure the banks have the general ability to pay off CDSs that default, meaning money should be set aside when selling CDSs to do so in that event, or at least put in unrelated relatively risk less investments. The banks sold them wildly to anyone who wanted to buy, and got burned for it

that doesn’t make any sense, there were many different ways to express that same bet without CDS

No, Credit Default Swaps, CDS. They are a part of Synthetic CDOs though and they were used to "insure" CDOs.

It's been uploaded 15 years ago…

@@Hamboarding were you alive in 2008? They actually had technology to film things clearly. Crazy I know. This, was filmed with a potato, as I said two years ago.

lmao obama wasn't even elected yet when this video was posted

@@superpiguy314 i'm not talking about obama. it's clinton in the white house. didn't you watch the video?

stupidminotaur Uh? Hello? Do you not SEE who the conservative have become? Or are you on the Trump train?

Well,,, it WAS the bush admin. Who had the "Bright Idea" to loosen the rules and allow Wall St. To "Self Regulate" . So,, yeah,, blame them.. that being said, we can/should put the blame also on the Gteed and Stupidity of the people.

6:43 Clinton and Greenspan pushed it. The Senate is so corrupt it was a unanimous vote that doomed millions of Americans to years of financial hardships and grief. Bill Clinton was President, the Republican's were majority in Senate and Democrats were the majority in the House. There is one guy at AIG who ran their London office who made 480 Miliion in 10 years in salary and bonus and cost that company over 40 Billion dollars to date. He's living free as a bird drawing 338,000 a year in retirement from AIG. The American taxpayers own the majority of AIG.