+Move Along nailed it

LOL! ;-)

totally

Best joke I've heard all day! Thanks!

JC Denton you never cease to amaze me.

aren't you glad you paid $60k plus for the education that you could have got here for free?

@@MassEffectFan113 actually it was prob more than 60K

The others probably didn't understand the subject well enough to explain it in layman terms like this guy does.

Yes, but it doesn't cover everything. Another huge part of the crisis is the credit default swaps, which the investment banks bought, essentially betting against their own CDOs, putting companies like AIG bankrupt (before it was bailed out, that is)

The Inside Job- watch it

An statistician here, and I was enraptured by how easy yet complete this explanation was. 3 cheers for data visualization. Wow.

Ryan Yakov But the investors wanted higher risk products. So that is what they got. Too many investors got greedy and when it all fails, the investors blamed the banks. The public and regulators fail in their role to monitor banks.

Going into debt you know you can't pay off. Now that's fucking dumb.

Ryan Yakov And yet, people accepting credit knowing they can't pay it back? that's fucking ignorance.

Pushing out the government is the reason why it happened. You don't want government? Fine. I give you this. The end of our economy. No government, means no regulation. And there was certainly no regulation. Especially with the republicans running the house. Hank Paulson(REP) had to run to the Democrats to try and save our economy.

+Ryan Yakov On many occasions, the lenders were FORCED to give that credit due to legislation known as the 'Community Reinvestment Act' which was supposed to tackle racism in the mortgage market, but ended up giving lots of mortgages to black people who could never pay it back.

I saw it. Matt Damon knew how to calmly narrate a rather scary phenomenon.

@Richard Wilson yikes...chill man

@Richard Wilson wtf...dude chill the fuck out. Lmao whats wrong

@Richard Wilson chill out, relax, have a drink and maybe start jogging a little bit, that's a lot of fat to carry around everyday. Oh shave the neck beard too

@Richard Wilson mom Jokes... Ok dude grow a pair of nuts and then come back. Actual 12 year old trapped in overweight senior body

+Eric Andal So much like for this comment. Same here.

+Michael Holder Same here

+Eric Andal The SAME thing and thought happened to me today! I just got back from watching The Big Short.

+Eric Andal just sent this around to a bunch of people at work for the same reason

+Eric Andal Same!

+Andre K my philosophy precisely!

+Andre K If everybody did that the economy would die instantaneously.. PLEASE TELL ALL TO DO IT!!! We need to build a new system.

+DanusMax Obviously people don't have enough money laying around to buy a house upfront. However, that doesn't mean just anyone can go and buy a 5,000 square foot house.

since the market prices of houses were going up. banks would accept essentially anyones credit. however, the reason people would take this (that cant afford it) was because they thought there house values were going to cover there mortgage costs... as in the interest theyre making in there $600,000 house(s) they thought it was a good idea to put it on there credit cards... and hopefully sell the houses when they need to for a profit. this was the problem in 2002, 03, 04, 05, 06, 07, and 08.... banks werent controlled and gave out these sub-prime mortgages only to make a quick buck from investers.... the sickness was that these cdo's were labeled as triple aaa bonds... bankers are just plain greedy

jake smitth Blame the banks! Blame the rich! Blame anyone, everyone, but yourself!

+Nikhil Autar I'll sell you a box of magic air for $1000. guaranteed invisible.

+Nikhil Autar hahhahaha

Warsrogue I’ll take 10! 💁‍♂️

😂😂😂

You mean the boxes with ticking time bombs in them? have at it, bro xD

hahahaha

ahhahahahahaha

Your mustache trims itself though. What could that expense have been?

Fukin legend

It is stupid to say "don't buy things you can't afford". People need houses, and they can't afford because the system is rigged to make the poor poorer and rich richer, and rich folks force more and more people to owe them and make them in debt so they can get richer and buy the politicians too. Don't you see the system is rigged? Don't you see the inherent corruption in monetary system and capitalism? Stupid system just to make a few elite rich, parasites who brainwash us that there are no better alternatives. They want good slaves, that's all they want. We need Resource Based Economy for sustainability and a better future.

*2018

@@lolbots still low sub prime mortgages.

@@lolbots *2019

It's going to stay relevant for a long time.

"All we can do is educate ourselves" that hasn't aged well. In fact, it might be the cause (this or car loans) that will cause the next recession, essentially based on the same model.

I see what your saying, but you still own the house. The bank is not responsible for maintenance and repairs. You are

You never own your home. The government does. You will pay property taxes forever

@@bd5236 the government does not own your home simply because they tax you.

@Shawn Huffman you pay tax on almost everything, the government does not own those things.

@Shawn Huffman Yea I get that, but you are still the owner, the owner can decide to knock down the house, renovate it or whatever, the government cannot. Paying taxes just comes with ownership, I pay the government tax when I buy a car, the car does not belong to the government because of this.

That's hilarious, blunt and to the point

HE HE EHE EHEHEHEE that's hilariously sad @@wayneruffner223

@Gemma W true sometimes

@@filthbomb Have a feeling the housing prices are going to start plummeting after this whole Corona ordeal. A good time to buy homes could be coming up in the next 6 months to a year

The real problem is that investment banks leverage the shit outta rating agencies. It forces the agencies to rate their sub-prime CDOs higher so they dont run to seek a higher rating elsewhere.

honestly now i understand the movie

If anyone should go to jail, it should be government officials that started this mess, not the banks.

@Martin Shepherd No, they understand. But they're corrupt af and being paid off by lobbyists.

@Martin Shepherd people who made bad loans and took out bad mortgages should have taken a bath. fuck em

I’m interested please. I want to build my portfolio, and trade profitably.

5 accounts of the same age with 0 subscribers praising a man you've never heard of before for advice you didn't ask for 🤔

Probably Adobe After Effects for the animation and Adobe Illustrator for the illustrations

These types of videos are usually created using Adobe Animate

👀

chapter 11? what made you bankrupt

And a QE4 had already occured and we have COVID + the war in Ukraine.

Zelcs dod frank is getting lose. Looks like ninjas are coming back

Not so sure about that. Things aren't as crazy as 2008. Neighbors aren't buying multiple houses ect. Not sure how much higher home vales can go tho and still be affordable.

1 year full of ups and downs, ain't ya?

+James Gant Most of the big name rating agencies are actually private companies. So this is not accurate.

+James Grant as Roman said, most of the rating agencies are private firms, who were more concerned about retaining customers. Plenty of underpaid staff also helped to incentivize easy passes on junk bonds to re-rate an ordered CDO of risky mortgages into a AAA rated CDO. But that's not to give the government a clean pass. The SEC at the time was sitting around doing next to nothing. Just a year or two after the crash, there were reports of the SEC Office of Inspector General turning up plenty of its regulators watching and collecting porn instead of doing their jobs. The whole system was just a shitstorm of bad actors waiting for a poorly built house of cards to come crashing down. The bailout was a bad idea, and the banks weren't given enough restrictions on their restructuring for taking TARP. I said it in '08 and continue to say it today, if you took TARP money, you have to listen to the regulators and do exactly what they said. Not give your execs golden parachutes and pay off lobbyists to turn the political tide in their favor.

this is finance

Its a good combination of both. When the supply of the houses exceed the demand, the demand had to drop to bring the equation back to equilibrium, causing the prices of the houses to plummet

lol same . I'm studying finance , when the teacher explains in detail of subprime crisis , the whole class was confused as fuck . But lucky , i watched The Big short , Margin Call and this video before so I can understand better than them

You know youtube existed when this was happening, right??

be ready for 2019-2020 time to make $$ of the crisis

It’s only irresponsible to have multiple kids if you can’t afford them, I think that was the point they were trying to make

+msabri1 No, it was nuns who caused the crisis...

+msabri1 Greed is also the one thing that keeps our system running smoothly. This problem originated with government's control of interest rates.

Joshua Stowers how can greed keep our system running smoothly? could you elaborate.

Because people always try to improve their own position (greed) they bend over backwards to provide, improve, and invent services and products to sell for us. Since everybody else is doing the same, businesses find themselves with competitors, which they then have to battle with by offering better or cheaper goods and services. In the process jobs are created, there is competition over employees, and better wages as a result. By acting in our own self interest we have been able to develop extraordinary medications, invent advanced technologies, and pull almost everybody out of poverty.

msabri1 It's not a perfect system, but it does a surprisingly good job.

Don't you pay a premium everytime you prepay? There's a fee. Which makes sense, because your mortgage deal is based on the dealer's interest income. No reason for them to lend you if they couldn't make back a profit above LIBOR.

You are not cheating the banks. Giving the money earlier than expected has value.

You can't stop verifying peoples' incomes, waive deposits, and give them low introductory rates, and then say it's the people that are greedy for wanting a house.