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Economics Discuss Global Financial Meltdown at the Political Forums; You Tube You Tube Meltdown is a four-part investigation into a world of greed and recklessness that brought down the ...

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Old 05-28-2016, 06:37 PM
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Default Global Financial Meltdown


Quote:
Meltdown is a four-part investigation into a world of greed and recklessness that brought down the financial world. The show begins with the 2008 crash that pushed 30 million people into unemployment, brought countries to the edge of insolvency and turned the clock back to 1929.

But how did it all go so wrong? Lack of government regulation; easy lending in the US housing market meant anyone could qualify for a home loan with no government regulations in place. Also, London was competing with New York as the banking capital of the world. Gordon Brown, the British finance minister at the time, introduced "light touch regulation" - giving bankers a free hand in the marketplace.

Meltdown moves on to examine the epidemic of fear that caused the world's banks to stop lending and how the people began their fight back. Finally, it asks how the world can prepare for the next crisis even as it recognises that this one is far from over.

We hear about the sheikh who says the crash never happened; a Wall Street king charged with fraud; a congresswoman who wants to jail the bankers; and the world leaders who want a re-think of capitalism.
good run down of events leading up to the crashing economy
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Old 05-29-2016, 02:20 PM
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Default Re: Global Financial Meltdown

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Originally Posted by saltwn View Post
http://www.youtube.com/watch?v=VQzEW...dex=66&list=WL

good run down of events leading up to the crashing economy
"Meltdown is a four-part investigation into a world of greed and recklessness that brought down the financial world. The show begins with the 2008 crash that pushed 30 million people into unemployment, brought countries to the edge of insolvency and turned the clock back to 1929.

But how did it all go so wrong? Lack of government regulation; easy lending in the US housing market meant anyone could qualify for a home loan with no government regulations in place. Also, London was competing with New York as the banking capital of the world. Gordon Brown, the British finance minister at the time, introduced "light touch regulation" - giving bankers a free hand in the marketplace.

Meltdown moves on to examine the epidemic of fear that caused the world's banks to stop lending and how the people began their fight back. Finally, it asks how the world can prepare for the next crisis even as it recognises that this one is far from over."

180 degrees out of sync. It was government that encouraged 100+% loans to be given to people who had no possibility of ever paying them back.

George Bush gave a 23 minute speech the crux of which was everybody deserves home ownership. Fanny Mae, Freddy Mac, USDA, and the equivalent state agencies insured these loans. Many were given based not on ability to pay but rather on somebodies idea of fairness and/or equal opportunity.

I was there. Learned the appraisal business cleaning up Carters lending mess. Was doing 6 or 7 superficial appraisals/day when the government eased restrictions on banks wanting to do low equity home 2nd's. Spent a year doing RTC foreclosure work.

But we learned, correct? No we didn't. 2 years after RTC shut down, government was back to the same. Low interest low equity loans, particularly to minorities and other low income groups. USDA (yes that USDA) would loan 105% of value in rural areas, which in many areas included large city suburbs. If anything, restrictions decreased, and when banks became concerned, government or pseudo government groups stepped in to insure these suspect loans.

So the mortgage industry failed, which among other causes, led to the housing bubble failure. Simply a case of the market correcting itself. Markets tend to do that in spite of government intervention.

So this time we learned and we will not repeat the mistakes. Correct? Not so much. Today the oversupply has corrected itself, housing is recovering. And today government is back to where it started. You can again buy a home with low or no down payment, Farm Home Administration is making 102% loans. Upper end houses can be bought with low down payments, Credit requirements have been eased. Look again for a repeat.
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Old 05-29-2016, 02:24 PM
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Default Re: Global Financial Meltdown

The movie The Big Short explained all the greed and crime attached to the market crash of 2008.....


I highly recommend it for fellow PW'ers......
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Old 05-30-2016, 03:02 AM
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Default Re: Global Financial Meltdown

Well what is to come is going to wipe us out with a total MELT-DOWN

Coming soon to your bank TOTAL FAILURE as the BIG BOYS of Wall Street start to drop like dead flies...


While we can't get our money out of our accounts all these big boys and what they stole will be useless to them as each nations economy fails around the world...


There isn't enough gold in the market to spread around to these wealthy thieves...
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Old 06-06-2016, 05:08 AM
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Default Re: Global Financial Meltdown

Quote:
Originally Posted by saltwn View Post
http://www.youtube.com/watch?v=VQzEW...dex=66&list=WL



good run down of events leading up to the crashing economy
This can't be right. It was all GW's fault.
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Old 06-06-2016, 05:27 AM
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Default Re: Global Financial Meltdown

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Originally Posted by 40yearfan View Post
This can't be right. It was all GW's fault.
Of course it's not all GW's fault although he contributed to it. The problem really relates to extremist "capitalism" advocated by right-wing political ideologies.

Don't get me wrong because I'm an advocate of Capitalism but like all economic philosophies it has it's positives and negatives. The problem is that "right-wing" economic philosophies tend to ignore the negative aspects of capitalism that require government regulation to keep them from getting out-of-hand.

If we had to point a finger at where the problems originated we'd probably have to address the Reagan Administration and "trickle-down" economics. It's taken decades for us to realize the cumulative negative affects of those policies and that's understandable because nothing happens over-night. What started out as a small snowball has turned into an avalanche today and it would require an extensive overhaul of our economic policies to stop that avalanche.

The problem is that our government isn't reversing course to stop the negative economic avalanche that started in the 1980's.
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Old 06-06-2016, 06:31 AM
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Default Re: Global Financial Meltdown

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Originally Posted by ShivaTD View Post
The problem is that our government isn't reversing course to stop the negative economic avalanche that started in the 1980's.
Damn we agree on some thing. Reagan reduced top tax rates, and capped them to stimulate a weak economy. Good tool to use, but he should have put that tool back in the box. Since 1981 there has been a party amongst the richest Americans. The rest of us, get the shaft.

Trump wants to raise tax rates on the rich, and reclassify income from investments so it isn't taxed at 15% as it is currently. A move in the right direction, not sure it is enough..

Regards, Kirk
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Old 06-06-2016, 04:08 PM
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Default Re: Global Financial Meltdown

Perhaps if the Government wasn't standing at the ready to finace the recovery after a melt down, they would occur less frequently.

And be over much sooner.

1920 financial crisis goes un noticed today. worse than 1929 and worse than 2008, the government told the reckless bankers to go to hell. A few did, literally committing suicide.

Less than 12 months later the banking system recovered, new money, Private money invested. And yet, as Jimbo suggested, no lesson learned. It still happened again in 1929.

Only this time the gubmit stepped in and the pain lasted for 8-9 more years.

No CEO of a major corporation that fails should get a damm dime until all the creditors are paid. Does it happen that way now. Can you say General Motors?

No corporation or bank is too big to fail. Someone amoung the money soaked onepercenters will buy the bones and rebuild with "PRIVATE' money. Or competitors will do it. Or that business should not exist.

Several auto makers were salivating at the prospect of buying GM, and Chrysler, cheap and rebuilding the brand. Private money Instead we paid FIAT $25 million to take Chrysler in and poured almost a $trillion into GM. Both still operate under the old models that sent them spinning down in the first place.

Our President should not arbitrarily "author" a special structured bankruptcy. Again, Can you say General Motors? But I repeat myself.
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