Financial Derivatives: What are They? - Housing Bubble Collapse - Unregulated Insurance
Posted by admin | Posted in Insurance Videos | Posted on 03-03-2010-05-2008
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Was the lack of regulation on financial derivatives the main cause of our economic collapse? Or was it the easy money that Fanny Mae and Freddie Mac were giving out for home mortgages like there was no tomorrow? I would say that it was both, but there were other factors involved as well. The way I see it is that there was overregulation on one hand, Fanny and Freddie, while on the other hand there was under regulation when it came to these derivatives. I believe that this economic crisis we find ourselves in can be laid squarely on the shoulders of our federal government. They were the ones, along with the Feds, who made regulations that provided easy money for the taking, which was the cause of the housing bubble, which would have to collapse eventually, that is why they call it a bubble, because it is unsustainable. I believe it’s good that they are now proposing regulations on these insane casino style derivatives that have no economic value for our country. I just hope that congress does not do what it is famous for, which is to overreact to a problem, and in the process, make it worse. jbranstetter04
Did you even listen to what Mr. Greenberger is saying? Three times the money was lost, not because people couldn’t afford their mortgages, but because of the UNREGULATED bets made by financial institutions, that people couldn’t pay their mortgages! 3X! So it’s not “both”, it’s mostly a lack of regulation of OTC derivatives. Don’t fall for the tea party blather.
“For he that hath, to him shall be given: and he that hath not, from him shall be taken even that which he hath.” Mark 4:25 KJV
It’s Biblical law, who is the hath? who is the hath not? in America and the World, it’s better to be rich. trust me, it’s easier to figure out how to build wealth for yourself and your family than it is to fix the problems with the economy of America. Understand the Federal Reserve controls the money, I would like to know who controls this private organization?
Well this is a very clear explanation on that one side of derivatives. Who knows what other derivatives are going to blow up for someone in the future. That said derivatives can be used to improve the economy but they can also be abused. Just like many other things in life such as cars, guns and knives, they are all useful but can also be dangerous.
Incredibly naive explanation of derivatives, one sided and completely lacking in substance. I can’t believe he is a prof., risks are usually hedged to within a small percentile range. The actions of one mismanaged company should not be used to explain the entire industry. Imagine we did that with everything, America would be filled with GW Bush’s! Think about it…and do your own research.
Thanks for the post! Derivatives take time for strategic planning, right? Those involved take their spot and align themselves with the ruse. Well, what is bothersome to me is the one minute investigations these guys have to face. Ok, so I didn’t pay attention to these political communities cos I saw them as liars but now I’ve got my pliars. I’m opening up my mind and I’m questioning that which I didn’t know. Otherwise, these guys will ask for more matches to add to their fuels of ill gain!
OUTLAW Derivatives
The shareholders pay for failure of a company. When a company goes bankrupt, generally shareholders are wiped out. It’s only Bush/Obamanomics that require we the taxpayers bail out these companies.
What logic is that? If you’re trying to get skinny, do you decide eat more anyway? If we’re willing to let big companies fail, who do you think pays for that? The American taxpayer. But what the hell, who are? We’re just a bunch of smucks who let them do it and don’t do shit about.
Wasn’t referring to labilities …but I don’t disagree with what you say
CASINO FINANCE IS THEFT!
@moomar1
Liabilities should not be traded. Period.
I finally got it!
What a great explanation that anyone that anyone can understand - thanks for posting
If we’re willing to let big companies fail, then regulation is still not necessarily needed. But this does need state oversight.
Casino Economics!!! How secure is that? How stable is that??
i do have a job u racist fag.
how do we trade our resources? how do we keep track of who owes what? with clam shells?
don’t be so fucking racist ya prick
cringo123, why dont u go get a job and start contributing to society and the economy. People like u are even worse, u plainly suckle at the teet of us tax payers, and do nothing but squeeze a sh!t out in return. Break yo self
aahh .. its a casino.. ok..lol
i’m lost. All I know is we got ripped off!!!
the gov, the gov are the fags that gave these jerks our money so they can feed their gambling habits and losses.
thx god somebody explain y this economy is crashing.derivatives,credit default swaps, all fancy name for white boys who in reality are gamblers and hustlers.but for low income class they call us crooks,thieves and etc.but if wall street does its than its lawful.
Great video, this guy knows how to explain things in a simple yet non-convoluted way.
complaining about derivatives is missing the point. Wall street caters to greed in the first place. Capitalism is a flawed economic system, period. Socialism, Capitalism, Communism are all MONETARY systems, the only difference in ANY of them is the amount of regulation by the govt.
Support a resource based system. It’s scientifically sound, and ALL will benefit.