Videos and articles to educate the average American

on the complexity of the present financial crises.

What Cooked the World Economy? — it wasn’t you overdue mortgage   “What did cause the crisis was the writing of credit derivatives.  In theory, they were insurance policies for investors; in practice, they became a guarantee of global financial collapse.  As insurance, they were poised to pay off fabulously when these weak bundled securities failed.  And who was waiting to collect?  Well, every gambler is looking for a sure bet.  Most never find it.  But the hedge funds and their ilk did.   The Village Voice   1/28/09

How Did We Get to This Point? – “The root cause was excessive lending in the mortgage market. With a political bent, some have placed the start of the problems with the Community Reinvestment Act of 1977, which was meant to provide credit to undeserved populations, improving home ownership in inner cities and providing loans to small businesses… The problem was leverage. Fannie and Freddie got greedy. Investment banks levered up, borrowing to buy higher-yielding securities backed by subprime debt. ”  Seeking Alpha  9/23/08

Securitization Primer Part 1

Securitization Primer Part 2

“New proposals to ease our great mortgage meltdown keep rolling in. First the Treasury Department urged the creation of a new fund that would buy risky mortgage bonds as a tactic to hide what those bonds were really worth. (Not much.) Then the idea was to use Fannie Mae and Freddie Mac to buy the risky loans, even if it was clear that U.S. taxpayers would eventually be stuck with the bill. But that plan went south after Fannie suffered a new accounting scandal, and Freddie’s existing loan losses shot up more than expected.”              San Francisco Chronicle

 

Peter Schiff

Peter Schiff

Geithner’s False Assumption – Rebuilding Securitization Market Is Good for Economy “By artificially rebuilding the securitization market, and committing taxpayer funds as collateral, the U.S. economy will be pushed farther and farther out on a leveraged limb, until no amount of market medicine can prevent a total economic collapse.       Euro-Pacific Capital  2/13/08 

Thje Role of Securitization in Mortgage Lending

www.chicagofed.org/publications/fedletter/cflnovember2007_244.pdf

How the U.S. Financial Crisis Resembles Japan’s “Lost Decade” – And how to Play it.

http://seekingalpha.com/article/85743-how-the-u-s-financial-crisis-resembles-japan-8217-s-lost-decade-and-how-to-play-it

http://seekingalpha.com/article/85669-historic-financial-collapse-underway?

http://seekingalpha.com/article/85741-fha-another-ticking-time-bomb

Financial Institutions Collapsing   “Sean Brodrick takes a closer look at how financial institutions are collapsing and the damage has now spread into the prime mortgage market. In this issue of Money and Markets, Mr. Brodrick discusses how Fannie Mae and Freddie Mac’s liabilities add up to $5.3 billion dollars.” http://www.emediawire.com/releases/2008/7/prweb1114644.htm

 http://www.marketoracle.co.uk/Article5533.html

http://www.guardian.co.uk/business/2008/jul/20/stockmarkets.useconomy



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