The Crisis of Credit Explained

[Apoptosis]

Great video here - http://www.vimeo.com/3261363

[DMB2000uk]

That's a really really good video!

Dan

[Tech_Greek]

Awesome,

Now I don't have to explain to the noobs around my city anymore, I can just show them a video.

Greed is a horrible thing

[Dragon_Cooler]

wow that was a really good video. It helped me understand more of whats going on.

But thats America.... MO MONEY MO MONEY MO MONEY!!!

[bigblockmatt]

very good video. it really helps to show that it wasnt one area of people or one specific group that caused this mess, it was wide spread.

[InspectahACE]

Biggie said it best...." More Money, More Problems "

[smack323]

the problem was the dumb people who took out loans they couldnt afford.

[pingu]

the problem was the dumb people who took out loans they couldnt afford.

You seem to forget that somebody allowed those dumb people to take out loans in the first place. It's kind of hard to pin the blame on just one group.

[smack323]

people need to be smart enough to know what they can afford and not let a bank tell them what they can afford. A bank is in buisness to make loans. Thats like saying a gun store is responsible for a murder because they sold the crazy wife a gun..

[pingu]

people need to be smart enough to know what they can afford and not let a bank tell them what they can afford. A bank is in buisness to make loans. Thats like saying a gun store is responsible for a murder because they sold the crazy wife a gun..

A bank is in business to make loans, and you would certainly hope that the banks realize that there is no such thing as a guaranteed return. They ignored the background check, the blood stains on her shirt, and sold, at a discounted price, the crazy wife a bazooka. And suddenly, we're surprised when she does the expected, just like we were surprised when the sub-prime mortgages started going under? Stupid homeowners didn't cause this crisis any more than the stupid bankers who went out of their way to give them loans (which were backed by more loans). Over-ambitious homeowners have always existed in our society, and it's the banker's fault for opening the floodgates by lowering the requirements for a loan.

[bigblockmatt]

A bank is in business to make loans, and you would certainly hope that the banks realize that there is no such thing as a guaranteed return. They ignored the background check, the blood stains on her shirt, and sold, at a discounted price, the crazy wife a bazooka. And suddenly, we're surprised when she does the expected, just like we were surprised when the sub-prime mortgages started going under? Stupid homeowners didn't cause this crisis any more than the stupid bankers who went out of their way to give them loans (which were backed by more loans). Over-ambitious homeowners have always existed in our society, and it's the banker's fault for opening the floodgates by lowering the requirements for a loan.

i think it is foolish to put the blame on any one group/entity/person. you could blame it on the media for saying that it is the American dream to own a house. you could also blame it on the FED for keeping interest rates so low that the banks went looking more aggressively elsewhere to make money. you could blame it on the government for giving incentives (tax breaks) for purchasing a house, the list goes on. the question isnt why it happened, the question is how are we going to get past, beyond, and learn from it.

its funny to me that everyone is mad at the 'bankers' for playing such a big part in this and loosing people's money. Yet 2 years ago everyone loved the bankers because they were making people money.

[pingu]

A bank is in business to make loans, and you would certainly hope that the banks realize that there is no such thing as a guaranteed return. They ignored the background check, the blood stains on her shirt, and sold, at a discounted price, the crazy wife a bazooka. And suddenly, we're surprised when she does the expected, just like we were surprised when the sub-prime mortgages started going under? Stupid homeowners didn't cause this crisis any more than the stupid bankers who went out of their way to give them loans (which were backed by more loans). Over-ambitious homeowners have always existed in our society, and it's the banker's fault for opening the floodgates by lowering the requirements for a loan.

i think it is foolish to put the blame on any one group/entity/person. you could blame it on the media for saying that it is the American dream to own a house. you could also blame it on the FED for keeping interest rates so low that the banks went looking more aggressively elsewhere to make money. you could blame it on the government for giving incentives (tax breaks) for purchasing a house, the list goes on. the question isnt why it happened, the question is how are we going to get past, beyond, and learn from it.

its funny to me that everyone is mad at the 'bankers' for playing such a big part in this and loosing people's money. Yet 2 years ago everyone loved the bankers because they were making people money.

I agree completely, which is why I was trying to counter smack's accusation that it was the homeowner's fault.

It's kind of hard to pin the blame on just one group.

Yeah, everybody loved bankers just a few years back, but it doesn't mean they were doing the best thing for the economy. We turned our economy into a bubble held up by cheap credit, and for now we have to makeup for the extra affluence in the past by going through a depression (/recession, assuming things start to get better soon). Nobody ever seems to learn from our prior mistakes, and we're doomed to repeat this cycle ad infinitum.

[InspectahACE]

I pin the blame on everyone..how about that?

Honestly I do think the blame should be on everyone..The banks went ape, we let them..the insurance companies went ape, we let them or they just stole it(more or less both)..Wells Fargo thought it was cute to open an account in my name, only problem was they switched my first and middle name around to do it..I told them do what is possible, that's my fault for not being clear on using MY correct name, but the fact that they ,were that shady to do that says thousands about them..still The blame should be on everyone..least then the finger pointing ends