OK so I just saw this and I'm spooked out of my mind

OK so I just saw this and I'm spooked out of my mind

THEY'RE LITERALLY DOING IT AGAIN AFTER THEY MADE US PAY FOR IT THE FIRST TIME

BTOs=CDOs

WHAT
THE
FUCK

Other urls found in this thread:

money.usnews.com/investing/articles/2016-05-23/what-is-a-bespoke-tranche-opportunity
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they got insanely rich and faced no consequences . why should they stop doing it? would you stop?

In English man!
No seriously, which bubble are you talking about?

the bankers are literally doing the same shit as before the crisis of 07 and the only difference is investors are still a little spooked and ratings agencies haven't reverted back to sneaky merchant mode.

Yet.

I mean I get greed but some of the big whales who set the trend must realize on some level that they're pulling the plug and there is no more money for bailouts

Relax goy, stay on 4chuns and post about waifus etc

The economy crashes every 20 years or so so relax you have a while

but what are they hiding the shitty ratings in this time?
what does BTO stand for? Google wasn't very helpful, it gave me results for hdb. Is that the same thing?
And most importantly, what bubble are the majority of these loans supporting?

this article is a good starter
money.usnews.com/investing/articles/2016-05-23/what-is-a-bespoke-tranche-opportunity

but it basically says BTOs are CTOs, meaning a hodgepodge of horrible shit obligations that are trades together. As for the market - it's housing again.

The ratings aren't bullshit yet just how they weren't bullshit when the mortgage backed securities started, because the smaller banks had plenty of good credit to sell. But if the BTO market continues growing (went from $5 billion to $20 billion between '13 and '14) it means demand will increase and banks will start packaging shit into gold boxes again

Yea but theyre doing it cuz the "bubble" will burst in 30 years, not anytine soon

there were barely 8 years between the dot com crash and the housing bubble collapse

HAHAHA 20 OMFG more like 7 years, what happened in 07 was clockwork because it happened in 2001.

it's odd, but 2001 made it standardize, it's because you have 7 years to claim depreciation of capital.

on 2001 9/11 all accountants worldwide claimed it at the same time, so instead of it happening near to the same time, it was clockwork. boom

either way, 7 years.

it's not going to be as bad as it ever was because 2014 happened without a hitch, i don't think people wait the 7 years to claim it, and just report it regularly because there's no REAL advantage to having a year of 7 years worth of losses.

it's predictable loss that should be factored in to budgets.

Just read it, interesting
I feel the big difference, which they touched upon, is that people are semi-prepared for it now
In the 07 crash, it was absurd to claim there was a chance the housing market could fail and everyone blindly trusted the banks.
Now though, partially due to the Big Short and people looking for opportunities to make money, financial analysts will be paying very close attention to BTOs

So if they do start to comprise of shitty inestments repackaged into something else and called great, then people will immediately notice and the banks will suffer as soon as 100s of financial analysts start betting against the market

>mfw ausfag and shits only just starting to hit the fan
now i read that rents are dropping across the country and the ass is falling out of the property market as our dollar drops through the floor

>its happening 10 years later.cunt

the thing that worries me is that the market just follows the big players and the big players got saved in 08 which means they don't give a fuck.

Sure it would be suicide to claim another bailout not 10 years after, but 5-10 years from now? People have a short memory and the American economy is still based on Joe Schmoe having no income but living in a 3 bedroom and driving a 70k car.

I agree. Something the movie touched on pretty well was the perfect storm of greed, need, complicity, and innocence. You have families who need homes but who lack the understanding to know what a teaser rate is. You have real estate salesman tricking people into thinking their highly inflated homes are investments, not liabilities. You have officials at S&P or Moody's that know what they're doing is wrong, but must due to market necessity. You have the guys near the top that know what they're doing and just don't care. And finally, at the very top, you have the few guys that understand that the bottom WILL drop out of the market, but that ultimately they will be saved.

A lot of people got fucked. A few people got rich. But most importantly of all, Americans were reminded that bullish markets can buck you off and rip your guts out if you're not paying attention.

Sidenote: great movie.

DONT WORRY ABOUT IT NIGGER

JUST RIDE THE GRAVY TRAIN UNTIL IT IMPLODES

THEY'LL JUST FINANCIALLY ENGINEER THEIR WAY OUT OF IT AGAIN

TBTF MUHFUGGA

I stll don't understand what's Bard Pitt doing in the poster.

Great Movie btw, book is great too if anyone is interested.

What did you enjoy about the book?

Failing economy is built into capitalism.

yes, but those are two separate industries. their screwing over housing again, so it'll take some time for the market to build up again to what it was pre-'08 crash

Welcome to the suck my friend.

Your friendly reminder Deutsche Bank's stocks are crashing really fucking hard as we speak.

We're just coming to the endstate of capitalism. When the economies literally start eating themselves for profit.

Oh, and Italy's oldest bank (ca. 1490 something) is failing hard, as well as Credit Suisse. They didn't learn (well they don't give a fuck anyway) and we're gonna pay for it. This year is gonna be fun guys.

plebs: baww why can't you give me a loan
banks: practical reasons
government: dude, let's ignore economics and give them loans lmao
5 years later
good wholesome plucky traders: wow, look at this speculative bubble, let us do our duty for America and true capitalist freedom values and true American values and just short this bubble a little to help pop it before it gets any bigger, God Bless these United States of America
plebs: OMG THEY MADE MONEY OFF IT THEY'RE THE BAD GUYS

They literally did nothing wrong.

you forgot
>big bankers
>lets intentionally crash a market for profit

The book goes further in the theme of the CEOs being either incompetent idiots (Bear Stearns or AIG for example) or "to clever by half" guys caught by pure greed in the mechanism. Also explains better the incentives along the system that made the crisis so huge.

In the book the characters of the movie (with the real names and histories) are used as a conduit to explain the bigger plot.

>Capitalism
You dumb cucks still haven't learned anything huh?

i hate ryan gosling he's absolutely obnoxious in everything he's in
dont think i can watch this movie sadly

They lost money you stupid idiot.

capitalism is a fine system. The problem is we're currently in corporatism.

capitalism turned to corporatism in the early stages of industrialism and at least, if we can't agree on that, in the beginning of the 19th century

>big bankers lost money

If by "lost" you mean "made disappear," then yes.

At least in maybe 20 years we'll have a better australia when we get the debt crisis out the way, our kids could have a better shot at home ownership

>it's an user thinks he knows how the world works episode

seen this one too many times

>They literally did nothing wrong

yeah of course not, they just knew that the market would crash big time and leave the economy in shambles if they continued to use their intangible assets to make money, and inflate the bubble...

The bankers crashed the economy for profit knowing that they would leave the country's economy (and most of the world economy via domino effect) in shambles for a decade at minimum (we still haven't recovered from the 2008 crash and another is already on it's way), they are doing the same shit again for example with the student loan bubble, I expect that one will be the first stage of another more catastrophic crash

for more info you should watch "Inside Job", it's a great documentary that explains in detail what those fucking kikes did and how they profitted from the crash

Capitalism is not the real problem per se, the real problem are the oligarchs that control the system

This. Anyone who says differently is just ignorant to the problem, as are the assholes who keep causing this mess.

The stock market crash of 1929 is generally remembered to be the worst crash in history (because it was), this was caused by the exact same shit. In the 1920's people would buy a stock for 10% of its value, and owe the other 90%, with the stock as collateral. Everyone made lots of money and owned lots of stock until the economy crashed so hard, it took World War II to get us out of it.

Stop being stupid.

>hate ryan gosling
Then why are you here?

what is worse with the 2008 crash and the one that's on its way is that atleast in 1929 you had tangible things in the market in the form of stocks which are akin to "property titles" of a company, bank etc.. now you have shit like dividends,CDOs, credit default swaps and corporative market chains creating money out of fucking nowhere by capitalizing in things that shouldn't be monetized like bank Loans, I mean using common logic you should not be able to profit aside from charging interest which isn't so much as profit but a way for banks to keep their reserves at a steady level...

like I said the cycle is repeating itself but instead of a housing bubble we are looking at a student loan bubble which could be even worse than the last one since now they will fuck up college aged people since now 70-80% of their income would wo into paying the ridiculous rates that loans will rise too

Technical accountant for E&Y here

It's actually impossible for another 2008 Financial Crisis to happen again. Another bubble can happen, but 2008 was a perfect storm of new financial technologies just then being widely used and a housing market that has been falsely bolstered by the US government for about a decade. It just can't happen again because even the big ibanks know they can't just fill CDOs with derivatives and junk, no funds will want to buy them. In fact, there is nothing inherently wrong with CDOs. It's a way to finally solve the problem of banking liquidity and tying up millions over several decades. It's actually good for the economy whether people believe that or not.

Fund transparency has been a huge thing for pension and hedge funds especially after 2008. The problems haven't been solved but the bottom rung people involved who were hit the just as hard as the average joe in 2008 have become a little smarter.

You think like a goyim

The key is to get rich before the next bubble explodes.

Then you'll be free to exploit the poor and to contribute to create the next one.

This is a train you either get or lose forever

>I watched a movie and somehow became an economic Nostradamus

I think I need Margot Robbie to explain this thread to me

>Imagine CDOs as the germany invading Poland
>we all knew it would result in war but perhaps didn't grasp how severe the war would be
>BTOs are sort of like America's constant attempt to curb communism in south america and asia post ww2
>everyone, having learnt from ww2, was telling them to quit being selfish assholes since russia had nukes too and another world war was the last thing people wanted
>however, because it was in no-one's best interests to create a nuclear holocaust, globally we were alright
>but the bottom rung, the south american and asian countries, still got fucked over hard

i enjoy how the heroes of this movie are literally just greedy fucks betting on everything failing and getting rich off it so they throw in these awkward scenes of them meeting poor people and looking sad despite the fact they're literally rooting for everything to turn to shit

>Margot Robbie will never help you study for your exams.

life is suffering

you know that that was literally the point of the end of the movie, right