> just watched The Big Short
> learned about all that mess
> gunna happen again mate
> look at FB political arguing
> Trump
> Clinton
> Rofl Johnson
> The mightiest military on the planet is in our hands
How the fuck do you all sleep at night? Ide move to another country if I wasnt afraid of being outside these borders if guns start getting pointed anywhere.
Other urls found in this thread:
en.wikipedia.org
politico.com
twitter.com
Bro, Aust is pretty based.
We just decide to fill our migrant quotas with non whites. We need you.
My math teacher is American, he's a bit stif like most Americans, but he's smarter than I so I don't bitch about it.
Its funny in a pathetic kind of way that you consider the parties ACTUALLY being in opposition for fucking once to be a bad thing. We may actually see real change for once.
Great movie. But WHAT THE FUCK WAS THAT ENDING COMMENTARY???
They were like, "Oh yea, Wall Street was terrible, but I hope we don't end up being RACISTS AND BLAMING IMMIGRANTS ON ALL THESE PROBLEMS"
Is there anymore blatant propaganad???
>Smarter than I
Sounds like you need a new English teacher to instruct you on proper grammar as well
What would lead you to believe there would be another mortgage crisis? Outside of speculation
The only thing they oppose on is how to burn us all. I was becoming a Trump supporter but hear he wants to END financial regulations. We are all fucked. Hilary is the literal devil
Because apparently banks are doing what they did before the crisis but with different names.
>The only thing they oppose on is how to burn us all
Nice trips. Too bad you're hopelessly brainwashed by the jewlywood flavor of the month. SAD!
Bernie 2024!
Executive Producer Arnon Milchan
en.wikipedia.org
>Arnon Milchan (Hebrew: ארנון מילצ'ן; December 6, 1944) is an Israeli businessman who has produced over 130 full-length motion pictures.[2] Milchan, a multi-billionaire and owner of New Regency Films, was also a former key Israeli intelligence operative from the mid-1960s to the mid-1980s.[3][4]
You expect anything resembling truth??
That movie was really good at explaining all the bullshit. After watching it I decided that I don't care anymore. Everything is so fundamentally broken at every level. I can just hope that Trump and others like him will whip out the duck tape instead of the hammer. Maybe we can last a while longer.
Not going to happen in Australia, because we've somewhat managed to keep our Jews on a leash.
They've been chomping at the bit to have regulation lifted so they can copy their American brethren and start spitting cash out at every Tamir, DeShawn and Harouk who wants a loan.
That said - You guys have to worry about an economic crash - We have to worry about our major political and military benefactor and ally, the U.S., starting a war with our major commercial benefactor and partner, China.
Fuck knows what we do if that shit goes down.
>They're just going to blame the immigrants!
That's because you (the film) didn't have the balls to blame the Jews.
The banks are doing exactly the same thing again.
Japan keeps going through this cycle too.
What are you gonna do? That's life.
The movie ducked and dived one of the fundamental issues, because it's an uncomfortable one for leftists - Maybe retards and minorities don't deserve loans and houses simply for existing.
That doesn't even scratch the surface. The entire system is interdependent on many fragile variables, financial solvency being the most volatile but possibly least directly dangerous.
Petroleum/electrical grid, mass ag, and disease control are three major physical infrastructure items that can easily go tits up should there be a sufficient economic disruption or war.
I know this feel. I know it so well. I am 100% certain shit will burn. The question is when. My only hope is that its 4-8 years more down the road so i can prepare some more. I'm done with society. Hell my entire family is. Three generations of my family are trying to sell our houses and move farther out into the country. We don't want anything to do with society anymore. Makes me sick. I want to build up a farm, make it off grid and self sustaining as possible so i dont have to leave. Stockpile what can't be made and never come back. When shit falls apart, hopefully I won't even notice.
>How the fuck do you all sleep at night?
Pretty well desu. Quit worrying about shit you can't control. Just hope for the best and prepare for the worst. You'll feel much better.
You should realize it doesn't really matter
War is coming
NATO and Russia are at each other's throats and everyone up to Obama is trying to stir the pot
They have just as many active warheads as the US and a lot more square miles of land
Expect diplomatic incidents with Russia whenever we inevitability "officially" invade Syria
>Politico
I prefer kirkland signature brand toilet paper.
We are already at the tail end of an auto loan bubble that is about to burst.
I'd move out of the city if I could afford not living in a fucking shoebox.
>student loans aren't even bigger and more ready to burst.
Of course leftists do that. Like pointed out that was who they were pandering to. They don't actually care about root issues. They just want to get angry at the vague concept of the (((white))) business man
I'm doing something similar. I want some land just outside of a small town, raise some livestock and keep a sizable garden. I'll have enough saved by next year to buy a couple acres.
What are you talking about it's way cheaper to live outside the city.
You can't default on student loans and bankruptcy doesn't help get out of it because its backed by the government.
> just watched the big short
> learned all t;hat mess
As someone who spent a lot of time in college learning finance/economics, then working on Wall Street, I can assure you that the Big Short is largely a work of fiction. There are some grains of truth, but the true fault lies with the local lenders and borrowers who produced so much subprime mortgages that Fannie + Freddy unknowingly put into MBS (MBS aren't made by Wall Street, lol) and then sold them to Wall Street.
>whole extended family works in service or construction
>gain jobs when the economy is up
>lose everything when economy is down
It's very easy for me to tell when doomsday is happening when they start complaining about finances
How exactly do student loans burst though? You can't get out of paying them.
Look how shortsighted you are. Ending regulations means we can infinitely divide a dollar. Do you really not see the benefit in that?
That was the whole point of the big short, nobody really knew how bad the loans in the bonds were and the lenders were allowed to lend to anyone regardless of income or credit history.
People stop taking out student loans because college becomes stupidly expensive.
Colleges and universities everywhere are financially dependent on easy government money.
And you can indeed default on a student loan. People do it all the time. They just stop paying.
Only 15% of wages can be garnished to pay federally-backed student loans.
it did well on some parts, like explaining what lead to the bubble and how it got so big but other parts were really stretched like them not caring knowing they'll get a bailout. It overplayed the banks' evilness (not that what they did wasn't fucked up, but you don't need to add falsehoods) and downplayed the fault of the common person.
Great movie up until the last 3 minutes when Steve Carrell baws about "muh poor people and immigrants".
Ruined the whole fucking film.
I thought the same thing. I was a senior in college when the crash happened and so I was pretty interested in it, and I don't remember a single reference to immigrants of any legal status being blamed for the recession.
This movie was fine until then
Lmfao there are people that have six figures of debt for four years of what should cost at most 20k.
Why do you think people would stop taking loans out IF THE GOVERNMENT GUARANTEES LOANING THE MONEY?
Think about what the fuck you are saying.
"He's smarter than I" is correct. Most people use "he's smarter than me," but it is traditionally incorrect. Nowadays, either is considered to be correct. There should be a comma after the "I", but yeah, he's correct. This question is on literally every SAT test in the writing section, lol.
It's just like "I'm smarter than him," (incorrect) vs. "I'm smarter than he," (correct).
What happens when they literally can not be paid? I know you can't bankrupt your way out but seriously. Bring back debtors prison?
Money shit is not a huge deal to me because I'm American. My country is in charge of the fake money that doesn't exist that runs the world. If other countries don't like it, they can make war on us. Then the worst that happens is I die, who cares?
>Jews not having the balls to blame themselves.
>local lenders and borrowers
>high risk loans
...You're a racist aren't you? You want to deny the Proud Black Man his right to purchase multiple properties, despite having no fixed income and a history of defaulting on loans used to finance his sneaker collection.
Right?
He said it was a temporary freeze on new regulation. I didn't like it either, but it's not like it's permanent. You know what's worse? Demographic decline, increased h1b1s, and our NATO spending.
> tfw Sanders almost certainly won't be alive in 2024, let alone 2028.
He's ancient now, in 8 years he's gonna be the crypt keeper.
That's true in part. However, poor whites (and even some middle class whites) shouldn't have had the loans they had (they knew they couldn't afford them, and the lenders did too, however, they knew they just had to sell the loans to Fannie and Freddy so the loans wouldn't be the lenders' problem anymore).
I am a Finance guy. I am certain that we are mere months away from yet another 2008-esque recession. The Fed has kept interest rates extremely low since 2008 and outright refuses to raise them. That means that any average joe who wants to raise capital to start a business can take our a gigantic loan with a pretty low interest payment, meaning he has plenty of leeway to make the money back and pay off the principal before the interest payments exceed the principal itself. This has been working well throughout the early 2010s, but we are reaching a point where large firms are overinvesting in bonds to the point that if anyone right now defaults on their bond payments, it will start a domino cascade that leads to everyone trying to sell their bonds and reinvest it in equity, which will create a clusterfuck and yet another recession.
As a Sup Forumsack I am convinced that the powers that be (the Fed) are going to engineer a mass default on bond payments in the immediate months after the 2016 election. If Trump wins, they will say that the economy collapsed because Trump won and all American investors got freaked out and tried to go overseas. If Hillary wins, they will say that racist alt-right investors betrayed America and left us to die while they reinvested in Asia and became millionaires. Either way, you see how easily the media can portray this however they want. It is coming. Be prepared. Don't buy bonds - stick to stocks for now and be ready for serious shit to hit the fan quite soon.
We have a situation here where people simply refuse to earn at the required threshold (on paper at the very least) that causes the income garnishing to take effect.
People blame them for taking on Joke Degress (Gender Studies etc). But the fault is really with the Universities who want to sell degrees and know they can because the government will back the loans.
This social justice ending made me REEEE so hard.
Literally nobody in Europe blamed the immigrants for this, we knew megabanks and corrupt governments were the culprits.
In case you didn't notice Greece and Spain went full economic-left in response.
>I only learned about the 2008 financial crisis from a movie featuring Selena fucking Gomez
Holy shit faggots pick up a book. Embarrassing normies.
The former Australian treasurer (treasurer for the last government), has actually been warning about this lately. Has been using this and other examples of what's happening in the U.S. at the moment to keep pressure on Australian regulators to stop them from mimicking what is currently going on in the U.S.
No it wasn't. The big short blamed Wall Street. They took the "the banks were making bets that ruined the economy," Bernie Sanders level bullshit. They blamed CDOs and other financial instruments when the issue was the loans that were put inside of them, not the instrument itself.
Lol, nice. This is true in part, but there were many borrowers who were equally culpable that weren't this specific demographic.
But it's not like zombies rising from the earth, yeah? A few months of belt-tightening and then things start to get better? Can you briefly explain for lay people the effect of bonds as opposed to other instruments getting screwed up?
No, its that they came up with a bunch of ways to package those bad loans and spread the debt to other parts of the economy instead of dealing with the debt and making good loans, but the whole reason the people knew it was going to fail was because some autist took a look at the actual loans underlying the CDOs and derivatives.
I agree, but what do you think will be the cause of the next crisis? My bet it on subprime autos. I agree that one is right around the corner because the economy is cyclical, and it's been a hot minute since an economic downturn (which will certainly be the spark to blow something up).
Middle America US home prices are way up past their 2008 highs. Like 30%.
Yet nothing in the economy that was wrong in the 2000s that lead to the housing crisis has been fixed. Rates are near zero and incomes haven't gone up since the 1990s.
SOMEBODY is borrowing money to buy up all these fucking homes and raise the prices. It sure as hell isn't people that I know, but prices have gone sky high for horribly built 25 year old McMansions that were built from particle board and broken dreams to begin with.
Who knows when the next fall is, but it's coming. The price increases just do not make any sense.
The US Banks still do the very exact thing, current asset of bubbly hotness is car loans.
Not to speak of this whole systemic madness in the us with consumer credit creation on the fly via credit card, which has no hard asset behind it whatsoever.
>auto loans
lol pretty sure thats small potatoes user
Check out ZeroHedge. Unfortunately, they're about a 50-50 mix of cranks/loons, and people who -really- know what they're talking about. You figure out which is which.
ZeroHedge was all over the 2007 crash, starting a couple of years before it happened. Today, they're talking things crashing again.
Have you ever heard of Peter Schiller? He is an American (jewish) economist who went on every media outlet possible between 2005-2008 to get out his message that the housing market in America was fraudulent and a huge collapse was imminent. There are collaboration videos on YouTube where you can watch prominent "journaists" from CNN, MSNBC, Fox, etc. outright call him an idiot and tell him he is a paranoid schizo. People laughing at him while he says with a perfectly calm demeanor, "shit is about to hit the fan and you are all idiots for not being able to see it."
His legacy as a whistleblower was finally legitimized after 2008, and he sorta dropped off the scene for a while. However, the last couple years he popped back up on MSM to warn us all about yet another imminent collapse. Guess which market it is? Fucking bonds.
People don't realize how essential the bond market is. The US Treasury Department's bonds are considered THE most efficient (i.e. you can't cheat) market on the planet. As in, if you buy a US Treasury bond, you will almost 100% get the exact return on it that the Fed tells you that you will get. Huge public firms invest enormous parts of their funds in US Treasury bills because they need to know they will get the exact return they are told they will + they can write the interest expense off their taxes. This is a very, very important part of corporate finance.
If the U.S. bond market collapses, which right now it is increasingly primed to do because huge firms keep putting more and more of their funds into US Treasury debt instead of equity, literally everything else is going to collapse too. It will be the Fall of Rome in a financial sense because the absolute Titan of the financial industry (US Treasury bonds) will fall and everyone will freak the fuck out like a nuclear warhead just got dropped.
Keep an eye on the Fed in these comings months. Something truly shitty is coming and it is going to fuck us all in the ass.
All it takes is the economic value of a degree dropping enough to see a shrinkage in loan recipients. I'm talking a slowdown, not a total halt of student loans.
People take out these stupid loans because they think its worth it, and they cant be told no. just like subprime mortgages. education values are undergoing a bubble just like housing values did. Do you really think the fact you can't wipe a student loan off your books means that they will somehow perform as trustworthy financial instruments with no risk?
They're taking about things crashing constantly. It's the Ron Paul of financial reporting.
Which is fine, just saying
it's been nothing down zero percent on anything for like five years now. Basic new cars have been selling at a NPV less than MSRP for quite a while. The only area where the car finance guys have made money is on luxury, sports cars, or people with terrible credit. If you have 750+ credit report, you can get whatever cheap car you want at 0% all day long.
THE DELEGATES DONALD
The lenders and investment banks (Wall Street) are not the same, they just happen to both be banks. Some local lenders are owned by banks that have an investment banking arm, but they are very different (and there has never been any evidence of collusion between the two outside of a handful of issues). I support Glass-Stegal, but that wasn't the problem here.
The CDOs and other products have existed long before the the crisis (the 80s iirc). These instruments weren't created to spread out the bad loans, especially when you consider that the banks didn't even know that their instruments (or the MBSs they were purchasing from Fannie and Freddy) had a whole shitload of bad loans. The issue wasn't that nobody was reading them (another thing the big short gets wrong), it was that MBS are extremely difficult to value because you're dealing with a pool of loans at different interest rates that can default or prepay (affects interest) and have varying risk profiles. Now, CDOs are even harder to value because they are actively managed by a portfolio manager and have an equity tier for overperformance.
The big short basically took an issue that very few people know about, and explained it in a super simplistic way (frequently with glaring inaccuracies), pushing an anti-Wall Street agenda. Very simply put, blaming Wall Street for the crisis is like blaming the company that owns an airplane because a terrorist blew up a bomb on it.
Oh god damn it.
too bad they present the housing bubble from a hedge-fund managers' perspective rather than the people working with the CDOs
Here in the middle of Orlando a lot of the property owners are Chinese/Vietnamese internationals.
Zerohedge isn't bad, but it is always super dupe negative. Saying that they called the 2007 crash is like saying that the guy that predicts the world will end every year predicted the world ending correctly when it does.
The best part of The Big Short is how all the characters who are jewish irl are depicted as white and black in the film.
foreign money is a huge thing, particularly in florida/nyc/cali. Same thing is happening in leafland in Toronto and Vancouver.
That's not driving property prices in Raleigh, or Nashville, or Columbus, though.
Auto loans are reflected in ABSs. It's not nearly as bad as a housing crash, but it would do some real damage. This would be a dot com bubble level burst.
If he claims the 2007 crisis was the result of fraud on Wall Street's part, the yeah, he's still wrong. Unfortunately populist demagogues have used Wall Street as a bad guy to blame their financially illiterate followers' problems on.
>shrinkage in loan recipients
You mean, like less people deciding school is right for them?
That seems very wishful, friend.
>Bring back debtors prison?
Maybe. You're an American. You know uncle Sam is the biggest gangster out there. He's going to get paid.
Steve Sailer has several blog posts about this sort of thing, I think Kevin McDonald did a few also. It is completely egregious once you see it. There was a forgettable "wall street is evil" movie called Collateral that took pains to clarify that WASPs are the real bad guys. When Sorkin and Spacey did a movie about probable murderer Jack Abramoff they made him as sympathetic as possible; the Jack Ruby movie from the 90s pretty much owes its existence to this same narrative defense plea idea.
>Only 15% of wages can be garnished to pay federally-backed student loans
I did not know this. I'm 20k in debt, I haven't found work yet, and my first payment is on the 9th. I figured I'd just get a deferment.
shit is gonna stop when trump gets in
>Australia's economy is fine and its housing market is fantastic
>the US will start a war with china
boy you delusional
it wasn't really wall st fraud, just the widespread belief that even the shittiest MBS's were safe. I'd blame Countrywide et al for issuing them and AIG for insuring them, primarily.
... and there have been a bunch of articles on ZeroHedge about how the Toronto/Vancouver bubble is about to collapse because a big crackdown on money laundering by the Chinese government is reducing the number of rich Chinese that bid up property values.
Interesting if true.
>trying to move out of America
m8 I would give anything to move to America. Many people would. It is the best place to be for the shit going on in the world. Tough it out and do your part
What did you take out the loans for in school? 20k isn't bad at all, a friend of mine was looking at 4 figure monthly loan payments going to NYU. (I told him that's why I transferred to Podunk at university)
Where did I say he blamed it on Wall Street? 2008 crisis happened because of middlemen in the housing mortgage market whose salaries depended on their performance trying to sell literally any fuckhead a mortgage.
In 2007, you could be an illegal immigrant from Mexico with $5000 to your name and you could almost certainly find a shady agent to sell you a mortgage on a 3-4 bedroom suburb house out in Southwest America. Every single real estate agent back then's only responsibility was to sell the mortgage. After that, they sent it to the company HQ, and then company HQ sent it to investment bankers who packaged the mortgages into investment portfolios.
So, the real estate agent sells Juan Perez a mortgage on a house the agent already knows he can't afford. The agent doesn't give a shit because he has positive numbers to report to his boss and this will only look good on him. Fuck whatever happens to the guy he sold the house to, who will almost certainly default because he can't speak English and has no skills beyond selling cocaine.
The mortgage goes to the real estate firm's Finance department. These guys know the mortgages are absolute garbage, so they look at investment banking firms to take the mortgages off their hands.
I bet they can still come for back payment and other penalties. I wouldn't get garnished if i were you senpai.
The bond rating agencies were responsible for this. The CDO and bond issuers -paid- the rating agencies to rate them. If they didn't like the rating, they switched to another rater. Needless to say, pretty much all ratings were AAA.
agreed, forgot about them in my relative drunkenness. Moody's and S and P were absolute pay to play scum with MBSes. It really makes you think about the validity of their ratings for corporate and municipal debt.
One of the banks became famous when they issued a $750,000 mortgage to a Mexican illegal immigrant agricultural worker. Amazingly for the time, they actually fired the agent that wrote the mortgage.
I know it wasn't Wall Street fraud, it was honestly underestimating the financial instrument's ability to absorb the risk of individual loans being defaulted on.
He referred to it as Wall Street fraud. That's the issue. It's inaccurate. The lender is not the same thing as the investment bank (Wall Street). they just happen to both be banks.
No, there wasn't any fraud on the ratings agencies. The ratings agencies (like everybody else) just didn't know how shitty the loans were in the securities.
Still fine. I more inclined to think they'll get their money out of some brown country than trying to enslave gender studies majors (sadly).
Continued:
The investment banking firms look at these shitty mortgages that they bought for pennies and think "How can I turn a profit with this?" Then they realize there are plenty of responsible homeowners in America who have reliable mortgage payments. So, the solution back then was to package shitty mortgages together with good mortgages. The idea was that you could take a bunch of really good mortgages of the best quality and offset them with a bunch of shitty mortgages of the worst quality and still end up with a complete "tranche" or package of mortgages with an acceptable rating to investors. These "tranches" got sold by the investment bankers to people who were essentially betting on the people who owned the mortgages to pay their payments on time and generate wealth for the owners.
The owners, in turn, AGAIN repackaged the tranches into YET MORE tranches and called them Credit Default Swaps. These were essentially a package of the worst possible bonds you could "bet"/invest in for cheap while still making a big return. Everything depended on the people who owned the mortgages NOT defaulting though.
If you have seen The Big Short, the Asian guy who was selling CDS's was worth over 300 million. What was happening, was that these CDS's appeared, on paper, just too good to be true. They were cheap and always gave big returns. Too good to be true. Everyone wanted them.
The problem, however, was that by this point in time, after so many people passing the responsibility for the mortgage payments down the line to some other schmuck, **NO ONE** knew what the fuck kind of mortgages were in these investments. Only the guys in The Big Short took the time to research and realize it was mostly illegal immigrants, poor people, retards, etc. who got duped into buying something they could never afford.
Fast forward to 2008. All these subhumans realize they made a huge mistake, run out of money, and default. EVERY SINGLE CDS becomes worthless.
What proof do you guys have of a on going lending market slapped on to a CDO structure? Even more, is there any information on the size of this supposed pyramid? I swear every fucking year some shit head comes out and says "le market will crash XDDDDD" hoping they'll be right one year.
This. For reference: Dutch used 'than I' a lot
One thing I never understood about the housing crash - It's something that was not covered in the movie, and sort of touched on in the documentary "Inside Job" (where the interviewer responds to the statement 'we looked but didn't notice anything' with an angry 'you have to be joking') whereby investors are coming in left and right, and looking to short the investment firms.
So, yeah, maybe you laugh it off at first - You think this is a sucker being taken for a ride.
But then, surely, when these numbers are run by the guys at the bank - How do they not see what's coming?
If they DO see what's coming...Why don't they stop it? Sure - I guess they know they're getting a bail out...But for some of the banks, it's the end of their firms. It's a total wipe out.
Did they have people inside of them letting them rot? What was the motive? Were they getting kickbacks to look the other way and let their employer fall? Was it deliberate?
It's very fishy to me.
>America start a war with China
> Hillary president
Pock both
Also;
If U.S. Bonds collapse what happens then?
Everyone starts shifting to backing their currency with the Pound? The Euro? Aren't they backed by the Dollar?
What actually happens?
Well, I went for a mech engineering degree, started going part time after the first year, and finally just dropped out. Went to a school that gives Purdue and IU degrees in Indiana(IUPUI). It's a good school, but I tried to work full time 3rd shift while going and got burnt out. Just after I decided to quit school I got fired. No degree, no job and 20k in debt. It's not horrible, but it was still retarded. I don't want to, but if it comes down to it ohwell. I'm pretty sure you can get a few deferments/extra time to find work before they garnish wages.
Tl:dr I'm a retard that made stupid decisions.
Have you not looked into Deutsche bank, any Italian bank, or the shadow broker shit?
In Australia, in shitty borderline ghetto neighborhoods, we're seeing properties go for around the million dollar mark.
The money is Chinese.
Lots and lots of Chinese investment. The government has regulated it a bit, but at the same time, the Chinese property purchases are driving the economy and most importantly keeping retired or soon to retire baby boomers happy, because they're living large off the property boom and not off the tax payer.
To give you an idea of the scale - My parents purchased their apartment in 2000 for just over 250,000.
They sold it last year for just under a million.
Continued:
2008 happens. Everyone agrees we need reform in the financial markets. Obama comes into power and acts in typical Democrat cuck fashion and allows shit like multiple stimulus packages to be passed, and be bails out every single major bank with taxpayer money. No one is punished. Everyone pretends like nothing happened and things will be okay now. Classic fucking Democrats. This alone is why I dislike Obama and eventually found Sup Forums as a place to vent my frustrations with his and his adminstration's blatantly clear incompetence in regards to finance in general. What was happening was worse than fraud, it was deliberately taking advantage of people, knowing they were doomed, and using their demise to make one's self more wealthy.
SO - the Federal Reserves response to 2008 is to lower interest rates on bonds. Now we come full circle to my original post. They did this because, at the time, rates were high enough to the point that all these people who just lost a shit ton of money were terrified of taking on even more debt because they could not afford the payments on the debt they currently had. The Fed's solution to this was to make U.S. government-sanctioned debt so cheap in annual payments that you could reasonably "bet" on taking a big ass loan for a million dollars, starting a business/expanding your business, and making enough money back in increased profits by the end of the year that you would have no issues paying off the new debt.
This has been the unchanging policy of the fed for the last 8 years. We have reached the point where people are getting greedy and reckless with their investments in government debt. All it takes is a couple big firms like Apple or Google to have a failed line of iPhones or Androids that don't make enough money and force them to do something drastic. Then everyone else freaks out, tries to re-arrange their corporate structure, and the market goes into panic. Fucking house of cards man.
End of rant.
>Fraud
It's a tightrope between fraud and incompetence.
I think you could call the ratings agencies fraudulent. Sure, they are in a win/lose scenario: Deliver the ratings the firms want, or don't get the job. But they had to knowingly be issuing false ratings OR being knowingly negligent in their services.
Also, I'd say a lot of the offloading that went on as the ship was sinking was fraudulent. They were selling known shit simply to get it off the books.
>Saved the screenshot, see you next year m8
The actual answer is that nobody fucking knows. The US dollar has been equivalent to the gold standard for decades now courtesy of the IMF. If US bonds collapse, the US dollar collapses, and everything else collapses. True domino effect.
I don't know about a market crash, and I don't think it's necessarily the same situation, but you're seeing a return to unsafe loans based on dubious speculation. The same thing that sunk Japan.
Basically the loans are again flowing for housing and automobiles, and the justification is that these are safe bets because people will always take loans for houses and cars, and in turn this "safety" is driving up prices since loans are flowing and so more loans, riskier loans start flowing, which drives more speculation and so on.
There have been a few articles on this lately.
