Subprime Mortgage Crisis Explained

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Very interesting watch. 11 minutes long

http://vimeo.com/3261363?hd=1

[BanginJimmy]

I got less than a minute and a half into it before I found its first flaw. According to the video, the problems started after 2001. That is wrong. The problem started with the CRA amendments of '94. I say it is a flaw, and not a lie, because the video is kind of corret in saying 2001 because it really did accelerate around that time.

Second problem, 3:40. Fannie and Freddie were the ones that pushed for more home ownership and pushed for lowering standards. No mention of these govt run institutions. BTW, the liberal leaning on the creator of the video is obvious so I can be assured that the video is going to be less and completely accurate.

I'm done with it.

[Vteckidd]

i dont need a video to explain it to me, i know why it happened.

We tried to socialize giving a house to everyone, the govt backed loans, which maed the companies Freddie and Fannie approve the riskiest loans to people that werent qualified with no down payment, then wall street saw these securities as "good" because they were govt backed, the govt caused the massive overinflation of housing prices becuase now that EVERYONE could buy a $300,000 house, the "$300,000" house becamse worth $500,000, but the problem with that is with no downpayment and ARMs there was no equity being realized, so when the unqualified buyer couldnt pay the loan back, the bank was stuck with an overinflated house that was worht much less, and had nothing to show for it because of the no downpayment.

P.s. Congress people like Barney Frank and Chris Dodd lied about the condition of Fannie and Freddie who they oversaw and told people they were solvent when they werent while simultaenously bleeding the tax payers dry.
wash rinse repeat

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I'm glad you mentioned the Community Reinvestment Act. The Fed and the FDIC investigations have not shown any relation of the CRA to the mortgage crisis other than the majority of the bad loans were from lenders that weren't regulated by the CRA. And that the number of bad CRA loans was a tiny fraction of all the bad loans which led up to the mortgage crisis. And yes, Fannie and Freddie were also involved. Don't forget to mention Bush's new "Blueprint for the American Dream" while you're at it...

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i dont need a video to explain it to me, i know why it happened.Then why'd you click the link? Did ya learn somethin?

[Vteckidd]

Then why'd you click the link? Did ya learn somethin?

cause i knew it would be some "cry me a river capitalism/banks/ceos screwed us" post when i saw your name so i figured id try to educate you.

[Vteckidd]

The Fed and the FDIC investigations

I stopped reading there and laughed. youre too funny

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Reality is funny sometimes...

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cause i knew it would be some "cry me a river capitalism/banks/ceos screwed us" post when i saw your name so i figured id try to educate you.I brought facts. You said "socialism is evil....blah blah blah.....Karl Marx.....blah.....Hitler.....blah blah blah" I already know what your opinion is on socialism.

[BanginJimmy]

What facts did you bring? Most of what I watched in that video was rhetoric only loosly based in reality.