Amazon.com Widgets

« Links With Your Coffee - Sunday | Main | Links With Your Coffee - Monday »

Sub-Prime Mortgages Explained

Brits John Fortune and John Bird explain sub-prime mortgages. (tip to Brandon)




Quicktime Video 12.5 MB | Duration: 08'49
Quicktime 7 required
This file is available for download here.
Ctrl-Click and 'Download Linked File' (Mac)
or Rt-Click and 'Save Target As' (PC) the link above.


 

Comments

I may have posted this some long time ago, but this sketch from SNL explains a lot. "Straight Answers".

http://www.pfadvice.com/2006/03/22/sound-stock-advice/

bernarda: I think I just wet myself. Great clip.

Of course, the recent collapse of the sub-prime mortgage industry is only a small part of the problem. The bigger issue is the collapse of our dollar. For those interested in the dangers of fiat currency, perhaps this cartoon will be informative and entertaining.

http://zaphodforpresident.com/2007/04/11/money-as-debt

interesting that he chose to describe the person taking the mortgage as an unemployed black man on the porch of a shack in Alabama with a string vest. might have well as added shucking peas and sitting on a rocking chair. cause that would have completed the stereotype of blacks in the southern US. thank G O D they still have time to get it right since this crisis will be here for a while longer.

Great clip Norm - loved it. Now it's even more clear why they (credit companies and Republican leadership) were so intent on restructuring the bankruptcy laws in the U.S. so that the poor had no recourse against this huge scam which everyone in the financial sector knew would collapse upon itself:

http://www.washingtonpost.com/wp-dyn/articles/A15399-2005Feb10.html

cause that would have completed the stereotype of blacks in the southern US.

No, I think that would have completed the stereotype of idiotic white bankers' opinions of poor people. ;)

Not to derail, but for anyone who has seen the clips of Ron Paul schooling Bernanke on the depreciating dollar you'll enjoy this cartoon.

yah I thought the racism was meant as a joke-- that's how rich white bankers think of people who take out bad loans.

At least, I hope it was a joke.

Yes, we are going to reward stupidity and greed on a massive scale before this is over. But the poor guy who's defaulting isn't going to get the bailout. We wouldn't want to reward stupidity and greed, now would we? Three cheers for the "ownership society"!

Ah, "the ownership society" that would make a good topic for a post, nudge nudge . . . no what I mean.

Erick:

That cartoon nails it.

re: "Ownership Society"

Prez Bush has increased our deficit and debt at an astounding rate over these past six years. He has nearly bankrupted our treasury, and has presided over the quickest drop in (US) dollar valuation since Nixon nixed the Gold Standard back in the early 70's.

Interestingly enough, Pres Clinton did the opposite; balancing our budget, and reigning over the longest economic expansion in U.S. history and slashing the amount of people on our welfare roles (by helping them gain economic position, not by tossing them out on the street).

Erick:

That cartoon nails it.

re: "Ownership Society"

Prez Bush has increased our deficit and debt at an astounding rate over these past six years. He has nearly bankrupted our treasury, and has presided over the quickest drop in (US) dollar valuation since Nixon nixed the Gold Standard back in the early 70's.

Interestingly enough, Pres Clinton did the opposite; balancing our budget, and reigning over the longest economic expansion in U.S. history and slashing the amount of people on our welfare roles (by helping them gain economic position, not by tossing them out on the street).

The response?

We refuse to impeach the man who has bankrupted us, and impeach the man who balanced the budget over a blowjob.

The more I think about this, the harder it is to dismiss "conspiracy theories" about the Fed.

Paul Krugman believes that the falling dollar is what the economy needs so that our goods are more desireable to other nations, which i think is an interesting theory. However, at the cost at which China and Malaysia sells goods, the drop that would be required of the dollar is enough to cause absolute chaos in the american economy, considering many other countries work on near slave labor to achieve the low price of your lead-infused Hot Wheels.

Paul Krugman believes that the falling dollar is what the economy needs so that our goods are more desireable to other nations, which i think is an interesting theory.

This idea that a depreciating dollar is actually benefiticial in terms of exports is not a new idea. The problem is that we, in turn, face higher price on foreign goods, which ultimately leads to higher inflation. The issue, in my view, is not about what are the pros and cons of an appreciating/depreciating dollar. The issue should rather be in having a stable economy free from intervention to simply bail out investors. This depreciation could also cause foreigners to lose trust in their dollars and switch to Euros or SF or some other stronger currency and subsequently exacerbate the inflation. If you didn't understand the cartoon I hyperlinked, here's a video it's making fun of.

I'm on my way to France tomorrow and this weak dollar is hurting me big time. :((

I won't be spending much money while I'm there. Instead of restaurants, I'll be going to little markets and purchasing bread, cheese and wine. I'm thinking that this terribly weak dollar can't be good for the other countries either. We all do better when our economies are stable.

Re: "ownership society". That issue is very complicated as this 3-part series, "The Trap", from the BBC illustrates. I don't remember where I got the link from, so sorry if it is redundant here.

http://mysticbourgeoisie.blogspot.com/2007/11/madness-in-method.html

Among points it makes are that Clinton's legacy on economy is not all positive and the description of two different ideas of freedom: positive freedom and negative freedom.

But it addresses several complex issues that are not easy to sum up.

I'd buy anything that said "enhanced" on it

"Spot on" as they say across the pond.

Paul Krugman believes that the falling dollar is what the economy needs so that our goods are more desireable to other nations, which i think is an interesting theory.

This idea that a depreciating dollar is actually benefiticial in terms of exports is not a new idea. The problem is that we, in turn, face higher price on foreign goods, which ultimately leads to higher inflation. The issue, in my view, is not about what are the pros and cons of an appreciating/depreciating dollar. The issue should rather be in having a stable economy free from intervention to simply bail out investors. This depreciation could also cause foreigners to lose trust in their dollars and switch to Euros or SF or some other stronger currency and subsequently exacerbate the inflation. If you didn't understand the cartoon I hyperlinked, here's a video it's making fun of.

Navigation

Support this site

Google Ads


Powered by Movable Type Pro

Copyright © 2002-2017 Norman Jenson

Contact


Commenting Policy

note: non-authenticated comments are moderated, you can avoid the delay by registering.

Random Quotation

Individual Archives

Monthly Archives