Comments on: Crisis of Credit http://www.clusterflock.org/2009/02/crisis-of-credit.html a site about everything Mon, 13 Feb 2012 18:21:34 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Deron Bauman http://www.clusterflock.org/2009/02/crisis-of-credit.html/comment-page-1#comment-399270 Deron Bauman Tue, 10 Mar 2009 20:56:46 +0000 http://www.clusterflock.org/?p=18808#comment-399270 So I can stop deleting comments that blame the current economic meltdown on Carter, Clinton, Chris Dodd, Barney Frank, Fannie Mae, Freddie Mac, low-income or minority borrowers, and the Community Reinvestment act, <a href="http://en.wikipedia.org/wiki/Community_Reinvestment_Act" rel="nofollow">I offer this educational opportunity</a>. So I can stop deleting comments that blame the current economic meltdown on Carter, Clinton, Chris Dodd, Barney Frank, Fannie Mae, Freddie Mac, low-income or minority borrowers, and the Community Reinvestment act, I offer this educational opportunity.

]]> By: The Great Santelli : clusterflock http://www.clusterflock.org/2009/02/crisis-of-credit.html/comment-page-1#comment-392235 The Great Santelli : clusterflock Thu, 05 Mar 2009 15:14:20 +0000 http://www.clusterflock.org/?p=18808#comment-392235 [...] reminds me of the comment on the Crisis of Credit video I deleted yesterday that blamed the crisis on Carter, Clinton, and the fairness in lending [...] [...] reminds me of the comment on the Crisis of Credit video I deleted yesterday that blamed the crisis on Carter, Clinton, and the fairness in lending [...]

]]> By: Dave http://www.clusterflock.org/2009/02/crisis-of-credit.html/comment-page-1#comment-391139 Dave Wed, 04 Mar 2009 19:40:06 +0000 http://www.clusterflock.org/?p=18808#comment-391139 Nice video, it is missing a few things however.. Like the fact that the government forced the high risk loans to happen.. and your solution to the problem.. The video tells us no more than what the news media has been telling us for months.. What is the link to the "how to fix the credit problem video.. " Nice video, it is missing a few things however.. Like the fact that the government forced the high risk loans to happen.. and your solution to the problem.. The video tells us no more than what the news media has been telling us for months.. What is the link to the “how to fix the credit problem video.. “

]]> By: Paulo Correia http://www.clusterflock.org/2009/02/crisis-of-credit.html/comment-page-1#comment-389517 Paulo Correia Tue, 03 Mar 2009 16:21:15 +0000 http://www.clusterflock.org/?p=18808#comment-389517 Simple way of explaining how greedy bankers collapsed the economy.... Simple way of explaining how greedy bankers collapsed the economy….

]]> By: Bill B. Blogger http://www.clusterflock.org/2009/02/crisis-of-credit.html/comment-page-1#comment-388101 Bill B. Blogger Mon, 02 Mar 2009 22:40:06 +0000 http://www.clusterflock.org/?p=18808#comment-388101 Great job on this one! Walken strikes again! Great job on this one!

Walken strikes again!

]]> By: Peter Smith http://www.clusterflock.org/2009/02/crisis-of-credit.html/comment-page-1#comment-387889 Peter Smith Mon, 02 Mar 2009 17:46:54 +0000 http://www.clusterflock.org/?p=18808#comment-387889 now is the time to buy a house before banks get back into GEEEED now is the time to buy a house before banks get back into GEEEED

]]> By: JohnM. http://www.clusterflock.org/2009/02/crisis-of-credit.html/comment-page-1#comment-377088 JohnM. Mon, 23 Feb 2009 20:17:04 +0000 http://www.clusterflock.org/?p=18808#comment-377088 Well done; I'll have to watch it again! I agree with other comment: Did not use the words 'bubble' or 'poor' so-and-so. 'Stupid' might be a good word to add. Thanks Well done; I’ll have to watch it again!
I agree with other comment: Did not use the words ‘bubble’ or ‘poor’ so-and-so. ‘Stupid’ might be a good word to add.

Thanks

]]> By: Brendon http://www.clusterflock.org/2009/02/crisis-of-credit.html/comment-page-1#comment-374220 Brendon Sun, 22 Feb 2009 01:09:36 +0000 http://www.clusterflock.org/?p=18808#comment-374220 At last, a visualised explaination!!!!!! Many thanks At last, a visualised explaination!!!!!! Many thanks

]]> By: Jade http://www.clusterflock.org/2009/02/crisis-of-credit.html/comment-page-1#comment-374174 Jade Sun, 22 Feb 2009 00:41:44 +0000 http://www.clusterflock.org/?p=18808#comment-374174 Peej, you are right the video is not acurately showing what has happened, it is massively over doing the defualt element, but you are also correct that leverage plays a part... Imagine if you have three possibilities for your investment Best 9% return Middle 4% return Worst 1% return hope this makes sense.. there is risk in every investment, now imagine you use leverage as they described and borrow at 3% giving you 20 times what you had to invest, your outcomes now become: Best (9-3)*20 = 120% Middle (4-3)*20 = 20% Worst (1-3)*20 = -40% Quite obviously we are in the worst case right now... leverage is like having those extra few beers, it can make for an amazing night or complete chaos :) Peej, you are right the video is not acurately showing what has happened, it is massively over doing the defualt element, but you are also correct that leverage plays a part…

Imagine if you have three possibilities for your investment
Best 9% return
Middle 4% return
Worst 1% return

hope this makes sense.. there is risk in every investment, now imagine you use leverage as they described and borrow at 3% giving you 20 times what you had to invest, your outcomes now become:

Best (9-3)*20 = 120%
Middle (4-3)*20 = 20%
Worst (1-3)*20 = -40%

Quite obviously we are in the worst case right now… leverage is like having those extra few beers, it can make for an amazing night or complete chaos :)

]]> By: Marc Lehmann http://www.clusterflock.org/2009/02/crisis-of-credit.html/comment-page-1#comment-372735 Marc Lehmann Sat, 21 Feb 2009 02:25:53 +0000 http://www.clusterflock.org/?p=18808#comment-372735 Great video but content isn't quite right. It started with MBS no/low doc loans not CDO's. The CDO market blew up as a secondary effect. Home owners borrowed more than they could afford on overpriced assets which you mention. But the video implied that happened down the track when it's actually what kicked it all off. The big borrow and buy bubble fueled by the Fed. The mortage brokers let people have money that couldnt repay it. All parties were at fault at the end of the day. Great video but content isn’t quite right. It started with MBS no/low doc loans not CDO’s. The CDO market blew up as a secondary effect. Home owners borrowed more than they could afford on overpriced assets which you mention. But the video implied that happened down the track when it’s actually what kicked it all off. The big borrow and buy bubble fueled by the Fed. The mortage brokers let people have money that couldnt repay it. All parties were at fault at the end of the day.

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