Subprime US Banking Financial Crisis Explained Part 3

Subprime US Banking Financial Crisis Explained Part 3


www.informedtrades.com The 3rd as well as last doctrine in a array upon a subprime debt US Banking financial predicament explained.


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25 Responses to 'Subprime US Banking Financial Crisis Explained Part 3'

  1. mackmoud7 - July 19th, 2010 at 10:40 am

    thank you very much

  2. Spjungen - July 19th, 2010 at 11:21 am

    So from what I understand, a structured investment vehicle is really like a hedge fund in the housing market, only it derives its value from home equity, meaning that people basically traded securities of which the only real value was the market price of the collateral and the dept owed by the borrower, which he/she may or may not be able to pay? …If that’s correct than I don’t see how it’s possible not to expect a crisis from such a ridiculous investment vehicle.

  3. InformedTrades - July 19th, 2010 at 12:09 pm

    Hey Coriolanus,
    The thing is the FED actually does not “set” interest rates the way most people think.

    Basically since they are so big they buy and sell in the open market, causing changes in the money supply, which then causes changes in the interest rates.

    This is important because at some times we need lower interest rates than other, like right now for example, and the market may not dictate this at the proper times.

    There are also about 500 other reasons but I’m out of comment room!

  4. coriolanus78 - July 19th, 2010 at 12:59 pm

    I have a question,why do we have to have an institution setting the interest rate rather than leaving it to the market,it seems to me that manipulating the interest rate by the fed is what got us in trouble to start with.I think it is impossible for anybody or any institution for that matter given the size and perplexity of our ecconomy to predict the best interest rate at any moment

  5. kiztherain - July 19th, 2010 at 1:16 pm

    Thank you, nice job!

  6. shepm2002 - July 19th, 2010 at 1:51 pm

    Great work Dave .knowledge is power, shep from Ireland

  7. crownofHisglory - July 19th, 2010 at 2:18 pm

    what do i need to study to be able to articulate this crisis the way you re able to
    what would be a good major in school to take on

  8. kinw1234 - July 19th, 2010 at 2:50 pm

    can anyone help me?

    from what im aware banks took assets off balance sheets to avoid having to hold capital.

    for that to happen it needs to be a true sale rite?

    does this not mean the assets no longer belongs to the bank? how come it comes back onto thier balance sheet and gets written down??

  9. tyarikat - July 19th, 2010 at 3:17 pm

    Hello David, why did the Federal Reserve start to raise interest rates in late 2004?

  10. dubmaverick69 - July 19th, 2010 at 3:28 pm

    2007 uptick rule removed – the gang bang by wall street started by targeting aggressively banking stock,
    GS, BOFA, MS, MLYNCH, LEHMAN, BEAR STEARS
    ask the fat cats they laughing their way to the bank everyday

  11. dubmaverick69 - July 19th, 2010 at 4:07 pm

    The Commodity Futures Modernization Act of 2000 or CFMA (H.R. 5660 and S.3283) is United States federal legislation which repealed the Shad-Johnson jurisdictional accord, which had banned single-stock futures in 1982. The legislation also provided certainty that products offered by banking institutions would not be regulated as futures contracts.

  12. dubmaverick69 - July 19th, 2010 at 4:52 pm

    please do us a favor and explain these which will answer all these question
    1.The Gramm-Leach-Bliley Act, enacted November 12, 1999, is an Act of the United States Congress which repealed part of the Glass-Steagall Act of 1933, opening up competition among banks, securities companies and insurance companies. The Glass-Steagall Act prohibited a bank from offering investment, commercial banking, and insurance services.-

  13. irisqi - July 19th, 2010 at 5:11 pm

    You stated that as a result of the subprime mortgage crisis a liquidity crisis arose. Wasn’t it more of a solvency problem?

  14. saintveil - July 19th, 2010 at 6:11 pm

    Feds lost control over the Fed Rate, according to this video:
    v=bL0bgz_VHTo&NR=1&yt

  15. saintveil - July 19th, 2010 at 6:23 pm

    Feds lost control over the Fed Rate, according to this video:
    v=bL0bgz_VHTo&NR=1&yt

  16. LoneOarman - July 19th, 2010 at 6:53 pm

    Another video states that the Feds somehow lost control over the Federal Rate, and that’s what blew things up.

  17. LoneOarman - July 19th, 2010 at 7:31 pm

    He omitted the fact that bad loans were insured in order to get a higher rating to make them look good; and insured again by speculators that did not even own the investment. Unregulated and perfectly legal insurance fraud (misrepresentation and casino gambing).

  18. jussittinherewatchin - July 19th, 2010 at 7:50 pm

    I was wondering the exact same thing. I’m no expert, but I think they do that to contract the supply of money in circulation, which in turn helps to control inflation and price increases. Someone please correct me if I’m wrong!

  19. elwalvador - July 19th, 2010 at 7:58 pm

    I say we remove Geithner and Mary Schapiro and appoint David Waring as the head of both the Treasury Department and the SEC.

  20. RyanBachoo - July 19th, 2010 at 8:43 pm

    Thanks mate … my ticket to my 7000 word report on the financial crisis. :-)

  21. jxskillz82 - July 19th, 2010 at 9:32 pm

    So why did the Federal Reserve increase the interest rate in 2004?

  22. bleberlin - July 19th, 2010 at 9:40 pm

    thank you very much. i have a much better idea of whats going on .good job

  23. InformedTrades - July 19th, 2010 at 10:13 pm

    my pleasure thanks for the comment. If you look on the homepage of my site I have recently posted an article “7 solutions to the financial ciris” which covers this. Best Regards, Dave

  24. Guedingen - July 19th, 2010 at 11:03 pm

    Good man, many thanks – any ideas as to what can be learned from this fiasco and what legal checks can be put in place to avoid such a thing happening again?

  25. tre675 - July 19th, 2010 at 11:55 pm

    Thanks for the videos. I learned alot.


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