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Financial Fiasco: The US Infatuation with Home Ownership

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pcozy Avatar
pcozy
Posted: 05.03.10, 11:34 PM
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hshiu Avatar
hshiu
Posted: 12.18.09, 09:59 AM
This video is in good company of many other who have tried to make sense of what went so wrong to cause the collapse in the financial market and how to best to avoid the chance of repeating the same mistakes again. Along the way, so many participants claimed that they just didn't know that what they were doing or allowing to happen were fast pushing the financial market to the brink of collapse. John Sununu is the first one who took on the task to point out how and who got profited from the housing bubble and unsavory mortgage practice. His analysis goes to show that all the participants, individually not institutionally, knew that they were taking great risks for the chances of making a lot of money right away and hopefully cashing out with great sum of gain before the market catches up with them, just like Dawn Kopecki. Also, the assumption that there is always a safety net to catch them when they fall further encourages individuals and institutions to take questionable risks that they wouldn't otherwise.
bapyou Avatar
bapyou
Posted: 11.16.09, 10:52 AM
The real culprit is capitalism itself. See David Harvey's deconstruction of the crisis in his many talks posted to YouTube.
Timothy_Z Avatar
Timothy_Z
Posted: 10.12.09, 01:23 PM
phiscal, If it required a superhuman effort to avoid, why was the crisis so heavily concentrated in five states?
phiscal Avatar
phiscal
Posted: 10.02.09, 05:41 PM
I agree with Cosmic Ray, from a political perspective, both parties aided and abetted the boom. From a social perspective, though, I don't think it could really have been avoided, except by some superhuman force stepping in the path of apparent prosperity, and yanking the proverbial punchbowl away from Dems, Reps, Wall Street, local bankers, real estate agents, mortgage brokers, construction workers, immigrants, and everyone else considered to be "main street". Those that suggested such punishing action came from lonely outposts among the the investment community and academia, and were ignored. No one, no one, had the certainty that the boom would end this way, and courage to likely end their careers to do so. I'm not saying what happened was at all optimal, but that it would have been very hard to avoid - and will be in the future. The key is getting interest rates right, and - at the time - 98% agreed that Volcker, Greenspan, and Bernanke were doing solid work.
Murtaza Avatar
Murtaza
Posted: 10.01.09, 03:56 PM
The video does not play after the sponsor message. I tried in IE 8 and Firefox 3.5.3 with the latest version of Adobe FlashPlayer 10.
Cosmic Ray Avatar
Cosmic Ray
Posted: 09.20.09, 02:32 PM
I didn't watch this video but I do want to point out that the Federal Reserve (the Boston Branch) issued a paper in 1992 called "Closing the Gap" which listed ways banks could lower their lending standards so that more people with bad credit could get loans. It's interesting to note that much of what this document listed to make it easier to get loans are what banks did. In summary, government deserves a share of blame for this mess, both Republicans and Democrats.
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