Sub-Prime Mortgage meltdown and bank failure

Sharks and love

Ad Honorem
Jul 2008
5,397
Sharkland
Specifically, my professor prompted:

I would like you to write a paper on the Sub-Prime mortgage meltdown, major bank and industries failures. What corrective action should be taken by our government, and the American people to resolved the problems?

I have come here to specifically ask for videos and resources in general.

Of course I am not asking you to write a single word about this paper I will write, but if somebody has good links or teaching videos full of facts, it would be appreciated.

Please do not search for me! I am just asking, if any of you can point me in the right direction, that would be lovely!

So... Links / Videos/ Resources? Anyone?
 
Jul 2009
29
How about a book?

Try Niall Ferguson's excellent The Ascent of Money. It's got a whole chapter dedicated to the failure of the 'subprime miracle' (in the chapter on real interest investment) and is highly enlightening, not to mention very informative yet laidback. You can even check out the episode of the TV tie-in that explores this, but I think you're going to have to search for the series.
 

Sharks and love

Ad Honorem
Jul 2008
5,397
Sharkland
Well, I already wrote the paper, but since this is still about the subject itself and not so much my paper, I will post for others the sources I used.

Atlman, R. (n.d.). The Great Crash, 2008 | Foreign Affairs. Retrieved July 31, 2009,
from http://www.foreignaffairs.com/articles/63714/roger-c-altman/the-great-crash-2008

Bianco, K. (n.d.). The Subprime Lending Crisis: Causes and Effects of the Mortgage Meltdown. Retrieved June 30, 2009,
from www.business.cch.com/bankingfinance/focus/news/Subprime_WP_rev.pdf

Dodd, C. (n.d.). Senator Dodd: Create, Sustain, Preserve, and Protect the American Dream of Home Ownership | U.S. Senator Christopher J. Dodd. Retrieved July 31, 2009,
from http://dodd.senate.gov/?q=node/3731

FactCheck.org: Who Caused the Economic Crisis?. (n.d.). Retrieved July 31, 2009,
from http://www.factcheck.org/elections-2008/who_caused_the_economic_crisis.html

Greenspan, A. (n.d.). FRB: Speech, Greenspan--Understanding household debt obligations--February 23, 2004. Retrieved July 31, 2009,
from http://www.federalreserve.gov/boarddocs/speeches/2004/20040223/

Herbst, M. (n.d.). Even the Employed Lose with Hour and Wage Cuts - BusinessWeek. Retrieved July 31, 2009,
from http://www.businessweek.com/bwdaily/dnflash/content/jul2009/db20090710_255918.htm

Labor Force Statistics for Current population survey. (n.d.). Retrieved July 30, 2009,
from data.bls.gov/PDQ/servlet/SurveyOutputServlet?data_tool=latest_numbers&series_id=LNU04000000&years_option=all_years&periods_option=specific_periods&periods=Annual+

The Subprime Blame Game: Where Were the Realtors? - Knowledge@Wharton. (n.d.). Retrieved July 31, 2009,
from http://knowledge.wharton.upenn.edu/article.cfm?articleid=1824

Understanding the Tax Reform Debate. (n.d.). Retrieved July 29, 2009, f
rom www.gao.gov/new.items/d051009sp.pdf

golfer3800. (n.d.). House Of Cards: The Mortgage Mess - 60 Minutes - CBS News. Retrieved July 31, 2009,
from http://www.cbsnews.com/stories/2008/01/25/60minutes/main3752515.shtml


----

If anyone would like to see my paper, just let me know and I'll send you a PM, but it is not that great I must warn, because my professor required a word minimum, the natural length of the essay was extended, diminishing the quality.
 

Gile na Gile

Ad Honorem
May 2008
4,466
Fireland
[ame="http://www.youtube.com/watch?v=6G3Qefbt0n4"]YouTube - Nov 2006 Peter Schiff Mortgage Bankers Speech Part 1 of 8[/ame]

Peter Schiff's analysis back in 06 appeared to be spot on. When he gets into his stride his arguments attain a rare cogency.

The economist had been writing excellent articles throughout 07 on the overexposure of the big investment banks to SIV's etc. but didn't appear to believe it's own worst predictions.

Also, the lack of oversight or regulation given to the rating agencies (Moody's et al) were early on earmarked by them to be a problem.
 
Apr 2009
146
Colorado Springs, CO
Specifically, my professor prompted:

I would like you to write a paper on the Sub-Prime mortgage meltdown, major bank and industries failures. What corrective action should be taken by our government, and the American people to resolved the problems?

I have come here to specifically ask for videos and resources in general.

Of course I am not asking you to write a single word about this paper I will write, but if somebody has good links or teaching videos full of facts, it would be appreciated.

Please do not search for me! I am just asking, if any of you can point me in the right direction, that would be lovely!

So... Links / Videos/ Resources? Anyone?
Read anything by Milton Friedman, it will show you that the less the government "does" in economics the better.
 

Edgewaters

Ad Honorem
Jul 2007
9,098
Canada
Friedman is one of the idiots responsible for this mess.

Mr. Helicopter Money himself, lol.
 

galteeman

Ad Honorem
Apr 2008
2,198
Sodom and Begorrah
http://www.youtube.com/watch?v=6G3Qefbt0n4

Peter Schiff's analysis back in 06 appeared to be spot on. When he gets into his stride his arguments attain a rare cogency.

The economist had been writing excellent articles throughout 07 on the overexposure of the big investment banks to SIV's etc. but didn't appear to believe it's own worst predictions.

Also, the lack of oversight or regulation given to the rating agencies (Moody's et al) were early on earmarked by them to be a problem.
You know weve been listening to these prophets of doom for years, sooner or later, as always, there is a downturn and then all of a sudden they are visionaries lol.
The Americans are the fat guys lying in the sun all day while the Asians spend all their time working? sort of an oversimplification isn't it? last time I heard, the productivity of an American worker was still much higher compared to a Chinese one.
 

Edgewaters

Ad Honorem
Jul 2007
9,098
Canada
Not to mention that productivity hasn't got much to do with the problem at all. If anything, it was a glut in various markets (particularly real estate/housing) that set it off.
 

Gile na Gile

Ad Honorem
May 2008
4,466
Fireland
You know weve been listening to these prophets of doom for years, sooner or later, as always, there is a downturn and then all of a sudden they are visionaries lol.
The Americans are the fat guys lying in the sun all day while the Asians spend all their time working? sort of an oversimplification isn't it? last time I heard, the productivity of an American worker was still much higher compared to a Chinese one.
Thought he was quite upbeat actually - shorting Triple AAA CDO's laced with toxic mortgage securities twelve months before the market meltdown - that's gotta taste sweet. Wonder how many millions he made on that one? What a gloom merchant. He talks for over an hour you know, mainly on the chaos wrought by a deregulated lending environment and the mania of boom psychology - I don't know what you could possibly deduce from listening to the first five minutes of it.

The desert island analogy might be crude hyperbole but there's an element of truth in it. The US has gone, in the space of a generation, from the world's largest creditor nation to the world's largest debtor nation facilitated, as he says, by the "largest consumption binge in history", a binge financed by post-9/11 firesale interest rates and record borrowing amidst the prosecution of two wars that will wind up costing at a conservative guess between $3 and $4 trillion dollars.

The Yuan is artificially depressed to prop up the dollar (despite Sarkozy's attempted intervention last year) and the steady erosion of seignorage thought to pay for the $800 billion trade deficit will be further aggravated by the upcoming decoupling of the GCC countries - maybe this will prompt the long anticipated run on the dollar, who knows. Stocks have already been smashed. Back in March, the Dow was below 7000 - half it's peak value - and representing the loss of a decade's growth. Oil imports for the States fluctuate between a half and a third of that deficit and allied with the inevitable price pressure of a peak oil scenario comes the growing consumption of the developing economies; a price tripling within the next five years is not inconceivable. I see the open contract bids for the big Iraqi fields are now predicated on company promises of doubling and tripling output - there is a quiet urgency here, make no mistake.

But if he were to say that the public debt was 73% of GDP and that this placed America inside the top twenty most heavily indebted nations then that would just deprive his delivery of the sparkle needed to rouse people from their slumber. But this is forgiveable because on the macro-level you have to be PT Barnum to get your point across. Just take a look at Japan who are now the world's third largest indebted nation (170 % GDP) - their housing bust was twenty years ago. The bailouts will take America up to 100% in the next two years and it's hard to see where the reverse gears are because all the competitiveness is being exported through Free Trade agreements. He's not saying America isn't productive - that would be ridiculous - the US is still exporting nearly a trillion dollars worth of goods - just that there's a potentially disastrous productivity deficit.
 
Last edited: