I liked it but I couldn't understand shit
>>66874668
American education strikes again
Woman detected
>hurrr I don't know what mortgages are but ryan gosling is so hot and steve carrell is so funny XD
>>66874695
>>66874742
Fuck off
>>66874668
but margot robbie and selena gomez were right there for the americans? you couldnt understand the baby explanations either?
>>66874668
wall street bad
vote democrats
They literally ended the movie with "They blamed immigrants and poor people". I cringed.
i knew the story before i saw the movie because i read peter schiff's books
in fact the only part i didn't like was the parts where they fucking spoon feed you the explanation in case you're a millenial hippie stoner retard
I like how they thoughtfully included cutaways of famous celebrities explaining economic terminology to me in the most basic manner possible. I would have been so lost otherwise.
People were given houses they couldn't afford and their mortgages we're shuffled into a finance system that made certain other people very wealthy. The whole world literally bet on this system succeeding. It did not succeed because all those homeowners couldn't pay their mortgages. The system crumbled from the bottom up but President Bush bailed them out.
>>66875650
To be fair, immigrants and poor people were technically responsible.
I was literally air guitaring in the cinema when they played that Pantera part
My significant other cringed so hard haha lol
>>66875311
Feeling angry, IQlet?
I'm reading the book, and if it makes you feel better, very few people involved, especially those selling them, understood either. I think at one point they say only 2-3 people in any given bank could explain them.
>>66875786
PAY UR BILLS U DEADBEATS
I LIKE HOW THEY WENT WITH A WELL MEANING FAT MEXICAN AS THE CLASS REPRESENTATIVE FOR ALL SUBPRIME BUMS
>I DIDN'T TAKE OUT THE MORTGAGE WITH THE INTENT TO DEFAULT ON IT BCUZ FUCK IT FREE MONEY
>I'M JUST RENTING FROM A PREDATORY WHITE MAN, HE TOOK OUT THE MORTGAGE, I-IS EVERYTHING GONNA BE ALRIGHT DAWG?
>NOW MY FAMILIA LIVES IN A CAR BECAUSE EVIL CAPITALISM :( SAVE US BERNIE
MANIPULATIVE LIBKUCK FANTASIES
>>66875786
HOL UP
NOW ARE YOU SAYIN', I'M SPOSEDTA PAY MY MORTGAGE AND SHIT?
>>66874668
The movie literally spoon feeds you how is that even possible?
>Feel Good Inc by The Gorillaz
I don't think they could've implemented it better any other way
>>66876743
>literally
did based McKay figure out a way break out of LED displays?
>>66875786
100% true if people just payed their debts the crash wouldn't of happened
In the movie they use the example of some poor guy who payed rent but the land lord was a shit and he got screwed over in the end but that wasn't the case for most people.
>>66876892
>wouldn't of
>>66876771
the only good thing about the movie
>>66875756
Oh, now I got it.
The Fed kept interest rates way too low for way too long, making it almost impossible for investors to get a return on their money. The only thing that was decent was mortgages, which were considered fail-safe because houses almost always rise in value, and even if the borrower defaults the lender gets the house and can just resell it.
All the demand for mortgages encouraged lenders to loosen the fuck out of their lending standards so that they could have more mortgages to sell off to investors. The increased demand for houses from newly-eligible borrowers led home values to shoot up, further encouraging investors to pile into mortgages, to the point where some banks were holding a completely unreasonable amount of their assets as mortgage-backed securities.
Eventually, they tapped out the supply of people capable of actually making payments on a mortgage and defaults started coming. With no more potential buyers to fulfill the fantasies of speculators, and foreclosed houses flooding the market, the values of homes plummeted, often by around 25-50%.
This had a huge snowball effect as tons of people found themselves owing more on their mortgage than their home was actually worth, leading them to just take the foreclosure and walk away, and leaving the bank with a house that was worth half of what they thought it would be. Many banks could not cope with the 50% loss on all of their mortgage assets and folded up like a tent, destroying billions of dollars in assets and slowing lending in the overall economy to a halt, which had a knock-on effect on other businesses that led to the recession.
>>66876892
What did cause people to not buy houses though? In the movie it said that not enough people were buying them so there was no demand thus banks not getting money ect.
>>66877012
In English, doc?
>>66877115
Cheap government money
Banks ignore risks because cheap government money
Idiots buy things they can't afford with cheap government money
People who did nothing wrong get screwed into paying for the shitty decisions of others.
>>66877115
I really can't tell if your serious. Just go to YouTube and look up credit crisis animation. Then after that read what this guy wrote, feel superior, jerk off, then kill yourself
>>66877171
>>66877180
Come on, give it to me straight. No scientific mumbo-jumbo, explain it like a normal person so I can get what you're trying to say.
>>66877091
People didn't want to buy houses that were devalued for being in a subprime neighborhood. Banks couldn't afford to essentially give houses away because the cycle of mortgage defaulting would start over again. Thus, demand tanked and the system crumbled.
>>66877171
>Idiots buy things they can't afford
THIS IS THE WEAK LINK
THEY SAW THOSE MONTHLY PAYMENTS, THEY KNOW WHAT THE WORD 'VARIABLE' MEANS
DON'T BUY SHIT YOU CAN'T PAY FOR, BUMS
>>66876892
Funniest part was that guy was apparently homeless living in a car when it was his landlord who wasn't paying the bills.
If that was the case the debt would be on the landlords head and the wetback would be able to move into another house since he has the ability to support himself and his family right?
Movie was made for idiots and yet they still made huge chunks of the second half impossible to understand.
I thought they were doing a thing with the celeb cutaways. Like saying back then nobody listened but now everybody does cuz they have some flavour of the month celebrity tweeting about it.
But no the filmmakers honestly thought so little of their audience that rather than finding a better form of exposition they simply had cutaways to people like fucking Selena Gomez explaining something that happened before she had her first moon's blood.
>>66877171
libertarian faggot detected
>>66877270
>right wing
it was all the feds fault
vote ron paul
>left wing
it was all greedy banks fault
vote bernie
>>66877270
Kek
What I took away from it was that because someone decided to up interest rates, make mortgages a more combative system similar to buying a car, then tell people that their interest would stay low even though it was a variable rate, when the rate kept going up and up it was what led to such a massive collapse.
Am I on the right path here?
>>66875650
...but they did in real life.
>>66877297
I'm talking about before the beginning of the housing bubble. People not paying there houses even though they could. Did they just leave?
>>66877370
Could you dumb it down a smudge?
No seriously thanks for the spoon-feeding mummy
>>66877435
Yee.
https://youtu.be/bx_LWm6_6tA?t=8m36s
>>66877416
No, people thought the value of their homes would continue to rise, so they used the capital of their home to get a mortgage for a new home, then another and another . . .
>>66877422
On one hand, they just want a place to live and, if they have a family, send there children to a decent public school.
But on the other hand, reeeeee poor people get out. Shit skin, bring nothing degeneracy and stupidity..... And THEY stink... Which is kinda true
>>66876892
>>66875786
do you realize that banks started to sell new financial products for fast profits (before they used to give loans only to deserving people, and that was a slow process and slow gains)? they started handing money to everybody, every nigger could just walk in and ask for money and get it. and the banks knew perfectly that what they were doing was bound to have disastrous effects. did you even watch the movie you dumb poltards?
>>66875786
>implying you're not poor
nigger pls.
>>66877660
Payday loans but in the thousands
>>66877660
WE WUZ LOANZ AND SHIT
>>66877660nigga I'm voting for Bernie Sanders senpai, I just like making you mad
>>66877435
My mom was a victim of that shit, and what most people don't know is that it wasn't just a bunch of idiot titty dancers and 20 somethings who fell victim to it.
It was also a lot of people from the sixties and seventies who were having huge troubles adapting to how shit was changing.
A lot of them have huge entitlement issues or major mental trauma that can't easily be dealt with. So they bought houses to try and raise children or live in a place that was relatively peaceful. Problem is most of those are in shitty towns with little to no economy, which requires a harsh commute. (Harsh to their entitled minds.) For my mom she just couldn't handle it after a couple months and quit, then lived off whatever savings until it dried up. Then let the house default and moved on to whatever she could stand.
Now, was it stupid of her to do this? Yes, very much, should she not have taken the loan at all, probably. But, that mortgage kept going up, and up, and up, if if hadn't my mom could've gotten a job in time and recovered.
In my eyes, both sides were at fault. The idiots who took those loans, and the fuckwads who offered the loans in the first place. When you offer someone the chance to get what looks like enough money to accomplish what's been the endgoal for a lot of people in the USA, with little risk, they're gonna take it no questions asked.
>>66874668
basically
>take out loan
>the $ is created right there and then
>its just a number on a computer/check
>there is NOTHING to back up the amount(no gold/silver etc)
say you take out a loan of $10k, there should be 10k in gold to back it up(this is not the case)
>$ didn't exists before you took out the loan, it was created out of thin air)
>you pay interest on your loan
>where are you going to get the money to pay off the interest on your loan?
>the $ that was loaned to you didnt exist before you took out the loan. its impossible
>In order to pay the interest on your loan you would have to take out another loan
>to pay the interest on that loan^ you would have to take out ANOTHER loan
>and on and on and on
the people who fucked up were giving out loans left and right to anyone
also say,
I would bet that your couldnt pay your loan, and another guy would bet that I was wrong about you not being able to pay your loan. and then another guy came in and bet that I was wrong about being wrong.
if you understand that, you can understand how the banks/FED are fucking us and eventually were all going to be fucked
>>66877787
Dude I'm sorry about that. Fuck... Now I'm more upset.
>>66877642
well, they want to send their children to a decent school because they think that it's the school job to magically turn their children into upstanding citizens despite their terrible parenting. In reality, their shit children just shit up the school more for everyone.
>>66877439
Ok Ill give you the simplest explanation
There was a global saving glut where there was an excess of savings looking to invest which led to lower interest rates and many borrowers took out mortgages to buy homes between 2000 and 2006. Many of them were subprime borrowers with poor credit records and high debt to income ratios. Between 2004 and 2006, the Fed raised its interest rate from 1.25 to 5.25 percent. If you look at the Taylor rule for determining interest rates the fed rate had been too low. Now many subprime borrowers were now facing mortgages that were increasing from their initial teaser rates and by August 2007 nearly 16 percent of subprime mortgages with adjustable rates were in default. This led to a downward spiral of the housing market.
Before the crisis, subprime mortgages were sold to investors through a financial innovation known as securitization which involves lumping together large numbers of individual financial instruments such as mortgages and then dividing them into different pieces that appeal to different types of investors. The resulting pieces go by many names, such as mortgage-backed securities, asset-backed commercial paper, and collateralized debt obligations. This can diversify risk but cant insulate from aggregate risk like increase in fed funds rate. As mortgages were developed and traded it became difficult to know how much risk an individual bank was exposed to. If Bank A worries that Bank B is backed by a large number of bad mortgages, it will demand a premium to lend money or will not lend at all. This is what happened the LIBOR (inter banking lending rate) spiked in 2008.
If the immense majority of all these trillion of dollars were literally made up money- out of thin air, as said- how come this 'fake' money caused such a big problem? Why couldn't we just reset it? It's just a pretend game.
>>66877642
No I was saying that the bankers did blame the poor people.
>>66877961
Not just bankers man. People also thought so as well. They're sorta right but not completely.
>>66877865
Yeah, it's a shitty existence. I'm in a pretty bad position myself. IT Training, but I can't find a job because it's an economically underdeveloped area, and I don't have enough money to move out, so I'm here spinning my wheels.
So all you economists, explain to me the concept of "betting" on banks and loans. I understood what they were doing in the film, but is that something you can do? Just put money up on a mortgage failing and then "win" if it does?
>>66877961
THEY'RE THE POINT OF FAILURE IN THE SYSTEM, THEY OBJECTIVELY DESERVE THE BLAME
PAY YOU ARE DENBTS, PERSONAL ACCOUNTABILITY
WHY 'IMMGRANTS' AND POOR PEOPLE THOUGH, THAT WAS NEVER TALKED ABOUT IN 2008
BECAUSE LIBKUCK FEEL THE BERN ELECTION YEAR AGENDA OSCAR BAIT MOVIE IS WHY
>>66877435
I don't understand your question.
The bubble was built on the value of homes going ever-upward. Why did that stop?
1. The values, and therefore cost, of homes got higher and higher as the pool of people capable of paying the mortgages got smaller and smaller
2. They built a shitload of homes in expectation of demand that turned out not to be there
3. Foreclosures started slowly ramping up only for the banks who repossessed the homes to find out there weren't any buyers at the prices they wanted.
So, massive oversupply basically. And when the values of homes started dropping, people started walking away from their mortgages because they owed more on them than the house was worth, which put even more foreclosed homes on the market and drove down prices even lower while people who were interested in buying sat on the sidelines and waited for rock bottom.
>>66877933
Businesses of all sizes were built on that "fake" money. Guess what happens when it all goes away. Either way, the "reset" was basically the bailout.
>>66878037
........... I don't need these feels. What partof the US you from assuming your an American
>>66877910
(cont)
Then began Liquidity crisis. The volume of transactions in some financial markets falls sharply making it difficult to value certain financial assets which raises questions about overall value of firms holding those assets. Before fin crisis major investment banks had high leverage rations(ratio of total liabilities to net worth) eg bear stearns ratio was 35 to 1. The rise in Risk premium which raises interest rates interferes with fed ability to stimulate the economy with lower fed rate so even with fed rate at basically zero it couldn't stimulate the economy.
>>66878057
It's short-selling. You borrow a security from somebody, sell it, and then pay them back by buying it again at a later date when the price has changed. If the value has lowered when you buy it back again, you've made a profit on the decline in price.
>>66877933
You actually can. Look up quantitative easing.
>>66878216
Are you someone money guy?
>>66878106
SE Texas, border of LA.
>>66878381
Well fuck. What are your certifications or should I say what are your qualifications so far. I would say go to Houston but only because its so huge
>>66878381
>SE Texas, border of LA.
WORK A GULF OIL RIG, SAVE UP FOR RENT IN A CITY WITH TECH JERBS
>>66878346
I actually have a Master's in Economics and work for a bank, but how short-selling and QE works is pretty common knowledge
>>66875660
Most people don't understand economics or finances or shit like that
That's LITERALLY why the entire ordeal happened
>>66878057
You use credit default swap which is basically insurance for a financial instrument. If housing market collapse the people selling protection have to pay the buyer which is what happened
>>66878512
Associates from local State College, all four CCNA classes and certified, Hardware and Software certs from College, half a year of sporadic contract work, half a year of internship work.
>>66878573
Oil Rigs don't want anybody who doesn't have five years experience or higher. Trust me, I've tried.
>>66878578
After reading a bit of what others posted.Im iinclined to agree.
>>66875792
What's pantera? Are you 45?
>>66878689
A metal band and I'm 35 smartass
>>66877660
That's like blaming a drug dealer for your overdose. Take responsibility for yourself you nigger.
>>66878604
All that and then some...... JUST. Dude wtf. Has it really gotten so competitive in Texas? Ever thought of doing your work in the UK?
This, and Contagion, are two in my favourites movies this decade. I'm not sure how to feel about this.
im a finance major and thought it was a pretty good movie. wouldve been better without the robbie/bourdain/gomez shit but how else are you gunna pander to the unwashed masses
>>66878720
But people want to live the american dream that some people actually live.
Pro tip for the anons ITT:
If you're hazy on the housing market collapse; the reasons behind it, who was responsible, who should be held accountable, etc. etc. you should not listen to anything anyone on this board says about it. In fact, if you're not well versed in any area enough that you can instantly see through bullshit and immature neckbeards bitter emotion-based opinions about it, you probably shouldn't listen to anything anyone on this board has to say about it.
>>66878774
How about good?
>>66878842
That's true for literally everything. Even movies and TV shows.
For me, the key thing that people forget is that houses were marketed as assets guaranteed to appreciate in value to the sub-prime borrowers. They didn't care about whether or not they could make the payments because they had been assured that if they couldn't, well, they could just sell the house and pay it back that way.
>>66878720
It's more like a drug dealer telling people he's selling high grade cocaine, but it's actually rat poison.
why weren't the bankers and the people responsible tried and jailed?
why did the fed bail out the banks?
>>66878842
MORTGAGE DEFAULTER DETECTED
>>66879003
NOT ON THE RETAIL LEVEL, ITS JUST DEADBEATS WHO BUY THINGS THEY CANT PAY BACK
POTENTIAL RAT POISON MIXED INTO THE MBS MAYBE, BUT THE BLAME FOR THAT IS ON THE RATINGS AGENCIES
>>66879130
Things would be waaay worse without bail outs
>>66879130
When kidnappers take your mother hostage, you pay the fucking ransom.
>>66879130
Because they were the movers and shakers of the financial world
>>66879130
>why weren't the bankers and the people responsible tried and jailed?
kek its like you think the world is a level playing field. crooks exist and the system is fraudulent.
only reason they're allowed to do that is because no one does shit about it.
>>66879130
Because the country is WAY too far past gone. If we punished the guilty tomorrow the economy would collapse.
>>66879130
Tried and jailed by who? If you're expecting the powerful to police the powerful when it's to no advantage then you're fucking delusional.
In a situation like this you have to ask yourself a question: "What am I going to do about it?" if the answer is "nothing" then it's a good bet it's the answer for everyone else as well.
is this the best film, fiction or documentary included, made about the recession?
The banks, the borrowers and the government created this mess. I know having a house is the American Dream but if you can't afford the mortgage, don't get into it.
>>66879290
ALL COUNTRIES ARE SITTING ON TOWERS OF DEBT, OF GREATEST CONCERN IS CHINA'S BUBBLE WITH THEIR FINANCIAL OPACITY AND OUTRIGHT LIES IN REPORTING ECONOMIC NUMBERS
SOVEREIGN MACRO IS ALL JUST PUSHING NUMBERS AROUND, KICKING THE CAN DOWN THE ROAD
IF ALL DENBTS HAD TO BE SETTLED OVERNIGHT THE ENTIRE WORLD WOULD COLLAPSE
Is China next?
>>66879136
And who effectively bribed/blackmailed the ratings agencies to give them those scores?
It always comes back to the banks. There's no way around it. At the end of the day, the banks were greedy motherfuckers who knew what they were doing, knew they were pushing shit, and didn't care because they were making money hand over fist.
Were the people who took the loans stupid? Yes. But should the loans have been offered in the first place? No. Was the government stupid? Yes. But should the banks have taken advantage of that and threw morality and sanity under the bus in the name of profits? No. Were the ratings agencies stupid? Yes. But should they have been forced to rely on money from the very people they were supposed to be rating things for? No. In the end, anyone who says the banks weren't the primary causes of the collapse are free market libertarians who don't know a damned thing about real-world economics.
Thanks to that one retard for posting all of his opinions in all caps. Really the cherry on top of the autism sundae.
>>66879618
Come to think of it. How are the Brits doing financially
>>66879744
Dunno but you probably shouldn't ask 4chan if you want an objective fact-based answer
I don't understand how anyone would just agree to those terms. My dad came from Indonesia in the 70's and learning English was a chore, but he managed to attain fluency. He would never sign a loan without consulting someone. He mistrusted banks and we lived in a shitty 2 bedroom apartment until he saved enough for a down payment of a good home. Read the damned print and don't let anyone fast-talk you into it.
There's no common sense amongst people nowadays. This reminds of that documentary House of Cards and the idiocy of people with low income actually believing they can afford 6 figure homes.
>>66879744
BREXIT WOULD BE A CLUSTERFUCK
L O N D O N HAS LAX MONEY LAWS, THEY'LL TAKE IT ALL, PARTICULARLY FROM RUSSIA
THE FINANCIAL CAPITAL AND ONE STOP MONEY LAUNDERING SHOP OF YUROP
>>66879905
suckers are born every second
>>66878842
>>66879898
>le evil and dumb 4chin
Calm your butthurt, friend. No need to be salty about us because you can't make diamonds
>>66879905
I dunno. Being poor humbles peoples perspective. I never in my life ever think I will own a 6 figure home short of the lottery which is a tax on the stupid.
>>66878573
>he thinks that oil rigs are still hiring after oil prices are crashing into the fucking ground
lol fool
>>66879627
>Were the ratings agencies stupid? Yes.
ITS THE EXPLICIT FUNCTION OF THE RATINGS AGENCIES, ITS THEIR ONLY REASON FOR EXISTING, ITS OBJECTIVELY ALL ON THEM
DO THEIR DUE DILIGENCE TO ACCURATELY RATE THE INVESTMENT GRADE OF FINANCIAL PRODUCTS SUBMITTED TO THEM, THEY FAILED HORRIBLY, AND ITS BEYOND NEGLIGENCE INTO FRAUD AND CRIMINALITY
>>66880303
OIL PRICES ARE COMIN UP
>>66878735
It's just the area I'm in is so shitty. They have no need for IT people who aren't perfect.
>>66877660
While the banks do share in that responsibility, don't forget that a lot of that behavior was encouraged by the government for the sake of expanding credit to poor people.
I haven't seen it yet, but I've heard if you have good knowledge of high finance the movie easier to understand/appreciate.
>>66882157
I think it is a good movie, it's a solid dark comedy, and it's got a strong message behind it.
