wtf I hate capitalism now
>>71847386
I basically didn't understand anything in this movie. I understand then housing market crashed because banks were giving loans (Many of which were mortgages) to people who clearly couldn't pay them back, but there's so much financial gibberish and nonsense to keep up with it's very easy to lose track of it all.
>>71847465
Really? I thought it was explained pretty well for a layman. They could have done a better idea of explaining what a short actually is besides just saying "they're betting against the market!" since most people don't understand the concept.
I'm just more amazed this movie was directed by the same guy who did Talladega Nights and Step Brothers. Classic financekino.
DUDE I WILL TAKE A LOAN AND FIVE MORTAGES I CAN NEVER HOPE TO REPAY LMAO
DUDE WHAT DO YOU MEAN I SHOULD BE RESPONSIBLE ABOUT MY ECONOMICS THE BROS WITH THE TIE TOLD ME EVERYTHINGS GOOD LMAO
>>71847465
The point was, they did this to make money and it caused the housing market to collapse and now they're doing it AGAIN with loans under a different name and the housing market will collapse AGAIN, but people are too stupid and it's going to go unnoticed until it happens.
I am now a #CommunismMissile
*famines*
*millions of people die*
>>71847579
Mexicans and blacks are never responsible
>>71847386
>the current state of the American financial industry is a product of a free-enterprise system
wew lad
>>71847579
Dude lol what's an adjustable rate mortgage haha what do you mean my interest rate might be 15% in five years lol??
To be fair, ARMs are pretty shit and a lot less popular then they were 10 years ago. I mean why the fuck would you get one and risk getting butt fucked when the rates for a 30 year fixed conventional are hovering around 3.5%? I work for the mortgage department of a major bank and we hardly buy any ARMs just because they're usually garbage tier.
>>71847465
I didn't either but I thought that it was appropriate for the kino's theme. Kind of like how in Inherent Vice nothing makes any sense.
>>71847465
>>71847583
you have to explain that banks gave loans to people who could never pay them back
at the time they were called "NINJA" loans meaning the loans wee given to people with "No Job No Income and No Assets"
In the old days giving out loans to people who could never apy was against company policy and government reuglations for obvious reasons.
But during the Clinton administration ((((Robert Rubin))) a wall street insider and former Goldman Sachs employee edited the Community Reinvestment Act so that not only could banks make loans that would never be paid back, making bad loans became official Government policy because not doing so was "racist"
>>71847386
>>71847579
>>71847583
The only winning move is not to play.
Never wage cuck, forever neet
I liked it even though they didn't talk about the Community Reinvestment Act which was a big reason for the crash. Basically the federal government forced lenders to sell subprime loans and made it nearly impossible to deny an applicant. All that stuff about shit FICO scores and the ninja loans from the movie were consequences of the CRA.
>>71847824
Haha what the fuck do you think will happen to NEETs when the economy crashes and entitlements are cut or your parents that you live with lose their homes?
>>71847825
>Basically the federal government forced lenders
It was pushed for by the banks like Goldman Sachs
The top officials pushing it were Larry Summers, Alan Greenspan, and Robert Rubin.
Ironically the media at the time were pushing them as the "smartest people on earth."
To this day they are very well respected and hold prestigious jobs and are worth millions.
>DUDE WTF DO YOU MEAN I SHOULD HAVE KNOWN I COULDN'T PAY BACK THAT LOAN LMAO!
Sure the dipshit bankers should have known bad mortgages were dangerous as fuck just through intuition, but the people taking out those loans should have they were bad too.
>>71847935
Fuck Greenspan. His Jewery almost destroyed the global economy.
>>71847866
What the fuck do you think is going to happen when you become a literal debt slave?
>>71847866
they'll be the most prepared
>>71848003
They'll commit suicide as soon as the Internet cuts out and the flow of tendies is interrupted.
>>71848038
neet's are self-sustaining and disconnected from everything, including their families.
You've confused neet's with basement dwellers
>Steve carell playing a serious role
>>71847825
lol? Is this a joke?
CRA is not about "forcing banks to make loans to irresponsible borrowers".
CRA basically says, a bank can't take deposits from people within a certain geographic area, and then refuse to make loans to those same people within that geographic area.
Which is what Banks were traditionally doing -- Taking deposits from low-income, largely minority communities and then refusing to extend loans.
CRA doesn't prohibit the banks from disqualifying borrowers on the basis of creditworthiness or lack of ability to repay the loan.
I'm I'm making 35k a year and have no debts (but a low fico score) and after all bills and other miscellaneous payments I still have 15k a year to fool around with yet I can't get a mortgage for 300k which is at 1000 a month for 30 years that I could rent out to some Mexican family for 1200?
Where is my America?
>>71847825
You forgot about the (((ratings agencies))) that all gave these shit tier loans AAA ratings
>>71848192
Steve Carell is seriously a good actor.
It's just that whenever he opens his mouth and that voice comes out, I can only see Michael.
>>71847825
This is a myth made up by the neoliberal right to protect their kike masters. CRA loans received special designations and had an overall lower rate of default than true subprime loans
>>71848192
You ungrateful ape
>>71848771
Even if your actual take-home is $35k/yr, a loan at $1000/mo would still be a third of your pay, which is bumping right up against what's accepted as the upper boundary of how much you should pay for your house. Keep in mind this is only for the principle and interest. You'd have to pay stuff like:
Taxes
Mortgage insurance (If you don't have $60,000 in cash for a down payment)
Homeowners insurance
Flood/hurricane insurance depending on where you live
Maintenance
Etc...
Owning a house is expensive and costs add up quickly, and a trap that a lot of people fall into is thinking that just because they can afford the P&I, they should buy a $300,000k house. I'd save up cash for a down payment and work on building that credit score (Open a credit card, buy like one thing a month with it then pay it off) so you don't end up as one of those Subprime people.
>>71849267
I have 40k for a down payment
>>71847982
the housing market is a large reason of why the crash happened but a relatively small portion of why the crash was so large
overwhelming liquidity and inherent capital instability from the churning out of CDOs is the reason Lehman Brothers went under in a day
>>71849267
Any suggestions for a company to use?
>>71849539
That would put your loan to value at right around 86% on a $300k/house so you'd still pay a little in mortgage insurance since your LTV is over 80%, but not much really. Keep in mind what I said about taxes and insurance, though. Is $300k the starting prices for houses in your area? Because around here a basic 3br/2ba rambler goes for like half that.
>>71849726
I'm in san diego and shitty 2bd 1bth goes for 300k
a good introduction to the several factors that caused the 2008 financial crisis
http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1605&context=key_workplace
>>71849657
For a lender? Dunno, most loan officers will just go with the one with the lowest rate (I know mine did). It doesn't really matter because you'll probably only make one payment to the lender you get the loan from before your mortgage is sold to Bank of America, Wells Fargo, etc. Then you'll be dealing with them while they service your mortgage.
>>71849796
Meant credit card to help my score
>>71849829
Ohh, I've always had good luck with Visa. Just get one with no fees and you're set.
