Diving Head First into the 2008 Financial Crisis: An In-Depth Analysis of What Happened

a reply to: IgnoranceIsntBlisss

Another dynamic playing out at that same time was highly matured big firm superconputer High Frequency Trading was just emerging.

That, along with the Exchange Stabilization Fund and the Fed Trading Desk & any other Major Investment Banks manipulating the markets are what've kept things afloat lately, and are behind the rallying behind the market

The only thing that can stop them now is Communism.... like I keep telling y'all, but no one wants to listen or even consider our options because you know... Stalin... Mao... etc.

Stop working for a couple of weeks and they'll start skydiving off of rooftops without parachutes.

I lived it... I work in mortgage finance. There is a lot of misinformation out there. From my vantage point, it was a perfect storm. Everything was predicated on housing values continuing to increase as they have done historically. Once housing prices started to decline it exposed a lot of structural weaknesses in the markets from main street to wall street.

It is always easy to blame Wall Street, but Joe Consumer was just as much to blame. What many don't realize is the amount of fraud that was taking place by consumers. Underwriting guidelines got so relaxed that it became easy to commit mortgage fraud. Much of it was by speculators looking to flip properties for quick profits.

Here is an article from 2005 in the Chicago Tribune. Gangs figured out mortgage fraud was far more lucrative than selling dope.

Mortgage Fraud: The New Street Hustle

When home values started to stagnate along with the drying up of liquidity in the market, a lot of these investors were unable get rid of their properties. They couldn't sell them because they had no equity and they couldn't refinance the debt as there was no liquidity. They had no choice but the let the properties go into foreclosure.

Unfortunately, once the investors started going into foreclosure, they brought down values of the surrounding properties. Many of which were owned by "normal homeowners".

The domino effect of the real estate market crashing was extreme. Think of all the businesses that make money directly or indirectly from a robust real estate market. Contractors. Furniture Companies. Housing Wares. Hardware Companies.

Oh, by the way... Here is an article that came out a couple of weeks ago validating what I just said above.

House Flippers Triggered US Housing Crash

From the article:

Mounting evidence suggests that the notion that the 2007 crash happened because people with shoddy credit borrowed to buy houses they couldn’t afford is just plain wrong. The latest comes in a new NBER working paper arguing that it was wealthy or middle-class house-flipping speculators who blew up the bubble to cataclysmic proportions...

As for those with low credit scores—the “subprime” borrowers who supposedly caused the crisis—their borrowing stayed virtually constant throughout the boom. And while it’s true that these types of borrowers usually default at relatively higher rates, they didn’t after the 2007 housing collapse

Come 2007, investors accounted for 43% of the total mortgage balance for the top credit-score quartile

that`s when gas prices more than doubled from $2 to over $4 a gallon and Obama was saying that he wanted $10 a gallon gas in the U.S. at that time I told my wife, that $4-$5 a gallon for gas was going to wreck the economy because $5 a gallon gas was going to eat up a lot of peoples disposable income.
most people were and are still living paycheck to paycheck so when you double the price of gas those people aren`t going anywhere in their free time because they have no money to go anywhere.
their cost of just going to work and back home was doubled.

a reply to: Edumakated

Oh! So it wasn't so much the banks faults after-all you say? It's those bad citizens!
The references for this info is: The Tribune Company, and The Atlantic.
Private mass-media companies, in bed with the same banksters listed in the OP.

Sure: blame it on Joe Littleguy, who was brainwashed into believing the BS American Dream, and lost everything.
Untold misery for American families.
Bankruptcy. Marriage troubles. Family problems. Indentured slavery.

Really?

originally posted by: Nothin
a reply to: Edumakated

Oh! So it wasn't so much the banks faults after-all you say? It's those bad citizens!
The references for this info is: The Tribune Company, and The Atlantic.
Private mass-media companies, in bed with the same banksters listed in the OP.

Sure: blame it on Joe Littleguy, who was brainwashed into believing the BS American Dream, and lost everything.
Untold misery for American families.
Bankruptcy. Marriage troubles. Family problems. Indentured slavery.

Really?

Work on your reading comprehension... I did not say Wall Street did not have some responsibility. As I stated, the housing market crashed due to speculators. People trying to flip houses and fraud. This was fraud on main street by individuals.

Go read up on Casey Serin. He was a blogger and real estate speculator who basically became the face of the collapse. There were tens of thousands of Casey Serins.

a reply to: FamCore

Thanks. I've learned so much that my head aches. Knew how dirty it was but not the depth and I was a real estate broker-saw alot of dirt. So much more than I could ever have imagined. You're a genius. Again, many thanks-such immensely hard work you have accomplished.

originally posted by: Tardacus
that`s when gas prices more than doubled from $2 to over $4 a gallon and Obama was saying that he wanted $10 a gallon gas in the U.S. at that time I told my wife, that $4-$5 a gallon for gas was going to wreck the economy because $5 a gallon gas was going to eat up a lot of peoples disposable income.
most people were and are still living paycheck to paycheck so when you double the price of gas those people aren`t going anywhere in their free time because they have no money to go anywhere.
their cost of just going to work and back home was doubled.

Yeah, I remember that. I had bought a SUV and gas was like $2/gallon. Next thing I know, it was costing like $100 to fill up my SUV.

A lot of people are stretched thin. It doesn't take much to wreck havoc. Gas prices, interest rates, etc.

originally posted by: Edumakated

originally posted by: Nothin
a reply to: Edumakated

Oh! So it wasn't so much the banks faults after-all you say? It's those bad citizens!
The references for this info is: The Tribune Company, and The Atlantic.
Private mass-media companies, in bed with the same banksters listed in the OP.

Sure: blame it on Joe Littleguy, who was brainwashed into believing the BS American Dream, and lost everything.
Untold misery for American families.
Bankruptcy. Marriage troubles. Family problems. Indentured slavery.

Really?

Work on your reading comprehension... I did not say Wall Street did not have some responsibility. As I stated, the housing market crashed due to speculators. People trying to flip houses and fraud. This was fraud on main street by individuals.

Go read up on Casey Serin. He was a blogger and real estate speculator who basically became the face of the collapse. There were tens of thousands of Casey Serins.

Reading comprehension is not too bad, thanks. Can even see through your words...

Comparing small-fry greedy arseholes, and street gangs, to the puppet-masters who enabled them, and who profited from the collapse, comes across as a diversionary tactic.

You even mentioned that you were earning a paycheck within the den of snakes.

Not buying it.

originally posted by: Tardacus
that`s when gas prices more than doubled from $2 to over $4 a gallon and Obama was saying that he wanted $10 a gallon gas in the U.S. at that time I told my wife, that $4-$5 a gallon for gas was going to wreck the economy because $5 a gallon gas was going to eat up a lot of peoples disposable income.
most people were and are still living paycheck to paycheck so when you double the price of gas those people aren`t going anywhere in their free time because they have no money to go anywhere.
their cost of just going to work and back home was doubled.

Yeah - it's all Obama's fault. Gas was averaging $4.00/gallon in 2008 - the recession started 2007/2008. Obama took office January 2009.

Just making this up? Lying? What?

a reply to: Edumakated

So, why are people still stretched so thin?

Gas is back down, I'm buying $2 a gallon milk again and my summer electric bills are actually manageable.

Why though does it feel like money is just drying up?

originally posted by: FyreByrd

originally posted by: Tardacus
that`s when gas prices more than doubled from $2 to over $4 a gallon and Obama was saying that he wanted $10 a gallon gas in the U.S. at that time I told my wife, that $4-$5 a gallon for gas was going to wreck the economy because $5 a gallon gas was going to eat up a lot of peoples disposable income.
most people were and are still living paycheck to paycheck so when you double the price of gas those people aren`t going anywhere in their free time because they have no money to go anywhere.
their cost of just going to work and back home was doubled.

Yeah - it's all Obama's fault. Gas was averaging $4.00/gallon in 2008 - the recession started 2007/2008. Obama took office January 2009.

Just making this up? Lying? What?

Check your dates....and why...
Get facts before you try to inform.

originally posted by: ClovenSky
Mother (*$#(*@(*&$__@_)$(*(@*(*$()#)_(@_(09 ...... time for a drink.

Frankly though, that's the main problem. Anyone that thinks Republican or Democrat, Conservative or Labour government would make any difference to this situation is an idiot and I have some investments to sell you.

originally posted by: flowerpower691
a reply to: Edumakated

So, why are people still stretched so thin?

Gas is back down, I'm buying $2 a gallon milk again and my summer electric bills are actually manageable.

Why though does it feel like money is just drying up?

Do folks on the average make more now ? Relatively the same ? Less ?
As most companies everywhere have cut back on employees and hours worked ? Most scaled back to 32 hrs max .

a reply to: Edumakated

or maybe the housing market crashed because people were suddenly paying twice as much for gas to get to work and that prevented them from paying their mortgage?
if you are living pay check to pay c=heck like most people were and still are do you stop buying gas and going to work or do you stop paying your mortgage?

if you stop buying gas and going to work you lose your job, but if you stop paying your mortgage at least you still have a job and can find another place to live.

the Obama attempt to make gas $10 a gallon killed a lot of mortgages at only $5 a gallon.

apparently Obama and the democrats believed that most americans had a lot more disposable income than they really did.
another example of how out of touch with reality democrats are.

originally posted by: Gothmog

originally posted by: FyreByrd

originally posted by: Tardacus
that`s when gas prices more than doubled from $2 to over $4 a gallon and Obama was saying that he wanted $10 a gallon gas in the U.S. at that time I told my wife, that $4-$5 a gallon for gas was going to wreck the economy because $5 a gallon gas was going to eat up a lot of peoples disposable income.
most people were and are still living paycheck to paycheck so when you double the price of gas those people aren`t going anywhere in their free time because they have no money to go anywhere.
their cost of just going to work and back home was doubled.

Yeah - it's all Obama's fault. Gas was averaging $4.00/gallon in 2008 - the recession started 2007/2008. Obama took office January 2009.

Just making this up? Lying? What?

Check your dates....and why...
Get facts before you try to inform.

I did check my facts - have you?

Why is it a crisis when things get cheaper?

I've heard the fact that powerful rich men don't believe in God, and yet how fast that can change when the future looks gloomy and when they are out on the streets.

Better get those autonomous robots, good help only getting harder to find. You get what you put out.

a reply to: FamCore

Wow! Fantastic research, fantastic presentation, fantastic OP!!!

Thank you