The Crisis of Credit Visualized - Part 1

When watching this video, everyone should also understand that the Glass-Stegall Act (which regulated banking from 1933 to 1999) made it illegal to intertwine investment with commercial banking. So at 4:18, take note, the Glass-Steagall Act would have prevented the mortgage lender from selling the mortgage to the investment banker. That would have prevented the whole crisis right there.

What the US should do now:

1.) raise interest rates to 7%

2.) put the glass-steagall act back into effect.

Why do half the comments seem to be from idiot republicans and libertarians going.

"ITS OBVIOUSLY THE GOVERNMENTS FAULT WE NEED TO DEREGULATE!"

Yes it TOTALLY wasn't the people that were doing the risky trading and that pushed deregulation.

Does anybody know which program is used to make this video?

Hey J.J., you should really check out the Robosigning piece by 60 minutes.

Just search youtube for "60 minutes" and "robosigning". It will turn up.

Yes, Glass Steagall is a key part. This was orchestrated with planning and not simply an accident. It took years of bribes and begging for the banks to get their way. If you look at this country, the war with the banks has always been going on. We used to win that war. Now we lose battle after battle. The public must be woken up.

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guess from FED as interst is low!

ah thanks. That seems to make sense now.

i think just private investors, essentially people that have money that they aren't spending any time soon, and want to turn that money into more money (because let's be honest, banks' interest rates suck now), so they give money to an investment banker who will turn x money into somewhat more than x money, keep a portion, and then forward the rest of the profits back to the investors

not all investment banking firms work with mortgages however

Yes, low interest rates FORCED banks to over leverage. It wasn't their own stupidity at all...