Who made money from sub-prime crisis? Credit Crunch winners and losers – bankers, hedge funds, speculators and investors. Economic trends keynote conference speaker Patrick Dixon
Posted by admin in Finance Thursday, 27 May 2010 19:29 33 Comments
www.globalchange.com Who made money out of sub-prime crisis and the credit crunch? Those who sold property early at the height of the housing market bubble before the US property market crash. Mainly older people. Interest rate control Federal Reserve. Impact of sub-prime crisis on low income groups, younger buyers and shareholders of largest banks with big losses and fall in share prices. Bankers, speculators and shareholder losses. Tightening and loosening of monetary policy in response to inflation of commodities, retail price index and house market indicators. Video by keynote conference speaker Dr Patrick Dixon, Futurist and author of 12 books on global trends. Sub-prime crisis, property prices, crash, housing market, America, US, interest rates, banks, banking, share price, falls, speculation, boom, bust, investor, investment, funds, real estate.
[...] Who made money from sub-prime crisis? Credit Crunch winners and … [...]
So the banks have their fake money that they make…..and they now have a vast array of stolen assets…ie houses.
The banks didnt lose anything as they make up money as they go along. I think the ratio to deposits and lending is about 10/1 this means for every £1000 they have in cash, they can lend £100000. So they make up £99000 of cash.
Greedy greedy bastards.
Please look up FIAT currency if you dont believe me
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I support all of the politicians of this country because they are good people and they have to make money.
This people never lie; by the way take the damn vaccine
greed is actually number one. its a side-effect of the system. the govt didnt push subprime loans. banks who got into the industry during the low rate boom brought those in order to continue to increase profits in a market where the rates were rising. as a bank, with shareholders – you have to increase profits not just keep on earning. how do you increase the amount of people using your bank when all of the refi boomers already got their low rates? you expand your lending guidelines.
actually hes right to some extent. the banking system itself is to blame for the downward spiral that was effectively a “side-effect” of the way its all set up
People who made money: John Paulson, Phil Falcone, Kyle Bass, George Soros Jeff Greene (although he pinched the idea from John Paulson) just to name a few
sub back please
A lot of hedge funds benefited (made millions of $) as well, by taking bearish positions on CDOs (Collateralized Debt Obligations) which where backed my mortgages, the so called “Mortgage backed securities”. Also, a bunch of traders made huge money by taking bearish positions in the stock market by shorting stocks, or buying puts.
cheap money (fed cuts interest rates) + cheap credit = no where to lend it = lend it everywhere and then sell your worthless paper to investors on the secondary market (CDOS) = defaulted loans = bankrupt investors and bankrupt banks = criminals in the loop make billions = criminal immoral theft and fraud. Simple.
Tony Robinson! I loved you in Black Adder.
Stay away from Steven Craig Feldman. He is a crook!!!!!!!!!!
If you knew how the Fed worked, you would remove both comments
I like it when the English explain things to me
What Patrick forgets to mention is that the people who had poor credit rating were sold mortgages when the house prices were at their peak in order to keep the huge snowball rolling. The market relys on new buyers. Remember when Eastern Europeans were touted as the first time buyers who would push prices up further? If the buyers with poor credit had been given mortgages when the market was at the bottom then banks could claim they were innocent.
uh what? that’s the most moronic thing i ever heard ioaytyay
THE HOUSING BUBBLE did not CAUSE this.
THE HOUSING BUBBLE was just the PRETEXT.
The Financial SYSTEM is BUILT for PERPETUAL ECONOMIC GROWTH and that is NOT possible in the REAL world.
Watch “MONEY as DEBT”
Absolutely right and I think the very basis of certain nasty and selfish human nature needs to be investigated and exposed. Sure we all like to be comfortable if possible but some are are achieving this monetary wealth by deliberately causing the misery of others! Shameful and not only has it created this catastrophic mess, it will bring the World down with it!!
So let the banks go out of business. Banking is the least needed institution in the world. They produce nothing, they invent nothing, they don’t even store money any more, they just steal.
It’s funny that people think they know how humans are, when the only humans they know grew up in a nasty, selfish culture.
I add greed in as a extra because it is the greatest strength and weakness of the capitalist system … in order to be a strength it has to be restricted so it doesn’t hurt society too much but at the same time can still push the system forward.
The truth is that were 2 main contributors to this mess
1) Was a push by previous governments (both dem and rep but mainly by dem’s) for these sub prime(i.e. bad ) loans
2) Was a slow but sure degrading of regulations and restrictions in order to make 1) occur
Finally 3) is greed on the part of both banks/lenders and consumers … banks pushed these loans to make money fast (trading them off to others) … consumers pushed to get houses they couldn’t afford
Look at youtube user informedtrades for a very concise non political explanation. And then go and post it on all the “burning down the house” vids. Open some eyes.
Ughhh, all my specific replies to people’s comments got stacked up here. Play a matching game and see if you can figure who I was replying to.
“But most was made by people who bought property when it was far cheaper, and sold it at or near the peak,” I disagree.
“Beneficiaries are many of course – those who made money earning out of various activities like packaged loans” Those are the people who made the money. The paper men, the guys who pushed the prices of phoney paper up and then sold it off.
Yes those clever minorities, working those poor paying construction, hospitality & restaurant jobs when all along they had the power to topple the entire financial system. Blaming this on the poor makes me think we need to bring the guillotine back.
Sir, I suggest you do some research, with an open mind. This was not caused by one party not signing this. And your statement is inaccurate. From what I understand this made it out of committee but not to the floor.
Please stop with your close minded B.S. This was not a fault of the C.R.A., the Dems or the Repubs or the poor minorities. This was the result of an unregulated market that was using poor book keeping rules.
[...] Who made money from sub-prime crisis? Credit Crunch winners and … [...]
[...] Who made money from sub-prime crisis? Credit Crunch winners and … [...]
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