yes I know it say copyrighted on it...
The more I read or in this case listen to with regard to the Financial Collapse of the market the more disgusted I become.
This is a very interesting expose by 60 minutes on the subject of Wall Street’s Shadow Market. How is the small person investor supposed to know about things like this? The bail out plan does not have any regulation clauses as far as I can tell. The Market is still falling and now we know why.
In a nut shell, should you not want to take 12 well worth your while minutes to look at the video the following happened.
Large investment banks brought up the risky of risky bad debt mortgages from Banks. They then reinvented these bad debt mortgage packages into “cool investment packages” by using complex instruments, created by physics and Mathematicians to back the investment potential.
To further their wealth the Investment Banks then set up Credit Default Swaps to give “insurance” to the investors of the “cool investment packages. The problem was that the CDS were not termed ”insurance” rather “swap” so they were not regulated, meaning that there was absolutely no capital backing them up.
So when people started defaulting on their home notes and foreclosing the “cool investments” went south. When investors who purchased the CDS went to cash in with the Investment Banks, there was no money to pay and Bear Stearns, Lehman Brothers and the rest of the greedy bastards had to declare bankruptcy or be bailed out by the Feds.
The greed of the investment banks is staggering. The CEO’s should go to jail. Basically they repackaged shit sold it as gold and then defaulted on the backup to the shit investment. That has to be fraudulent? The Credit Default Swaps are ultimately what screwed our economy. These guys knew that this financial collapse could happen and basically just did not care. If the money that they are talking about in the video is correct, saying “staggering” does not even cover the half of it. Trillions of dollars have been lost out of people’s retirement plans, and nothing is going to be done about it.
Watch CBS Videos Online