the scary part, none of the wall-street mafia was held accountable, instead, they got compensated by the TARP program, now you have a clear idea who's really in charge in USA and the world
When will people wake up to the fact that America (and others) is one big ponzi scheme... The people are slaves happy enough not to notice. But bc the crash is coming, corperations are siphoning as much money as they can before the "crash" aka new systems take place. Its obvious. They did this in 2020 with the fake coin shortage. Vompanies like wallyworld and. McDonald's did this. Those two alone stole millions from the struggling general public and not a word... Even from the people. Which, instead of the company taking the hit like they legally should have... we got robbed.
meh..the ones that controlled the US is the group that branded them as God Chosen Peoples and their AIPAC lobbying terror entity. You can critic or insult anything or anyone. You can even insult US Presidents or Founding Fathers in the name of freedom of speech but the moment you criticized that group,youre gonne be labelled as Anti-S. Heck The US even even have rules that forbade anyone from citicizing or boycotting that group. And yup,they controlled The US banking system and the entire government of The US. yikes
Nobody responsible for any of the major financial crises are punished or charges even filed in a lot of cases. The setups that put us in past crises are still there, and now more numerous than ever as well as inflated more than ever. Waiting for "the big one" is not a conspiracy, its inevitable.
not TRUE, THE FOREIGN LAWYERS WERE CHARGED WITH FRAUD, AND FULD signatures were examined in NYNEX for not paying out, from INCOME statements and balance sheets.
A man who lost everything, suffered a heart attack and was escorted from the branch like a petty thief vs a real criminal, paid millions for scamming people, smiling and hiding behind taxpayer money.
I worked in the “Collection and Recovery” department during one of these meltdowns. People were not only losing their jobs, they lost the value of what they paid for their home. Sometimes it was $100,000. After a merger we gained the loans that were delinquent. They arrived in banker boxes that were stacked outside our cubicle. My Supervisor and I had to verify the status of each file. I uncovered some real horror stories. Let me say, I do NOT know HOW I survived it.
@@bartsullivan4866 Here is what is disturbing to me. I know that we were not the only bank having these losses. In my opinion, for what it’s worth, I think they should eliminate ARM products. It seemed like the lions share of loans that went bad were ARM Loans. I was also a Loan Processor, so I know that the ARM products only work IF the borrowers do NOT take on any more debt. There are even worse things out there used to be called “liars loans” where the income is not verified. Yes, it is about to get interesting.
Absolutely obscene this abuse of power, the fact that these people walked away multi millionaires, back to their privileged lives with not one custodial sentence. Its a demonstration of who holds all the power , and its not the governments of the world. You could say that white collar crime and the rich poor gap has got worse since then. So depressing.
@@TheGhostOfMichaelJackson okay yeah I was not talking about this theory. I just wanted to say that this is how our system works. These Investmentbanks manifest capitalism it’s „peak“ capitalism.
This documentary should be ashamed of the point they made about ordinary people not fully understanding these "documents"....these documents were never made to be understood....that was part of the scam. Ppl need to wake up and stop investing in this casino financial environment.
I worked at a chemical plant that made carpet fibers. The president of the carpet side was thinking the housing market would bounce back. Well the bottom fell out, he got a big severance package, I got laid off and the plant closed.
@@TimmyTheTinmanIt was both parties that played into the corruption for over 40 years now. If you do any sense of research neither side is better than the other. Arrogant comment
I left Citi the week Lehmans crashed and there were so many meetings about what collateral we had. I was never in one of the high earner sections but had some clients that traded 20 million EUR or 50 million USD regularly. It is just zeros on a screen until you stop and think about it.
Imagine the debts a lot of states have incurred over the last decades. No one is ever seeing this in real money form. It's just 0's in a computer. Too bad we simply can't format the "hard drive" of this system and start again
What’s unstated is that these investment banks all have to be funded overnight in the repo market. So their book of business is essentially being reviewed as to risk every night. Once Bear Stearnes went under it was obvious who was next in terms of who had bet the wrong way on these securities. And the referendum came very quickly from their counterparties.
The collapse of Lehman Brothers was a watershed moment in financial history, revealing how one institution's failure can ripple through economies worldwide. "Corporate Secrets: Lessons from the Boardroom" likely offers valuable insights into the decisions that led to this crisis and serves as a reminder of the interconnectedness of global markets and the impact of corporate mismanagement. Excited to see the lessons it uncovers!
This documentary is very top-level, the statements are mostly generalized no real insights or technical explanations are given. The most frightening character in this is the Chicago Fed guy, he doesn't really sound confidence inspiring, like at all. I think this was made for the average man on the street, not those actually interested in the subject matter and the specific mechanics of this major fu of epic proportions.
Sorry to chime in again but I highly recommend the film "The Big Short" for a Hollywood version of events which shows most of the bankers had no flipping clue what was going on. The Singapore bankers were damn smart, Dick Fulds is an arrogant, megalomaniac SOB who walked away with billions and is still working on Wall Street, says it all.
Their thought was that since housing prices were going up. If they could make the payments, they could simply sell it and turn a profit. Turns out prices don’t go up forever
@@neilkurzman4907 no, not even close. They were ARMs and were going to be difficult to sell. And any change in interest rates were going to send their payments through the roof.
There were people who saw the failure coming, and they made a lot of money betting on it. I don’t know why the documentary pretends nobody saw it coming; it was clearly a bubble. But the system incentivizes growth, not resiliency. And the bailout that came after ensured nobody ever learned their lesson from the entire debacle.
@@easlern Lehman was the lesson. But justice before the longer in the past, it was the more people forget about it. And the more of the workforce never experienced it because it was before their time
In UK mortgages are stress tested against 2 to 3x the current rate. Before being granted. But the banks can still gamble on foreign mortgages with no such oversight.
Lehman collapsed because the market underwent a sudden valuation reset of AAA tranches of non-agency RMBS securitizations, so-called CDOs, as the subprime mortgages of which they are composed went delinquent and then defaulted. These tranches were used as collateral on derivatives trades, and when their valuations plummeted Lehman no longer had sufficient collateral.
which also caused the DOPPLER ripple thru, "OCWEN" case through GEORGIA. MULTIPLE WAREHOUSE AND MULTIPLE COMPANY AUDITS EXPERIENCE. including IBM, company assistance. USPS failures of 2015 to 2017 defaulted to firing ILLINOIS postal inspectors. And I cause usps audits, since two thousand seventeen.
It's not that they forget, it's that they just don't care. The investors lost their money, but the bankers walked away with their bonuses. So why exactly would they do anything different? Would you?
They went to the restaurant and the restaurant charged them $1,000 to $8,000 for a dinner plate. That is a rip off. They were getting ripped off, and they were proud of it. It seem these bankers didn't know the value of the money. I wouldn't pay $40 for a dinner plate.
Wealth like energy can neither be created or destroyed but change form. The question is what form will all this money take so you can profit from it in once in a lifetime wealth transfer from one form to another. That is the power of thinking outside the system of the paper/debt based financial system to an asset based financial system. You will own nothing if the financial system crashes and you can't get your wealth out of perpetual paper/debt system.
Ante Markovic last president of Yugoslavia raised interest at saving and many Yugoslavians that worked in west put money in Yugoslav banks. Then come Milosevic and got all that German marks and use it to finance wars. They lost all too unless they were sawing in banks originating in Croatia. Croatian's banks saved money but only them.
Agreed, but I don't know where in the world or what system is the best. I've lived and worked and travelled all over the world, since 1981. Am from the UK and soon off to live and work in Norway where I've lived before. The Scandinavian countries have a fairer system compared to the US or UK. But they are small populations.
Dont believe everything they tell you about Scandinavia. Our "system" isnt any better or worse, and you'll soon see that "fairness" becomes a very subjective observation @@MikePhillips-pl6ov
The free market is the best. And making the taxpayer pay to clean up your mess is NOT the free market. Our system is run by lobbyists. And industry people working in regulation. Hank Paulson was a prime example. He was former CEO of Goldman Sachs. And when the government paid off all of AIG’s bad bets, Goldman Sachs got $13 billion. Why did the taxpayer have to pay off AIG’s bad bets? If you win a bet with someone who can’t pay, that’s too bad. That’s your problem. Not so when your former CEO is Treasury Secretary. Absolutely NOT a free market. And that is just ONE element of this mess. The government actually ORDERED all these lenders to give mortgages to people who were considered bad credit risks!
Next financial crisis is coming up, this time it will be led by the tech sector, valuations are crazy, a crazy bubble thanks to unlimited printing that Fed done, it has to burst. US currently service 35T debt 😮😮😮
GREED....GREED....GREED....GREED....GREED....GREED....GREED....GREED....GREED....and then the people pay. What a brilliant system! These a-holes stole people's money, straight up!
The ordinary investor cannot be expected to understand the risk. The rating agency says its “safe”. The salesman says its “safe”. The fault is with mortgage lenders giving loans to bad borrowers and ratings agencies giving good ratings, both with conflict of interest and no risk of their own.
Don't worry. Look at today. Has anything changed? No. Properties are going up faster than before the GFC. Who made that happen? The banks. It will happen again, just no one knows when?
*Investment Banks:* "It's great! We're making huge piles of money reselling these mortgages. More people can afford a home!" *The People:* "That is great. What changed? Why weren't you doing this before?" *Investment Banks:* "Well... it was too risky. Some people just don't have enough income to pay their bills. Now we're passing that risk onto our customers instead of holding it" *Regulators & Ratings:* 🙈
Wealth Junkies needs therapy not golden bonuses. No accountability - No remedies, US carry on like nothing happened. The rest of the World is wise to consider alternatives to Wall street Banks and Investment Companies. (Dick Fuld is now CEO of a Capital Investment firm just opposite the street from Lehman Brothers former residence.)
You should be able to fine these guys personally. It doesn’t sit right that they can cause THIS much chaos, and still sit back with their million and billions whilst everyone else crumbles around them. And the elderly gentleman, just saying, “what can we do, be more careful where I put my savings next time”. Morally bankrupt
And this is why a journalist will never give you any information useful for investment: 46 minutes to explain the fact “high-risk debt was split and restructured as financial products which were sold as high quality debt products. Result? chain of defaults and eventually economic collapse” Journalist will always be more interested in a beautiful story of 2hours even though it doesn’t give you any real info.
You pretty much summed all of it up lol.. if you were able to repeat that then you understand the basics of the financial instruments.. what else is there to know? Lol
To be fair, they did discuss the origin of the problem in the first few minutes, the bringing together of bad debts into a new 'product' that was then sold on and invested in. So, I wouldn't personally blame the messenger here (the journalists)
law enforcement that closed lehman probably needed a lot help for some time after the event. buy a banned product by paying 3x the price. then you get 3x the price when you sell it.
Oh, I’m shocked. No regulators were watching, you say? But you don’t understand-we were in one of our “small federal government is best-DOWN with regulation” phases. In the late 80s we were also in one of those phases, still waiting for the good life to trickle down. Boom! the unregulated housing market crashed taking the economy with it. So much so that in the ‘92 campaign, the slogan was “It’s the economy, stupid.” Then in 2000 “Enough of that!” the American people cried, after all “Small government is best!” Off went the regulations. Down came the economy. Wash, rinse, repeat. We’ve been doing this since at least 1980, though both Eisenhower and Nixon had their recessions, too. Ever wonder what “the American way” means in “Truth, justice, and the American way?” This is it: Small government! Scrub regulation. Crash the economy. Build up again, with regulation. Do it again. And again. And again. Again! Get ready. Next trickle down, small government, scrub regulation phase is up to the plate. Try to guess what history says is coming.
They thought that the taxpayer would bail them out? Why should the taxpayer bail out any bank for their failed gambling on the stock market or the housing market? Enough of bailouts which are stealing from the taxpayer. No more bail outs and no more bail ins.
The ratings agencies Moodys, S&P - suddenly thier credit ratings are just 'opinions' and they are not responsible for them. Why are they still in business?
Sterns was one of the first banks to fail if I remember right so they bailed them out. There was outrage in congress so they decided to NOT do it ever again. Lehmans Brothers fail so they let them go down. Then the funny thing is that insurance company AIG was the next in line to file for bankruptcy, but that would have benn a major hit to the global economy so they saved them too and bailed out other banks through TARP. Pure chaos....
@orourkeda Most likely a gamble by the SEC to teach banks not to depend on bailouts all the time. That, and I’m guessing Paulson despised Fuld (I don’t blame him, every employee account I’ve read on him has given me an idea of exactly how crazy and oblivious Fuld was).
Bro said “guess I’ll be more careful” at the end…. But I mean what the hell, bonds like that are supposed to be super safe as it is. I guess if you ever by bonds, just buy treasuries and avoid putting too much into “investment bonds” 💀
So many pitiful victims. So so chilling. Once bitten, twice shy. After that bank crisis, I also didn't make any profit once the maturity date of my investment with Credit Suisse was up. I no longer trust the US dollars. I would rather invest my money elsewhere where money isn't used for the production of weapons of mass destruction. 😢
I don’t think that it’s the case that the banks didn’t see the sub prime bubble growing or be in any doubt that it would burst “south sea” style. They knew perfectly well but to blink and lift your snout from the trough first is to loose your bonus as a trader or your competitive edge in the finance market as an investment bank. It’s hardwired into the remuneration model sadly. We’re risk takers a feared of noting. Boom and bust are features of free market economies and the only thing worse than the free market is the dead hand of the regulator. Perhaps the cold hard truth is that it’s up to the customers to judge when the deal seems to be too good to be true. We’re fast approaching a bubble burst now but even the customers don’t want to blink. Greed is a powerful emotion to master. Some is good whilst too much can be catastrophic.
There is investment risk that you can afford and then there is this. I remember seeing this coming but at the time was more worried about health problems to worry too much about it
One inconvenient truth left out of this (and other) documentaries is the pressure applied to lenders by both Democratic and Republican administrations to relax their lending standards in response to unfounded allegations of race-based lending.
Glad somebody is saying it. Everybody wants to blame "greedy" corporations and banks, but it started with government mandates to lend to people that could not afford to maintain loans. Banks only reacted in the way anyone could : participate or loose to the competition.
So basically they inflated all the asset prices gave loans on the assets to everyone who couldn’t afford it, then pull the blanket out from under the house prices so the ones who can’t afford the house now can’t even afford to not have the house, then when it all crumbled they repossess them and start the cycle again.
First mistake: stop gold standard. Second mistake: stop Glass/Steagall Act. Result: Wall Street Greed, to big to fail, no accountability, profit for investors - losses are socialized, greedy unhealthy leverages allowed. Today: no change, Learnings: None. Repeat. Repeat....
Where's the mention in Freddi and Fanny loaning tax payer money to recipients who couldn't pay it back so that Barnie Frank could collect votes? No discussion about the insurance industry guaranteeing the yield on these bonds. AIG, SWISS RE. No discussion on the number of pension funds across the world who bought these funds.
In the end, if people were well explained clearly about what they where getting, for how much and how high were the risk , probably they wouldn’t invest on it!! If someone is making huge profit, someone is paying for it, little or a lot!! There is coming from somewhere, definitely!😢😢😢
Isn't it interesting that when they were making billions in profits, that was private, their money. Once it came to losses, it was public, the people's losses. Governments should not be allowed to squander taxes on the crazy rich! These banks should have reserves, and if things go bad, they should cope with it, if not, then bye!
Brits love to blame Yanks -- they bought the packages without looking into them. If there's a package on your doorstep don't you want to know what's in it
When they incur losses, they socialize it. But when they generated huge profits, the privatize it
So rightly said
8:12 😅@@manojkhedekaraayuanu
Yep. Over and over and over.
Should’ve never happened, and we are still paying the price for bailing out these ridiculously run Ponzi schemes.
Unless it's the Federal Reserve which will remain private -- nationalized July 4th 1776, re-privatized Dec 23rd 1913
the scary part, none of the wall-street mafia was held accountable, instead, they got compensated by the TARP program, now you have a clear idea who's really in charge in USA and the world
I wish I was a bankster & also work in investment banking for a bottomless wallet💰... Just want to get CRA💸 off the back of working class...#TDBank🌎💘💰
That’s right! The people paid for the tarp, but got nothing in return. These CEOs instead gave themselves bonuses
@@a.k722 the people got to continue going to an ATM and getting money from their bank accounts. 🤣
When will people wake up to the fact that America (and others) is one big ponzi scheme... The people are slaves happy enough not to notice. But bc the crash is coming, corperations are siphoning as much money as they can before the "crash" aka new systems take place. Its obvious. They did this in 2020 with the fake coin shortage. Vompanies like wallyworld and. McDonald's did this. Those two alone stole millions from the struggling general public and not a word... Even from the people. Which, instead of the company taking the hit like they legally should have... we got robbed.
meh..the ones that controlled the US is the group that branded them as God Chosen Peoples and their AIPAC lobbying terror entity. You can critic or insult anything or anyone. You can even insult US Presidents or Founding Fathers in the name of freedom of speech but the moment you criticized that group,youre gonne be labelled as Anti-S. Heck The US even even have rules that forbade anyone from citicizing or boycotting that group. And yup,they controlled The US banking system and the entire government of The US. yikes
What I find most remarkable about this is how long ago it is. I remember it so distinctly.
It was 2008, that is NOT a long time.
Nobody responsible for any of the major financial crises are punished or charges even filed in a lot of cases. The setups that put us in past crises are still there, and now more numerous than ever as well as inflated more than ever. Waiting for "the big one" is not a conspiracy, its inevitable.
.
. 😂;
The sacrificial lamb wasn't Lehman, it was the average everyday person
not TRUE, THE FOREIGN LAWYERS WERE CHARGED WITH FRAUD, AND FULD signatures were examined in NYNEX for not paying out, from INCOME statements and balance sheets.
Yep
Yeah we were left holding the bag for sure. They got golden retirement funds we were the suckers.
A man who lost everything, suffered a heart attack and was escorted from the branch like a petty thief vs a real criminal, paid millions for scamming people, smiling and hiding behind taxpayer money.
Sure puts things into prospective of who the real crooks are. Doesn't matter the party, they are just bought and sold.
I worked in the “Collection and Recovery” department during one of these meltdowns. People were not only losing their jobs, they lost the value of what they paid for their home. Sometimes it was $100,000. After a merger we gained the loans that were delinquent. They arrived in banker boxes that were stacked outside our cubicle. My Supervisor and I had to verify the status of each file. I uncovered some real horror stories. Let me say, I do NOT know HOW I survived it.
Sounds like you could write a good book about it.
@@bartsullivan4866 Here is what is disturbing to me. I know that we were not the only bank having these losses. In my opinion, for what it’s worth, I think they should eliminate ARM products. It seemed like the lions share of loans that went bad were ARM Loans. I was also a Loan Processor, so I know that the ARM products only work IF the borrowers do NOT take on any more debt. There are even worse things out there used to be called “liars loans” where the income is not verified. Yes, it is about to get interesting.
Absolutely obscene this abuse of power, the fact that these people walked away multi millionaires, back to their privileged lives with not one custodial sentence. Its a demonstration of who holds all the power , and its not the governments of the world. You could say that white collar crime and the rich poor gap has got worse since then. So depressing.
Lehman Brothers might be above the rule of law but not above law of nature. Everything must come to an end. I love it.
Well said.
@@TheGhostOfMichaelJackson this is how peak capitalism works.
@@TheGhostOfMichaelJackson okay yeah I was not talking about this theory. I just wanted to say that this is how our system works. These Investmentbanks manifest capitalism it’s „peak“ capitalism.
Are you not paying attention? The market crisis showed that a lot doesn't fall when it should
@@mangos2888bailouts…
This documentary should be ashamed of the point they made about ordinary people not fully understanding these "documents"....these documents were never made to be understood....that was part of the scam. Ppl need to wake up and stop investing in this casino financial environment.
thank you for the uploads!
I worked at a chemical plant that made carpet fibers. The president of the carpet side was thinking the housing market would bounce back. Well the bottom fell out, he got a big severance package, I got laid off and the plant closed.
I hope that forever turned you against the Republican Party, if you continue to vote for them then your inflicting it on yourself
1000% correct!@@TimmyTheTinman
Welcome to capitalism
@@TimmyTheTinmanIt was both parties that played into the corruption for over 40 years now. If you do any sense of research neither side is better than the other. Arrogant comment
Haha, some of these bankers were so 'UPSET' but how about the millions of people that trusted them? Narcissistic comes to mind
Why would they be upset they got golden parachutes they were living high on the hog the whole time we were the ones who had to pay for their mistakes.
I left Citi the week Lehmans crashed and there were so many meetings about what collateral we had. I was never in one of the high earner sections but had some clients that traded 20 million EUR or 50 million USD regularly. It is just zeros on a screen until you stop and think about it.
Insanity....gamblers addiction..logic fails
Imagine the debts a lot of states have incurred over the last decades. No one is ever seeing this in real money form. It's just 0's in a computer. Too bad we simply can't format the "hard drive" of this system and start again
What’s unstated is that these investment banks all have to be funded overnight in the repo market. So their book of business is essentially being reviewed as to risk every night. Once Bear Stearnes went under it was obvious who was next in terms of who had bet the wrong way on these securities. And the referendum came very quickly from their counterparties.
This thing is getting reploaded like crazy
Filthy scammers. The lot. They should have been forced to return the money; or put in jail on the same time scale as any other bank robbers.
So, he was a crook and wrong about everything then he becomes Regulator in Fed Reserve?! Fantastic....
It sounds a lot like Joe Kennedy
i learned this in Primary School..."Once there was a crooked man who walked a crooked mile. He lived in a crooked house with a crooked smile"
The collapse of Lehman Brothers was a watershed moment in financial history, revealing how one institution's failure can ripple through economies worldwide. "Corporate Secrets: Lessons from the Boardroom" likely offers valuable insights into the decisions that led to this crisis and serves as a reminder of the interconnectedness of global markets and the impact of corporate mismanagement. Excited to see the lessons it uncovers!
This documentary is very top-level, the statements are mostly generalized no real insights or technical explanations are given.
The most frightening character in this is the Chicago Fed guy, he doesn't really sound confidence inspiring, like at all.
I think this was made for the average man on the street, not those actually interested in the subject matter and the specific mechanics of this major fu of epic proportions.
Sorry to chime in again but I highly recommend the film "The Big Short" for a Hollywood version of events which shows most of the bankers had no flipping clue what was going on. The Singapore bankers were damn smart, Dick Fulds is an arrogant, megalomaniac SOB who walked away with billions and is still working on Wall Street, says it all.
Great Movie! Watched it many times. Margin Call is another great film. Superb performances by Jeremy Irons and Kevin Spacey.
Unbelievable but only one trader was sent to prison after this Armageddon; none of the top honchos even got to smell the premises of a jail .
Knowledge supports growth.
Everytime I watch the big short I shed tears. The incompetence of these greedy people is absurd.
Bunch of crooks. They should be behind bars.
Worst is, beyond these criminals not getting any repercussions, is that the markets are marching in the same direction again...facepalm.
No one who caused these problems jumped off any roof in shame. Instead, they were rewarded and kept their billions.
“Nobody could imagine any bad effects”
Yeah, lending 300,000 to people with no job and no income has ALWAYS been done. Totes safe.
Wtaf, sir?
Kamala is looking to give new home owners 25K , so repeat coming
Their thought was that since housing prices were going up. If they could make the payments, they could simply sell it and turn a profit.
Turns out prices don’t go up forever
@@neilkurzman4907 no, not even close. They were ARMs and were going to be difficult to sell. And any change in interest rates were going to send their payments through the roof.
There were people who saw the failure coming, and they made a lot of money betting on it. I don’t know why the documentary pretends nobody saw it coming; it was clearly a bubble. But the system incentivizes growth, not resiliency. And the bailout that came after ensured nobody ever learned their lesson from the entire debacle.
@@easlern
Lehman was the lesson. But justice before the longer in the past, it was the more people forget about it.
And the more of the workforce never experienced it because it was before their time
"Subprime" borrowers doesnt matter. No one can afford a mortgage that TRIPPLES in payment.
In UK mortgages are stress tested against 2 to 3x the current rate. Before being granted.
But the banks can still gamble on foreign mortgages with no such oversight.
Lehman collapsed because the market underwent a sudden valuation reset of AAA tranches of non-agency RMBS securitizations, so-called CDOs, as the subprime mortgages of which they are composed went delinquent and then defaulted.
These tranches were used as collateral on derivatives trades, and when their valuations plummeted Lehman no longer had sufficient collateral.
Here’s a cookie w
which also caused the DOPPLER ripple thru, "OCWEN" case through GEORGIA. MULTIPLE WAREHOUSE AND MULTIPLE COMPANY AUDITS EXPERIENCE. including IBM, company assistance.
USPS failures of 2015 to 2017 defaulted to firing ILLINOIS postal inspectors.
And I cause usps audits, since two thousand seventeen.
In any situation like this, you have to remember two things:
1. Someone made massive money
2. The Government was in on the scheme
It's not that they forget, it's that they just don't care. The investors lost their money, but the bankers walked away with their bonuses. So why exactly would they do anything different? Would you?
I lost twice. Lehman Brothers and Exon. I'm 70 now, lost it all and never fully recovered and renting a room to live in now.😡🥵🤬
This is the real consequence... you paid the piper for them
@@ConstructionHoney 😓
So sorry sir
"Bank of Evil - Formerly Lehman Brothers" - Despicable Me
Today £4Billion is a drop in the ocean.
Yup. A "dying" brick and mortar company has like $4 billion dollars in cash.
@@dabda8510not even in SNP 500😅 yet here we are, talking about it 🔥
Bro left the Lehman Brothers and said he knew what was coming ahead but acts like as though he’s not responsible for most of the downfall
I mean...Other than having to skip an ad every 2.4 seconds...I got a lot out of this
They went to the restaurant and the restaurant charged them $1,000 to $8,000 for a dinner plate. That is a rip off. They were getting ripped off, and they were proud of it. It seem these bankers didn't know the value of the money. I wouldn't pay $40 for a dinner plate.
two words for this - Fraud and Greed
What was the chant.....banks got bailed out, we got sold out.
Privatize the wins. Socialize the losses.
Wealth like energy can neither be created or destroyed but change form. The question is what form will all this money take so you can profit from it in once in a lifetime wealth transfer from one form to another. That is the power of thinking outside the system of the paper/debt based financial system to an asset based financial system. You will own nothing if the financial system crashes and you can't get your wealth out of perpetual paper/debt system.
Sounds like 90ties in my country Latvia, when parents(not only mine) lost they savings after USSR collapsed..
Ante Markovic last president of Yugoslavia raised interest at saving and many Yugoslavians that worked in west put money in Yugoslav banks. Then come Milosevic and got all that German marks and use it to finance wars. They lost all too unless they were sawing in banks originating in Croatia. Croatian's banks saved money but only them.
the Americans keep telling us that their economy system is the most efficient one, what a baloney
Agreed, but I don't know where in the world or what system is the best. I've lived and worked and travelled all over the world, since 1981. Am from the UK and soon off to live and work in Norway where I've lived before. The Scandinavian countries have a fairer system compared to the US or UK. But they are small populations.
Dont believe everything they tell you about Scandinavia. Our "system" isnt any better or worse, and you'll soon see that "fairness" becomes a very subjective observation @@MikePhillips-pl6ov
Don't believe them !!!
The free market is the best.
And making the taxpayer pay to clean up your mess is NOT the free market.
Our system is run by lobbyists. And industry people working in regulation.
Hank Paulson was a prime example. He was former CEO of Goldman Sachs.
And when the government paid off all of AIG’s bad bets, Goldman Sachs got $13 billion.
Why did the taxpayer have to pay off AIG’s bad bets?
If you win a bet with someone who can’t pay, that’s too bad. That’s your problem.
Not so when your former CEO is Treasury Secretary.
Absolutely NOT a free market.
And that is just ONE element of this mess. The government actually ORDERED all these lenders to give mortgages to people who were considered bad credit risks!
It's a perpetual growth system. Eventually growth stops.
Anyone knows the song at 14:23? Id be so grateful
*banks are never your friend*
Next financial crisis is coming up, this time it will be led by the tech sector, valuations are crazy, a crazy bubble thanks to unlimited printing that Fed done, it has to burst. US currently service 35T debt 😮😮😮
Well look who was elected as president ! They will take all they can and kill the dollar
GREED....GREED....GREED....GREED....GREED....GREED....GREED....GREED....GREED....and then the people pay. What a brilliant system!
These a-holes stole people's money, straight up!
Profits belong to the Bankers, Losses belongs to the Taxpayer.
Put subtitels on mr.Tan didn’t understand a word
The ordinary investor cannot be expected to understand the risk. The rating agency says its “safe”. The salesman says its “safe”. The fault is with mortgage lenders giving loans to bad borrowers and ratings agencies giving good ratings, both with conflict of interest and no risk of their own.
That now LUXEMBOURG ponzi,, SCHEME.
What exactly was the reason behind the loss? How did the loss increase from 2.8B to over 4B? Was it only the default on loans or any other reason?
Don't worry. Look at today. Has anything changed? No. Properties are going up faster than before the GFC. Who made that happen? The banks. It will happen again, just no one knows when?
*Investment Banks:* "It's great! We're making huge piles of money reselling these mortgages. More people can afford a home!"
*The People:* "That is great. What changed? Why weren't you doing this before?"
*Investment Banks:* "Well... it was too risky. Some people just don't have enough income to pay their bills. Now we're passing that risk onto our customers instead of holding it"
*Regulators & Ratings:* 🙈
Wealth Junkies needs therapy not golden bonuses.
No accountability - No remedies, US carry on like nothing happened. The rest of the World is wise to consider alternatives to Wall street Banks and Investment Companies.
(Dick Fuld is now CEO of a Capital Investment firm just opposite the street from Lehman Brothers former residence.)
No way, rest of the world is equally culpable.
"No accountability...." just profitability. Then they wonder why they did this to everyone else.
You should be able to fine these guys personally.
It doesn’t sit right that they can cause THIS much chaos, and still sit back with their million and billions whilst everyone else crumbles around them.
And the elderly gentleman, just saying, “what can we do, be more careful where I put my savings next time”.
Morally bankrupt
And this is why a journalist will never give you any information useful for investment: 46 minutes to explain the fact “high-risk debt was split and restructured as financial products which were sold as high quality debt products. Result? chain of defaults and eventually economic collapse” Journalist will always be more interested in a beautiful story of 2hours even though it doesn’t give you any real info.
You pretty much summed all of it up lol.. if you were able to repeat that then you understand the basics of the financial instruments.. what else is there to know? Lol
To be fair, they did discuss the origin of the problem in the first few minutes, the bringing together of bad debts into a new 'product' that was then sold on and invested in. So, I wouldn't personally blame the messenger here (the journalists)
If the mathematics held true, the structuring would have effectively created high quality synthetic assets
The classic structure of your typical documentary. A one-sided view, attempting to steer you to the conclusion they see fit.
Many “investment news” is bull crap
The music is not loud enough.
law enforcement that closed lehman probably needed a lot help for some time after the event. buy a banned product by paying 3x the price. then you get 3x the price when you sell it.
Investments are just a gamble.
BE WARNED: if u watch a film re economics even 2008 crash, u get flooded by ads every 5 minutes
Pure greed. How can someone be allowed to label scrap metal as gold and get away with it.
Great documentary.
Oh, I’m shocked. No regulators were watching, you say? But you don’t understand-we were in one of our “small federal government is best-DOWN with regulation” phases. In the late 80s we were also in one of those phases, still waiting for the good life to trickle down. Boom! the unregulated housing market crashed taking the economy with it. So much so that in the ‘92 campaign, the slogan was “It’s the economy, stupid.” Then in 2000 “Enough of that!” the American people cried, after all “Small government is best!” Off went the regulations. Down came the economy. Wash, rinse, repeat. We’ve been doing this since at least 1980, though both Eisenhower and Nixon had their recessions, too. Ever wonder what “the American way” means in “Truth, justice, and the American way?” This is it: Small government! Scrub regulation. Crash the economy. Build up again, with regulation. Do it again. And again. And again. Again! Get ready. Next trickle down, small government, scrub regulation phase is up to the plate. Try to guess what history says is coming.
Greed.. human nature
They thought that the taxpayer would bail them out? Why should the taxpayer bail out any bank for their failed gambling on the stock market or the housing market? Enough of bailouts which are stealing from the taxpayer. No more bail outs and no more bail ins.
Do you think the auto industry should have been bailed out?
@@tylerolsen4417yes I do. Why? Because it keeps people in work.
@@tylerolsen4417 No
@@tylerolsen4417 Legitimate question . And the unequivocal answer is a resounding NO .
Maybe buy out rather than bail out.
Buy the shares and support it onto profit then profits can go to Treasury instead of shareholders.
The ratings agencies Moodys, S&P - suddenly thier credit ratings are just 'opinions' and they are not responsible for them. Why are they still in business?
What was the real reason Bear Stearns got a bail out and Lehman didn't, or the other way round if you want to look at it that way.
Exactly
Sterns was one of the first banks to fail if I remember right so they bailed them out. There was outrage in congress so they decided to NOT do it ever again. Lehmans Brothers fail so they let them go down. Then the funny thing is that insurance company AIG was the next in line to file for bankruptcy, but that would have benn a major hit to the global economy so they saved them too and bailed out other banks through TARP. Pure chaos....
didn't pay attention (just sarcasm) !!? they said otherwise everyone will show up to be saved!! I had to laugh as I heard it
@orourkeda Most likely a gamble by the SEC to teach banks not to depend on bailouts all the time. That, and I’m guessing Paulson despised Fuld (I don’t blame him, every employee account I’ve read on him has given me an idea of exactly how crazy and oblivious Fuld was).
Bro said “guess I’ll be more careful” at the end…. But I mean what the hell, bonds like that are supposed to be super safe as it is. I guess if you ever by bonds, just buy treasuries and avoid putting too much into “investment bonds” 💀
I wonder if the movie "Margin Call" was based on Lehman Brothers in part.
It’s highly implied. Even the ceo in the film has a similar name
So many pitiful victims. So so chilling.
Once bitten, twice shy. After that bank crisis, I also didn't make any profit once the maturity date of my investment with Credit Suisse was up. I no longer trust the US dollars. I would rather invest my money elsewhere where money isn't used for the production of weapons of mass destruction. 😢
So where do you invest your money
"..to them it just becomes numbers." Those numbers are people's livehoods! 😠
They will forget it will be bigger he called it 😮
You forgot to mention Exxon Valdez incident created the first CDO.
CDO, MBS, etc had been around for awhile. Regulation was loosened and it became a house of cards.
I don’t think that it’s the case that the banks didn’t see the sub prime bubble growing or be in any doubt that it would burst “south sea” style. They knew perfectly well but to blink and lift your snout from the trough first is to loose your bonus as a trader or your competitive edge in the finance market as an investment bank.
It’s hardwired into the remuneration model sadly. We’re risk takers a feared of noting. Boom and bust are features of free market economies and the only thing worse than the free market is the dead hand of the regulator.
Perhaps the cold hard truth is that it’s up to the customers to judge when the deal seems to be too good to be true. We’re fast approaching a bubble burst now but even the customers don’t want to blink. Greed is a powerful emotion to master. Some is good whilst too much can be catastrophic.
There is investment risk that you can afford and then there is this. I remember seeing this coming but at the time was more worried about health problems to worry too much about it
@@darinmeritt3790 that was your choice and you stood by it.
Investment banking is all about the finding the next greater fool to sell your wares.
One inconvenient truth left out of this (and other) documentaries is the pressure applied to lenders by both Democratic and Republican administrations to relax their lending standards in response to unfounded allegations of race-based lending.
Glad somebody is saying it. Everybody wants to blame "greedy" corporations and banks, but it started with government mandates to lend to people that could not afford to maintain loans. Banks only reacted in the way anyone could : participate or loose to the competition.
Securitization is bad cause it is to play on liabilities.and liabilities always have a risk of default.
Dick Fuld ended up becoming CEO of another investment management firm. Has history taught him anything???
So basically they inflated all the asset prices gave loans on the assets to everyone who couldn’t afford it, then pull the blanket out from under the house prices so the ones who can’t afford the house now can’t even afford to not have the house, then when it all crumbled they repossess them and start the cycle again.
First mistake: stop gold standard. Second mistake: stop Glass/Steagall Act. Result: Wall Street Greed, to big to fail, no accountability, profit for investors - losses are socialized, greedy unhealthy leverages allowed. Today: no change, Learnings: None. Repeat. Repeat....
😊The Affordable House King has got most advantage of the time
Where's the mention in Freddi and Fanny loaning tax payer money to recipients who couldn't pay it back so that Barnie Frank could collect votes? No discussion about the insurance industry guaranteeing the yield on these bonds. AIG, SWISS RE. No discussion on the number of pension funds across the world who bought these funds.
Communism will not defeat capitalism, capitalism will defeat itself.
Greed and capitalism at its best😢
In the end, if people were well explained clearly about what they where getting, for how much and how high were the risk , probably they wouldn’t invest on it!! If someone is making huge profit, someone is paying for it, little or a lot!! There is coming from somewhere, definitely!😢😢😢
Isn't it interesting that when they were making billions in profits, that was private, their money. Once it came to losses, it was public, the people's losses. Governments should not be allowed to squander taxes on the crazy rich! These banks should have reserves, and if things go bad, they should cope with it, if not, then bye!
Brits love to blame Yanks -- they bought the packages without looking into them. If there's a package on your doorstep don't you want to know what's in it
Privately-owned Federal Reserve and the cosmetic American govt were to blame
stop the bankruptcy law. ….. just put those people in jail
Do not allow bankrupts to run for president ! this will happen again
The government rescues banks but not other failing businesses.
18 mins in and on 7th commercial.
Wildly annoying.
Then ditch chrome and get a decent browser
yes we know bad things are coming but we are doubling down on the bad things- us businesses
Dude saying "i was totally wrong" completely douses any hope any of us normals should have of thinking we know what's going on 😂
When bank fails does the depositors get their money??
Spending up to 6000 dollars on a meal isn't a crime, but in the end they'll answer to a Higher Power, like those who have 6 or less.
Excellent report but spoiled by the constant speeding up of the film. It is not original, it is not amusing or clever or necessary.
8:04 Not true. The regulators envisioned it's all a house of cards but greeeed