did the US singlehandedly cause the global economic crisis?

[FelixDeCat]

Originally posted by: LegendKiller

Originally posted by: FelixDeKat

Originally posted by: frostedflakes
Well they were stupid enough to buy our AAA rated securities, so I guess it was a group effort.

What was really funny was that the S&P and Moodys even gave triple A ratings to subprime securities to begin with! And the people who bought them tried to turbocharge their returns by using borrowed money to buy $30+ worth of this crap for every $1 in assets put up.

Those assets collapsed in value and they had a turbocharged ride into bankruptcy.

Many of the subprime securities were fine, some were not, depending on how geography, underwriter, and composition. Do not mistake "subprime" for exotic mortgages at the heart of the problem. Option Arms and Liar Loans, two of the worst examples of underwriter abuse, were never intended to be used in the manner they were used, the data available for performance was based upon their original uses (high net-worth individuals). Both of these products were used by subprime borrowers, but not all subprime borrowers used them.

Thats exactly right. The thing about securitzation is that you have a group of loans with similar traits. If you have a few of the loans go bad in the security (and being that the loans were indeed subprime or ALT-A that was more likely than not), say 4-5% thats close to normal. But with the power of leverage, you have forced selling of that security at whatever the market will pay, and a drastic decline in the securities to as little as .20 cents on the dollar. That is what helped to cause the problem to be magnified to the extent it was.

Even worse, lets say you had leveraged securities with a 100% performance rate but because of the turmoil in the secondary market, you were forced to mark those securities to the lowered market value for them (which is arguably unfair). Now your lenders are demanding more and more actual cash be put up on loans that are perfectly fine, because risk managment and loan covenants dictate it. Dont have the cash? Now YOU have to start dumping securities to meet margin calls which feeds the fear and loathing of loans and lending in general, resulting eventually in frozen credit markets.

Im a free market supporter, but I think leverage should be limited by law.

 

[ICRS]

This has really hurt us. Moodys and S & P really have no heart.

 

[destrekor]

Originally posted by: ElFenix
i blame california

Glad I'm not the only one.

 

[IHateMyJob2004]

Alot of other countries ha easy credit. that is the bottom line.

 

[Nemesis 1]

I got four words for ya .

NUMBER 1 cause = Rothschild

Numder 2 cause= WARBERG

Number 3 cause = Rockefeller

Number 4 cause =Morgan

ALL are Rothschild together they = Federal reserve. The FED caused the problem the Fed has nothing to do with AMERICA any who believe so are misguided.

 

[miketheidiot]

Actually, the role that other countries like Britain, russia, dubai, and others with massive credit bubbles has probably been heavily understated, particularly the impact of Britain, which probably would have been fucked regardless of what happened in the us, and was/is probably in even worse shape.

Originally posted by: ICRS

Originally posted by: sdifox
Leading cause certainly, but the other countries are all willing participants in the shell game.

China now tops the U.S as the biggest polluter.

welcome to like 5 years ago

 

[JS80]

Personally, I blame China (as the biggest "culprit"). Instead of TRADING goods for goods they just hoarded currency and demanded paper which caused easy credit accross the globe.

Then you can blame the shady lenders, idiot home buyers, even dumber speculators, and lastly securitizers.

 

[Baked]

LOL @ Pokemon comments.

 

[ElFenix]

Originally posted by: Nemesis 1

ALL are Rothschild together they = Federal reserve. The FED caused the problem the Fed has nothing to do with AMERICA any who believe so are misguided.

yup, the fed was making loans that they knew or should have known weren't going to be repaid to people, who were controlled by the fed, in california who knew or should have known they couldn't afford to repay them.

 

[Nemesis 1]

Originally posted by: miketheidiot
Actually, the role that other countries like Britain, russia, dubai, and others with massive credit bubbles has probably been heavily understated, particularly the impact of Britain, which probably would have been fucked regardless of what happened in the us, and was/is probably in even worse shape.

Originally posted by: ICRS

Originally posted by: sdifox
Leading cause certainly, but the other countries are all willing participants in the shell game.

China now tops the U.S as the biggest polluter.

welcome to like 5 years ago

Come on leave the Britts out of this . They can still try to take the high seas and rape the World . Everthing the Britts have was stolen from someone . Britts got nothing . No natural resources . and their people are broken .

 

[GagHalfrunt]

We're certainly at the top of the list. We hold the lions share of the blame, but hell no, not even close to single-handedly.

 

[miketheidiot]

Originally posted by: Nemesis 1
I got four words for ya .

NUMBER 1 cause = Rothschild

Numder 2 cause= WARBERG

Number 3 cause = Rockefeller

Number 4 cause =Morgan

ALL are Rothschild together they = Federal reserve. The FED caused the problem the Fed has nothing to do with AMERICA any who believe so are misguided.

did you just have a stroke?

 

[StinkyPinky]

Originally posted by: Nemesis 1

Originally posted by: miketheidiot
Actually, the role that other countries like Britain, russia, dubai, and others with massive credit bubbles has probably been heavily understated, particularly the impact of Britain, which probably would have been fucked regardless of what happened in the us, and was/is probably in even worse shape.

Originally posted by: ICRS

Originally posted by: sdifox
Leading cause certainly, but the other countries are all willing participants in the shell game.

China now tops the U.S as the biggest polluter.

welcome to like 5 years ago

Come on leave the Britts out of this . They can still try to take the high seas and rape the World . Everthing the Britts have was stolen from someone . Britts got nothing . No natural resources . and their people are broken .

I dunno who these "Britts" are but they sound like real bastards. Are they from out east?

 

[Nemesis 1]

Originally posted by: JS80
Personally, I blame China (as the biggest "culprit"). Instead of TRADING goods for goods they just hoarded currency and demanded paper which caused easy credit accross the globe.

Then you can blame the shady lenders, idiot home buyers, even dumber speculators, and lastly securitizers.

Some of those who refinanced were pretty smart . I know a few that borrowed 4x the value of their homes hid the money and defaulted . Nice moves.

 

[finite automaton]

Originally posted by: Nemesis 1

Originally posted by: JS80
Personally, I blame China (as the biggest "culprit"). Instead of TRADING goods for goods they just hoarded currency and demanded paper which caused easy credit accross the globe.

Then you can blame the shady lenders, idiot home buyers, even dumber speculators, and lastly securitizers.

Some of those who refinanced were pretty smart . I know a few that borrowed 4x the value of their homes hid the money and defaulted . Nice moves.

So they defaulted on 100k worth of loans? Ouch.

 

[LegendKiller]

Originally posted by: Nemesis 1

Originally posted by: JS80
Personally, I blame China (as the biggest "culprit"). Instead of TRADING goods for goods they just hoarded currency and demanded paper which caused easy credit accross the globe.

Then you can blame the shady lenders, idiot home buyers, even dumber speculators, and lastly securitizers.

Some of those who refinanced were pretty smart . I know a few that borrowed 4x the value of their homes hid the money and defaulted . Nice moves.

Nobody refinanced 4x their house. As with everything else you talk about, you're full of shit.

 

[Fayd]

Originally posted by: BlahBlahYouToo
did we mess things up for the rest of the world?

kick ass.

 

[LegendKiller]

Originally posted by: Nemesis 1
I got four words for ya .

NUMBER 1 cause = Rothschild

Numder 2 cause= WARBERG

Number 3 cause = Rockefeller

Number 4 cause =Morgan

ALL are Rothschild together they = Federal reserve. The FED caused the problem the Fed has nothing to do with AMERICA any who believe so are misguided.

Proof MOrgan was a Rothschild? Proof Rockefeller was one? Warberg?

The Fed they proposed was far different from the one enacted, which is far different than the one today. If you knew what you were talking about you'd know that. However, you're brain damaged so I don't expect much from you.

All you got is black helicopter conspiracy theories.

 

[KillerCharlie]

Originally posted by: Inspector Jihad

Originally posted by: amdhunter
It was the greedy Arabs who raised the price of oil so high, that every single company in the world went bankrupt. I wish Bush would hurry up and drill all that oil out of Iraq. He doesn't have much time left.

lololololol, idiot.

No, you're the idiot for thinking he was serious.