The Credit Crisis

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Sep 29, 2004
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The numbers are misleading but good to prove the point to the average person.

Very well done!

It doesn't adequately explain how the markets would have "frozen" without the bailout though.

It's amazing. Warren Buffet in the Berkshire Shareholder letter warned about the impending crisis and he was dead on! He called them "Fianancial weapons of mass destruction". It was either 2001 or 2002.
 

TheWart

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Dec 17, 2000
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Originally posted by: IHateMyJob2004
The numbers are misleading but good to prove the point to the average person.

Very well done!

It doesn't adequately explain how the markets would have "frozen" without the bailout though.

It's amazing. Warren Buffet in the Berkshire Shareholder letter warned about the impending crisis and he was dead on! He called them "Fianancial weapons of mass destruction". It was either 2001 or 2002.

Except that Buffet used derivatives to the tune of billions...check out this guys blog for some very interesting articles on CDS' and similar instruments and how they are not as complicated - or dangerous - as some people are making them out to be:

http://derivativedribble.wordpress.com/

He is a prof at NYU iirc...

EDIT: I realized that this is the video I watched a few days ago and I agree that it is good and not the "omg CDS' are the end of the world!!" video that I thought it was. The link I posted is still a good read though. Also, I fail to see how even CDO's or mortgage-backed securities are necessarily a bad thing...it was the belief that housing prices always will go up and the triple-aaa credit ratings that proved disastrous.
 

Farang

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Jul 7, 2003
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neat thanks.. I thought I had a good understanding of it but that helped a lot putting the whole package together
 
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