Inside Job - Documentary on Netflix

[TheAbacus]

I just finished watching "Inside Job", a documentary on Netflix regarding the 2008 financial crisis, the events preceding it, and the aftermath. The documentary is available till July 16th if anyone is interested in watching.

Really makes you lose all hope and faith in the government. It really doesn't matter which party is in the White House, when there are so many powerful external influences, most of which we have no idea about until the $#!t hits the fan.

[ENT Doc]

TheAbacus wrote:

I just finished watching “Inside Job”, a documentary on Netflix regarding the 2008 financial crisis, the events preceding it, and the aftermath. The documentary is available till July 16th if anyone is interested in watching.

Really makes you lose all hope and faith in the government. It really doesn’t matter which party is in the White House, when there are so many powerful external influences, most of which we have no idea about until the $#!t hits the fan.

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Agreed.  What's worse is that it was some cockamamie government scheme to give everyone a home that inspired that nonsense.  And politicians have the audacity to look first to others to blame.  It's like hosting a party requiring a three drink minimum and getting pissed when people get drunk.

[Dr.V. Investor]

Aren't we in the same boat again?  There were a lot of companies that should have closed at the last crisis.  Government lowered interest rate to stimulate the economy.  Now, a lot of people and companies are just in debt.  mortgages are easy obtain again even with minimal/no downpayment.  30-40% of student loans are delinquent or not getting paid at all. margin debt is at highest peak.

 

http://www.zerohedge.com/news/2017-07-14/how-dumb-fed

[Zaphod]

Crixus wrote:

Dr.V. Investor wrote:

Aren’t we in the same boat again?  There were a lot of companies that should have closed at the last crisis.  Government lowered interest rate to stimulate the economy.  Now, a lot of people and companies are just in debt.  mortgages are easy obtain again even with minimal/no downpayment.  30-40% of student loans are delinquent or not getting paid at all. margin debt is at highest peak.

 

http://www.zerohedge.com/news/2017-07-14/how-dumb-fed

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You’re absolutely correct, sir! It’s even worse than 2008. Houses again and add to the bonfire of debt subprime auto, student loans for careers to nowhere, unproductive corporate buybacks, even worse predatory healthcare, and further government unfunded liabilities. And, and…it’s global this time around with even China on the credit supernova express.

I’m hearing more and more of these anecdotes. The pandemic complacency is terrifying.

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Absolutely not correct!

This is a different boat and entirely different waters. The next issue will be different from the last for sure, though we are always fighting the last war. However the current situation ends will have all kinds of interesting new reasons and until then unforeseen interconnections that cause trouble.

[Zaphod]

Crixus wrote:

It’s the same war over and over again. Leverage. It was so bad last time it required central bank boats ( balance sheets) to keep the system from freezing.

What do we do on the next go around? Create another supra-sovereign institution with a clean balance sheet to bail out central banks? There is a limit to extend and pretend and keeping real rates negative. Eventually the physical economy divorces itself from the finance sector. It shows up as civil strife, revolution.

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Yes in general I guess thats true, leverage and speculation.