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Audit the FED and … Audit the FED and you will know that people stopped paying thier mortgage because there was not enough money in the system to pay both principle and interest on all the loans. Cut off the supply of money: Ruin the economy.
Everyting was excellent … Everyting was excellent and honest until you started talking about the government actions. It was like all of sudden you got high up in the clouds.
The commercial press calls it “fiscal innovation,” “globalisation” and “dynamic, flexible Anglo-Saxon capitalism” (as opposed to “Euroschlerotic” Germany which doesn’t allow nearly as free a hand for the people involved in the rape-and-run version of capitalism).
what are you trying … what are you trying to say, i dont know. money is something so you could exchaing for something else that has some or more value. without money how would you buy food?
Your on the right … Your on the right track. On our money is printed “In God We Trust.” This is right.. God help us if people no longer believe in the value of the dollar. Or, in this situation, the rigorous opposite. People said too much in the value of the dollar instead of the real wealth. As was pointed out in the video, people DID gain real money (even including inflation), but the banks thought it was worth more than it was in reality.
We need to stablize the promote somehow. I say, build more homes….
At the point where … At the point where you leave off, it’s not clear that wealth has been ruined. The houses still exist. They haven’t been foreclosed, place up for an auction with no buyers, boarded up, and allowable to fall into ruin.
Ill-advised consumption has taken place. Instead of investing for their retirement, people have counted on their house value to sustain them and thus have considered themselves free to spend all their income on current consumption. But that’s not the same as wealth destruction.
I am a stay at home … I am a stay at home mom. I need to learn about wealth and the terms related to it on a beginning learning amount. These two classes are splendid. The instructors voice is pleasant and clear. Thanks for these two splendid classes!
…continued
When … …continued
When using fiat money to measure wealth. It is simple to creat illusions of wealth simply by printing more and more, making it cheaper and simpler to obtain. People and governments buy equipment, behest prices up, and when the system can’t sustain it any longer, the prices adjust and the illusion is gone and people are left with reality that their asset discourse dissapeared and all is left is the liability side.
The Federal Reserve is like steroids for capitalism.
Any thoughts?
Sal, I’ve only seen … Sal, I’ve only seen a few of your videos and I am perfectly psiched. I am excited to learn more from them. Expect a doation from me soon. Can I get your feedback on this point? It is a different way of looking at money. Money is wealth because we know we can somone else will give me something of value for it. Here it is: If all the money in the world was ruined the total amount of wealth would remain unchanged. Money is an thought, concieved in the mind of man. Continued…
Im a small … Im a small confused as to how consumption (is this the same as spending) on granite countertops, hardwood floors, etc. leads to wealth destruction. My best guess which I reflect is incorrect is that you mean spending on a vacation as opposed to spending/investing on something that leads to future profits (build factory or through fiscal intermediary) causes wealth destruction. But in this case doesn’t the wealth just transfer to hardwood floor and granite countertop makers? Thanks for your video.
That’s a pretty … That’s a pretty excellent description of the *proximate* causes. But if you want to know the real reason for the Bush Depression, you should go here:
v=akVL7QY0S8A
See if you can spot Ronnie Raygun’s presidency in her graphs…
The bubble (and the … The bubble (and the IT bubble before that) permitted people to ignore this reality for a while – which meant, of course, that more of your industrial base got went abroad than would have otherwise been the case.
When Russian oligarchs do that, it’s called “asset stripping.”
In the current US … In the current US case, it is even worse, because there is a biased dimension that often fails to come crosswise: The asset bubble permitted the US biased economy to concealment declining median real incomes. Why did median real income decline? Because your oligarchs – sorry, *tycoons* – went much of your industrial base to China and other low-wage, low-regulation countries (i.e. countries that have no problem with pollution and slave labour).
Another thing is … Another thing is that (more or less) the only people who have money to buy stuff with are the people who stayed in cash during the bubble – everybody else is seeing their margins wiped out. And the people who stayed in cash during the bubble are doubtless either risk-averse or reflect that this area is outside their competence.
Nothing incorrect with … Nothing incorrect with consumption when you know its consumption (and an argument could be made that it makes you more pleased which is the best return).
Well, i’m sure … Well, i’m sure purchasing all those marked down assets, and being paid them off bank balance sheets should get lending (money creation) back on track. It’s right even if, no matter how they’re financed, once money is consumed, the opportunity cost (investment) has been paid. Unless you’re running some kind of socialist state where people can’t buy luxuries that’s always going to happen. I’ll take our system over that any day, I like my Playstation and Lakers tickets.
I assume your … I assume your talking about real estate? If that is the case, you should wait until inventories stabilize (stop growing) for a few months. If you’re talking about the stock promote, we could see some rallies but stocks tend to over-right relation to honest value implying that we could see some significant downside over the next 1-3 years (punctuated by sharp rallies).
Hοw bubbles rυіn wealth.
December 1st, 2009 at 7:45 am
Well, if the loan …
Well, if the loan was backed by a GSE there was no real risk to the bank. Just like FHA today.
December 1st, 2009 at 7:45 am
Audit the FED and …
Audit the FED and you will know that people stopped paying thier mortgage because there was not enough money in the system to pay both principle and interest on all the loans. Cut off the supply of money: Ruin the economy.
December 1st, 2009 at 7:45 am
Everyting was excellent …
Everyting was excellent and honest until you started talking about the government actions. It was like all of sudden you got high up in the clouds.
December 1st, 2009 at 7:45 am
The credit freeze …
The credit freeze isn’t the crux of the issue – it’s the solution. The issue was the massive credit bubble originating in 1980.
December 1st, 2009 at 7:45 am
I call it asset …
I call it asset stripping.
The commercial press calls it “fiscal innovation,” “globalisation” and “dynamic, flexible Anglo-Saxon capitalism” (as opposed to “Euroschlerotic” Germany which doesn’t allow nearly as free a hand for the people involved in the rape-and-run version of capitalism).
December 1st, 2009 at 7:45 am
What do you call it …
What do you call it when American Hedge Fund managers do the same thing ?
December 1st, 2009 at 7:45 am
what are you trying …
what are you trying to say, i dont know. money is something so you could exchaing for something else that has some or more value. without money how would you buy food?
December 1st, 2009 at 7:45 am
appraisal is a scam …
appraisal is a scam. if theres no unaccountability for the valuation, it is worthless.
December 1st, 2009 at 7:45 am
Your on the right …
Your on the right track. On our money is printed “In God We Trust.” This is right.. God help us if people no longer believe in the value of the dollar. Or, in this situation, the rigorous opposite. People said too much in the value of the dollar instead of the real wealth. As was pointed out in the video, people DID gain real money (even including inflation), but the banks thought it was worth more than it was in reality.
We need to stablize the promote somehow. I say, build more homes….
December 1st, 2009 at 7:45 am
Price is an illusion
Price is an illusion
December 1st, 2009 at 7:45 am
At the point where …
At the point where you leave off, it’s not clear that wealth has been ruined. The houses still exist. They haven’t been foreclosed, place up for an auction with no buyers, boarded up, and allowable to fall into ruin.
Ill-advised consumption has taken place. Instead of investing for their retirement, people have counted on their house value to sustain them and thus have considered themselves free to spend all their income on current consumption. But that’s not the same as wealth destruction.
December 1st, 2009 at 7:45 am
I am a stay at home …
I am a stay at home mom. I need to learn about wealth and the terms related to it on a beginning learning amount. These two classes are splendid. The instructors voice is pleasant and clear. Thanks for these two splendid classes!
December 1st, 2009 at 7:45 am
…continued
When …
…continued
When using fiat money to measure wealth. It is simple to creat illusions of wealth simply by printing more and more, making it cheaper and simpler to obtain. People and governments buy equipment, behest prices up, and when the system can’t sustain it any longer, the prices adjust and the illusion is gone and people are left with reality that their asset discourse dissapeared and all is left is the liability side.
The Federal Reserve is like steroids for capitalism.
Any thoughts?
December 1st, 2009 at 7:45 am
Sal, I’ve only seen …
Sal, I’ve only seen a few of your videos and I am perfectly psiched. I am excited to learn more from them. Expect a doation from me soon. Can I get your feedback on this point? It is a different way of looking at money. Money is wealth because we know we can somone else will give me something of value for it. Here it is: If all the money in the world was ruined the total amount of wealth would remain unchanged. Money is an thought, concieved in the mind of man. Continued…
December 1st, 2009 at 7:45 am
Im a small …
Im a small confused as to how consumption (is this the same as spending) on granite countertops, hardwood floors, etc. leads to wealth destruction. My best guess which I reflect is incorrect is that you mean spending on a vacation as opposed to spending/investing on something that leads to future profits (build factory or through fiscal intermediary) causes wealth destruction. But in this case doesn’t the wealth just transfer to hardwood floor and granite countertop makers? Thanks for your video.
December 1st, 2009 at 7:45 am
That’s a pretty …
That’s a pretty excellent description of the *proximate* causes. But if you want to know the real reason for the Bush Depression, you should go here:
v=akVL7QY0S8A
See if you can spot Ronnie Raygun’s presidency in her graphs…
December 1st, 2009 at 7:45 am
This video better …
This video better clarifies the situation, where terrible loans were insured, made the whole mess:
v=0Y9A0C45KZI
December 1st, 2009 at 7:45 am
Thank you for this. …
Thank you for this. Can you exapin to me about the subprime promote and how it effect the world.
December 1st, 2009 at 7:45 am
Amen.
Amen.
December 1st, 2009 at 7:45 am
The bubble (and the …
The bubble (and the IT bubble before that) permitted people to ignore this reality for a while – which meant, of course, that more of your industrial base got went abroad than would have otherwise been the case.
When Russian oligarchs do that, it’s called “asset stripping.”
December 1st, 2009 at 7:45 am
In the current US …
In the current US case, it is even worse, because there is a biased dimension that often fails to come crosswise: The asset bubble permitted the US biased economy to concealment declining median real incomes. Why did median real income decline? Because your oligarchs – sorry, *tycoons* – went much of your industrial base to China and other low-wage, low-regulation countries (i.e. countries that have no problem with pollution and slave labour).
December 1st, 2009 at 7:45 am
Another thing is …
Another thing is that (more or less) the only people who have money to buy stuff with are the people who stayed in cash during the bubble – everybody else is seeing their margins wiped out. And the people who stayed in cash during the bubble are doubtless either risk-averse or reflect that this area is outside their competence.
December 1st, 2009 at 7:45 am
Nothing incorrect with …
Nothing incorrect with consumption when you know its consumption (and an argument could be made that it makes you more pleased which is the best return).
December 1st, 2009 at 7:45 am
Well, i’m sure …
Well, i’m sure purchasing all those marked down assets, and being paid them off bank balance sheets should get lending (money creation) back on track. It’s right even if, no matter how they’re financed, once money is consumed, the opportunity cost (investment) has been paid. Unless you’re running some kind of socialist state where people can’t buy luxuries that’s always going to happen. I’ll take our system over that any day, I like my Playstation and Lakers tickets.
December 1st, 2009 at 7:45 am
I assume your …
I assume your talking about real estate? If that is the case, you should wait until inventories stabilize (stop growing) for a few months. If you’re talking about the stock promote, we could see some rallies but stocks tend to over-right relation to honest value implying that we could see some significant downside over the next 1-3 years (punctuated by sharp rallies).