The credit crisis of 2007 and 2008 explained in a 3 part series. Fed funds futures and money supply are discussed in part 1.
The speaker discusses his prediction of dire economic news in the coming months to years and mentions a few fundamental drivers for this which cannot be ignored. He cites a few reasons for this coming breakdown. First, there is cheap overproduction in the world's marketplace which is occuring at viciously competitive prices. He states that China, India, and the rest of Asia ha
As this new era of easy money and massive leverage emerged, the thought that risk is limited and easily manageable permeated investors’ mindsets. Hedge fund managers, mortgage bankers, and Wall Street leaders were earning unprecedented amounts of money.
It is important to understand the past clearly before charting the future.
As you recall in part one we discussed huge supplies of investment dollars that caused the mortgage crisis as described in chapter two. This chapter will cover leveraged buyouts (LBO) and Structured Investment Vehicles (
So, how does this crisis end?