Why did the Crisis of 2008 Happen?
My report *then*, to the Obama commission. All these talkers are still clueless about the reasons.https://t.co/PCedFoecQ2 pic.twitter.com/SXP8t3iaMo— Nassim Nicholas Taleb (@nntaleb) September 14, 2018
WHY DID THE 2008 CRISIS HAPPEN?
In a nutshell. Academics came up with stupid ideas which fail in the real world. Nobel Prize to idiots (academics) for their bad ideas. Ivy League shitheads in government and business copy and promote the ideas from the academic echo chamber. Major breakdown due to bad ideas which only benefitted the Ivy League shithead banks, brokers, businesses and their academic hangers-on. All the above then demand to be made whole by the people who had nothing to do with it.
There are plenty of real mathematicians and physicists, chemists, and engineers, trained in statistical mechanics (and I don’t mean business statistics), who know these models are bullshit, but realize that the “economics experts(ie. useful idiots)” in academia provide cover for the reckless gambling and market rigging of their bosses.
NEVER FORGET!!!! They got bailed out. We got sold out
It happened because it was baked into the cake as one of the last phases of removing any stored wealth from ordinary people. While no one was watching insiders like Buffet were buying up homes at fire sale prices and renting them back to the former owners who thanked big brother for permitting them to keep living in their busted dream.
I know, I know, you can’t rape the willing but that don’t make it right.
Out of nowhere Berkshire Hathaway built one of the countries largest property management firms to handle all the new rentals. Reminds me of the Rentier Class. The King grants Sir Warren of Buffet a grant of property which he then rents out to the serfs to supply a steady stream of income.
So you are saying that ordinary people took on too much overvalued real estate debt, defaulted, and then non-ordinary people bought those defaulted assets at a fair market price, and now the ordinary people have to pay rent.
There is no victim here. There is no right or wrong here. There is no ordinary and non-ordinary people here. There is only stupid and smart here. The people who bought overvalued real estate and defaulted were not ordinary, they were stupid. Stupid across all demographic classifications.
Everyone I know are ordinary people, but they are not stupid. And a lot of those ordinary people bought defaulted houses, took on the landlord risk and rent them out.
I didn’t say they were victims, I said what Berkshire and other insiders was planned and not right. There is indeed wright or wrong in this world and your stinky opinion doesn’t change that. I said you can’t rape the willing. I didn’t say they were stupid.
You need to learn how to read whats being written instead of going off on a tangent. I said it was one of the last phases of removing the stored wealth of ordinary people. To call them all stupid is fucking conceited. You apparently only know smart people. A lot of those people bought defaulted houses. How many is a lot compared to how many were bought by insiders.
Rocky..
Admin just posted 10 years after the crash with direct reference to “Your” stupid people.
Debt crises happen every 70-80 years because humans don’t live long enough to remember that they can happen. The exact reason for each debt crisis can vary from one to the next: the most recent one happened because people believed in the analysis of the “quants” and the validity of credit default swaps. Also because investors in “agency” (Fannie/Freddie) mortgage-backed securities thought they would be backstopped despite the fact that those MBS’s were explicitly NOT protected by the full faith and credit of the US government. Unfortunately those MBS investors were proven right in that assumption, when then should have been haircutted bigly. Hank Paulson should be executed. Taleb continues to warn that we don’t know – cannot know – what the next Black Swan will be, only that it will happen.
Few people understand money or economics. It’s easy for every 80 years to repeat financial mistakes because people don’t remember. What’s horrific is 25 yr olds today have no clue what 9/11 is or was. They cannot name Bin Laden, the war on terror, Al Queda or even the country we first attacked (Iraq). Everyone’s can understand terror and death. Even within their own generation and lifetime they forget. That’s why we see smart people using this forgetfulness to their advantage. That’s why history may repeat but certainly rhymes. Use this forgetfulness to your advantage. Our own govt does it all the time!
Read Griffin’s “Creature from Jekyll Island” and you will understand these crises are BY DESIGN. The FED and the govt regulators (SEC, FTC, SIPC, etc etc etc) all knew exactly what was going on and in fact incentivized and encouraged it, then pretended to be dumbfounded after it happened. The only reason these fuckers aren’t all hanging from lampposts is that the people are too financially illiterate and mentally distracted by Trump tweets, Honey Boo Boo and kneeling NFL players to fully understand just how deeply they are getting fucked on a daily basis.
“distracted by…Honey Boo Boo…”
First episode date: August 8, 2012
Final episode date: August 14, 2014
Tc..
A good read. Yesterday someone quoted one of the founder warning about this very topic and how they would impoverish the “ordinary” people through a series of inflation’s and deflations. Jackson spoiled their party for 80 years or else it would already be over.
There is dispute over who made this even while it was attributed to Jefferson in Congressional testimony earlier in the 20th century. While the guys 100 years back said it was Jefferson, this Congressional record is the oldest known attribution of it to Jefferson. For those who haven’t seen it, regardless of who said it, this is a hell of a sentiment:
“If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of their property, until their children will wake up homeless on the continent their fathers conquered.”
The federal reserve is not federal at all. It’s a private entity. It sets monetary policy and interest rates directly affecting inflation and deflation. We are already there since 1917. We just passed the 100 year mark. Fourth Turning anyone!?!?
It was Thomas Jefferson but a lot of them knew what the Central Banks were doing to Europeans; Jackson had the balls to stop it here.
My 1994 copyright copy of “Creature” says specifically that they were going to promote and provoke a sub-prime debt crisis. They did. I better reread Creature just like I did “The Art of War” recently because they both are relevant again to what is going on right now.
The Golden Rule: The ones with the gold, make the rules.
for the same reason the 1929 crisis happened, and the mid 1970’s peak oil crisis. Elite insiders getting theirs while fucking over everyone below them. Same shit, different day.
There is every incentive to gamble when you keep the winnings, but other people, like the taxpayers, are stuck with the losses. And that’s what happened.
One guess is that after a printing and lending orgy that created an everything bubble, there will be deflation of everything you own and inflation of everything you need. Another guess is that Greece and Venezuela are previews of what Banksters will do here after they have crashed the US Economy. And it will be deja vu (Middle East Summer of Discontent and warfare) when we are watching the TV Nightly News showing the American Urban Rioters protesting the hyperinflation. But then I might just be an Alt-Right Fascist who always expects the worst from the Left and misjudges Antifa which could volunteer for Meals on Wheels, Housing for Humanity, etc.