Nothing new boys and girls!
Crashes of this magnitude are not new....
Check the film "Margin Call" and specially the conversation of KS with the boss at the restaurant -more-
Quote at the restaurant:
“Look at these people. Wandering around with absolutely no idea of what’s about to happen.”
“When all is said and done, they do not lose money. They don’t mind if everyone else does, but they do not lose.”
“There are three ways to make a living in this business. Be first, be smarter, and cheat.”
“Your selling something that you know has no value. We are selling to willing buyers at the current fair market price, so that we may survive.”
“For those of you who have never been through this before, this is what the beginning of a fire sale looks like. I can not begin to tell you how important the first hour and a half can be.”
“It’s just money. It’s made up. Pieces of paper with pictures on it so we don’t have to kill each other just to get something to eat. It’s not wrong. And it’s certainly not different today than it’s ever been; 1637, 1797, 1819, 1837, 1857, 1884, 1901, 1907, 1928, 1937, 1974, 1987, 1992, 1997, 2000, and whatever we want to call this. It’s all just the same thing over, we can’t help ourselves. And you and I can’t control it, or stop it, or even slow it, or even so slightly alter it . We just react, and we make a lot of money if we get it right, or left on the side of the road if we get it wrong. There has always been and always will be the same percentage of winners and losers….Yeah, there’s may be more of us today then there ever has been, but the percentages, they stay exactly the same.” video
Credit rating agencies and the subprime crisis - Wikipedia
Credit rating agencies (CRAs) — firms which rate debt instruments/securities according to the debtor's ability to pay lenders back — played a significant role at various stages in the American subprime mortgage crisis of 2007-2008 that led to the Great Recession of 2008-2009. The new, complex securities of "structured finance" used to finance subprime mortgages could not have been sold without ratings by the "Big Three" rating agencies — Moody's Investors Service, Standard & Poor's, and Fitch Ratings. A large section of the debt securities market — many money markets and pension funds
— were restricted in their bylaws to holding only the safest securities
— i.e securities the rating agencies designated "triple-A".[1] The pools of debt the agencies gave their highest ratings to [2] included over three trillion dollars of loans to homebuyers with bad credit and undocumented incomes through 2007.[3] Hundreds of billions of dollars' worth of these triple-A securities were downgraded to "junk" status by 2010,[1][4][5] and the writedowns and losses came to over half a trillion dollars.[6][7] This led "to the collapse or disappearance" in 2008-9 of three major investment banks (Bear Stearns, Lehman Brothers, and Merrill Lynch), and the federal governments buying of $700 billion of bad debt from distressed financial institutions
Crashes of this magnitude are not new....
Check the film "Margin Call" and specially the conversation of KS with the boss at the restaurant -more-
Quote at the restaurant:
“Look at these people. Wandering around with absolutely no idea of what’s about to happen.”
“When all is said and done, they do not lose money. They don’t mind if everyone else does, but they do not lose.”
“There are three ways to make a living in this business. Be first, be smarter, and cheat.”
“Your selling something that you know has no value. We are selling to willing buyers at the current fair market price, so that we may survive.”
“For those of you who have never been through this before, this is what the beginning of a fire sale looks like. I can not begin to tell you how important the first hour and a half can be.”
“It’s just money. It’s made up. Pieces of paper with pictures on it so we don’t have to kill each other just to get something to eat. It’s not wrong. And it’s certainly not different today than it’s ever been; 1637, 1797, 1819, 1837, 1857, 1884, 1901, 1907, 1928, 1937, 1974, 1987, 1992, 1997, 2000, and whatever we want to call this. It’s all just the same thing over, we can’t help ourselves. And you and I can’t control it, or stop it, or even slow it, or even so slightly alter it . We just react, and we make a lot of money if we get it right, or left on the side of the road if we get it wrong. There has always been and always will be the same percentage of winners and losers….Yeah, there’s may be more of us today then there ever has been, but the percentages, they stay exactly the same.” video
----------------------------------------------------
Credit rating agencies and the subprime crisis - Wikipedia
Credit rating agencies (CRAs) — firms which rate debt instruments/securities according to the debtor's ability to pay lenders back — played a significant role at various stages in the American subprime mortgage crisis of 2007-2008 that led to the Great Recession of 2008-2009. The new, complex securities of "structured finance" used to finance subprime mortgages could not have been sold without ratings by the "Big Three" rating agencies — Moody's Investors Service, Standard & Poor's, and Fitch Ratings. A large section of the debt securities market — many money markets and pension funds
— were restricted in their bylaws to holding only the safest securities
— i.e securities the rating agencies designated "triple-A".[1] The pools of debt the agencies gave their highest ratings to [2] included over three trillion dollars of loans to homebuyers with bad credit and undocumented incomes through 2007.[3] Hundreds of billions of dollars' worth of these triple-A securities were downgraded to "junk" status by 2010,[1][4][5] and the writedowns and losses came to over half a trillion dollars.[6][7] This led "to the collapse or disappearance" in 2008-9 of three major investment banks (Bear Stearns, Lehman Brothers, and Merrill Lynch), and the federal governments buying of $700 billion of bad debt from distressed financial institutions
Hello, my name is Jack Sparrow. I'm a 50 year old self-employed Pirate from the Caribbean.
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