I see the Crisis of Credit as a puzzle every piece counts and is essential to the overall product. Once one of the pieces are affected the whole producr is affected.
For me I learned a lot about the overall crisis. I learned a lot about how the housing bubble happened and what cause our current situation. But the main thing that was stressed to me was that banks don't want to own homes they want to own loans.
To me the moral of the story is "don't be greedy"! The lenders were being too greedy and it blew up in their faces. The problem is that they took everybody else down with them. Credit is a fragile thing and to be viewed as something not to be taken advantage of.
The most important thing that I learned from "the crisis of credit" was that it was caused by a lot of irresponsibility and greed. Bankers and investors took a system that was working for our economy, and turned it upside down quickly. All they had to do was change the qualifications that potential home buyers needed to meet, to make them easy enough for people who didn't have good credit.
I have come to learn that in every opportunity there is always a risk going hand in hand with it. And there is no such thing as a free lunch!!!!!!!!!!!! And like others have mentioned in the above comments, greed indeed does play a major role in the "domino effect" of the credit crisis that we have today.
I learned that the responsibility for the financial crisis belongs to a lot of people. The loans should never have been extended to people who couldn't handle the responsibility, but borrowers should not have borrowed outside of their means. Currently my fiance and I are in the process of buying our first home and we are learning just how much the rules have been tightened to complicate the process of buying homes. Still, it is important to remember that the rules are there for a reason and we must be realistic about our means.
i learned a lot about the financial crisis. its crazy to see how things really work with bonds and loans. there are a lot of risks out there when taking out a loan and dealing with investors. makes you open your eyes and think twice about investing.
Watching this film made it clear why so many people were able to buy nice houses without running their credit or proving income. When I purchased my house 11 years ago I thought the FBI was checking on me because the loan company ran and ran my credit and they kept verifying my income over and over again before they gave me the loan.
The main point I felt that the film "The Crisis of Credit", was that banks have most control over people getting homes, and how lenders, investors, and brokers make their money. We the public have a lot to do with banks making money, if we do not buy homes, or discontinue mortgages then the credit world flops, and in turn everybody loses. Everybody loses until there is an agreement somewhere between investors/brokers and the banks. I initially would blame the bankers for just being greedy and wanting way too much money for themselves.
After watching "The crisis of credit" it is clear to me that banks have the power. I found interesting that as soon as the banks closed everything went down hill.
The main idea that came across to me in "The Crisis of Credit" was that poor planning could lead to a huge crisis. From when banks started giving loans to families who couldn't keep a steady payment the whole system of selling and passing around mortgages was bound to blow up. It looks like banks and businesses didn't take into account the real risk that was involved when they started this. There should have been some regulations as to whom you could give out mortgages to and how many you could give out. But as people have commented above, greed leads them to making riskier deals.
In the video called "Crisis of Credit" I learned alot of how the mortgage sellers were doing business how banks get involve of selling a home to a family but in the same you their lending risky loans to the Americans. Then big corporations were getting bigger and all of the sudden the housing bubble collapse. Then when the recession hit in the fall 2008 the taxpayers were bailing the banks out.
In "The Crisis of Credit" I think Greed and Money played an important part. Instead of the Lenders being content with the amount of money they were receiving they thought of selfish and risky ways of making the housing market work for themselves. The fact that even owners who were clearly unstable and irresponsible were being lent houses shows the the market was not in the hands of men/women who thought about the Economy but instead men/women who say and opportunity and seized it.
In the video "Crisis of Credit" I learned that everyone is affected by it. That us as people are put together in a group with investors, the people that collect our money from our mortages. And from there is a group known as the financial system, which can also be known as Wall St. And years ago the investors sat on their money trying to to find a good investment, which would turn into more money. Where traditionally the money would end up going to the federal reserve, where they would but their money in t-bills for the safest investment plan.
For me, I learned about how the housing bubble happened. Also I think, and then how the families who cannot payback steady to bank, what should they do. Their small thinking about get a house can bring the huge crisis. For the families who cannot payback a loan, for them, there is no way to live their ways. Also it was funny that banks do not want to own their homes, they want to own loan. Banks has a lot of power on that video. For me, this thing is really shocked. I never imagine that banks have those amounts of ability to control.
The single most important thing I learned from watching the short film "The Crisis of Credit" is that institutions matter. Referring back to our Big Ideas, it truly shows how important values and ethics are in the operation of these institutions. When we have a system that is corrupt, it ends up effecting everyone more than anyone could have expected. Of course, once again referring to our Big Ideas, we can't change the booms and busts but we can try to maintain the magnitude of these. If people weren't so greedy (mostly firms, lenders, brokers, etc.) this whole crisis of credit could have been potentially avoided, at least the magnitude that we are experiencing now.
The most important thing that I learned from watching "The Credit Crisis" video was that I was able to understand step by step what it was that caused the economy to fail. The part during the short video that stood out to me the most was how the house market dropped. Becasue of the reason that houses lost there value many people stopped paying the properties even if they could afford it, they didnt want to be paying for something that was not going to gain it's value for years.
What I think is one of the most important parts of the video is them giving home loans to those people that they know for a fact will default on their loans, the reason i pick this is beacuse I think this is one of the a BIG reason as to why our economy can get impacted and cause it to go down instead of helping it boom, I believe these risks should not be taken.
I believe that everyone has the idea of what the "crisis of Credit" was about, the economic crisis that goes on. I learned that like it says in the beginning of the video who is affected by the credit crisis? Everyone is. When banks and people begin to get greedy giving out loans to everyone and anyone there are consequences. Just like mentioned in the concluding portion of the video. The banks call the homeowners and notify them that their investments are worthless. Why, because of poor decision making and greed. Like i mentioned before, what I get out of this..that everyone gets affected by the credit crisis. -Polet Milian
well i found that the whole situation with banks not wanting to own home but instead just own loans kinda disturbing but i found that if i would put my feet in their shoes it kinda makes sense.
The video on the Crisis of Credit was very interesting because I never fully understood what caused the housing market to crash. Although there are still things about the crisis I don’t understand, it helped to answer a lot of questions. The single most important piece of information that I learned was that everyone is affected when a problem like this happens, and that the crisis flows in a cycle. The investors, banks, people that default on their loans, as well as home owners that never missed a payment are all affected. If one group is unable to pay their debt, such as banks or home owners, it affects more than one group, which causes a spiral downward. This crisis could have been avoided if the regulations that were originally instituted were followed, but greedy won out.
i learned from the film to be more careful with where i invest my money. Its a scary thing the way banks were in a great route and almost from a day to another not just the banks but so many people till this day are effected by the crisis. In a way it was upsetting to see that the banks were willing to give out loans to unreasonable or uncapable people they just wanted more and more was to invest for their own good but in the end they ended up worse.
The single most important thing I learned from the film was the interdependence between all levels of the financial system. Once the market busted - it was a domino effect. Once one failed, all the rest started to crumble. That's the biggest idea conveyed through the "Crisis of Credit".
I could recognize that how the people who have lower credit can buy their houses by watching "Crisis of Credit". Banks lend money which has high interest rates for people to buy house as subprime mortgage kind of loan program. And then, people have to pay back to banks their borrowed money. If the price or value of their houses goes down and the people who borrowed money have no ability to pay back, the financial institutions that lend money would go bankrupt. I think that the project which is subprime mortgage is made with good purpose that a person who have lower credit can buy own house. But, the project bring a bankruptcy because they are greedy to take more profits by getting much more rate of return.
From this video, I learned how everything can be easily affected. One mistake can bring the economy to a downfall. From bankers loaning to those who can't afford to pay back those loans. Bankers need to be wise to who those give those loans to, and those who ask for loans need to make sure they'll be able to keep up with the payments or else they affect those who are keeping up with the loans on time. Overall, wiser decisions need to make and the consequences need to be thought of. -Daisy Guan
The most important concept I learned from the "Crisis of Credit" movie is the whole idea of investment bankers. I don't know a lot about mortgages and home-buying in the first place, but its interesting to know that there are investors out there looking to but other people's mortgages. I learned that the money people pay for their mortgages actually go towards an investor's CDO and in turn can sell the safe investments to other investors, the okay investments to bankers and the risky investments to hedge funds. In turn, the investment banker makes millions of dollars, all from buying a single mortgage in the first place. It's a smart way to make money in the housing market.
After watching "The crisis of credit" I learned how the banks work. How they sell a get a loans then sell them but the way that the banks were so greedy giving loans to people they new couldn't afford them was disturbing.
Well I learned many important things from this short film. It really explained things very clearly. One important thing I learned is that you should not buy a house that you know you cannot afford. Another thing I learned is to be careful where you invest your money, and you should not put all your eggs in one basket. In other words, don't put your entire life savings into one bank. Instead divide your money up into a few different banks. That way, if one bank goes bankrupt, at least you still have money in other banks that may stay afloat.
What I learned the most out of the film "The Crisis of Credit" was how the banks were very irresponsible in giving out loans. That because greed took over, the banks decided to create a very risky economy. Banks were giving people loans that they could not afford. I learned how the banks separate their loans from great loans to risky loans. That is very interesting because nowadays it is very difficult to get a loan approved after what they have seemed to have created.
I think the single most important thing that I learned from “The Crisis of Credit” is human’s greed. Of course, people can get what they want because of their greed. However, someone greed can be wrong or negative impact on others. Also, that kind of greed can cause other people damage in many ways. Finally, that kind of greed can make tough economy. Someone can get money easily. In contrast, someone should give up many things because of one’s greed. In this sense, one’s greed can make the crisis of credit. Everyone can be affected it. As a result, we should make a choice wisely.
The most single thing I learned from "The Crisis of Credit"is how the housing market works. The housing market is crazy and most of agents are looking to get over on people. They want money and they are getting it the wrong way. They are not trying to help people keep their homes. They are only looking at the short run and they should be looking at long run.
The single most important i learned through watching this clip was that banks make their porfit though intrest that they make from borrowers. The banks are borrowers themselves through investors and lend money to clients only to make their money back plus the extra money the would be recieving through the interest that they charged the client for lending them the money. erik ramirez
The most important thing that I got out of the "Crisis of Credit" is the realization of human greed. i believe this problem essentially started with the 1% interest rate. If this did not happen then it is more likely that the investors would have continued to buy and the bankers would be more reluctant to borrow. But as it turns out human nature kicks in and we just go for what looks good and that 1% sure looks good to those bankers. When the bankers use this money as leverage they get rich; and with it comes greed. the investors see this and want a part of the money. so then it turns into this whole big thing where people just become more and more greedy. When the Bankers connected the investors with home owners through mortgages it seemed like the ideal plan to get money. They assumed that the housing market would just continue to grow in value. (but we all know that when we assume it makes an ass out of u and me.) The greed got to the point where banks where just handing out loans left and right. They became extremely careless and gave home loans to risk factors. they just assumed again that when they defaulted they would be able to turn the house around and sell it for even more because of course house will continue to rise in value, Wrong!. Know one thought very far ahead and the housing market would soon crash. It was brought to my attention that greed is even more blinding than I thought. the Bankers, brokers and investors only saw what was going to benefit them at the moment and not how it would eventually effect them. Because of there inability to research the possible outcome of all this borrowing and buying and selling many of their companies have gone belly up; and they left our nation in a credit crisis. I believe this problem all roots back to human greed.
In the "Crisis of Credit" video, I learned that everyone is affected by the crisis when it comes to buying a home. Even if you are a surrounding neighbor and you are doing just fine with paying off your house, you are still affected by the credit crisis when a house in your neighborhood becomes foreclosed. Thanks to your neighbors, the value of your home will drop instantly. You cannot control your neighbor's debt, so in a way, the value of your own house is in your neighbor's hands.
In the Crisis of Credit video, I got an understanding of the cycle and the people involved when dealing with buying a home or investing. Also that greed plays a big role with the investors and banks. When one goes down, the domino effect goes into play, and the rest go down.
One of the main things that I learned from the video was how we led to the Great Depression. I never realized so many different things added up to one big fault. For example the market crash which led to despair, run on banks, freetrades without regulations and so many other things. Although war is never a good thing at that time it did save us from the Great Depression by providing jobs for many people which I did not realize how benefitical the war could be. Hopefully we can find something now to help us get out of our resession.
What I learned from "The Crisis of Credit" was the importance of bridge between savers and borrowers. The reason why this bridge collapsed was because home lenders assumed that house prices would continue rising, and because of that, mortgage loans were bundled and sold as if they had very low risk, but in reality it was not. Another thing is credit rating agencies performed poorly on credit scoring. As a result, house price dropped, home owners default on their loans, lending and investment stopped, and financial intermediaries couldn't get new funds.
One of the main ideas that i learned from the "crisis of Credit" video was the overlooking of risks. Lenders did not look into the risks of lending to the borrowers and if they did they felt it was that high of a risk. When in fact the risks were very high and that they had way more risks.
In the "Crisis of Credit" video, I learn how economic principal agents connected each other. Banks want to get money more, so they make a loan service which is "subprime mortgage". They predict borrower pay back money to them. However, housing price goes down and borrower couldn't pay it back. This is a start line "crisis of credit". It connected banks bankruptcy. Bank need to pay close attention for thier market, but they cannot control thier greedy.
I think that the crisis of credit is because of the greed. Investors and banks tried to earn more money through making more mortgages even though they earned lots of money because of mortgages. Because of greed that wants to earn more money, they make more mortgages thoughtless. People who want to buy a house got mortgages. People thought that if they buy a house, they can get money because the price of house had been increased. To earn money from the increased price from the house was the greed of people. Finally, investors, banks and people’s greed make a disaster. The price of the house was decreased. People didn’t want to have a house anymore. Therefore, many investors and banks were collapsed. I think that investors and banks need more responsibility about their acting. Actually, to make money is important but they should think about the effects of their acting because their thoughtless acting can make suffer to everyone in society. People also need to have rational consume.
The most important thing i learned from the video was that peoples greed is the cause of our current situation. In the video they portrayed the bad loans and investments as bombs, which everyone who was involved in the housing market knew they would eventually explode but they decided to keep making more bad loans aka bombs because as long they were getting there money and passing the bomb to the next guy they didn't care
I believe that this whole film helped me understand the credit crisis a lot better, but I think I learned the most about how leverage and how a collateralized debt obligation works. It helped me understand how investors try to make the best investments that they see possible. -Bryce Kerns
I had already seen the "Crisis of Credit" video in a political science class in 2009. What I learned then and remembered again while watching again was how the financial system works and breaks apart investments, such as mortgages and sells them to other firms. What I felt like the video was missing though that was also important to the Crisis was the details of how people were getting the home loans, such as NINJA loans (No Income No Job No Assets) and how irresponsible the financial sector was. Also another major contributor was the irresponsibility of the home owners. When housing prices where skyrocketing, people were using their homes like an ATM to buy new toys and other unnecessary luxuries.. When the housing market crashed it turned their homes upside down and they were under water. Also the adjustable mortgage rates.... I could continue on but I don't want to take the entire econ salon page. I enjoyed the video and always learn from watching it.
I learned many things about "The Crisis of Credit" that I probably would not know before. In the film they talked about how the home owners were connected to investors. Basically home owners are connected to the houses and investors are connected to other companies like insurances and other good stuff. Well the credit crisis goes a little like this you have the home owners buying a home and then you have a morgage broker finding them one. Well the homeowner is winning by putting a down payment on a house and the morgage broker is getting commision so it is win win for both. The real credit crisis begins once all this is done. The investor have there financial people break down all the morgage payments in three stage one being safe two being ok and three being risking. This is the credit crisis because the investor are waiting for the home owners to make a payment and if they dont then the risking box becomes a big risk for investors and that is when the credit crisis occurs.
i learned how to banks earn much money and connection of inverstors and house holedrs from this film. Before i watch that film i don't know about that system. When i watch this flim i could understand easily because this film is explained interesting and easy. The most impressed thing is leverage. Lecerage is borrowing money to amplify the outcome of a deal. If someone has just has $10000 and he bought something and sell 11000 so he has $1000 profit. On the other hand someone borrow monet from whom has much money such as $9900000 he earn $11000000 and give back 1000000 but he profit $100000. It is huge difference between two people. I don't know about that so when i knew that fact, it is the most impressive thing to me.
One important lesson I took from the video is people one may be seeking help from may not have their best interest in mind. As many people went to take out loans the banks were giving them out like candy and then people were ending up with loans they could not afford. Though the banks should have been more careful in issueing loans they were not and many people ended up in a rut due to greed.
Don't buy something that you can not afford was a big theme that kept going through my mind as I was watching the video. All these people buying up houses with out actually having the means to pay for it shows what can happen when multiplied a hundred fold and the crisis that ensued because of it.
I learned a lot from the video. But one thing that really stuck in my mind was how much "invisible" money gets passed around. I think that is a terrible idea. Yes it works when the economy is swell however it takes the turn for the worst when it is goes under. And we know that booms and busts of the economy cannot be controled so its bound to happen again. So trading money that suppose to come in the future is not a good idea at all.
WHAT I LEARNED FORM THE CREDIT CRISIS VIDEO I LEARNED HOW EVERYTHING IS LIKE A DOMINO EFFECT ONE FALLS DOWN AND WE ALL FALL ALONG WITH IT. AND UNFORTUNATELLY THIS DOMINO COLLAPSE KEEPS ON CONTINUING BY BRINGING DOWN MOR EUNEMPLOYMENT.
The most important thing I learned from the clip its like a puzzle from what comes from the lenders and what the borrowers were asking from the banks for a loan. In addition, the main reason for the economy is collapsed that what I revealed from the clip was that the real state prices were demanded and suddenly there was too many supplies . It was a credit given from the bank to the households which caused a subprime loans.
When I watched “The Crisis of Credit” video, I was able to learn and understand that the most important thing is that banks are influential to all people who bought home. As you know, everyone is affected by credit. I think that subprime mortgage problem happened because of institutions matter. People should default on their loans. In a word, home owners should remember their payment. Also, Brokers and investor are influential to people.
THE FILM TAUGHT ME THAT THE PEOPLE INVOLVED, FROM THE BROKER TO THE INVESTORS, ALL ACTED IRRESPONSIBLY. THEY BASED THEIR DECISIONS ON GREED AND SELF-INTEREST RATHER THAN A REASONABLE RETURN ON THEIR MONEY AND A STABLE MARKET.
The Credit Crisis video taught me that greed is what made the economy collapse. I always new this nation was full of greed, but I didn't know that it was the cause of this disaster. Everyone was focused on what would benefit themselves, and money symbols were the only things in their eyes.
I think I got a better understanding of HOW the sub-prime mortgage fiasco led to the freeze and collapse of the economy in 2008. Banker and financial institution greed pisssssssses me off, especially because the taxpayers got to (which is going to last years) pick up the tab for this. But to be honest, people subjecting themselves to mortgages and interest rates they had no reasonable means of paying for in the first place disgusts me more. The banks were completely at fault for providing the incentives which led to this crash, but ordinary citizens made it happen. Had a large percentage of the people who borrowed into these schemes been more financially responsible the housing market would have stayed more normalized and this may have never happened.
After watching the short film about the Crisis of Credit, I have to say that I learned about how it is all a "bad" cycle. Starting from the banks basically handing out loans to brokers. They than make business with investors and it continues to go on and on and repeating the cycle at times. Since these people care only about themselves and are greedy, they all end up not being able to afford what they are investing in and all go crashing down. it all then just ends bad causing the market to crash.
After watching the film “Crisis of Credit”，the most important thing that I learned form it was if you want a thing well done, the plan is very important, and no matter what you do things don’t be greedy. In the story, everyone is not an independent individuals, investment bankers want to earn more money, they will buy more mortgage, mortgage leader can find some folks to buy his mortgage, but in reaching a certain number of quantity, mortgage leader can’t find more folks to buy his mortgage. Like the film describe that more and more sub-prime mortgage default, and then there are many available houses on the market will begin to plummet in value, and the final result of only bankruptcy. If leader and banker can make an accurate plan before sell or buy the mortgage, they can predict when will reached a saturated state. And people can't be greedy, otherwise, good ideas will become badly.
In this video I learn a lot about the crises of credit for house. Also how greed lead to letting out bad loans and money to people that aren´t responsible and people that are responsible have to suffer with their house prices going down because of the things that are happening with house being foreclose and the estate market in going down.
What I learned from the short video was that the government is always trying to stimulate the economy, in this particular case the fed dropped rates, encouraging people to borrow... the rich made the most money off of this, a lack of regulation allowed them to manipulate the system, thus creating an even larger gap between the rich and poor.
I think the most important thing that we can take away from the short clip "crisis of credit" is how greedy some people are. Yes, money does turn people into monsters that dont care about others. They were loaning out money to people that they knew in time wouldnt be able to pay their payments on time. In turn, they would seize there home and then auction off the home for what they owed. People arent looking out for oter people, their looking out for themselves. I think when dealing with greedy people, they will get theirs for what they are doing and how greedy they are being. Houses arent selling and no one is making money. Lauren Castro
I was amazed to learn that investment bankers and such buy houses as part of hedge funds and such I always thought buying a piece of real estate for retirement was just a personal thing. I was also a little surprised to see that he didnt show how we are going to turn around. Everything is cyclical so right now those who can afford houses are going to become the investors sitting on piles of money because the housing market will turn around.
In my opinion, the overall process is equally important. With one piece of it not completed or done, the overall outcome wouldn't be what the investors and banks need or want. They wouldn't get the amount of money and profits they can by going through this process, and they would most likely end up putting themselves in debt from borrowing and not being able to pay back the money. It's just like a puzzle, with one piece missing the whole picture isn't completely visible. My favorite part of the video however, was the 'sub-prime mortgages' or the family with four kids and the parents with tattoos and smoking!
The single most important thing i learned from watching the short film "The Crisis of Credit" was that most people have it all wrong. I have heard some blame the banks, the homeowners, or the government; "They were so irresponsible, it was their fault" they say. In reality the credit crisis can't be blamed on one single group. All groups together are to blame and "people" need to stop pointing fingers at one specific group as all took part. - Celeste C
After watching the credit crisis movies I learned the reality on how investments now is no good. And its hard to find out why banks give out loans to people that won't make the payment. And I leanred why many houses were lost
I think the most important thing that we learn from the short film “ Crisis of Credit”, it makes me amazing how greedy people are. At first, people will make more and more money, but after more and more people joining in the group, it will be losing money. We should be more moderate, enough is enough!.
Selfishness and greed is what I learned to day bout borrowers and lenders I feel like sellers get greedy and it ends up hitting them back 20 times harder I think business should be more linget on there buyers :)
The main thing I learned from watching "The Crisis of Credit" is that the idea of buying a home is one giant butterfly effect. It is essentially a pyramid scheme, with the homeowner sitting at the bottom. I think the idea of leverage started as a good idea but when everyone is trying to make more then the previous person, the people underneath feel the repercussions.
The single most important thing I learned from watching “The Crisis of Credit,” is that we will never reach our maximum potential as a society as long as the endless thirst for profit is in charge. Huge profits can become addictive, and lead to the demise of an economy.
I think the most important thing that I saw in the movie was how everyone panicked and took their money out of the banks. Once they did this the banks couldnt function anymore and they failed. If the people would of kept their money in the banks, they might of been able to of had the banks continue to function.
I think the most important part of the movie was how everybody acted quickly and took their money out of the banks, and that those people who couldn't suffered. I also didn't know that buying a home took so many steps and that there were so many people involved in buying, selling, and foreclosing a house. In the end, the homeowner is essentially at the bottom of the list.
When I was watching the "Crisis of Credit" everything that they were explaining didn't sound new to me at all. I have many friends and families who bought homes and defaulted on their homes, even though they can still pay the monthly payment. One thing that I found interesting was how the investors kept thinking the market would keep rising and proceeded to borrow billions of dollars. The most important thing I learned from the video was how the families who bought the homes were not able to invest in there homes, while investors were making money when there was money to be made. -Remy Belarde
I learned that being too greedy and irresponsible has it's consequences. If not controlled it will cause slot of problems. It's ok to want to make more money, just not so irresponsibly.
I learned that irresponsible greed plays a major role when it comes to credit. Because lenders who were receiving the money were loaning them out to people who had bad credit and couldn't afford to take out loans which caused a downfall in the economy.
I think the most important part of the clip was that when investors get greedy they loose because they start giving irresponsible people loans, and of course their not gonna pay back they money.
What I learned was, the reason many of these banks to a fall or were completely wiped away or bought by other banks is because, the essentially tried to screw people by over inflating the market they essentially created and then could not afford to cover the bets they made on so many loans.
Watching the video on The Crisis of Credit was very informative to me on how mortgages were given out almost freely to whoever existed to "pay" the bills and how the financial system was destroyed when all these loans weren't making any money. It's scary to see that people tried to get away with making as much money as they could without accepting that their actions were going to hit hard when things didn't work out.
After Watching the video, I learned that everyone is responsible for their own actions eventhough some times everyone gets affected by someone's actions and that you shouldn't buy a house if you are not ready for it.
The single most important message I got out of the film was that greed makes individuals blind, especially when everyone is getting rich quickly. And when this happens everyone looks the other way and does not want to admit that it’s too good to be true.
From the short film, I think the most important part to me was the way they explained it. It gave me a different outlook on the credit crisis. I liked the way they showed it went in a cycle, and the more risk the more you are willing to lose. But also even when they took something that seemed to be a sure thing everything collapsed after the bubble burst. Overall I liked how the video explained step by step what happened and why it was going to happen. I feel like I understand the credit crisis much better now.
I learned that all the parts of the system are connected and relate to one another. And when one is suffering it will cause the others to suffer and will bring the others down.
What I took from the short film was that at the point of greed, which lead to deregulation of loans. For the life of me, I don't understand why creditors would not require documentation to support funding loans. I'd have to say that it's also the consumers' faults too. Taking a look around my neighborhood, there is no way these houses would ever go for $300K. As they say, history always repeats itself...
What i learned from "The crisis of credit", is that being greedy is not the way to go and with greediness comes bad loans that in the future will end up destroying you.
The one thing i learned from the short film "Crisis of Credit" is the mistake these lenders are making is loaning money to people with bad credit. These people have bad credit for a reason so why would you loan them money if you are almost positive you will never see a payment or that money ever again.
The most important thing I learned from crisis of credit was to always think in the long run and be wise of the decisions you make. The bankers were not thinking in long term that is why they gave out loans to people who had bad credit, which inevitably lead to a bad turn in the business cycle. The bankers were also greedy and just wanted to expand and make as much money as they could for the moment, which lead to a very bad recession.
Everything. I knew of it but never really understood the full spectrum of factors that caused it. This video really helped me understand it quite easily. Emily Aragon
The "Crisis of Credit" clip was very informative in an entertaining way. The most important thing that I learned was that greed from these investors had alot to do with the crisis of credit. They wanted more money so much that in the end they didnt even care who they were lending money to. The worst thing is that everyone is affected here one thing is done wrong and everything falls.
The most important thing that I learned from the "Crisis of Credit" video was all about how they had no real requirements for the loans. It's ironic, how trying to give everybody an opportunity to the American Dream completely BACKFIRED. The moral that I took from this was that if its too good to be true, it probably is.
From the "Crisis of Credit" video I leaned why people started losing their houses. I find it unreasonable that banks are not willing to reduce house mortgages so that people can keep their houses. Instead banks have to sell the house for the real value of a house which causes them a bigger loss.
I think that the most important thing i learned from the crisis of credit film is that there is a lot of risk in our system. I learned that because of greed a lot of people too unnecessary risk and it all fell back on them. As soon as one of them fell the rest started to collapse in a domino affect.
What I learned about the Commanding Heights video is that not only the market stock caused the great depression but also hyperinflation. People were buying lots of unecessary items and stock, they were just spending money like crazy. People were buying expense stuff like cars, stock and etc. Also because of the stock market, their was no ability to pay, earn or borrow money. Banks collapsed.Millions were out of work. People waited in bread lines. Roosevelt helped put the new deal together in creating programs to create jobs, such as raildroads, highways and parks.
the short film that we watched in class on "the crisis of credit" was a really informative film. it showed us how buying homes and having good credit is important to lender, banks, and brokers. it seemed as if things use to be well balanced out between home buyers and lenders, banks and brokers, until they decided to get greedy. then everything just blew out of proportion and really took a toll on everyone.
The single most important thing in the crisis of credit video is how everything is connected like a puzzle. We are all affected from credit not knowing that everyone is connected due to credit. On the investors side they are connected to banks to increase there portion of income very easily. Houses are in mortgages where investors help to pay off and increase there cash flow. These are both tied into the the credit. Leverage works to help a customer to borrow money and to help make money for banks. Everything is tied into together and makes little credit very bad to some people. For instance, buying a house save for a down payment fins a mortgage person which finds a broker. The broker makes the a good amount of change and then it is all reversed from there.
I learned a lot from the Crisis of Credit clip, like WHY our economy collapsed. And pretty much I feel that it was because of of greed and poor decision making. The investors didn't take the time to consider what consequences their actions would have, they were only interested in making as much money as quickly as they could. All the risk was there and they ignored it. Very, very irresponsible of them.
After watching the Crisis of Credit clip, I learned the cause of the market freeze was caused by greed and people just passing the buck. Had banks done their job and filtered out sub-prime lenders we could have avoided this rescission
something i learned from the crisis of credit video was that avarice in the market will eventually lead to a collapse of that market. Which will probaly has a domino effect and bring down other markets --Oakford Gross
i feel that greed was what drove the economy to the ground. The lenders were making smart business decisions, they were just thinking about profit. They made people think it was ok to have debt and that it wasnt an issue, and that alone can drive a country in the wrong direction very quickly.
The crisis of credit video serve to show how loans and bad decission making by banks cause alot of problems in the economy. Not to include that banks did not want to help those who were losing their houses by decreasing the price on their mortages which proved to show how selfish and greedy that the banks are.
I can know what is really happened in U.S. Actually, before i saw about it, I thought sub-prime mogage loan is kind of policy in U.S for low-income people. However, I knew that this crisis also came from greed. If banks keep their policy and do not give loan to low credit people. this crisis couldm't be happened. And their greedy make other nation face crisis too.
The one thing that I did not know was that the gov did not know what was going on with the mortgage market. I thought that thing like that could not go on in the us. i did not think that some one could sell a mortgage off like that.
after watching that short film i realized that realistically it all came down to greed, but i dont think we should blame the fed, or the banks, its the way the whole system is set up, i wonder sometimes if houses are really that expensive. it seems there real true value of a home doesnt play a roll at all, the value it is sold for is determined on how much the banks whant to make off the people based on economy or their jobs. i just feel that the system works, but it is unevitable for it to not crash from time to time ( i mean gaps in years of coarse ).
after watching the film, i surprise from the connection of every economic, finance system. it is just like dominoes. also, i thought that world is very greedy. to satisfy mine, dont see far away. and finally make collapse everything.
For me I learned a lot about the overall crisis. I learned a lot about how the housing bubble occurred. I learned what caused our current situation. I learned that banks want loans, and when the loans fell through they were stuck with houses.
I really got to say that I learned a lot watching the short film "The Crisis of Credit". For me, the single most important factor that I learned was the actual process of how everything is done. Now that I understand clearly how everything is completed, I have the necessary tools to use in the future when I decide to purchase a home for myself. This gave me the insights of what to look out for and a peek into their thought process (lenders, brokers, banks, etc.) I’m aware however that things are probably different now due to all the chaos that was caused by this particular market.
What was the single most important thing you learned from watching the short film "The Crisis of Credit"?
In the film "The Crisis of Credit", the single most important thing that I have learned was that just because the housing market (or any market) is easier to be financed for, there has got to be reasons as to why. I would not just jump into the excitement without some background research.
The overall message I will take with me from "The Crisis of Credit" video is the concept of hypothetical money being borrowed. Most of the money we use in loans isn't actually from the loaning institution itself. The people who we borrow from really don't have the money themselves. There are higher powers which rely on even higher powers. It is ridiculous how much lending goes on. Everybody's income and wealth depends on some other company, corporation, or banking institution, and even then, they rely on others as well.
I see the Crisis of Credit as a puzzle every piece counts and is essential to the overall product. Once one of the pieces are affected the whole producr is affected.
ReplyDeleteFor me I learned a lot about the overall crisis. I learned a lot about how the housing bubble happened and what cause our current situation. But the main thing that was stressed to me was that banks don't want to own homes they want to own loans.
ReplyDeleteTo me the moral of the story is "don't be greedy"! The lenders were being too greedy and it blew up in their faces. The problem is that they took everybody else down with them. Credit is a fragile thing and to be viewed as something not to be taken advantage of.
ReplyDeleteThe most important thing that I learned from "the crisis of credit" was that it was caused by a lot of irresponsibility and greed. Bankers and investors took a system that was working for our economy, and turned it upside down quickly. All they had to do was change the qualifications that potential home buyers needed to meet, to make them easy enough for people who didn't have good credit.
ReplyDeleteI have come to learn that in every opportunity there is always a risk going hand in hand with it. And there is no such thing as a free lunch!!!!!!!!!!!! And like others have mentioned in the above comments, greed indeed does play a major role in the "domino effect" of the credit crisis that we have today.
ReplyDeleteBinh Pham.
I learned that the responsibility for the financial crisis belongs to a lot of people. The loans should never have been extended to people who couldn't handle the responsibility, but borrowers should not have borrowed outside of their means. Currently my fiance and I are in the process of buying our first home and we are learning just how much the rules have been tightened to complicate the process of buying homes. Still, it is important to remember that the rules are there for a reason and we must be realistic about our means.
ReplyDeletei learned a lot about the financial crisis. its crazy to see how things really work with bonds and loans. there are a lot of risks out there when taking out a loan and dealing with investors. makes you open your eyes and think twice about investing.
ReplyDeleteWatching this film made it clear why so many people were able to buy nice houses without running their credit or proving income. When I purchased my house 11 years ago I thought the FBI was checking on me because the loan company ran and ran my credit and they kept verifying my income over and over again before they gave me the loan.
ReplyDeleteThe main point I felt that the film "The Crisis of Credit", was that banks have most control over people getting homes, and how lenders, investors, and brokers make their money. We the public have a lot to do with banks making money, if we do not buy homes, or discontinue mortgages then the credit world flops, and in turn everybody loses. Everybody loses until there is an agreement somewhere between investors/brokers and the banks. I initially would blame the bankers for just being greedy and wanting way too much money for themselves.
ReplyDeleteAfter watching "The crisis of credit" it is clear to me that banks have the power. I found interesting that as soon as the banks closed everything went down hill.
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ReplyDeleteThe main idea that came across to me in "The Crisis of Credit" was that poor planning could lead to a huge crisis. From when banks started giving loans to families who couldn't keep a steady payment the whole system of selling and passing around mortgages was bound to blow up. It looks like banks and businesses didn't take into account the real risk that was involved when they started this. There should have been some regulations as to whom you could give out mortgages to and how many you could give out. But as people have commented above, greed leads them to making riskier deals.
ReplyDeleteKenny Tavoc
In the video called "Crisis of Credit" I learned alot of how the mortgage sellers were doing business how banks get involve of selling a home to a family but in the same you their lending risky loans to the Americans. Then big corporations were getting bigger and all of the sudden the housing bubble collapse. Then when the recession hit in the fall 2008 the taxpayers were bailing the banks out.
ReplyDeleteIn "The Crisis of Credit" I think Greed and Money played an important part. Instead of the Lenders being content with the amount of money they were receiving they thought of selfish and risky ways of making the housing market work for themselves. The fact that even owners who were clearly unstable and irresponsible were being lent houses shows the the market was not in the hands of men/women who thought about the Economy but instead men/women who say and opportunity and seized it.
ReplyDeleteIn the video "Crisis of Credit" I learned that everyone is affected by it. That us as people are put together in a group with investors, the people that collect our money from our mortages. And from there is a group known as the financial system, which can also be known as Wall St. And years ago the investors sat on their money trying to to find a good investment, which would turn into more money. Where traditionally the money would end up going to the federal reserve, where they would but their money in t-bills for the safest investment plan.
ReplyDeleteJosh Pond
For me, I learned about how the housing bubble happened. Also I think, and then how the families who cannot payback steady to bank, what should they do. Their small thinking about get a house can bring the huge crisis. For the families who cannot payback a loan, for them, there is no way to live their ways. Also it was funny that banks do not want to own their homes, they want to own loan. Banks has a lot of power on that video. For me, this thing is really shocked. I never imagine that banks have those amounts of ability to control.
ReplyDeleteThe single most important thing I learned from watching the short film "The Crisis of Credit" is that institutions matter. Referring back to our Big Ideas, it truly shows how important values and ethics are in the operation of these institutions. When we have a system that is corrupt, it ends up effecting everyone more than anyone could have expected. Of course, once again referring to our Big Ideas, we can't change the booms and busts but we can try to maintain the magnitude of these. If people weren't so greedy (mostly firms, lenders, brokers, etc.) this whole crisis of credit could have been potentially avoided, at least the magnitude that we are experiencing now.
ReplyDeleteIn the "Crisis of Credit" I learned that making irrational decision based on acquiring more money can lead to big problems.
ReplyDeleteThe most important thing that I learned from watching "The Credit Crisis" video was that I was able to understand step by step what it was that caused the economy to fail. The part during the short video that stood out to me the most was how the house market dropped. Becasue of the reason that houses lost there value many people stopped paying the properties even if they could afford it, they didnt want to be paying for something that was not going to gain it's value for years.
ReplyDeleteWhat I think is one of the most important parts of the video is them giving home loans to those people that they know for a fact will default on their loans, the reason i pick this is beacuse I think this is one of the a BIG reason as to why our economy can get impacted and cause it to go down instead of helping it boom, I believe these risks should not be taken.
ReplyDeleteAdan Garibay
I believe that everyone has the idea of what the "crisis of Credit" was about, the economic crisis that goes on. I learned that like it says in the beginning of the video who is affected by the credit crisis? Everyone is. When banks and people begin to get greedy giving out loans to everyone and anyone there are consequences. Just like mentioned in the concluding portion of the video. The banks call the homeowners and notify them that their investments are worthless. Why, because of poor decision making and greed. Like i mentioned before, what I get out of this..that everyone gets affected by the credit crisis.
ReplyDelete-Polet Milian
well i found that the whole situation with banks not wanting to own home but instead just own loans kinda disturbing but i found that if i would put my feet in their shoes it kinda makes sense.
ReplyDeleteThe video on the Crisis of Credit was very interesting because I never fully understood what caused the housing market to crash. Although there are still things about the crisis I don’t understand, it helped to answer a lot of questions. The single most important piece of information that I learned was that everyone is affected when a problem like this happens, and that the crisis flows in a cycle. The investors, banks, people that default on their loans, as well as home owners that never missed a payment are all affected. If one group is unable to pay their debt, such as banks or home owners, it affects more than one group, which causes a spiral downward. This crisis could have been avoided if the regulations that were originally instituted were followed, but greedy won out.
ReplyDeleteMallery Wassink
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ReplyDeletei learned from the film to be more careful with where i invest my money. Its a scary thing the way banks were in a great route and almost from a day to another not just the banks but so many people till this day are effected by the crisis. In a way it was upsetting to see that the banks were willing to give out loans to unreasonable or uncapable people they just wanted more and more was to invest for their own good but in the end they ended up worse.
ReplyDeleteThe single most important thing I learned from the film was the interdependence between all levels of the financial system. Once the market busted - it was a domino effect. Once one failed, all the rest started to crumble. That's the biggest idea conveyed through the "Crisis of Credit".
ReplyDeleteNatalie Navar
I could recognize that how the people who have lower credit can buy their houses by watching "Crisis of Credit". Banks lend money which has high interest rates for people to buy house as subprime mortgage kind of loan program. And then, people have to pay back to banks their borrowed money. If the price or value of their houses goes down and the people who borrowed money have no ability to pay back, the financial institutions that lend money would go bankrupt. I think that the project which is subprime mortgage is made with good purpose that a person who have lower credit can buy own house. But, the project bring a bankruptcy because they are greedy to take more profits by getting much more rate of return.
ReplyDeleteSang-Ah Kim
From this video, I learned how everything can be easily affected. One mistake can bring the economy to a downfall. From bankers loaning to those who can't afford to pay back those loans. Bankers need to be wise to who those give those loans to, and those who ask for loans need to make sure they'll be able to keep up with the payments or else they affect those who are keeping up with the loans on time. Overall, wiser decisions need to make and the consequences need to be thought of.
ReplyDelete-Daisy Guan
The most important concept I learned from the "Crisis of Credit" movie is the whole idea of investment bankers. I don't know a lot about mortgages and home-buying in the first place, but its interesting to know that there are investors out there looking to but other people's mortgages. I learned that the money people pay for their mortgages actually go towards an investor's CDO and in turn can sell the safe investments to other investors, the okay investments to bankers and the risky investments to hedge funds. In turn, the investment banker makes millions of dollars, all from buying a single mortgage in the first place. It's a smart way to make money in the housing market.
ReplyDelete-Nicolette Afable
After watching "The crisis of credit" I learned how the banks work. How they sell a get a loans then sell them but the way that the banks were so greedy giving loans to people they new couldn't afford them was disturbing.
ReplyDeleteBrian Linton
Well I learned many important things from this short film. It really explained things very clearly. One important thing I learned is that you should not buy a house that you know you cannot afford. Another thing I learned is to be careful where you invest your money, and you should not put all your eggs in one basket. In other words, don't put your entire life savings into one bank. Instead divide your money up into a few different banks. That way, if one bank goes bankrupt, at least you still have money in other banks that may stay afloat.
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ReplyDeleteWhat I learned the most out of the film "The Crisis of Credit" was how the banks were very irresponsible in giving out loans. That because greed took over, the banks decided to create a very risky economy. Banks were giving people loans that they could not afford. I learned how the banks separate their loans from great loans to risky loans. That is very interesting because nowadays it is very difficult to get a loan approved after what they have seemed to have created.
ReplyDeleteI think the single most important thing that I learned from “The Crisis of Credit” is human’s greed.
ReplyDeleteOf course, people can get what they want because of their greed. However, someone greed can be wrong or negative impact on others. Also, that kind of greed can cause other people damage in many ways. Finally, that kind of greed can make tough economy. Someone can get money easily. In contrast, someone should give up many things because of one’s greed. In this sense, one’s greed can make the crisis of credit. Everyone can be affected it. As a result, we should make a choice wisely.
- Sora Ko
The most single thing I learned from "The Crisis of Credit"is how the housing market works. The housing market is crazy and most of agents are looking to get over on people. They want money and they are getting it the wrong way. They are not trying to help people keep their homes. They are only looking at the short run and they should be looking at long run.
ReplyDeleteThe single most important i learned through watching this clip was that banks make their porfit though intrest that they make from borrowers. The banks are borrowers themselves through investors and lend money to clients only to make their money back plus the extra money the would be recieving through the interest that they charged the client for lending them the money.
ReplyDeleteerik ramirez
The most important thing that I got out of the "Crisis of Credit" is the realization of human greed. i believe this problem essentially started with the 1% interest rate. If this did not happen then it is more likely that the investors would have continued to buy and the bankers would be more reluctant to borrow. But as it turns out human nature kicks in and we just go for what looks good and that 1% sure looks good to those bankers. When the bankers use this money as leverage they get rich; and with it comes greed. the investors see this and want a part of the money. so then it turns into this whole big thing where people just become more and more greedy. When the Bankers connected the investors with home owners through mortgages it seemed like the ideal plan to get money. They assumed that the housing market would just continue to grow in value. (but we all know that when we assume it makes an ass out of u and me.)
ReplyDeleteThe greed got to the point where banks where just handing out loans left and right. They became extremely careless and gave home loans to risk factors. they just assumed again that when they defaulted they would be able to turn the house around and sell it for even more because of course house will continue to rise in value, Wrong!. Know one thought very far ahead and the housing market would soon crash.
It was brought to my attention that greed is even more blinding than I thought. the Bankers, brokers and investors only saw what was going to benefit them at the moment and not how it would eventually effect them. Because of there inability to research the possible outcome of all this borrowing and buying and selling many of their companies have gone belly up; and they left our nation in a credit crisis. I believe this problem all roots back to human greed.
In the "Crisis of Credit" video, I learned that everyone is affected by the crisis when it comes to buying a home. Even if you are a surrounding neighbor and you are doing just fine with paying off your house, you are still affected by the credit crisis when a house in your neighborhood becomes foreclosed. Thanks to your neighbors, the value of your home will drop instantly. You cannot control your neighbor's debt, so in a way, the value of your own house is in your neighbor's hands.
ReplyDeleteIn the Crisis of Credit video, I got an understanding of the cycle and the people involved when dealing with buying a home or investing. Also that greed plays a big role with the investors and banks. When one goes down, the domino effect goes into play, and the rest go down.
ReplyDelete-Moises Lizama
One of the main things that I learned from the video was how we led to the Great Depression. I never realized so many different things added up to one big fault. For example the market crash which led to despair, run on banks, freetrades without regulations and so many other things. Although war is never a good thing at that time it did save us from the Great Depression by providing jobs for many people which I did not realize how benefitical the war could be. Hopefully we can find something now to help us get out of our resession.
ReplyDeleteWhat I learned from "The Crisis of Credit" was the importance of bridge between savers and borrowers. The reason why this bridge collapsed was because home lenders assumed that house prices would continue rising, and because of that, mortgage loans were bundled and sold as if they had very low risk, but in reality it was not. Another thing is credit rating agencies performed poorly on credit scoring. As a result, house price dropped, home owners default on their loans, lending and investment stopped, and financial intermediaries couldn't get new funds.
ReplyDeleteOne of the main ideas that i learned from the "crisis of Credit" video was the overlooking of risks. Lenders did not look into the risks of lending to the borrowers and if they did they felt it was that high of a risk. When in fact the risks were very high and that they had way more risks.
ReplyDeleteIn the "Crisis of Credit" video, I learn how economic principal agents connected each other.
ReplyDeleteBanks want to get money more, so they make a loan service which is "subprime mortgage". They predict borrower pay back money to them. However, housing price goes down and borrower couldn't pay it back. This is a start line "crisis of credit". It connected banks bankruptcy. Bank need to pay close attention for thier market, but they cannot control thier greedy.
I think that the crisis of credit is because of the greed. Investors and banks tried to earn more money through making more mortgages even though they earned lots of money because of mortgages. Because of greed that wants to earn more money, they make more mortgages thoughtless. People who want to buy a house got mortgages. People thought that if they buy a house, they can get money because the price of house had been increased. To earn money from the increased price from the house was the greed of people. Finally, investors, banks and people’s greed make a disaster. The price of the house was decreased. People didn’t want to have a house anymore. Therefore, many investors and banks were collapsed. I think that investors and banks need more responsibility about their acting. Actually, to make money is important but they should think about the effects of their acting because their thoughtless acting can make suffer to everyone in society. People also need to have rational consume.
ReplyDeleteMinju Kim
The most important thing i learned from the video was that peoples greed is the cause of our current situation. In the video they portrayed the bad loans and investments as bombs, which everyone who was involved in the housing market knew they would eventually explode but they decided to keep making more bad loans aka bombs because as long they were getting there money and passing the bomb to the next guy they didn't care
ReplyDeleteI believe that this whole film helped me understand the credit crisis a lot better, but I think I learned the most about how leverage and how a collateralized debt obligation works. It helped me understand how investors try to make the best investments that they see possible.
ReplyDelete-Bryce Kerns
I had already seen the "Crisis of Credit" video in a political science class in 2009. What I learned then and remembered again while watching again was how the financial system works and breaks apart investments, such as mortgages and sells them to other firms. What I felt like the video was missing though that was also important to the Crisis was the details of how people were getting the home loans, such as NINJA loans (No Income No Job No Assets) and how irresponsible the financial sector was. Also another major contributor was the irresponsibility of the home owners. When housing prices where skyrocketing, people were using their homes like an ATM to buy new toys and other unnecessary luxuries.. When the housing market crashed it turned their homes upside down and they were under water. Also the adjustable mortgage rates.... I could continue on but I don't want to take the entire econ salon page. I enjoyed the video and always learn from watching it.
ReplyDeleteI learned many things about "The Crisis of Credit" that I probably would not know before. In the film they talked about how the home owners were connected to investors. Basically home owners are connected to the houses and investors are connected to other companies like insurances and other good stuff. Well the credit crisis goes a little like this you have the home owners buying a home and then you have a morgage broker finding them one. Well the homeowner is winning by putting a down payment on a house and the morgage broker is getting commision so it is win win for both. The real credit crisis begins once all this is done. The investor have there financial people break down all the morgage payments in three stage one being safe two being ok and three being risking. This is the credit crisis because the investor are waiting for the home owners to make a payment and if they dont then the risking box becomes a big risk for investors and that is when the credit crisis occurs.
ReplyDeleteBy Priscilla Leon
i learned how to banks earn much money and connection of inverstors and house holedrs from this film. Before i watch that film i don't know about that system. When i watch this flim i could understand easily because this film is explained interesting and easy. The most impressed thing is leverage. Lecerage is borrowing money to amplify the outcome of a deal. If someone has just has $10000 and he bought something and sell 11000 so he has $1000 profit. On the other hand someone borrow monet from whom has much money such as $9900000 he earn $11000000 and give back 1000000 but he profit $100000. It is huge difference between two people. I don't know about that so when i knew that fact, it is the most impressive thing to me.
ReplyDeleteOne important lesson I took from the video is people one may be seeking help from may not have their best interest in mind. As many people went to take out loans the banks were giving them out like candy and then people were ending up with loans they could not afford. Though the banks should have been more careful in issueing loans they were not and many people ended up in a rut due to greed.
ReplyDeleteDon't buy something that you can not afford was a big theme that kept going through my mind as I was watching the video. All these people buying up houses with out actually having the means to pay for it shows what can happen when multiplied a hundred fold and the crisis that ensued because of it.
ReplyDeleteI learned a lot from the video. But one thing that really stuck in my mind was how much "invisible" money gets passed around. I think that is a terrible idea. Yes it works when the economy is swell however it takes the turn for the worst when it is goes under. And we know that booms and busts of the economy cannot be controled so its bound to happen again. So trading money that suppose to come in the future is not a good idea at all.
ReplyDelete-Alexandria Guerra
WHAT I LEARNED FORM THE CREDIT CRISIS VIDEO I LEARNED HOW EVERYTHING IS LIKE A DOMINO EFFECT ONE FALLS DOWN AND WE ALL FALL ALONG WITH IT. AND UNFORTUNATELLY THIS DOMINO COLLAPSE KEEPS ON CONTINUING BY BRINGING DOWN MOR EUNEMPLOYMENT.
ReplyDeleteThe most important thing I learned from the clip its like a puzzle from what comes from the lenders and what the borrowers were asking from the banks for a loan. In addition, the main reason for the economy is collapsed that what I revealed from the clip was that the real state prices were demanded and suddenly there was too many supplies . It was a credit given from the bank to the households which caused a subprime loans.
ReplyDeleteWhen I watched “The Crisis of Credit” video, I was able to learn and understand that the most important thing is that banks are influential to all people who bought home. As you know, everyone is affected by credit. I think that subprime mortgage problem happened because of institutions matter. People should default on their loans. In a word, home owners should remember their payment. Also, Brokers and investor are influential to people.
ReplyDeleteMyung-Rae Kim
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ReplyDeleteTHE FILM TAUGHT ME THAT THE PEOPLE INVOLVED, FROM THE BROKER TO THE INVESTORS, ALL ACTED IRRESPONSIBLY. THEY BASED THEIR DECISIONS ON GREED AND SELF-INTEREST RATHER THAN A REASONABLE RETURN ON THEIR MONEY AND A STABLE MARKET.
ReplyDeleteSARA NYDAM
The Credit Crisis video taught me that greed is what made the economy collapse. I always new this nation was full of greed, but I didn't know that it was the cause of this disaster. Everyone was focused on what would benefit themselves, and money symbols were the only things in their eyes.
ReplyDeleteStan Hunsucker
I think I got a better understanding of HOW the sub-prime mortgage fiasco led to the freeze and collapse of the economy in 2008. Banker and financial institution greed pisssssssses me off, especially because the taxpayers got to (which is going to last years) pick up the tab for this. But to be honest, people subjecting themselves to mortgages and interest rates they had no reasonable means of paying for in the first place disgusts me more. The banks were completely at fault for providing the incentives which led to this crash, but ordinary citizens made it happen. Had a large percentage of the people who borrowed into these schemes been more financially responsible the housing market would have stayed more normalized and this may have never happened.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteAfter watching the short film about the Crisis of Credit, I have to say that I learned about how it is all a "bad" cycle. Starting from the banks basically handing out loans to brokers. They than make business with investors and it continues to go on and on and repeating the cycle at times. Since these people care only about themselves and are greedy, they all end up not being able to afford what they are investing in and all go crashing down. it all then just ends bad causing the market to crash.
ReplyDelete-UIises Ramirez
After watching the film “Crisis of Credit”，the most important thing that I learned form it was if you want a thing well done, the plan is very important, and no matter what you do things don’t be greedy. In the story, everyone is not an independent individuals, investment bankers want to earn more money, they will buy more mortgage, mortgage leader can find some folks to buy his mortgage, but in reaching a certain number of quantity, mortgage leader can’t find more folks to buy his mortgage. Like the film describe that more and more sub-prime mortgage default, and then there are many available houses on the market will begin to plummet in value, and the final result of only bankruptcy. If leader and banker can make an accurate plan before sell or buy the mortgage, they can predict when will reached a saturated state. And people can't be greedy, otherwise, good ideas will become badly.
ReplyDeleteSihong Fang
In this video I learn a lot about the crises of credit for house. Also how greed lead to letting out bad loans and money to people that aren´t responsible and people that are responsible have to suffer with their house prices going down because of the things that are happening with house being foreclose and the estate market in going down.
ReplyDeleteWhat I learned from the short video was that the government is always trying to stimulate the economy, in this particular case the fed dropped rates, encouraging people to borrow... the rich made the most money off of this, a lack of regulation allowed them to manipulate the system, thus creating an even larger gap between the rich and poor.
ReplyDeletethe most important thing i learned from the video is that investors and irresponsible homeowners are to blame for the downfall of the economy
ReplyDeleteI think the most important thing that we can take away from the short clip "crisis of credit" is how greedy some people are. Yes, money does turn people into monsters that dont care about others. They were loaning out money to people that they knew in time wouldnt be able to pay their payments on time. In turn, they would seize there home and then auction off the home for what they owed. People arent looking out for oter people, their looking out for themselves. I think when dealing with greedy people, they will get theirs for what they are doing and how greedy they are being. Houses arent selling and no one is making money.
ReplyDeleteLauren Castro
I was amazed to learn that investment bankers and such buy houses as part of hedge funds and such I always thought buying a piece of real estate for retirement was just a personal thing. I was also a little surprised to see that he didnt show how we are going to turn around. Everything is cyclical so right now those who can afford houses are going to become the investors sitting on piles of money because the housing market will turn around.
ReplyDeleteIn my opinion, the overall process is equally important. With one piece of it not completed or done, the overall outcome wouldn't be what the investors and banks need or want. They wouldn't get the amount of money and profits they can by going through this process, and they would most likely end up putting themselves in debt from borrowing and not being able to pay back the money. It's just like a puzzle, with one piece missing the whole picture isn't completely visible. My favorite part of the video however, was the 'sub-prime mortgages' or the family with four kids and the parents with tattoos and smoking!
ReplyDeleteMelody Nash
The single most important thing i learned from watching the short film "The Crisis of Credit" was that most people have it all wrong. I have heard some blame the banks, the homeowners, or the government; "They were so irresponsible, it was their fault" they say. In reality the credit crisis can't be blamed on one single group. All groups together are to blame and "people" need to stop pointing fingers at one specific group as all took part.
ReplyDelete- Celeste C
After watching the credit crisis movies I learned the reality on how investments now is no good. And its hard to find out why banks give out loans to people that won't make the payment. And I leanred why many houses were lost
ReplyDeleteI think the most important thing that we learn from the short film “ Crisis of Credit”, it makes me amazing how greedy people are. At first, people will make more and more money, but after more and more people joining in the group, it will be losing money. We should be more moderate, enough is enough!.
ReplyDeleteWhat I learned from the movie was a clear understanding o the financial crisis. I never imagined that the collapse of the market had to do with the housing market. I was real surprised on how educated loan bankers could offer any type of loan to disadvantaged people. There where many assets lost to many people across America , while the financial sector got bailed out and protected for their mistakes. As the American people lost their home for faulty loans . It was like a domino effect that started very slowly then just collapsed. After the financial sector was slowly falling the financial crisis was inherited by president Obama . Bad decisions lead to risqué consequences! The financial crisis could have been prevented if there was no greedy corporations.
ReplyDeleteSelfishness and greed is what I learned to day bout borrowers and lenders I feel like sellers get greedy and it ends up hitting them back 20 times harder I think business should be more linget on there buyers :)
ReplyDeleteThe main thing I learned from watching "The Crisis of Credit" is that the idea of buying a home is one giant butterfly effect. It is essentially a pyramid scheme, with the homeowner sitting at the bottom. I think the idea of leverage started as a good idea but when everyone is trying to make more then the previous person, the people underneath feel the repercussions.
ReplyDelete-Justin Balancio
The single most important thing I learned from watching “The Crisis of Credit,” is that we will never reach our maximum potential as a society as long as the endless thirst for profit is in charge. Huge profits can become addictive, and lead to the demise of an economy.
ReplyDeleteI think the most important thing that I saw in the movie was how everyone panicked and took their money out of the banks. Once they did this the banks couldnt function anymore and they failed. If the people would of kept their money in the banks, they might of been able to of had the banks continue to function.
ReplyDeleteI think the most important part of the movie was how everybody acted quickly and took their money out of the banks, and that those people who couldn't suffered. I also didn't know that buying a home took so many steps and that there were so many people involved in buying, selling, and foreclosing a house. In the end, the homeowner is essentially at the bottom of the list.
ReplyDelete-Dominic Finazzo
When I was watching the "Crisis of Credit" everything that they were explaining didn't sound new to me at all. I have many friends and families who bought homes and defaulted on their homes, even though they can still pay the monthly payment. One thing that I found interesting was how the investors kept thinking the market would keep rising and proceeded to borrow billions of dollars. The most important thing I learned from the video was how the families who bought the homes were not able to invest in there homes, while investors were making money when there was money to be made. -Remy Belarde
ReplyDeleteI learned that being too greedy and irresponsible has it's consequences. If not controlled it will cause slot of problems. It's ok to want to make more money, just not so irresponsibly.
ReplyDeleteI learned that irresponsible greed plays a major role when it comes to credit. Because lenders who were receiving the money were loaning them out to people who had bad credit and couldn't afford to take out loans which caused a downfall in the economy.
ReplyDelete- Ashley Ignacio
I think the most important part of the clip was that when investors get greedy they loose because they start giving irresponsible people loans, and of course their not gonna pay back they money.
ReplyDeleteWhat I learned was, the reason many of these banks to a fall or were completely wiped away or bought by other banks is because, the essentially tried to screw people by over inflating the market they essentially created and then could not afford to cover the bets they made on so many loans.
ReplyDeleteIsmael Navarro
Watching the video on The Crisis of Credit was very informative to me on how mortgages were given out almost freely to whoever existed to "pay" the bills and how the financial system was destroyed when all these loans weren't making any money. It's scary to see that people tried to get away with making as much money as they could without accepting that their actions were going to hit hard when things didn't work out.
ReplyDeleteAfter Watching the video, I learned that everyone is responsible for their own actions eventhough some times everyone gets affected by someone's actions and that you shouldn't buy a house if you are not ready for it.
ReplyDeleteThe single most important message I got out of the film was that greed makes individuals blind, especially when everyone is getting rich quickly. And when this happens everyone looks the other way and does not want to admit that it’s too good to be true.
ReplyDeleteFrom the short film, I think the most important part to me was the way they explained it. It gave me a different outlook on the credit crisis. I liked the way they showed it went in a cycle, and the more risk the more you are willing to lose. But also even when they took something that seemed to be a sure thing everything collapsed after the bubble burst. Overall I liked how the video explained step by step what happened and why it was going to happen. I feel like I understand the credit crisis much better now.
ReplyDeleteI learned that all the parts of the system are connected and relate to one another. And when one is suffering it will cause the others to suffer and will bring the others down.
ReplyDeleteWhat I took from the short film was that at the point of greed, which lead to deregulation of loans. For the life of me, I don't understand why creditors would not require documentation to support funding loans. I'd have to say that it's also the consumers' faults too. Taking a look around my neighborhood, there is no way these houses would ever go for $300K. As they say, history always repeats itself...
ReplyDeletemy take away form the film is greed has more wait then commonsense.
ReplyDeleteWhat i learned from "The crisis of credit", is that being greedy is not the way to go and with greediness comes bad loans that in the future will end up destroying you.
ReplyDelete-german coreas
The one thing i learned from the short film "Crisis of Credit" is the mistake these lenders are making is loaning money to people with bad credit. These people have bad credit for a reason so why would you loan them money if you are almost positive you will never see a payment or that money ever again.
ReplyDeleteThe most important thing I learned from crisis of credit was to always think in the long run and be wise of the decisions you make. The bankers were not thinking in long term that is why they gave out loans to people who had bad credit, which inevitably lead to a bad turn in the business cycle. The bankers were also greedy and just wanted to expand and make as much money as they could for the moment, which lead to a very bad recession.
ReplyDeleteEverything. I knew of it but never really understood the full spectrum of factors that caused it. This video really helped me understand it quite easily.
ReplyDeleteEmily Aragon
The "Crisis of Credit" clip was very informative in an entertaining way. The most important thing that I learned was that greed from these investors had alot to do with the crisis of credit. They wanted more money so much that in the end they didnt even care who they were lending money to. The worst thing is that everyone is affected here one thing is done wrong and everything falls.
ReplyDeleteThe most important thing that I learned from the "Crisis of Credit" video was all about how they had no real requirements for the loans. It's ironic, how trying to give everybody an opportunity to the American Dream completely BACKFIRED. The moral that I took from this was that if its too good to be true, it probably is.
ReplyDelete-Maya Darby
From the "Crisis of Credit" video I leaned why people started losing their houses. I find it unreasonable that banks are not willing to reduce house mortgages so that people can keep their houses. Instead banks have to sell the house for the real value of a house which causes them a bigger loss.
ReplyDeleteI think that the most important thing i learned from the crisis of credit film is that there is a lot of risk in our system. I learned that because of greed a lot of people too unnecessary risk and it all fell back on them. As soon as one of them fell the rest started to collapse in a domino affect.
ReplyDeleteIsmael Bejerano
What I learned about the Commanding Heights video is that not only the market stock caused the great depression but also hyperinflation. People were buying lots of unecessary items and stock, they were just spending money like crazy. People were buying expense stuff like cars, stock and etc. Also because of the stock market, their was no ability to pay, earn or borrow money. Banks collapsed.Millions were out of work. People waited in bread lines. Roosevelt helped put the new deal together in creating programs to create jobs, such as raildroads, highways and parks.
ReplyDeletethe short film that we watched in class on "the crisis of credit" was a really informative film. it showed us how buying homes and having good credit is important to lender, banks, and brokers. it seemed as if things use to be well balanced out between home buyers and lenders, banks and brokers, until they decided to get greedy. then everything just blew out of proportion and really took a toll on everyone.
ReplyDeleteThe single most important thing in the crisis of credit video is how everything is connected like a puzzle. We are all affected from credit not knowing that everyone is connected due to credit. On the investors side they are connected to banks to increase there portion of income very easily. Houses are in mortgages where investors help to pay off and increase there cash flow. These are both tied into the the credit. Leverage works to help a customer to borrow money and to help make money for banks. Everything is tied into together and makes little credit very bad to some people. For instance, buying a house save for a down payment fins a mortgage person which finds a broker. The broker makes the a good amount of change and then it is all reversed from there.
ReplyDelete-Kenny Pigman
I learned a lot from the Crisis of Credit clip, like WHY our economy collapsed. And pretty much I feel that it was because of of greed and poor decision making. The investors didn't take the time to consider what consequences their actions would have, they were only interested in making as much money as quickly as they could. All the risk was there and they ignored it. Very, very irresponsible of them.
ReplyDeleteAfter watching the Crisis of Credit clip, I learned the cause of the market freeze was caused by greed and people just passing the buck. Had banks done their job and filtered out sub-prime lenders we could have avoided this rescission
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ReplyDeletesomething i learned from the crisis of credit video was that avarice in the market will eventually lead to a collapse of that market. Which will probaly has a domino effect and bring down other markets --Oakford Gross
ReplyDeletei feel that greed was what drove the economy to the ground. The lenders were making smart business decisions, they were just thinking about profit. They made people think it was ok to have debt and that it wasnt an issue, and that alone can drive a country in the wrong direction very quickly.
ReplyDelete-Desmond Ratliff
The crisis of credit video serve to show how loans and bad decission making by banks cause alot of problems in the economy. Not to include that banks did not want to help those who were losing their houses by decreasing the price on their mortages which proved to show how selfish and greedy that the banks are.
ReplyDeleteI can know what is really happened in U.S. Actually, before i saw about it, I thought sub-prime mogage loan is kind of policy in U.S for low-income people. However, I knew that this crisis also came from greed. If banks keep their policy and do not give loan to low credit people. this crisis couldm't be happened. And their greedy make other nation face crisis too.
ReplyDeleteThe one thing that I did not know was that the gov did not know what was going on with the mortgage market. I thought that thing like that could not go on in the us. i did not think that some one could sell a mortgage off like that.
ReplyDeleteafter watching that short film i realized that realistically it all came down to greed, but i dont think we should blame the fed, or the banks, its the way the whole system is set up, i wonder sometimes if houses are really that expensive. it seems there real true value of a home doesnt play a roll at all, the value it is sold for is determined on how much the banks whant to make off the people based on economy or their jobs. i just feel that the system works, but it is unevitable for it to not crash from time to time ( i mean gaps in years of coarse ).
ReplyDeleteafter watching the film, i surprise from the connection of every economic, finance system.
ReplyDeleteit is just like dominoes. also, i thought that world is very greedy. to satisfy mine, dont see far away. and finally make collapse everything.
For me I learned a lot about the overall crisis. I learned a lot about how the housing bubble occurred. I learned what caused our current situation. I learned that banks want loans, and when the loans fell through they were stuck with houses.
ReplyDeleteI really got to say that I learned a lot watching the short film "The Crisis of Credit". For me, the single most important factor that I learned was the actual process of how everything is done. Now that I understand clearly how everything is completed, I have the necessary tools to use in the future when I decide to purchase a home for myself. This gave me the insights of what to look out for and a peek into their thought process (lenders, brokers, banks, etc.) I’m aware however that things are probably different now due to all the chaos that was caused by this particular market.
ReplyDeleteWhat was the single most important thing you learned from watching the short film "The Crisis of Credit"?
ReplyDeleteIn the film "The Crisis of Credit", the single most important thing that I have learned was that just because the housing market (or any market) is easier to be financed for, there has got to be reasons as to why. I would not just jump into the excitement without some background research.
The overall message I will take with me from "The Crisis of Credit" video is the concept of hypothetical money being borrowed. Most of the money we use in loans isn't actually from the loaning institution itself. The people who we borrow from really don't have the money themselves. There are higher powers which rely on even higher powers. It is ridiculous how much lending goes on. Everybody's income and wealth depends on some other company, corporation, or banking institution, and even then, they rely on others as well.
ReplyDelete