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Did You Watch 60 Mintues? The Housing Bailout - They are Too Late

If you didn't watch 60 minutes last night (October 5, 2008) take a few minutes to watch their piece on the housing crisis. I'm the first one to say that I've been trying to understand the complicated world of Credit Default Swaps and the "shadow market" that 60 minutes alludes to in their opening and I just didn't get it, but I do now. Take a few minutes to watch this video, they explain it for the rest of us, it's worth waiting for the 15 second commercial to run.

Shouldn't these company officials be in jail for selling insurance and masking it as "Credit Default Swaps". Instead they made large amounts of cash and cost the American Citizens BILLIONS! This is fraud, they never had the resources to insure the securities that they were selling and you and I will be footing the bill for a very long time.

I wish that this had aired a week ago... I think the American People have the right to know the truth. Thanks 60 minutes for sharing... but it is a little too late.

Posted by Debbie Summers - MoveToLakeMary.com or 407-758-1020 on 10/06/2008 08:44 AM

Comments (19)

Morgage Regulation in the Mortgage / Finance Channel

60 minutes, credit default swaps, bailout

Originally posted at: Lake Mary - Central Florida Real Estate : Did You Watch 60 Mintues? The Housing Bailout - They are Too Late

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19 Comments on Did You Watch 60 Mintues? The Housing Bailout - They are Too Late

OCT

2008

Hi Debbie. I wish I would have seen it. I was out fishing.

Thanks for sharing the video. I will check it out.

Thanks for writing,

Ken

I watched it last night. I feel more educated on the situation now. Thanks for sharing the video.

Debbie -- I saw this last night and I must say that this entire economic situation is much more complex and ominous than meets the eye. I don't know if anyone quite understands the entire situation. One thing that came through loud and clear that this "loophole" that allowed these "credit default swaps" were simply a way around insurance regulations -- at a great cost to all of us! This type of thing should not have be allowed -- looks like Congress and others were asleep at the wheel!

The people who got us into the mess are "crafty" and many of those at the top won't suffer at all. Everyone else, we'll be dealing with the problem for some time to come. ~ Evelyn

Ken - Good for you... we all need a little R & R. I only wish this story had aired sooner.

Carol- I agree... I'm disappointed that congress cares more about steriods than the economy.

Joan- They were too busy worrying about who has or hasn't taken steroids... I really feel like it was just a distraction.

Evelyn- You're right... They are crafty, they knew exactly what they were doing and didn't care. Hopefully there will be consequences for their actions or it will encourage others to be crafty too.

Interesting that they use complicated algorithms to validated their actions. . .

Mine is a little simpler. . if for every 10 short sales I list 3 closed. . I have to list 100 in the next 12 months to close 30.

very simple uh?

Fernando - I think they were using that "New Math"... I'm sorry, but if the buyer can't qualify for the mortgage and they use creative financing or "stated income" to get him in the door... There is a 100% chance they won't make their payments.

Debbie

You are right, these things are scary... i thought they did a good job talking about how it was the 'side bets' that magnified the problem...

chris

My sentiments exactly. Not only do these executives need to be fired, but their personal assets need to be seized, and they need to go on trial for criminal fraud.

Chris - It's amazing to me that the investors who were buying these securities had no clue as to what they were purchasing... I'm sorry, who are these people that thought this scheme up and why aren't they already in jail?

Rob - I'm right there with you...

Debbie, we watched it as well. Very interesting, huh? I was truly amazed. I also notice the stock market is under 10,000 today. I'm always glued to Fox News Channel to find out what is going on.....it's interesting to note that in the 1813 period of time, our USofA had the same partisan problems as we are experiencing now. All I want is the T-R-U-T-H!!! ;-)

Hi Debbie...I watched it too, but you know what, my time would have been better spent blogging or writing ads or going for a walk, way to much negative stuff on TV right now, We need to look for deals for our Buyers.... right now they have choices...which will not last.

Cheers, thanks for sharing...now go sell something or go see the last client you sold a home too.

PS I hear investors are jumping into Buying Real Estate and stayig away from Stocks!

Thanks for sharing!! Everyone should copy the link and send it to their congressman/woman with a letter of outrage and DEMAND an invesitgation.

You are exactly right. I saw the piecea and could only wonder, why are we just now (after the bill has passed) hearing of Swaps? We've been boondoggled for sure.

We have a depression on our hands and nothing they do can stop it only delay it but it's here and real. History always repeats itself but the key is to learn which we dont tend to do so well. Rough times coming up for the next 2-4 years. Thanks for sharing, see you Wednesday

OCT

2008

Debbie - The average person will never truly understand what happened but they will feel the results for years to come.

OCT

2008

Debbie, Thanks for sharing. I just posted a link to this blog on my Twitter status, because I think this video clip is something more people should see.

As an aerospace engineer by degree and in my previous life, I've taken a few college level physics courses and if physicist developed the algorithms behind the investment instruments used to sell the bad mortgages, then I guarantee that these instruments cannot be understood by most people....if anyone.

Teri - I feel like we are in a Tom Cruise movie... "You can't handle the truth" I'm with you, I know that we can... It's too bad that they think that we are that stupid.

Fred - It's off subject, but I grew up watching "Beach Combers" do you remember that show... Sorry. It is a great time for investors to buy... with the Canadian dollar so strong, I think you should consider Florida yourself.

Don - I would thow in my pink fuzzy handcuffs to put some of these guys away. How they can sleep at night. I think they need to swap their mansions for a jail cell.

Barry - My husband hit the nail on the head... They had no intention of telling the American People anything until the bill was in place... DON'T TURST MAINSTREAM MEDIA.

Heather - I hope not... Hey I hope that you feel better, you looked great today...

Kathy - I'm pretty average and you're right...

DeWayne - I laughed out loud when they brough up algorithms... are these guys on drugs? I'll never understand that... Seriously, Human Nature doesn't fit in an algorithm.

THANK YOU EVERYONE FOR TAKING THE TIME TO COMMENT!!!!

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