Sultan Of Swing
Well-Known Member
I just watched the Big Short, it is an excellent film which I'd definitely recommend. I may have swallowed everything it told me like a good sheep, but I trust Hollywood. 
(If you feel it isn't an accurate portrayal of what happened, then have at it.)
I already sorta knew the basics of the crash, about sub-prime mortgages, CDOs, mixing in bad debt with good debt, and how the whole system collapsed basically as a result of that.
The film explained it brilliantly though, really expanded my knowledge and gives you a real insight into what these bankers were up to.
One of the concluding statements is the most damning, which was something along the lines of "They weren't stupid and didn't see it, they were clever and just didn't care. They knew the taxpayers would bail them out."
And according to the film, it looks like it might all happen again, with new "bespoke tranche opportunities" introduced in 2015 apparently being effectively the same as the CDOs (which mixed good and bad mortgages) that were created a decade before and caused the whole crash in the first place.
What is your own view on the bank bailouts of 2008? Should they have happened?
I feel like letting them fail would have taught new banks to self-regulate, they can't make the taxpayers take the fall, but on the other hand if we let the banks fail... that's total economic chaos isn't it, and a lot more suffering for the average person.
If your answer is 'No', what is the solution then to prevent this from happening again? And don't say 'more regulation', try and be specific. And especially don't say "vote Bernie", I'd just like a specific solution if you have one.
If your answer is 'Yes', are you prepared for the potential huge chaos and economic fallout that would hurt families a heck of a lot more than just bailing them out? Is it a price worth paying in order to teach the banks a lesson so they'll hopefully self-regulate?
(If you feel it isn't an accurate portrayal of what happened, then have at it.)I already sorta knew the basics of the crash, about sub-prime mortgages, CDOs, mixing in bad debt with good debt, and how the whole system collapsed basically as a result of that.
The film explained it brilliantly though, really expanded my knowledge and gives you a real insight into what these bankers were up to.
One of the concluding statements is the most damning, which was something along the lines of "They weren't stupid and didn't see it, they were clever and just didn't care. They knew the taxpayers would bail them out."
And according to the film, it looks like it might all happen again, with new "bespoke tranche opportunities" introduced in 2015 apparently being effectively the same as the CDOs (which mixed good and bad mortgages) that were created a decade before and caused the whole crash in the first place.
What is your own view on the bank bailouts of 2008? Should they have happened?
I feel like letting them fail would have taught new banks to self-regulate, they can't make the taxpayers take the fall, but on the other hand if we let the banks fail... that's total economic chaos isn't it, and a lot more suffering for the average person.
If your answer is 'No', what is the solution then to prevent this from happening again? And don't say 'more regulation', try and be specific. And especially don't say "vote Bernie", I'd just like a specific solution if you have one.
If your answer is 'Yes', are you prepared for the potential huge chaos and economic fallout that would hurt families a heck of a lot more than just bailing them out? Is it a price worth paying in order to teach the banks a lesson so they'll hopefully self-regulate?
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