Understanding the toxic loan mess

[Lisa Strass]

I think this is an excellent video that helps explain the mortgage crisis our nation is facing. Yes, there is a political message as well, but you can easily check the references if you wish. The video is long - almost 11 minutes, but it is fast moving.

In summary,

1) the government made it mandatory for financial institutions to make loans to people who could not afford to pay them back

2) Fannie Mae and Freddie Mac (the latter is not prominently mentioned in this video) put the government guarantee on these loans and sold them in packages to many financial institutions around the U.S. and the world and

3) Fannie Mae and Freddie Mac, the ones making the government guarantees had their friends (Democrats) on Capital Hill that successfully beat back attempts to put the brakes on several times.

Summary: a loan that cannot be repaid cannot be repaid even with a government guarantee.

http://uk.youtube.com/watch?v=1RZVw3no2A4&..._the_house.html

Edit: Topic Title and see Jill's link in the next reply! Thanks, Jill

 

[Jill]

Thank you for sharing the video, Lisa. The link had some extra things in front and behind it that kept it from working but here it is "clickable":

http://uk.youtube.com/watch?v=1RZVw3no2A4

 

[anita]

Thank you, Lisa.

This video should be aired so everyone can understand who did it

 

[Basketmiss]

WOW.........................