Warren Buffett Explains the 2008 Financial Crisis
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- Опубликовано: 16 май 2024
- A decade after the financial crisis, billionaire investor Warren Buffett explains what was behind the 2008 mayhem, what we can do to limit the damage and opportunities missed last time.
Our economy struggling with uncertainties, housing issues, foreclosures, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
With the US dollar losing value to inflation and other currencies gaining traction, uncertainty looms. Yet, many still trust in the Dollar's perceived safety. Worried about my $420,000 retirement savings losing value, I seek alternative security for my money.
I think it's brilliant to use a brokerage advisor for investing. Prior to speaking with an advisor in the heat of the 2008 financial crisis, I was actually experiencing terrifying nightmares. In summary, with the assistance of my advisor, I have grown my initial $120k investment to over $550k.
I’ve actually been looking into advisors lately, the news I’ve been seeing in the market hasn’t been so encouraging. who’s the person guiding you?
Rachel Sarah Parrish is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment
I appreciate it. After searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
Interesting how over 2% inflation has been a concern when central banks and the Fed begin to hike interest rates. I consider the rising interest rate to be a very serious issue since it will undoubtedly cause more investors to withdraw their money from the stock market. But then I'm still aware of certain investors that continue to earn over $365,000. Wish I could accomplish that.
It seems like there's potential, but caution is warranted. hence I will advice you get yourself a financial advisor that can provide you with entry and exit points
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
Mind if I ask you to recommend this particular coach you using their service?
Rachel Sarah Parrish one of the best portfolio managers in the industry," deserves recognition. She is well known; you ought to look at her work.
Simply by pasting her full name into my browser, her website immediately displayed. You've spared me from doing a lot of tedious research, so thank you.
First SVB, then signature bank and now first republic bank, these are all the signs of yet another 2008 market crash 2.0 , so my question is do I still save in the United States dollar or is this a good time to buy gold?
It’s always a good option to keep some gold. Well with the current market situation and everything at stake with the present economy, I’d say you’re better off staying away from stocks fr awhile or better still reach out to an adviser for guidance.
I think it's brilliant to use a brokerage advisor for investing. Prior to speaking with an advisor in the heat of the 2008 financial crisis, I was actually experiencing terrifying nightmares. In summary, with the assistance of my advisor, I have grown my initial $120k investment to over $550k.
I’ve actually been looking into advisors lately, the news I’ve been seeing in the market hasn’t been so encouraging. who’s the person guiding you?
Vivian Carol Gioia is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment
I appreciate it. After searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
It's enticing to consider purchasing some stocks in this bull run. I'm contemplating investing more than $300k for retirement. While the bull run can generate short-term excitement, i also need long-term investment strategy
It seems like there's potential, but caution is warranted. hence I will advice you get yourself a financial advisor that can provide you with entry and exit points
Having an investment advisor is the best way to go about the stock market right now. I used to depend on RUclips videos but it wasn't working. I’ve been in touch with an advisor for a while now, and just last year, I made over 80% capital growth minus dividends.
How can I reach this manager of yours? because I'm seeking for a more effective approach on my savings
Sonya lee Mitchell is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
I searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you
Gaining more financial independence is probably the result of knowing how to handle personal finances and invest. People are better equipped to save, spend, and invest their money when they have a solid understanding of money and investment. In this market impacted by the recession, a trader made over $350,000.
Although stocks are currently rather volatile, you should be okay if you perform the proper calculations. There have been stories of people making over $250,000 in a matter of weeks or months, according to Bloomberg and other finance media, so if you know where to look, I believe there are many wealth transfers during this recession.
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
Mind if I ask you to recommend this particular coach you using their service?
Vivian Carol Gioia one of the best portfolio managers in the industry," deserves recognition. She is well known; you ought to look at her work.
Simply by pasting her full name into my browser, her website immediately displayed. You've spared me from doing a lot of tedious research, so thank you.
“They went away rich. They may have been disgraced to some degree, but they went away rich.” Truer words have never been spoken.
Another kid younger than Minecraft players adding 'fact' adding 'fact'/true / real to their comment to feel better and get likes from other kid
That's why the rich get rich and the poor stay poor. Jail, well that's for the poor people.
Agree.
Absolutely disgusting. I hear blah blah blah blah. The government paid off the rich, ignored those who were injured, and the bankers and politicians and pos should go straight to prision. Another case of the elite paying off the elite and leaving them in their positions to continue their criminal actions. Warren Buffet knows tbis and yet states a "good job" that tbe government didnt wait for facts and the information to come in to pour money into these criminals accounts for a near coapse of tbis country. SHAME ON YOU WARREN BUFFET.
@@kosys5338 There are lots of people that should be in jail that aren’t! Money is the root of all evil!
@@eavyeavy2864 it is true, capitalism doesn't work and the rich are all scumbags
I would call this Warren Buffet comments on the 2008 Financial Crisis, not "explains."
It's simple actually. Common people, lenders, and the government all missed that the housing market was way overvalued. People like Buffet and other smart investors understood this. in 2008 and 2009 a market correction happened, and a huge amount of wealth was transferred from the unwise to the wise.
James Carter what. Some of the biggest banks collapsed. The auto industry almost completely folded. Very few people “like Buffet” knew what was going on... the ironic part is there are people out there predicting the next financial crisis correctly and no one is listening to them because the majority of data says otherwise.
that's why u'll never have their views lol
@B Roli And didn't he put up Bernanke as a wonderful part of the solution? That's how I saw the video.
🎵would you bite... the hand that feeds you...
Who would have thought RUclips had so many PhD economists in the comment section predicting the next crisis
Well I suppose you will be correct eventually. (Maybe)
Thomas Headley Watching to much hgtv I see.
a PhD is an argument from authority that goes especially keynesian economists so a better idea is to just say what you think and why
Its not rocket science, you dont need a bachelors, masters or phd to understand, analyze and make a strategic prediction of the next crisis, it is coming within next 2 years!
No need for PhD, when ever the conservatives are in power the economy suffers.... Historical data imply this emphatically.
"if you wait till you know everything then it's too late"
Krutarth Haveliwala “everything”, not anything.
"Everything"
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look.
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
Mind if I ask you to recommend this particular coach you using their service?
Credits goes to "Carol Vivian Constable” one of the finest portfolio managers in the field. She's widely recognized; you should take a look at her work.
thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
0:18 - "Warren Buffet is still grappling with what happened and the lessons he learned"
2:31 - "I didn't really learn any new lessons in 2008 or 2009"
As to 2:31, You only brought up the first part of the sentence. It wasn't any NEW lesson for him by 2008-2009, but things that he already believed and knew previously. Duh!
He's the greatest investor of all time. Of course he didn't learn anything new from that crisis. The reporters are just too ignorant to know or understand who they are talking to.
@@dmtbass Warren always talks about investing in great companies with great value. He had absolutely nothing to learn from 2008, because he was never involved in speculative run-ups or getting away from fundamentals. His strategy works in bull markets and bear markets.
Great person to talk to about long-term investing, IMO not the best person to talk to about the causes or impacts of a financial crisis.
Haha exactly my thoughts. Terrible explanation.
And, if you replace "Warren Buffet" with "The US financial industry", you get the explanation of why it can still all happen again.
I was in the mortgage industry then talk about a crazy time. Lots of mistakes were made and the financial sector learned very little. It will be repeated again.
Another financial crisis will occur in the sense that asset-backed-securities will lose tremendous value due to escalating default rates... but instead of mortgages it'll be student loans.
exactly
They’re not taking my house this time, I was only 16 years old last time and ignorant to government greed. I’m packing four fully loaded now. Guarantee I’m not alone on this either...I almost wish they’d try to be honest.
Student loans is already a mountain bubble. Car loan mortgages are very likely.
They wern't mistakes wake up. Look at the poorest area where u live would u offer a mortgage to unemployed who live there? That is how it was done. There had to be a default. Big money lent the money wrapped it up in bonds given AAA by? sold to banks we owned and ByrU we're fucked
I wonder if people that experienced the 2008 crash had it easier because this market conditions are driving me to insanity, my portfolio has lost over $27000 this nov. alone my profits are tanking and I'm don't see my retirement turning out well when I can't even grow my stagnant reserve
Even in this whirlwind, there are chances to be had, thus an increase in volatility is not always a bad thing. You have an opportunity to rebalance thanks to volatility. In order to help you diversify your portfolio, you must hire a financial counselor or broker.
I'll suggest you create a diversification strategy because building a good financial-portfolio has been more complex since covid. Recently my colleague advised me to hire an advisor, surprisingly I have accrued over $120K under the guidance of my coach during this crash. She figured out Defensive strategies to protect my portfolio and make profit from this roller coaster market.
@@duane_29 I’m new to all this, heard it's a good time to buy and basically I've just got cash sitting duck in the bank and I’d really love to put it to good use seeing how inflation is at an all time-high, who is this coach that guides you, mind I look them up
@@EllenAbrex I began with a pundit by name "CHRISTINE JANE MCLCEAN’’ Her approach is transparent allowing total ownership and control over my position and fees are very reasonable in comparison with my ROI.
@@duane_29 I searched her up online and checked out her credentials since I was so intrigued. Top-notch! I emailed her to inquire about accepting new clients.
They bail out big companies but my dad lost everything and we suffered for 10 years
We're living in the midst of such open corruption to date. Brokers blocking the ordinary man from making money in order for these hedge funds to profit. Sickening
@@abzy3k1 right like Obama spying on citizens and no one gave af
@@abzy3k1 I hope a investigation is on the rise! The elite think this will go away but the following is getting bigger and bigger!
You might be able to avenge him! Buy GME and AMC stock! Go to the moon!
@@adelaide7822 i am idiot but i today i invenst in amc dont careeeee
Warren Buffet: "If I knew what the next crisis is going to be like, I'd be a rich man! Oh, hang on a minute...!"
Klaus Wolf lol yeah he already is a rich man.
Are u suggesting onset of dementia?
Vivek Tammana no he is suggesting buffet is greedy is insinuating if he knew when the crash would he he would be able to cash in before the market fell.
@@kylemutti2992 no he's insinuating that nobody can predict these market crashes that ppl somehow think are possible to predict
True 😂😂
Rule of thumb: if you’re winning at life, You wouldn’t continue winning if you said more than you’re supposed to.
Not really. Some successful, big mouths or there.
He really said a whole lot of nothing
What did you expect him to say?
i think he said everything i wanted
Listen carefully .
To be a little more precise -- He took great care, to say a 'whole lot of nothing'.
Avyishek Vijay Dass but he said they should have been in jail
HELLO GUYS WELCOME BACK TO ANOTHER CRISIS!
This time you might even die. Have fun everyone.
Going to be bad
@@itz.ant07 not just bad.. worst! this will last at least till end of 2020.
it was different now, it just not taking somebody jobs and business, but lives as well... stay safe everyone, #stayinhome
@S S event 201, we already prepared for financial crisis
"It is ludicrous to believe that asset bubbles can only be recognized in hindsight."
-Micheal Burry
Seems like he’s learned they don’t always pop when you think though. Which is kinda the same as only recognizing in hindsight. The game is rigged.
@@hopbup7401 bubbles don't pop when they should cause the government & treasury step in to prop it up at the cost of people's tax money
I agree with Michael Burry. In 2005, the New York Times had an article about how millions of subprime mortgages were currently charging a “teaser” interest rate. Virtually all of those mortgages were going to raise their rates much higher as the teaser rate period expired.
I told my friend he should sell his house ASAP because in two years (2007), millions of people will be panic-selling their homes. I knew my friend couldn’t afford a higher mortgage payment, so, he would be one of those people (and he was).
It doesn’t take a genius to know that if something suddenly becomes a LOT more expensive, fewer people can afford it. Also, banks had ZERO incentive to warn customers about how not only the customer’s mortgage rate will go up, so will tens of millions of other mortgage rates will also - and at the same time.
As for the customers being at fault for buying a mortgage they couldn’t afford, that is bunk. The customers could and did afford their mortgages - until their interest rate went way up. The United States has a reliably good economy because customers can USUALLY buy products and services without having to become experts in those products and services. This allows customers to focus on the work THEY do for a living. We want car mechanics to be knowledgeable about cars - not the adjustable mortgage rates of millions of home owners. The loan officers should be knowledgeable about that stuff AND protect their bank’s investments - without depending on a taxpayer-funded bailout they KNOW they will need in two or three years.
@@thetooginator153 I agree with everything expect the last part. The people who took the home loans from the banks were just as guilty. They wanted all the benefits of the mortgage without any of the risks. When the risks materialized, they cried "ohh what about me?" No one made you take the loan.
The banks definitely should NOT have been bailed out nor should the people have been.
@@jamespeterson8482 ABSOLUTELY! You’re the first person to know that you CAN’T afford something! If you need creative financing, that would be the first red flag 🚩!
You can clearly see that this man knows exactly what is going on but it´s not in his best interest to real talk about it, he can point any fingers because ... you know.
Leon Andres Rojas Martinez it is simple, money and politics are similar in a lot of ways. You learn by time that (especially in business) you do and say the things that bring value to you. Anything else is simply either a waste of time or a foolish risk.
احمد يونس your brand is everything in the business world
He can't name names because most of them didn't go to jail. One of the worst, Angelo Mozillo, never went to jail and keeps a low profile in his California resort community.
Friend s
painful to watch a decent man lie fo 5 minutes straight.
2008 was due to two things: lessening of financial government oversight; and the subprime crisis. People who should never had bought homes were magically okayed. This was not unique and this battle goes on. We will always have instances where the govt. was too laissez-faire, or far too restrictive. As for subprime, virtually every category of products, from beds to cars, has always gone after the subprime buyer; in fact, most of their profits have often come from there, due to credit rates and payments.
I think you might be a genius. I haven't heard of any of this a million times already.
So clueless.
People who don't deserve still get okayed.
It has nothing to do with “deserving”, it should be “are you qualified”? The fact is liberal Democrats, as a result of their vote-buying legislation called the CRA, made it acceptable for banks to approve those for mortgages who were not “qualified”. Banks merely took advantage of what the liberal Democrats had wrought.
It was also companies and businesses who bought homes. Quite a few of them had 50-100 mortgages at one time.
"If you Wait Till You Know Everything, It Will be Too Late" Good advice for us people who think IQ will somehow make us better investors. We need more Discipline, not more Knowledge.
Well said.
Well said.. Warren Buffet philosophy is another level
Love your statement
One of the best quote I have read in a long long time
So true
I choked in disbelief when she asked him “so what did you learn from 2008”
Nobody went to jail. AMAZING
nelsongn9 except one.
Like he said, some were shamed, but they left rich. As if these jerks cared what was said about them, as long as they got their money and left....
Nobody broke any laws...
You can walk a fine line of not breaking any laws, but people are scoundrels for doing what they did, giving bank loans to people to whom they knew from the get go who wouldn't have been able to pay back their mortgage loans. House lost, money lost, bad people got their money, kept THEIR house and got off scott free. But of course, they didn't break any laws, ....
Natasha Love If I borrow $1000 from my friend, and I don’t plan to pay him back. It seems like I’m the real scumbag. Sure my friend might be an idiot too. But he lost $1000.
That’s pretty much what happened. Many banks nearly went bankrupt. It was the governments decision to only bailout the banks and not the American people.
Larry Summers told Obama he should ask for a $1.2 trillion stimulus but obama asked for half of that because the sticker shock would have hurt his chances of getting re-elected.
Obama’s self interest was why the American people didn’t get bailed out
Back then the deficit was $6T and they all said it was terrible…today it’s $32T and not a word
trump raised national debt 8.5 trillion in 4 years
"if you wait till you know everything, it's too late."
- Warren Buffett
- The Billionaire with insider information.
@@ConsensusX Yep. Lehman Brothers and AIG in 2008 secretly went to Buffet for a loan and he refused, he asked for a substantial piece and guarantees, way before both got insolvent and rescued by the US Gov. Anyway, good signal to offload positions.
"If you wait 'til you know everything - it's too late."
At the very least, I now grasp the concept of leverage.
Creating wealth and financial freedom isn't as tough as many people believe. Building wealth and remaining financially stable indefinitely is a lot easier with the appropriate information. Participating in financial programs and products is the only true approach to make a high income and remain affluent indefinitely.
Most people simply enter the foreign exchange market without comprehending matters like this.
The first stage in building money is determining your goals and risk tolerance, which you may do on your own or with the assistance of a financial counselor who works with a verified Finance agency. And also you can learn the facts about saving and investing and create a clear plan, you should be able to acquire financial security over time and enjov the benefits of income management.
That is why I work with John Desmond Heppolette, who introduced me to a better Financial community, a verified agency where I learned how money works and how to create it, as well as free books, courses, and daily lectures. You also get to meet new people, which was the best decision I ever made.
_ You are correct! Working with a financial advisor who has worked in a solid financial firm for a long time, such as John will actually set you up for success in life. I'm delighted I was able to reach out to "John Desmond Heppolette" earlier this year because while others were grumbling about the downturn in the markets due to the state of the economy, I was busy learning from him and eventually made over seven figures in the first quarter alone, which is why it's always good to join the correct community.
Please who is John Desmond Heppolette..?
I remember watching this like every else and couldn't believe it
I was 9 back then, all I can do is laugh at the people’s reaction
Amazing how the ripple effects of this crisis are still felt today
lol everyone acts like they know what’s going on just because you watched the Big Short
It was a well executed and informative movie, though
Big short says more than he does here!
Because it's a 2-hours movie and not a 5 minutes clip?
Big ole facts
Big Short didn’t tell the whole story. It was just a blame someone that isn’t me kinda story.
"they went away rich"
what a nice way to put it...
never studied finance, have nothing to do with finance. Still I'm always fascinated by all stories about financial crashes
You have everything to do with finance you just don't know that.
Basically this crisis boils down to many people with low debt to earnings ratio FICO income verification stats want home, banks offer predatory loans and evolved quickly into subprime (worthless) loans that were bundled into Mortgage Backed Securities and the banks stupidly exploited it when the Price and interest rates go up. And along the way, something about the energy crisis and deregulated European market
The "leaders" that he talked about at 3:07 are the ones responsible for the crisis. They made millions out of that crisis, and no one went to jail. This is crazy.
no prove and probably government backs them up.. so yeah civilians oh wait everybody just suck it up.
The government is just a sophisticated overcomplicated straw that the rich and powerful use to drink your milkshake. They were all bought and sold and paid long ago, courts included.
one of those leaders ben won a nobel prize in economics, so i suggest you go back on your facts
Checked that he could talk?
The US federal net debt grew by $1.2 T in the last 12 months. So we're still running a deficit similar in magnitude to that of 2008/9.
Everything he ever said usually correct. But the information he put out always means different things to the different group of audience. That's the danger of don't know what you don't know .
“If you wait till you know everything, it’s too late.” Great quote by Warren Buffett.
nah
I hearty learning tjis quote now
Actually i wait till i know the thing i should know..in this wait in my feeling i m should put my either work or hardwork to achieve my place where i should be really
@@PurpleWarlock Build that wall!
The way these people look at life is way different than most of us do
I think we needed Charlie Munger talk instead of WB. He is the straight shooter.
No one can match Charles Munger's intellect on this planet.
Siddharth Ananth so why aren’t you following Charlie Monger. You clicked on this video for a reason. He talks people listen even the naysayer like you.
no such thing as need or striaight or not, not need. say any nmw and any is ok
You didn't understand what he said because you're a moron
Charlie says it as it is
A man in his position just don't have that luxury to talk this thing honestly! He knows who's the culprits where and he knows what's coming around the corner! We all feel it! Debt supercycle!
He seems to say a lot without saying anything.
Bendy And His Friendzzz he’s an expert at it
There’s a lot to be grateful for, and lots to work toward. The concepts of health, climate and tools can really help us all…. It’s not just a safe space to work (which it is), but it’s purposeful and iron sharpening iron style community safe and effective insights and implementation help.
Cinderella going to the party... have been reading and listening to this intetesting man for 20 years continuously. He is amazingly right on his long term views. Hello From Tunisia
This guy knows a whole lot more then what he says. I strongly believe it would be against his best interests if he said anything at all and He knows it. He’s more self serving then what he appears to be. Just like Wallstreet
and people swallowed his cell phone excuse.....
yup. he is a spokesperson but probably stepped in like a hawk getting value at huge discounts but preventing collapse. win-win but incredibly shrewd.
I agree wholeheartedly Javier!
He's no more self serving than the avg human. Self preservation & making decisions in one's best interest is an animals basic instinct, so idk why you would think humans are different when we're animals lol
Every single human is self serving.
He actually didn't explain anything....
Kevin Taylor he didn’t. This man has too much knowledge. He knew the answers but he skated around most of them.
he didn't explain anything because Moody's caused the Financial Crisis. in 2008, BH owned 48,000,000 shares of Moody's. Hear him say, "there really weren't any originators" -- its laughable. Moody's opened the floodgates of the entire bond market !!!! Hundred of billions gushed into subprime bonds ONLY BECAUSE OF THE RATINGS AGENCIES ….. MOODY'S, FITCH, AND S&P.
These large scale timelines of ambiguity and worming better… the connections between sectors keeps getting illustrated over and over. The evolution of learnings is bringing us to a place where we can work without tearing our systems down.
This is basically the least informative video of all time.
Watch Big Short. It's a movie based around 2008 financial crysis and a few people who foreseen it coming and made a lot of money in the process. Really good movie that also explains the reasons for the financial crisis in relatively simple terms, so most people could understand without having much knowledge in finance.
Warren Buffet: Public Relations Ambassador for the 1%
OT Pie Flipper I never really thought of him like that. Interesting thought. Thanks.
Somebody has to do it
Subscribe back. Also follow me on instagram: ghill_investments. I show all my trades.
Johnny Ridenhour if you work 80 hours a week and live paycheck to paycheck, there is some major dysfunction in your spending habits and/or lifestyle choices. I want to emphasize major.
That is the type of person who should watch dave Ramsey videos, not warren buffet
Johnny Ridenhour also 2% Work is a little extreme. Being ‘rich’ means having it all on the line. I guess we can make the exception of some trust fund baby, but something like 80% ‘millionaires’ are first generation/self made wealth
Es un gigante de las finanzas,podría dar business classes a todo el planeta.
I was a security guard for Osram-Sylvania which a lighting company. We had armed escorts kicking out management. Didn't understand a housing crisis effected us. I was 23 then. Got to experience a lot of that crisis up close
No down payment on mortgages for houses lead to forclosure and banks became bankrupt
As I understand it, the sup-prime mortgage crisis was set up on purpose. To apply for a housing loan, your credit score was not a variable in the equation. It was not relevant. Those individuals who brokered these purchases received a commission. Incentive was there, to forward the process at every level, as high commissions were paid out. Greed was the inner voice overriding common morality and business ethics . . . if that even exists. Once the " housing bubble " imploded, all these foreclosures and accumulated debt, were rolled up into packages, where the value of each individual debt, was combined into a total debt. This total debt, which was essentially many account numbers, representing real people, combined into large debt " Assets" became currency to be traded. The final destination of this debt was to be sold off, as an asset, to non-U.S. international markets. The end result was the " World Economy " also taking a big hit. Each individual, that facilitated the movement of these debt bundles, gained a high commission. This combined debt, based on debt owed in the U.S. housing market, came to be known as " Toxic Assets. " The whole situation was set up to profit the individuals that made commissions, the companies theses individuals worked for, banks, governments, any human control mechanism in place currently, etc. It was a reset button, purposely put into play, to control all of you. Any positive or negative feed back is welcome. Feel free . . . to disagree. . . .by the way, I feel the student loan crisis currently in the U.S. is another example of a financial human control mechanism. So was the great depression and the 1913 Federal Reserve Act. . . .The world is a stage and we are all just actors playing a role. . . . apparently the role of many of us is serf. . .that needs to change.
@Verycoolgun US Government with the Stimulus Money paid to the big banks to cover the insolvent mortgages.
Interesting take. How have you came to it?
Well, that was a waste of time.
If you look at what this man invests in it's all monopolies that's how he's so rich
@@johnw8984 He is nobody's fool...
It’s only a waste of time because you didn’t hear the answer you wanted, he spoke the truth.
@@mjo3275 He didnt speak any facts.
@Dan Wruck Another vague comment. Oh no, he didnt.
at 4:41 yup listen to this man’s warnings
So vague it's like I didn't watch a video explaining the crisis...
1. Several called him for an investment in their firm to save their hide, and he wasn't stupid.
2. This man's metaphors are great!
Still waiting for the explanation
What caused the 2008 financial crisis?
The government tried to social engineer home ownership and "lent" money to citizens who neither had the means nor the desire to pay the loans back. When you let people finance 125% of the price of a house they have no skin in the game.
Yea and this time they are using the student loans as collateral
Government =/= banks. I agree government was way too l’assez faire, but I firmly believe that the crisis began with not only the idea of subprime mortgages, but the fact that these subprime mortgages were packaged and disguised as very stable, low risk.
@@Sara-ik5po they explicitly changed the rules to force banks to give out these garbage mortgages…
Stocks are not crushed that. Stocks are crushed on fraud like Madoffs.
I'd love to see a Thomas Sowell, Warren Buffett talk/debate.
"If you wait until you know everything it's too late"
What he tryna say is timing is everything,be quick to act.Buy the rumour,sell the fact.
You couldn’t be more wrong. Jeez
He was talking about how the regulators responded.
Cash in a financial crisis is worth 10x more than it is today. If you have money invested and the stocks crash, don't pull it out if u can. It will recover and become positive in the future.
This. Historically the world economy has always recovered from a crash and the current recession is a great time to invest.
They say the next recession is long overdue; I shouldn't time the market but hmmmm...
It started in 2006 within Florida, Las Vegas. The signs were there. Then it was subprime in 2007 that woke a few up. Yes, we all know about 2008 but the red light was already flashing well before that. A shame Buffett didn’t mention the printing presses in back of the room. #2019 #GirdYourLoinsEveryone
He "cant" tell the real reason.😂😂😂
@@jigartalaviya2340 what the real reason?
@@Deaabaldeabdeab that the people who are responsible sit on the same board of committees. he owns 5% of these companies who will be responsible for the next crash
Shame he didn't mentioned how Lehman Brothers and AIG in 2008 went to him for a loan and he refused, because he asked for a substantial piece and guarantees, way before both got insolvent and rescued by the US Gov.
@@FVBmovies 😱
I can’t believe he said all that with a straight face.
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Why ?
People borrowed money for houses that they could not pay-back... they were greedy too.
Banks are the culprits. If someone doesn’t qualify for the home loan - they should not give the loan.
"If you wait until you know everything, it's too late."
You know he’s thinking during this interview, “you all have no idea... you guys are all screwed. And soon too.”
subscribe to my channel. I teach and give tips to traders beginning etc. Also follow my instagram: ghill_investments for live trades i do everyday. I hide nothing like the famous traders. You get the real me. Every single trade is shown on my instagram.
Pretty soon as it turned out
MrFleischbrocken aged nicely
@@MrFleischbrocken yeah screwed hey. The market dipped, the smart people bought it and made life changing sums of money.
This is why you people will never be successful in this business, you see a crash and think “oh no, this is the end”.
Stop trying to predict world ending scenarios and just live in the moment
What if you bought stocks in 2008 at a low price and sold them now?
you'd be rich
You'd be part of the illuminati.
As long as you’ve bought the right stocks that is
Imagine investing in the S&P500 in 2008...?
@@abdirahmanabdikani9876 i know, i think about that all the time. but no point in dwelling on the past. we should just learn from it. the bitter/sweet news is.. it'll happen again. except this time it will be student loan debt or something else. the housing market might be effected too, but thats not where its going to start this time. so all you can do is be ready, be vigilant, and have a good chunk of cash ready to deploy and buy the stocks and etf's on your watch list. good luck!
Does anybody know what background music is being used in this video?
What's the name of background music?
Words of wisdom as always. I want to meet him one day......
“If u wait till u know everything it’s too late”
هيفا
The main problem with the GFC was mortgage backed securities that were given AAA credit ratings. Unfortunatlely, banks began lending to debtors who were not a good credit risk (subprime mortgages), of course, when interest rates increased these mortgages fell over. Not only did the mortgage bcked securities lose value but so did insurance schemes eg credit swaps taken out on the security. The result was AEG collapsed, Lehman Brothers collapsed and the good old taxpayer had to bail out the US banking system. The taxpayer got nothing in return, not even equity in the banks they bailed out. Huge transfer of weath from the indebted tax payer to wealthy institutions. Clearly, the US requires a well maintined regulated banking system as capitalism, by itself will occasionally collapse.
the background music makes this seem so epic lol
I can't believe the crash was 12 years ago! As you get older decades fly by like weeks 😂
“Let me issue and control a nation’s money and I care not who writes the laws.”
Mayer Amschel Rothschild (1744-1812), founder of the House of Rothschild.
Do consumers get a low interest rate also? With the economy so strong this is very reminiscent of the build up to 2008
Four Economic sectors. Primary, Secondary, Tertiary, Quaternary.
Is there a chart or website or channel, that breaks down WHAT time of year each sector is at its strongest?
As well as a chart that shows historical data Year by year for each sector performance?
Blaming him for making lemonade with the lemons given is a bit too much. Value investors don't really care about bubbles etc because in the long term the value is always going up. All he had to do was wait it out. He averages 21% ROI per year. if he saw an opportunity to profit 50% on any investment you can't really call him anything other than a great investor. Should all people thought like he does, that crisis would have been avoided. He always basicaly said:" don't buy when the market is up, it's stupid. Buy when it's low." And it's also stupid to call him on it since he has been saying that for years.
I respect some people having a different opinion on it but i believe he didn't do anything wrong, anything to cause the bubble. He just profited from it, like the great investor he is.
You're the only one around here who understands that Warren said all of these based on his point of view as an investor. Most people wouldn't get it or disagree, of course, because they're NOT investor.
Does anyone know the music?^^
Yeah: “same old song.”
I would pay to see Richard Wolf interview Warren Buffett.
Next bubble > student loans
Now when that gonna burst...
Victor Popov As soon as people start defaulting on their loans, making the underlying bonds lose value just like in 2008, maybe?
@@Rawdiswar or real estate bubble can burst too, those houses are getting impossible to buy
Pretty obvious that he didn't want to offend his friends from Morgan Stanley, Barclays UK XD
IMO. Anybody with a half a brain in the investment world not blinded by greed could see this coming. Jim Cramer? Let’s buy a few million in high yield CMOs. Default, no problem they’re insured.
"if you wait till you know everything - it's too late", said he
The bursting ideas and thoughts in his brain simply cannot be transformed into words.
so... when a market crash, do it happen naturally or do some needs to push it intentionally?
also say i have 10,000 share in a company, its value is 1 cost 100$... market crashed 50%... so i lost my 50% potiential money.... but it still mean i have 10,000 shares, right? and share price go up and down, so can't i hold on to my share in hope it may increase again? i hear about market crash, and all that, bit don't know how.. and why and all. can anyone explain? just a basic explanation would be ok.
Did he "explained" anything? He's just commenting.
Such a vague interview. Nothing got answered here.
Thanks
Did the lady watch the film? What did he learn from the 2008? He passed a great wisdom to the whole group of extremely smart people who were clueless of what the next steps to take!
Warren Buffett was the one whose idea saved America from the second Great Depression. Untold until now, although in that whole movie he only had two or three lines...
Can you post the full thing please? No edits.
Banks learned nothing from 2008. This will come back around again, hopefully not on such a devastating scale, but the housing market is really wonky right now. Lots of selling and developing and not much buying. Will be interesting to see what’s coming.
What do you think of it now, 2 years later?
@@eurekasevenwave2297 Looool thank you for replying to this and reminding me it exists. It’s an absolutely insane market still, obviously, but I cashed in on it big time. Out of pure luck bought right before covid and cashed out at the peak in the middle of this year and made almost $100k in equity in a year. So, it’s crazy but it made me money 🤷♂️
@@mohnjayer Hey man, gains are gains. I'm just gonna save up cash (whatever it's actually worth with the way the supply chain is going), and hope I can buy a foreclosure because I don't mind fixing up things on a home at a good price. It is an insane market, lots of talk about it never going down, which I can see why people believe...but I imagine they said the same thing back in '08, and while the fundamentals now may not be the same with subprime loans and a residential bubble, it's gonna have to give.
Charlie would have been great for this TBH
Sadly we've learnt nothing, it's happening again. This time will be far far worse.
you made this video right before we get into another recession.....
Nice video, very engaging from the beginning to the end. Nevertheless putting our time and effort in activities and investments that will yield a profitable return in the future is what we should be aiming for
I came to RUclips to learn how to trade after listening to a guy on radio talk about the importance of investing and how he made $460,000 in 4 months from $160k.
Somehow this video has helped shed light on some things, but I'm confused, I'm a newbie and I'm open to ideas.
Investing in stocks is a good idea, a good trading system would puts you through many days of success.
Exactly @mr Glenn, the trick is to diversify your investment, don't panic when everyone else do and invest consistently
@@ashleymiguel6579 That's impressive. Are you giving him your money or it stays in your trading account? What's really the idea behind copying trades.
@@ashleymiguel6579 Can I get his service outside the US. Or his broker is registered in the US only?
This How Rich People Tests Mic
“ 1 Billion “
“ 2 Billion “
“ 3 Billion “
.
.
How original. I wonder where you got this idea from....
Because I Too Test In That Way😬
There is a good deal to be learned by studying how depression triggers aligned in the past. So, to understand why the "Great Depression" occurred in the 1930s, one must look at what occurred during the years building up to the crash.
A significant amount of the credit made available during the 1920s went into land speculation. A good primer on what occurred is found in the book "Only Yesterday" by historian Frederick Lewis Allen. Not only did investors become captured by the frenzy of the Florida land boom, this same frenzy occurred in many cities in response to population increases that triggered a significant increase in the demand for both commercial and residential land. An agricultural land boom also occurred during the First World War, during which time farmers borrowed heavily to expand their land holdings and production. A few years was required after the war ended for European farmers to recover, but by the mid-1920s global production exceeded demand, prices fell, farmers defaulted on loans when government guarantees were removed, and rural banks failed by the hundreds.
As the land boom crashed, investors shifted heavily into the stock market, driving up prices well beyond what any fundamentals supported. Thus, by the end of 1929 the U.S. economy was stressed across almost all areas of production as well in the financial markets. To be sure, imprudent bank lending deepened the crash and lengthened its duration, but it was a crash in the making because of the failure to utilize tax policy to tame the credit-fueled, speculation-driven land markets. A few economists (e.g., Harry Gunnison Brown, Scott Nearing and John R. Commons) had argued the case made in the late 19th century by Henry George, who showed that cyclical booms and busts would be tamed only if the full or nearly-full public capture of the potential annual rental value of land and of rents from other sources (e.g., the broadcast spectrum) became public policy.
Harry Gunnison Brown was joined over the succeeding decades by a small group of economics professors who continued to make Henry George's case. One could argue that recessions that began again following the end of the Second World War would have been even worse if local governments did not capture some land rent via the taxation of real estate. However, as land prices climbed property assessments rarely kept pace. This made speculation in land an even more profitable investment.
Relying on out-of-date assessed valuations rather than current market values created a serious analytical problem for government statisticians. They simply did not understand that any increase in the price of land is inflationary and did not include such increases in their calculation of inflation. Another failure has been to accurately calculate the annual aggregate rent that is privately captured as unearned income (whether imputed or actual). Since the administration of Ronald Reagan, the federal government has not monitored land prices. The figures utilized in the econometric models relied upon by the Congressional Budget Office and the Federal Reserve are around 5 percent of the actual potential rent in the economy (see Joseph Stiglitz or Mason Gaffney on this particular problem).
I offer here a very rough estimate of the rent attached to just one part of the economy, the residential property market. At mid-2020, the median price of a single-family property was around $295,000. There are about 140 million existing housing units in the United States. If we assume a fairly conservative median land-to-total value ratio of 35%, this means that the aggregate residential land value in the U.S. is $103,250 per property, multiplied by 140 million = $14,455,000,000,000 ($14.455 trillion). Economic theory tells us that this aggregate land price occurs because of the capitalization of the net amount of rent that remains in private hands after taxation. If most or all of the rent were captured via taxation there would be nothing to be capitalized and land prices would fall to very close to zero. What the rent fund might be depends on the discount rate. If we assume that investors will invest in land if they can obtain an annual increase of 5%, the the rent fund would be calculated as follows: 5% of $14.455 trillion = $722.75 billion of rent JUST for the land under existing residential buildings. Add in the number of vacant residential lots around the U.S. and this figure will increase considerably.
Tragically, the public capture of land rent never became public policy, allowing the land market cycle to operate from boom to bust. It is on schedule to crash again in 2026. I have prepared a relatively short video in support of this forecast for anyone who reads this and has an interest in more details:
ruclips.net/video/fmA6ZPs-wus/видео.html
Thank you, exactly the type of comment I was looking for! ❤️
@@janicaleflore Glad you found my rather long explanation useful.
HE WAS SO HUMBLE:)
Many people don't know that financial crisis is like spreading fire. FED was trying really hard at that time to save innocent people from the spread of crisis. Only few people know it such as Buffet.
FED trying to save innocent people xD you sir are an idiot.
He definitely knows a lot more about this 💯 .
Confidence is Maintaining a Roof over your head ..reliable work and food on your table... Be grateful for that...