Very good explanation and very accurate with one additional bit of information: The insurance companies who sold the credit default swaps also had insurance on those credit default swaps and that’s why it spread like wildfire.
A significant component in teaching is transferring information in a clear and concise manner, this small lecture exemplifies the principle. firstclass.
It's so refreshing to get a simple explanation, as opposed to complicated rabbit holes intended to to make one feel stupid or out of the loop. Thank you, sir, for just making sense.
While I understood the mechanics of how Swaps such as CDS's work prior to this video; your method of getting it across is definitely the best that I've seen.
Absolutely the best explanation ever about CDSs. You made it so simple! I am sure there are a lot of technical details about these instruments, but this is all we needed to know. Thank you.
Thanks for clarifying this in the most easy and cutest way. I love that blue barn and the way you modeling the dimes sharing between the banks and creditors. Its does help to make things clear. Even the 13 years old could understand this compex financial situation by watching your demonstration. God bless you! Love from UK.
Wonderful, wonderful explanation. I was a real estate for eight years, and I can tell this is exactly how it all works for the benefit of the banks. I've never met anyone who owned their home. When they needed to sell it, they were always upside down on their equity and usually took a loss or just walked away from it, leaving their furniture behind. The bank would foreclose on it and wait for someone else it up.
This was amazing!! I've tried a few different avenues and couldn't quite get the hang of this but you out it so simply and your demonstration was awesome. Thank you!!
Basically they bought options that paid off majorly. First time I saw this video I could barely grasp it. Now after day trading for 4 years it all makes sense.
Thanks for this simple explanation, I´ve been watching like 7 videos that last almost 15 minutes and understood nothing, I did like this one and the concept, thumbs up :)
I just LOVE this video!! I have been trying to understand the movie The Big Short and this video just explained the whole thing! Wow, big laugh at the end too thanks!!!
Very simplified, but a nice starting point to understand a bit more I guess. The kicker is the fact organisations who weren't involved in constructing or selling houses, issuing mortgages or selling insurance products put huge amounts of money in the game too - a game which ended in tears of course. A few who could see the risk and problem made a lot of money though, by effectively bettering (or hedging) the game would end in tears.
The fact that they bailed out banks with our money, took peoples homes anyway, yet didn't make credit default swaps illegal going forward tells you everything you need to know about who runs the show.
Thanks for you explanation. Really appreciate it! Takes intelligence to take a very complicated subject and explain it in a simple and accurate way, not many can do that. Great job sir!
@@AndyMillard I still don’t understand how people like Michael Burry made money? Did he short the swaps? If so, how? I mean… how does that look simplified the way you made this video? Thank you for all your help!
@@joshnic6639I really appreciate the question, Josh. I'm pretty sure I could do a video answering your question in a simplified way, but I have to admit that distilling a complex concept down to an easily digested video is itself a complex and time-consuming process (at least for me), and my time is heavily spoken for these days! That's why I haven't done a video in response to your request. However, I can say this: Yes, Burry recognized the over-saturated mortgage market and sold it short by shorting CDS's. Just as you could buy and trade CDS's, you could also sell them short. You can get the full (un-simplified) story by reading The Big Short or watching the movie. Sorry I can't be of more help!
I've seen movie on the same topic but didn't got to know at that point of time.. and Your two minute video and i got it.. That's called Teaching. Thanks Sir .
This is why Financial intelligence is a must in today's ever-changing economy. Whether you're investing in residential or commercial real estate or simply preparing for retirement. Financial intelligence knowledge is ever so needed today. And it's never too late to learn......
Hands down. By far, the most simple and to the point explanation of CDS
*only
100% agree
Just watched The Big Short and a lot of it went over my head so now I'm trying to watch all these explanation videos.
Big Short brought me here aswell 😂
ruclips.net/video/bc8q9H4bsps/видео.html
Saaaaame
Same
Same here
Finally, someone has explained the whole s**t-show in a way that I can understand.
Thank you, sir!
You're very welcome! Glad it was helpful!
You can show this video to a young child or a golden retriever and they will understand it, great job.
I understood that reference!
@@napoleonsolo5929 me too :)
Margin call was a great movie though I like the big short better.
Thanks Andy. You are better than Wikipedia.
better than Investopedia on this
I wish the entire world of derivatives could be put into my head just like you did with credit default swaps. Thanks for making it funny 😊
You are so welcome!
Don't feel too lonely.
Are you Bengali by any chance?
This is just the explain like I’m 5 that I needed. Thanks
Great video. It's like my Dad is explaining this stuff to me!
Very good explanation and very accurate with one additional bit of information: The insurance companies who sold the credit default swaps also had insurance on those credit default swaps and that’s why it spread like wildfire.
As my philosopher brother-in-law Chuckie would say: What a country!
So basically, this caused a chain reaction when the housing bubble popped?
Wowwww it's a really good explaination!
Simplest and easy-to-digest video related to what are the Credit Default Swaps. Thank you Mr. Millard.
You're most welcome!
I wish school professors could explain complex subjects as good as you
A significant component in teaching is transferring information in a clear and concise manner, this small lecture exemplifies the principle.
firstclass.
Very kind of you Patrick. Thank you!
You do not understand how simple you made this sound to me , i now fully understand it
It's so refreshing to get a simple explanation, as opposed to complicated rabbit holes intended to to make one feel stupid or out of the loop. Thank you, sir, for just making sense.
Thanks so much, Jess!
While I understood the mechanics of how Swaps such as CDS's work prior to this video; your method of getting it across is definitely the best that I've seen.
hands down the best explanation of credit default swaps on the internet
Splendid! Equally educational, funny, and conscious. Why aren't you every manager and professor?
Thank you, Chill Bro!
Absolutely the best explanation ever about CDSs. You made it so simple! I am sure there are a lot of technical details about these instruments, but this is all we needed to know. Thank you.
You are most welcome! Glad it was helpful!
I laughed my head off Andy. You are amazing. Way better than investopedia
Wow, excellent video, really holds up
Thanks so much!
Your video saved so much of my time. Most videos are long on this subject and you simplified it to a great extent. Thanks!
You are most welcome, J S Bath. Stay tuned! ~Andy
Thanks for clarifying this in the most easy and cutest way. I love that blue barn and the way you modeling the dimes sharing between the banks and creditors. Its does help to make things clear. Even the 13 years old could understand this compex financial situation by watching your demonstration. God bless you! Love from UK.
So glad it was helpful! I'm constantly amazed at the impact of this video all these years later.
I'm in the middle of learning about investing. I got hooked up with the story of 2008 and want to understand more. Thanks for the help.
“Thanks again, see you next time”
"Still has not been fixed." As mortgage rates rise, history will repeat itself.
That was a really creative explanation. Love the use of props.
SIR, YOUR explanation WAS BY FAR THE BEST!!!!!
Glad you think so!
7 years later: this is a problem that still has not been fixed.
I struggled a lot to understand CDS, thank you very much, one of the best explanations of the CDS on the entire internet!
Glad it was helpful!
Alan Greenspan said it best
"If theyre 'too big to fail' theyre too big"
There's Brilliance in simplicity!
Most simple explanation I've seen on Credit Default Swaps. Loved it. Shared it.
That was indeed brilliant sir , ya kept it short and sweet to the point ! The concept just pierced through my dumb brain , thanks 👍
Thank you so much!
Very cool channel! Great to have discovered it with this video on such a random topic 🌞
Great video Andy. Well
Explained
Thanks 👍Glad it was helpful!
the most perfect simple explanation ive ever seen
Thank you for that great comment!
If and only if Andy Millard were my teacher...Thanks Andy!
Superb explanation. Thank you
Excellent Video!!!
Yea I needed this, it’s looking crazy right now with credit suisee
Great! I have been watching multiple videos and reading articles and still couldn't understand it until now! Thank you!
So glad it was helpful, Karen.
Wonderful, wonderful explanation. I was a real estate for eight years, and I can tell this is exactly how it all works for the benefit of the banks. I've never met anyone who owned their home. When they needed to sell it, they were always upside down on their equity and usually took a loss or just walked away from it, leaving their furniture behind. The bank would foreclose on it and wait for someone else it up.
I like this way of explaining. Thank you.
Thank you. It was the only way I could make sense of it to myself!
This was amazing!! I've tried a few different avenues and couldn't quite get the hang of this but you out it so simply and your demonstration was awesome. Thank you!!
Glad it was helpful!
That was a great way to explain it!
Explained very well. crisp and simple. Thank you all the way from India. continue the good work.
Very happy to do it!
what a beautiful and insightful explanations. I really liked it. hope see more of this simple nature for complex financial term.
Glad you liked it!
Basically they bought options that paid off majorly. First time I saw this video I could barely grasp it. Now after day trading for 4 years it all makes sense.
My hat is off to you! Day trading would certainly send me to an early grave...
Fantastic video congratulations!!
I've been trying to read up and learn about CDS for half an hour, confused and Andy just explained it in 3 mins! Thanks Andy, keep up the great work!!
Happy to help! It was the only way I could explain it to myself.
It’s the Big companies faults not the people anyway but she was like buy a house
And thank you for explaining
Bro that intro was crazy funny! I am watching this at 5am and just fucking yelled AHAHAHAH
its funny that this is still happenning, years and years after. We really dont learn on our mistakes. 2023 here
We Americans sometimes tend to have a short collective memory.
This was so wholesome.
Thanks for this simple explanation, I´ve been watching like 7 videos that last almost 15 minutes and understood nothing, I did like this one and the concept, thumbs up :)
Great to hear it was helpful!
wow this guy is absolutely fantastic
I just LOVE this video!! I have been trying to understand the movie The Big Short and this video just explained the whole thing! Wow, big laugh at the end too thanks!!!
Good Video sir. Thank You Dr Burry.
So that's what happened. I wish the Big Short would've depicted it this way.
Great video !
Best explanation for CDS. Thank you!
WOW! I'm a pretty smart guy, but this is the first time CDS's have been explained in an understandable way.
Thank you!
So glad it helped, Bill. Thanks!
Ok. Now I'm pissed off again.
Wrinkle obtained! THX!
Fantastic. Exactly what you need out of a basic, introductory explanation. Thank you for not using jargon!
Great explanation,quick but clear!
Glad to hear that!
Very clear explanation. Thank you!
Thank you , best explanation on the web
Glad you think so!
Beautifully succinct.
Thank you kindly!
Very simplified, but a nice starting point to understand a bit more I guess. The kicker is the fact organisations who weren't involved in constructing or selling houses, issuing mortgages or selling insurance products put huge amounts of money in the game too - a game which ended in tears of course. A few who could see the risk and problem made a lot of money though, by effectively bettering (or hedging) the game would end in tears.
BRILLIANT @@@! SIMPLE - EXACT - RELEVANT
Brilliant! "What could possibly go wrong....?"
Glad you found it useful!
Couldn't have made it any easier. Thank you
Excellent explanation
Great and simple explanation. I subscribed to the channel. Thanks.
Thank you for commenting and subscribing, Milciades.
So that's what jim lahey would look like sober
Now that's how you describe Credit Default Swaps! I need you to teach all of my series 7 content lol
Thanks so much!
The best explanation I’ve seen
🤯 this video wrapped perfectly a chapter I’m reading on this subject! Nicely done sir!!
Glad it was helpful!
The fact that they bailed out banks with our money, took peoples homes anyway, yet didn't make credit default swaps illegal going forward tells you everything you need to know about who runs the show.
That was awesome
Nice Explanation ...Thanks Andy...Request to create videos on FRM courses...
great simple video
Thanks for you explanation. Really appreciate it! Takes intelligence to take a very complicated subject and explain it in a simple and accurate way, not many can do that. Great job sir!
And here we are again
Hey dude that's just awesome...
Brilliant explanation
Just great!!
Many thanks for this simple explanation!!
Glad it was helpful!
That was an incredibly good and simple explanation! Thanks!
Glad it was helpful!
@@AndyMillard I still don’t understand how people like Michael Burry made money? Did he short the swaps? If so, how? I mean… how does that look simplified the way you made this video? Thank you for all your help!
@@joshnic6639I really appreciate the question, Josh. I'm pretty sure I could do a video answering your question in a simplified way, but I have to admit that distilling a complex concept down to an easily digested video is itself a complex and time-consuming process (at least for me), and my time is heavily spoken for these days! That's why I haven't done a video in response to your request. However, I can say this: Yes, Burry recognized the over-saturated mortgage market and sold it short by shorting CDS's. Just as you could buy and trade CDS's, you could also sell them short. You can get the full (un-simplified) story by reading The Big Short or watching the movie. Sorry I can't be of more help!
outstanding!
Easiest to understand explanation of the subject I’ve found. Thank you
Thank you Andy, here's my Subscription
Thank you too!
I've seen movie on the same topic but didn't got to know at that point of time.. and Your two minute video and i got it.. That's called Teaching. Thanks Sir .
You made my day!
This is why Financial intelligence is a must in today's ever-changing economy. Whether you're investing in residential or commercial real estate or simply preparing for retirement. Financial intelligence knowledge is ever so needed today. And it's never too late to learn......
Nice and easy,thank you Sir
Simple and very well explained, thanks Andy
Very welcome
And on that cheerful note.... Shake that money maker
wowww thank you so much. Easy peasy lemon squeezy
great explanation of a CDS