Look, I understand the sub prime packages were less then desirable, but so were high yield bonds (junk bonds) in the 80s which caused a bit of trouble too... The problem is with the comments of people after the crash attacking the lenders without examining WHY they changed course.

The fact is, the banks were attacked for years for being so called racists for not giving more loans to minorities. However, the obvious reason they didn't was because they statistically had less money as a community. The banks are like most people and don't like being called racist or have people screaming in their faces in board meetings.

If you follow the rise of the worst lending practices you will see the rise of political activists pushing them. Personally I wouldn't have cared if they bothered me, but corporations are weak and callow. I mean look at how they dance for the twitter mobs insane whims today.

Should the loans have been given? Probably not, but I will never excuse people that sign a contract. Just like the people that purchased high yield bonds, they were looking for a great deal.

Btw, to answer your original post question, there isn't anything out there like the sub prime mortgages to cause that problem. These bank failures have been about the interest rate hikes which affected the bond market, causing the banks to lose money selling the worthless bonds. The market could crash (more) but it's not like 08.

Absolutely

This guy's an idiot, earnings and dividends are two weeks away...

100% chance you don’t know how to trade and are lucky. Losing 3K that quickly means you are gambling and not treading. Theta gang thanks you for your money.

Dude It is a nice question, don't let this people bully you.

visual mod writes better analysis' of graphs then seeking alpha. lets invest in this shit boys

You know they are closing operations?

Finally a SI post. Hope this stays up. I feel like SI will be the squeeze of the year

What you are describing I would say is a pre-burst situation. I have literally zero economic education, tho, but as it seems:

The government tries to reduce inflation by increasing the interest rates, adding pressure to the banks in the way. However, it tries to save the banks. Every bailout worsens the government problems and inflation, approaching to a scenario where it is no longer able to save every bank that implodes and you get a domino effect.

Just to emphasize, I know that I know nothing, but in this process, businesses or funds that require capital or go through a bad financial moment fail without options or bailouts, as they cannot ask for cheap money anymore.

From that you can guess, if a fund becomes bankrupt and it holds a vast percentage of a company, its shares are going to fall with the fund proportionally, to its share of the company and the final prize after somebody buys the fund. Now the question is, who is going to fall? and what businesses are most likely to be affected?

Personally, seems hard that SP500 falls deeper than a 10%, as its shares are spreaded around the world. Other companies, strongly supported by a single fund or bank, can have heavy falls even if the company is still profitable. what do you think?

Wen bull whip? Hee yah

Just an fyi, it has nothing to do with being attractive or unattractive. “Da government” is raising interest rates to curb inflation, doing so will inadvertently affect the US treasury’s cost of borrowing, but that is only one side-affect. The cost of interbank borrowing will rise due to higher fed funds rate (which is the main intended effect), banks will ultimately pass that on to their customers (many of the loans they lend out are tied directly or indirectly to fed funds) which further disincentivizes customer borrowing (credit cards, commercial loans, mortgages, etc).

This is obviously a very high-level overview and the actual mechanics are far more complicated, but if you pay attention to the Fed’s dual mandate (full employment and price stability as a reminder), every policy decision can essentially be boiled down to that

Banks will continue to earn money on the difference between their own borrowing rates (from other banks or depositors) and the money they earn on loans and now higher-yielding government debt.

We obviously won’t talk about the numerous issues that can come up because of this but that is basically how it’s “supposed” to work

Spend your 5 dollar biggie bag money you made from behind the Wendy’s dumpster

Robinhood analyst report changing from sell orange to sell black. Buy going from orange to green over the last week.

Sub prime mortgages didn't cause economic catastrophe in 08. The deliberate falsification of the rating of bundled mortgages in CDOs, which was done by the banks and ratings industries, did. This was further compounded by the derivatives market - all overwhelmingly at the institutional level.

The mortgage signers had nothing to do with that.

Then rather than being unwound, those institutions that realized this dumped their toxic assets onto other institutions, which then failed. Those failed institutions were then sold off to the larger institutions.

So no, this isn't the fault of lendees with bad money sense.

[removed]

>You're probably right about SI, it does look like the sell signals are reversing. I'm sure people will regret not getting in on it while it was under $10. I'm definitely going to try and get as much as I can while it's still cheap.

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Bro, there's totally economic disparity in the US, but of course the poors predominantly received the SUB PRIME mortgages.

https://youtu.be/PTUY16CkS-k

Watch this, there was a follow up bear video but clearly it hasn't aged well. I think the bears provide context for where we're at and what's to come.

The US dollar is dying, invest according imo.

Sounds like you are butthurt over losing some money since buying 😂. The real upside is AR applications when Apple launches their AR glasses. Keep sleeping though 💤

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So there's no responsibility by the person signing a contract? And was anyone defending the lenders when they didn't relax their policies and were being called racist? No, the lenders exist in the same world we do, with the same pressures to conform to society even if society is insane.

Whatever Jim Cramer says do the exact opposite.

That’s exactly what I’m saying NRA Forever 🫡🇺🇸🍆. Subprime mortgages created an illusion of affordability, but they often contained hidden fees. In addition to the adjustable rate, subprime borrowers had other added costs—sometimes even the principal increased over time.

Subprime loans were three times more common in low-income neighborhoods. Predatory lenders used unfair or discriminatory practices to convince borrowers to take on mortgages they couldn’t afford. Often, minorities were targeted: According to data from the Home Mortgage Disclosure Act, Latinos, and African Americans were 2.8 times more likely to be offered a subprime loan than were whites. Ohio’s Assistant Attorney General, Jeffrey Loeser, described how predatory lenders would even go door to door selling subprime loans to consumers who didn’t understand them.

Lenders used this easy opportunity to secure a bag and then were shocked that the people they approved (who shouldn’t have been approved) couldn’t pay it back.