Question

Answer the following:1. What changes in the 1970’s led up to the 2008 financial crises? 2. What were some of Mark Baum’s criticisms of the bid banks? 3. What was Michael Burry’s discovery? 4. What does it mean to "short"? (HINT: Actress Margot Robbie explained it in the film while drinking champagne and taking a bubble bath). 5. What was the issue or problem with mortgage bonds? 6. Why were people skeptical regarding whether the housing market could crash? 7. How does Jared Vennett explain modern mortgages? (HINT: Jenga). 8. What is a C.D.O? What is Anthony Bourdain’s explanation? 9. What does Mark Baum and his team learn when they visit the housing development in Florida and interview the mortgage brokers and the exotic dancer? 10. What are the markers or indicators of a housing bubble? 11. What does Mark Baum and the others learn at the American Securitization Forum in Las Vegas? 12. At the sushi restaurant, what does Mark Baum learn? How does Selena Gomez and Richard Thaler explain the synthetic CDO? 13. On March 8, 2008, what triggers a drop in Bear Sterns stock? 14. What happened in September 2008? 15. What impact did the 2008 financial collapse have on the American people?

Answer 1

Answer:

Hi

1-The participation of commercial banks in the United States financial system fell from 39% to 25%, while that of investment funds increased from 22% to 47%.

2-Making investment decisions by independently observing the fundamentals of individual companies is no longer a viable investment philosophy.

3-Michael Burry experienced a bubble in passive investment.

4-Triple AAA mortgage banks were a scam and wanted to bet against them

5-There are enough people to buy the bonds with 2% mortgages

6-After the outbreak of the real estate bubble in the United States, there was the deepest slowdown since the Great Depression, and that served to make people aware of the damage that can cause real estate collapse.

7-Modern mortgages are formed by different tranches, AAA is paid first, B is paid last and suffers the payments before.

8-An obligation secured by debt through debt is a type of financial product structured and backed by ABS-type financial assets (asset-backed security). These types of securities were developed for corporate debt markets, but over time the CDO expanded further to also include mortgages and mortgage-backed securities ("MBS").

9-The lack of professional ethics and conflicts of interest are continually on the agenda.

10-Mortgages / Sales; GDP / Social Security Affiliation / House prices; Land / Housing Prices; Mortgage rates / Official price of money; Rental

eleven.

13-The rise in oil prices, rising inflation, credit stagnation.

14-The liquidity crisis of September 2008 became a crisis in the United States and around the world, due to the decision of Lehman Brothers Holdings Inc. to declare bankruptcy, the acquisition of Merrill Lynch by the Bank of America, and the concern for the American International Group (AIG) that needed the company to be rescued by the Federal Reserve.

15-Given the magnitude of the real estate market and the enormous size of the shadow banking system and the toxic financial instruments that it spreads, the real estate and financial crisis had a huge impact on the entire US and international economy, which flooded business balances of the world with bad assets or of uncertain quality.

Explanation: