“I view one of the big myths of the [2007-08 financial] crisis as that it was purely the effect of free markets, that this is what happens when you have free…
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Federal Reserve, Not Free Market, Caused Crisis says “Money for Nothing” Filmmaker Jim Bruce
The Fed isn’t trying to ‘learn’ lessons to make things better. They’re
continually trying to bilk Americans and make profit. It’s a private,
for-profit business w/a government contract.
WATCH: A look at the current Fed policy, incoming Fed Chair Janet Yellen,
the legacy of alleged free marketeer Alan Greenspan, and the future of the
U.S. economy and monetary system.
The idea of taming the Fed is a nonsense. In any case, the idea of some
body (probably government) seizing control of it in order to force it to do
what they want flies in the face of Libertarian principles as the Fed is a
private bank. Just end it and allow the principles of genuine liberty and
minimal government rise from the ashes of any collapse. Times will be
tough and there won’t be any benefit system but mankind adapts.
What caused the Financial Crisis of 2008?
*”I view one of the big myths of the [2007-08 financial] crisis as that it
was purely the effect of free markets, that this is what happens when you
have free markets,” says Jim Bruce, filmmaker behind the new documentary
“Money for Nothing: Inside the Federal Reserve.”*
Just stop the FED. Cut it off immediately and entirely. The Free Market
will figure out the rest.
A trillion dollars a year out of thin air?
Yeah, your money isn’t worthless or anything.
Nonsense. The crash was caused by Clinton pressuring lower lending
standards on subprime loans — thus making junk mortgages as safer
investment than Google.
The stock market is NOT owned by some small segment of the super-rich.
Pension fund assets are greater than the entire New York Stock Exchange
and 90% of NYSE and NASDAQ combined.
There are good arguments that the financial system would not have collapsed
if the Feds failed to bail out the banks in 2008/9. What definitely would
have collapsed were the big four privately owned banks and the extremely
wealthy investment class (who put their money at great risk). Instead the
Fed pushed the investment classes debt onto the backs of the US taxpayer
(people paying taxes while making <$25 an hour).
What caused the Financial Crisis of 2008?
Suspicious, very, very suspicious…Could be Jim Bruce be a FED’s agent
provocateur, a double agent a sellsword?
The Fed didn’t fix anything by printing a bunch of money and giving it to
the super rich, all they did was delay and severely worsen the inevitable
collapse of the U.S. dollar.
should get David Stockman on the show to talk about The Great Deformation
Awesome video thanks!
hey guys the Federal Reserve is the free market don’t change the subject.
what with the giant black box under the table ,,,anyone notice it?
Interesting
I stopped watching when he said the Fed saved the economy.
“Money for nothing…and your chicks for free”. All going according to
plan. Exxxcellll-ent.
–Van
I trust this mans demeanor, unlike Bernanke.
I haven’t watched the film, but I think we have not gotten out of the
current depression. The current standard for a recession/recovery is three
quarters of decreasing/increasing GDP, however, if there is no increase in
employment, there is no recovery. Bottom line, there is no such thing as a
jobless recovery. The unemployment rate is lowering now because people
have left the market and not because of job creation. This recovery is a
myth.
Wall Street firms [conduits] demanded exotic [read: questionable] loan
products for securitization and eventual sale to pension funds– the
majority of questionable mortgages were written by mortgage banks– NOT
depositories and thus not subject to CRA- to specifically poor Street
guidelines. they paid MORE for leower quality loans bc they could
securitize them w a higher coupon while relying on Ratings Agencies to AAA
them bc they were secured by houses.
i was a mortgage trader– i was in the room.
the Fed had nothing to do with it– it was misaligned incentives ab initio
It’s WAR. division is the cause not the cure. elites couldn’t separate and
control every society on the planet if the people weren’t so easily
divided. keep pretending and playing the blame game. it’s not that big of a
mystery.
“Free Market”? There’s never been a free market. As long as we continue to
support any currency-based system that is centralized, capitalism is an
impossible pipe dream that crony-capitalist supporters with use as a fairy
tale to convince the foolish and gullible. The only form of currency
anywhere close to true capitalism is bitcoin, but as we saw with the crash,
all it takes is banning the currency and the market can be manipulated by
central banks. The only way we’ll ever get anywhere close to a free market
is ending the fed, ending the current idea of a government, and most
importantly ending the control money has over government and vice versa.
Decentralized governance through direct democracy and decentralized
currency such as bitcoin or any other digital currency is the only hope
true capitalism has left. However, since it would require revolution on an
even larger scale than Iceland’s revolution, its probably not going to
happen any time soon.
Of course, this is before you consider that the side effect of crony
capitalism has cause entire countries to loose any buying power as a
consumer, thus making a system where even true capitalism would,
unfortunately, eventually devolve right back into crony capitalism due to
these countries laws interfering with direct democracy and making the
wealthy the feudalism lords while the poor continue to be subservient. At
the end of the day, we can’t win if we continue to limit our thinking to
only forms of capitalism. The only way we’ll be able to solve these major
problems is thinking outside that box and looking for alternative solutions
to crony capitalism and nation-state debt-slavery. One option would be
extinguish all debts in all countries, thus taking a nuke to all the
by-products that crony capitalism has left entire nations broke. The
problem is that it would require authority over the world economy, which
the current nation-state system effectively makes impossible without
devolving into WW3.
So to summarize, we’re basically fucked no mater what we try to do, and
there’s very little we’ll be able to change about our current situation
unless there is an international effort by the people and for the people to
work together on solving these issues, rather than letting centralized
banks be in charge of the world’s economics.
Of course its the Fed, because there is no free market. How could there
be?? A privately owned central bank printing credit dollars is the very
opposite of Capitalism. America’s marketplace is anything but free, with
laws banning products, government subsidies, taxes for small companies,
none for the megacorps. Walmart and McDonalds couldn’t exist in a free
market, because no one could work for less than a living wage in a free
market. Only government subsidy and assistance makes this possible.
It was caused by international regulations that the US accepts, where
government debt instruments and GSE sponsored debt like securities made
fromFannie Mae loans are given the highest ranking as the least risky
investments, so that banks everywhere buy and hold them for their reserve
requirements, because you don’t have to hold as much of them as you would
of a lower ranked asset. That’s why the mortgage collapse in the US caused
a near world wide collapse, when the tech bubble bursting a few years
earlier had not. International regulations did not make Intel stocks
something banks around the world held in their required reserves.
Lame, you can’t buy his movie in bitcoins.
The Fed plays such a huge role in the current version of the financial
system of course it would fail if it were ended, because it’s built to
*work* with the fed. If the fed was ever ended the *new* economy would have
evolve and “develop in a more sustainable way.”
The FED could be ended tomorrow. Yes there may be a transition period of
pain. But how is that worse than the pain we’ve experienced already and the
pain that is unavoidably coming? There is nothing in the constitution that
turns over the economy to a small group of ober powerful bankers.
Crypto currencies are going to smash this corrupt system to pieces.
The Fed only “unleashed” primal desires within the banking executives who
should’ve known better, if anything. THEY let their extreme financial
urges go unfettered, and we all paid the price. It certainly was not THE
FED that caused Lehman Bros. to collapse. The Lehman board was
responsible, first and foremost. It was the irresponsibility of Wall St.
that we had to watch out for, so proper regulation of that whole system is
definitely a must, and the Fed, unfortunately, to some extent, screwed up.
along with various administrations over the last 40 or so years
Don’t forget that newer institutions like Countrywide WERE NOT subject to
shit like the CRA or other anti-redlining standards. There was a “shadow”
banking system in place for a while. A lot of libertarians and
conservatives pretend as though the system was JUST AS UNCOMPLEX as it was
30-40 years ago, which is absurd. Plus… didn’t CARTER pass the CRA in 77
or 78? The idea that a law regarding banking that “forced banks to give
more loans to bad buyers” would somehow CAUSE A CRASH 30 YEARS LATER.. is
nothing short of ludicrous! Why didn’t the crash accompany the S&L
scandal, if anything? Why not in the 90s??
While the Fed may have had a HAND in the crisis, I think just blaming them
kind of passes the buck on the big banks and non-banking institutions like
Countrywide that, yes, DID have a weird “profit incentive” TO LEND OUT
SUBPRIME LOANS! They tapped into this previously-untapped market of new
homebuyers, and they just went wild. It was certainly not because, “Tehy
were forced into it.” Very few of these execs, such as the heads of
Citigroup or JP Morgan, will tell you, “We felt pressured to lend out all
these bad loans.” It was purely profit motive, in a VERY strange way
albeit. They could get a down payment, pass it on to Freddie and Fannie,
have them paid for somehow regardless of whether the actual borrower could
do it (F&F were “guarantors” and securitizers, right?) and then MAKE LOADS
MORE LOANS until the bubble burst. While gov’t certainly had a role, one
can’t minimize the Wall St. role, either! We do so at our own peril. To
some extent, there WAS a ‘free market’ cause, at least when it came to shit
like the availability of subprime loans and bankers taking advantage of
home-buyers, crap like credit default swaps and so much more. This is
undeniable.
Hell, read “All the Devils Are Here” for a FIRSTHAND account, based on
NUMEROUS interviews with banking execs, mid-level managers AND I think even
some regulators. It’s VERY insightful! Neither side (and esp. not
libertarians) has it totally right, as reality is oftentimes more nuanced
than we give it credit.
What caused the Financial Crisis of 2008?
What caused the Financial Crisis of 2008?
What caused the Financial Crisis of 2008?