Harris Economic Plan and 2008 parallels

you know when you watch back a video and you're like man I missed a few things right but there's so much to it that it's insane thing is is you have to go back to the 80s with Savings and Loan what happened was Reagan and and lots of people wanted to somewhat deregulate the financial system and allow more opportunity okay and so a process somewhat began then Mr keading who was the CEO of savings and loan decided that he was going to give some money to five Senators campaigns in return for a little push of some extra deregulation during this time frame Banks were very separated so I like to tell the kids I compare it to like a firestone or a Midas okay so back in the day when you needed to go get tires changed you went to a tire shop when you needed to go get brakes you went to a break shop when you went to go get a muffler you went to a muffler shop today you can get almost everything done at the same shop well back then this is how Banks were a bank you got a checking account and you got a savings account there was investment Banks where you did your investing and there were mortgage Banks where you got your mortgage so when he gave money to these political campaigns they actually pushed it so that it would be deregulated meaning that first of all they could offer more services and two they could invest in more things than they were allowed to invest in before they were also allowed to leverage more money than they were before which only means that they were allowed to borrow more than they were in the past now now in 2008 when they're talking about leverage they were doing it 33 to1 meaning they were borrowing 33 more times than what they had into these cdos now going back to Savings and Loan one of those Senators was John McCain John McCain and you know what they all got a big slap on a wrist and like a public um little statement of how they egregiously screw with the financial system most of them kept their job as we know right so then when you go to 2008 with more deregulation by the SEC because these guys are asking for it well when Bush opened that door for everybody to own a home what it did was it allowed Banks to kind of push the limits of who they lent to and then they offered subprime mortgages which are which is an arm loan where Maybe the first three years you're paying this amount but then it jumps up that interest rate jumps up sometimes crazy amounts they were also predatory lending they were going after anybody to get them to do this mortgage now with deregulation what also happened was that now the mortgage companies could sell the mortgage okay and what ended up happening was the investment Banks started buying mortgages including the subprime then they created the CDO which is almost like a mutual fund or an index fund except full of mortgages that's what they did they made a lot of money investing on them a few people which um oh hold on a second okay now in the clip that I showed in the last video with Henry Paulson um who was the hedge fund guy I think that was am I getting the Paulson's St n nevertheless a lot of hedge funds noticed this some of them prayed on it some of them bet against the banks who were doing it which is what the big short is about great great great movie also based on a true story so this is what they did and this is why it's so familiar there's so much more to the story and all the things that were involved all the banks that got involved the biggest part of it was The Leverage when they allowed them more leverage what they were doing was a gigantic Ponzi scheme that's exactly what all these Banks did these investment Banks was a giant Ponzi scheme of of putting things together that weren't worth anything for you to invest in and then they would make money on it just to pay back it was like a giant Ponzi scheme now during Savings and Loans what them in trouble was that they started investing in junk bonds the difference between Savings and Loans and 2008 is that leading up to 2008 all of the rating agencies um SNP Moody all of them were rating these cdos that would have been considered junk Bonds in any other world AAA they rated them as high as a treasury bond that's safe that's why so many people lost their ass a whole bunch of people up there didn't they all walked away even when we bailed them out they all walked all those CEOs all those investors walked away with a fortune even after we bailed them out so yeah I when she said Goldman Sachs she lost me now I will say this and I need to look further into it but at one point Donald Trump and uh had mentioned Larry Summers this is another dirt bag so I almost hope Donald Trump sees this because we all know what Larry Summers was involved in and he was part of the problem big huge part of the problem he should not be used he definitely didn't learn any lessons and again he's been in all the cabinets when Obama came into office after 2008 and said he was going to fix all the regulation do you think that he did absolutely not not absolutely not so anyway I love business but man is there a dark side