Results tagged “Economic Collapse” from HAWT action [hot ak-shuhn]

Economic Collapse - Boiled Down. Part 5: Housing Boom

By John de Guzman on March 19, 2009 11:00 AM | | Comments (0) | | | |
Many months ago, I posted Writer's Strike - Boiled Down.  Looking back, I see a series there, where I boil down situations for you all to sip and digest with ease.  This Boiled Down post is a multi-part bonanza, studying our Economic Collapse.  Part 5?  Housing Boom.  Stay with the series to get all the way to the Fed's action to help.

Economic Collapse - Housing Prices.pngWe're really proud of this Economic Collapse series at HAWTaction.  We've hunted down the sources that best boil down the complex Economic Collapse and bring them to you.  Check out any post you may have missed to be on schedule with this newest update:

This update, Part 5, isn't going to be as lengthy or detailed as the previous posts, but it's just as important.  When you look back at this Economic Collapse series, there's a reason it starts with how banks and Wall Street manipulated home loan requirements to sell as many properties as possible.  That first post explores that financial recklessness.  Our biggest concern here, at HAWT, is that people say they had no idea this economic collapse was coming.  Not only do I beg to differ, but I call bull shit. 

It's graph time.

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Continue reading Economic Collapse - Boiled Down. Part 5: Housing Boom.

Economic Collapse - Boiled Down. Part 4: Commercial Paper

By John de Guzman on February 9, 2009 12:30 PM | | Comments (2) | | | |
Many months ago, I posted Writer's Strike - Boiled Down.  Looking back, I see a series there, where I boil down situations for you all to sip and digest with ease.  This Boiled Down post is a multi-part bonanza, studying our Economic Collapse.  Part 4?  Commercial Paper - Boiled Down.  Stay with the series to get all the way to the Fed's action to help.

Commercial Paper Market.pngSummary so far: Part 1 of this series, Housing, a surplus of investors pushed housing standards lower for mortgage approval.  Once the housing market started slipping, it set in motion a string of events that were compounded by non-existent (but much needed) government regulation.  Part 2, Leverage, explained how financial service companies "over-leveraged" themselves, borrowing too much money given the capital they had (30 to 1 in some cases).  That's fine when the market is going well, but once it collapses, like it did, being over-leveraged can destroy you.  (I'm looking at you Lehman, A.I.G., Citibank, Bank of America, Washington Mutual...)  Part 3, Credit Default Swaps, looked at an unregulated "insurance" that was sold to guarantee investment targets' solvency... well, when the housing market collapsed and players like Lehman went under, paying up was impossible.  (I'm looking at you A.I.G., Citibank, Bank of America, Washington Mutual, hedge funds...)

Now?  Part 4.  The Commercial Paper market.  Before this economic meltdown, the commercial paper market was nothing to me.  An unknown.  Like credit default swaps.  Or a stock portfolio that could shrunk over 50% in one year.   Well, let's explore and let's see how this was the indicator Henry Paulson pointed to when he was yelling "fire!"

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Continue reading Economic Collapse - Boiled Down. Part 4: Commercial Paper.

Economic Collapse - Boiled Down. Part 3: Credit Default Swaps

By John de Guzman on January 8, 2009 5:00 PM | | Comments (7) | | | |
Many months ago, I posted Writer's Strike - Boiled Down.  Looking back, I see a series there, where I boil down situations for you all to sip and digest with ease.  This Boiled Down post is a multi-part bonanza, studying our Economic Collapse.  Part 3?  Credit Default Swaps - Boiled Down.  Stay with the series to get all the way to the Fed's action to help.

Credit Default Swap.pngPart 1 of this series, Economic Collapse - Boiled Down.  Part 1: Housing, focused on the housing market and how a surplus of investors pushed standards lower for home mortgage approval.  It was so reckless and daring, it could be considered criminal.  Once the housing market started slipping, it set in motion a string of events that were compounded by non-existent (but much needed) government regulation.  Part 2, Economic Collapse - Boiled Down. Part 2: Leverage, explained how financial service companies "over-leveraged" themselves, borrowing too much money given the capital they had.  For every dollar some companies had, they were borrowing 20 to 30 dollars against it!  That's fine when the market is going well, but once it collapses, like it did, being over-leveraged can, quite simply, lead to bankruptcy.

Part 3 will cover a financial tool called the Credit Default Swap, a term practically unknown three months ago.  Now, millions include the term in their prayers.  If I prayed, I'd be one of those people.  That’s why I have a blog and you come to learn things.  So, read on.  And learn.

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Continue reading Economic Collapse - Boiled Down. Part 3: Credit Default Swaps.

Economic Collapse - Boiled Down. Part 2: Leverage

By John de Guzman on November 20, 2008 10:00 AM | | Comments (3) | | | |
Many months ago, I posted Writer's Strike - Boiled Down.  Looking back, I see a series there, where I boil down situations for you all to sip and digest with ease.  This Boiled Down post is a multi-part bonanza, studying our Economic Collapse.  Part 2?  Leverage - Boiled Down.  Stay with the series to get all the way to the Fed's action to help.

Leverage.pngPart 1 of this series, Economic Collapse - Boiled Down.  Part 1: Housing, focused on the housing market and how a surplus of investors pushed standards lower for home mortgage approval.  It was so reckless and daring, it could be considered criminal.  Once the housing market started slipping, it set in motion a string of events that were compounded by non-existent (but much needed) government regulation.

As the economy rode the winds of climbing house values, companies threw leverage out in front like a kite to pull them more quickly into risk.  So, let's take a look at leverage, eh?  It's a key part of the Economic Collapse.  To help boil this down for you, I'm going to call on NPR's October 20th Planet Money podcast, a daily broadcast that focuses on the state of the economy.  Things are moving so quickly, the show's hosts make sure to point out what time they record the show every day.  Conditions at 9am could be muuuuuuuch different than those at 4pm.

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Continue reading Economic Collapse - Boiled Down. Part 2: Leverage.

Economic Collapse - Boiled Down. Part 1: Housing

By John de Guzman on October 24, 2008 1:30 PM | | Comments (3) | | | |
Many months ago, I posted Writer's Strike - Boiled Down.  Looking back, I see a series there, where I boil down situations for you all to sip and digest with ease.  This Boiled Down post is a multi-part bonanza, studying our Economic Collapse.  Part 1?  The Housing Collapse - Boiled Down.  Stay with the series to get all the way to the Fed's action to help.

foreclosure-next-exit-sign.jpgThe only coverage HAWT's had on This American Life was regarding the TV show on Showtime (still the highest recommendation we've ever made @ HAWT... go watch that episode.)  But This American Life made its name on radio, as a show out of Chicago Public Radio.  It's safe to say the shows are unmissable, and available for free on their website or as a podcast on iTunes.

An example of how kick arse TAL can be?  It had a show back in May that explained the Housing Crash better than anything else I've ever heard.  355: The Giant Pool of Money.  Feel free to listen there, or continue on with HAWT.  We'll boil this down... after This American Life, um, boiled it down... 

Get ready for a steamy eye opener.  Long and entertaining.

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Continue reading Economic Collapse - Boiled Down. Part 1: Housing.

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