THE FLAW
TRANSMISSION SCRIPT
CLOCK INFO: |
Title: THE FLAW |
Texted Master |
Production Company: Beak Street Films |
Frame Size: 1920X1080 |
Frame Rate: 23.98 |
Dur: 81’36” |
rx: 08/11/11 |
ch 1&2 Stereo Mix |
ch 3&4 Stereo m&e |
Time-codes
& Captions |
Dialogue |
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01:00:23:14 CAPTION A Studio Lambert Production 01:00:27:01 CAPTION in association with 01:00:29:08 CAPTION Dartmouth Films 01:00:32:10 CAPTION A David Sington Film 01:00:35:23 CAPTION Executive Producers Stephen Lambert Christopher Hird Luke Johnson 01:00:41:24 CAPTION Associate Producers Sarah Kinsella Heather Walsh Celine Fitzmaurice 01:00:48:03 CAPTION Archive Producer Jacqui Edwards 01:00:53:20 CAPTION Consultant Alex Crossman 01:00:59:24 CAPTION Graphic Designer Peter J Richardson 01:01:06:04 CAPTION Original Music Philip Sheppard |
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01:01:13:04 01:01:14:24 CAPTION Cinematography Clive North |
Reporter
(Archive) The bursting of the nation’s housing bubble adds up
to. |
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01:01:16:15 |
Reporter
(Archive) It’s a shake up on Wall Street. …bankruptcy protection. |
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01:01:21:14 01:01:25:09 CAPTION Film Editor David Fairhead |
Reporter
(Archive) … the government takeover of mortgage giants Fannie
Mae and Freddie Mac. |
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01:01:25:21 |
Christine
Romans (Archive) Alan Greenspan calls it a once in a century
financial crisis. |
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01:01:29:20 01:01:30:17 CAPTION Directed by David Sington |
Reporter
(Archive) Meltdown on Wall Street. The worst since 911.
One giant collapses, another is bought. |
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01:01:34:07 |
Reporter
(Archive) [INAUDIBLE] economic generals warn in
congress. |
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01:01:36:13 01:01:36:20 CAPTION NEW DEVELOPMENTS FEDS SUGGEST BAILOUT OR BUST |
Reporter
(Archive) Approve a $700 billion bailout or face dire
consequences. |
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01:01:41:07 |
Male
(Archive) The outlook for the economy and thus for credit quality remains uncertain. |
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01:01:45:19 |
Reporter
(Archive) I have talked to the heads of almost every single
one of these firms in the last 72 hours and he has no idea what it’s like out
there. None. |
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01:01:53:00 01:01:53:15 CAPTION ALAN GREENSPAN Former Chairman Federal Reserve Board, 1987-2006 |
Alan
Greenspan (Archive) Yes I found a flaw. I don’t know how significant or permanent it is but I’ve been
very distressed by that fact. |
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01:02:01:22 TITLE GRAPHIC THE FLAW |
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01:02:06:16 TITLE
GRAPHIC MARKETS MONEY MORTGAGES AND THE GREAT AMERICAN MELTDOWN |
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01:02:56:23 01:03:08:14 CAPTION Andrew Luan former mortgage bond trader 01:03:13:23 CAPTION now a Wall Street tour guide 01:03:31:16 CAPTION NEXT Financial Market Regulators House Oversight & Government Reform Committee |
Andrew
Luan Welcome to New York City. Financial capital of the world. Welcome to Wall Street.
This is the heart of American capitalism. Before I begin a few things about the tour. One is, I’m not used to the camera in
front of me. One is let’s make this
tour interactive. Feel free to ask me
questions. One of the things I love
the most is you guys getting the aha moments. If you can walk away today with a better understanding of Wall
Street, better understanding of the financial crisis I’ve done my job
right? |
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01:03:36:24 01:03:40:04 CAPTION Financial Market Regulators House Oversight Committee 01:03:47:05 CAPTION ALAN GREENSPAN Former Chairman Federal Reserve Board, 1987-2006 01:03:49:01 CAPTION REP. HENRY WAXMAN D-California, Oversight & Gov’t Reform Committee – Chairman 01:03:53:16 CAPTION Financial Market Regulators House Oversight Committee |
Henry
Waxman (Archive) Committee will please come to order. I will start the questioning. Doctor Greenspan I want to start with
you. And my question for you is
simple. Were you wrong? |
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01:03:54:08 |
Henry
Waxman (Archive) Be sure the mike is turned on. |
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01:03:57:19 01:04:00:20 CAPTION ALAN GREENSPAN Former Chairman Federal Reserve Board, 1987-2006 |
Alan Greenspan (Archive) Partially but let’s separate this problem into its
component parts. |
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01:04:05:07 01:04:09:13 CAPTION Robert Shiller Professor of Economics Yale University |
Robert
Shiller We’re talking about explaining history, major world
historic events. |
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01:04:12:11 01:04:18:03 CAPTION Louis Hyman Economic Historian Harvard University |
Louis
Hyman This is as much a wealth crisis as a debt
crisis. It’s a problem of wages as
much as investment. |
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01:04:20:17 01:04:26:12 CAPTION George Cooper Fund Manager Blue Crest Capital |
George
Cooper It’s a debt crisis but it’s also very much a crisis
of economic theory. |
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01:04:29:05 01:04:36:15 CAPTION Robert Frank Professor of Economics Cornell University |
Robert
Frank I think the income distribution was the initial
step in the dynamic that drove the debt crisis. |
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01:04:39:13 01:04:47:07 CAPTION Nell Minow corporate watchdog The Corporate Library |
Nell
Minow It’s horrifying.
This is, you know, all the people that we trusted have turned out to
be completely untrustworthy. |
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01:04:50:08 01:04:55:19 CAPTION Joseph Stiglitz Nobel Prize for Economics Columbia University |
Joseph
Stiglitz This crisis is a total failure of markets. |
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01:05:00:04 GRAPHIC MARKETS OR THE PRICE IS RIGHT |
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01:04:57:24 |
Robert Shiller So it’s not simple. |
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01:05:11:13 |
Andrew Luan In a short span of time between March 2008 to
September 2008 so many things happened.
Fear was in the market place.
And if someone was going to tell you in six months two of the top
investment banking would fail and they would tell you the top US insurance
company would fail. And they’d tell
you Fannie and Freddie, top mortgage issuers, bankrupt. Oh Iceland bankrupt. Bankers around the world. If someone would tell you this would
happen in a short six months you’d think they were crazy. But that’s essentially what happened. |
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01:05:47:11 01:05:50:09 CAPTION Financial Market Regulators House Oversight Committee 01:05:57:02 CAPTION REP. HENRY WAXMAN D-California, Oversight & Gov’t Reform Committee – Chairman |
Henry
Waxman (Archive) Doctor Greenspan you had an ideology. You had a belief that free competitive
markets are by far the unrivalled way to organise economies. We’ve tried regulation. None meaningfully worked. That was your quote. Do you feel that your ideology pushed you
to make decisions that you wish you had not made? |
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01:06:11:01 01:06:13:06 CAPTION Financial Market Regulators House Oversight Committee 01:06:26:23 CAPTION ALAN GREENSPAN Former Chairman Federal Reserve Board, 1987-2006 |
Alan Greenspan (Archive) Well remember that whether or not ideology is, it’s
a conceptual framework with a way people deal with reality. Everyone has one. You have to exist you need an ideology. The question is whether it is accurate or
not. And what I’m saying to you is
yes I found a flaw. I don’t know how
significant or permanent it is but I’ve been very distressed by that fact. |
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01:06:37:10 |
Henry
Waxman (Archive) You found a flaw in the reality. |
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01:06:40:10 |
Alan Greenspan (Archive) A flaw in the model that I perceived is the
critical functioning structure that defines how the world works so to
speak. |
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01:06:59:09 CAPTION It’s Everybody’s Business 1954 |
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01:07:07:04 01:07:27:17 IN-SCREEN
TEXT FREEDOM OF WORSHIP (on archive footage) |
Narrator
(Archive) It wasn’t so long ago in the history of man’s
voyage to a better world that ships were carrying eager passengers towards
the shores of a new nation that was just in the building. Our forefathers were constructing the
foundation of this nation by interlocking inseparably the blocks of our
political and economic freedom. |
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01:07:31:12 01:07:37:14 IN-SCREEN
TEXT THE RIGHT TO GO INTO BUSINESS (on archive
footage) 01:07:45:11 CAPTION Dan Ariely Professor of Psychology and Behavioral Economics Duke University |
Dan
Ariely In some sense economics, standard economics is a
very optimistic view of human nature right?
Everybody’s wonderful.
Everybody’s great. Every
person is a perfect calculator. And
that’s basically what it means is that we have lots of actors each of them
doing the best thing for them and that creates some kind of social benefit
for everybody. |
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01:07:56:07 01:08:11:12 IN-SCREEN
TEXT FREEDOM TO WORK IN JOB OF OWN CHOICE (on
archive footage) |
Narrator
(Archive) The way of life our forefathers established on this
foundation of freedom drew people from the far corners of the earth and all
those who set foot on these shores had the opportunity to build a better life
for themselves. Even young Jonathan,
an unskilled lad from across the sea hoped to find a job where he could
progress according to his ability and enterprise. |
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01:08:19:17 01:08:26:09 CAPTION Robert Shiller Professor of Economics Yale University |
Robert
Shiller Well there’s many factors that ultimately underlie
the current financial crisis but one thing that comes across in my mind is
the intellectual change. |
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01:08:30:18 |
Narrator
(Archive) An idea. Mm
an idea. |
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01:08:33:22 |
Robert
Shiller In the 1970s the so-called efficient markets
hypothesis began to be received doctrine in the universities. |
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01:08:45:11 |
Dan Ariely The simple version of the efficient market
hypothesis is that you have a value of something in the market whatever it
is. If it’s too low people would
recognise it and then you would bid the price up. If it’s too high people would recognise it and then they’ll bid
the price low. So you might have one
opinion. I might have the other
opinion. But the opinion of all of us
in average is going to be kind of the correct opinion. What’s called the wisdom of crowd. |
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01:09:07:12 |
Robert Shiller This is a hypothesis that all financial asset
prices are correct at all time. Well
correct in the sense that they accumulate all of the information, pool the
information and then become wiser than any one individual so that it would be
foolhardy to ever question a market price.
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01:09:29:16 |
Narrator
(Archive) While the main street of today doesn’t look much
like the main street of Jonathan’s time the principles about business system
remain the same. But businessmen
still compete with one another for the consumers supply of spendable
dollars. And Mrs Consumer is still
mighty critical of everything she buys.
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01:10:32:00 IN-SCREEN
TEXT Yale University (on sign) |
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01:09:47:15 01:09:54:21 CAPTION George Cooper Fund Manager Blue Crest Capital |
George Cooper So under that thesis prices are always at the
correct price. You can’t have an
asset price bubble in the efficient market hypothesis. |
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01:09:59:21 |
Andrew Luan So let me tell you a bit more about myself. After MIT I went to Silicon Valley and so
I was there before the bubble, during the bubble and slightly after the
bubble, the internet bubble that is.
And so you know, after the bubble I was like looking around and I was
like wow you know, what I’m doing is really risky, I’ve got to find something
more stable. What I became is I
became a bond trader. Of essentially subprime mortgages bonds. |
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01:10:36:13 |
Robert
Shiller I think we know what a bubble is. It’s a phenomenon that has been repeating
many times in history. If you look at
the Oxford English dictionary I think it says something like, a speculative
price increase that’s not justified.
It’s filled with air like a bubble and it eventually bursts. |
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01:10:58:18 |
Robert Shiller Economists would like to come up with a good
explanation. Why did we have a stock
market bubble in the 1990s and then a real estate bubble in the 2000s? |
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01:11:09:21 01:11:13:20 CAPTION Robert Shiller Professor of Economics Yale University |
Robert Shiller I like to give explanations that sound right to me
and maybe a little disreputable in our own profession. And they’re cultural explanations. One thing that strikes me as having been
very formative for people’s thinking was the explosion of capitalism. |
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01:11:27:16 |
Ronald
Reagan (Archive) Government is not the solution to our problem. Government is the problem. |
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01:11:35:22 |
Robert Shiller It started with the Margaret Thatcher and Ronald
Reagan revolutions that brought free markets to more prominence. |
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01:11:45:03 |
Robert Shiller And then it moved on with the breakup of the Soviet
Union. |
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01:11:59:00 |
Robert Shiller The advent of capitalism in China. It seemed like there was an intellectual
revolution. That people believed in
markets. And so people thought that
we’re in a new world, private property reigns. It struck a tone of fear in people that I better get on this or
I will be left behind. I’d call it a
gold rush mentality. And it led to
people changing their self-image.
They thought that I have to change to become part of this, to be smart
and stay afloat in this world. I’m
going to be an investment genius. |
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01:12:38:14 |
Narrator
(Archive) Play your hand at hotjobs.com. |
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01:12:40:07 |
Narrator
(Archive) Dot com. |
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01:12:40:24 |
Narrator
(Archive) Dot com. |
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01:12:41:17 01:12:43:08 CAPTION Louis Hyman Economic Historian Harvard University |
Louis Hyman It looked like the dot com, all those tech stocks
were a great way to invest your money and so money flooded in. |
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01:12:48:03 01:12:48:07 CAPTION Glove Puppet/Pets.com/TWBA/Chiat/Day 01:12:49:13 CAPTION ‘dot com’ commercials broadcast January 2000 |
Narrator
(Archive) Today I’m talking to some city pets. Ooh, ooh, hey poodles did you know that
pets.com delivers food, treats and toys? |
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01:12:56:10 |
Louis Hyman And lo and behold you can’t make money selling pet
food on the internet. |
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01:13:00:10 |
Louis Hyman But people thought it was this new opportunity for
investment. |
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01:13:04:10 |
Doctor
(Archive) Doctor I think you should see this. |
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01:13:06:07 |
Lady
(Archive) Why what it is? |
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01:13:08:06 |
Doctor
(Archive) He’s got money coming out the wazoo. |
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01:13:10:12 |
Doctor
(Archive) What do we have? |
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01:13:10:22 |
Doctor
(Archive) Money out the wazoo. |
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01:13:13:01 01:13:15:04 CAPTION You should be so lucky. |
Doctor
(Archive) Move this man to a private room. |
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01:13:16:10 |
Narrator
(Archive) It’s time for e-trade. |
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01:13:17:08 |
Robert Shiller Unfortunately we were embarrassed by the fall in
stock prices so we had to turn to some way of maintaining the ego we had just
developed. |
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01:13:30:12 |
Robert Shiller I think we had a smart response called sector
rotation. Rotate out of the, that’s a
little bit of jargon. Rotate out of
the equity sector into the property sector. |
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01:13:40:03 |
Narrator
(Archive) Introducing the world’s fastest money making
system. John Alexander’s Real Estate
Riches in 14 days! |
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01:13:45:13 01:13:48:01 CAPTION John Alexander, LLC and Family Products, LLC |
Robert Shiller It accelerated largely through media. Television shows that focused on the
bubble and ad campaigns that reinforced notions that seemed to support the
bubble. |
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01:13:55:22 01:13:59:09 CAPTION STAY TUNED TO FIND OUT HOW! |
John
Alexander (Archive) Wouldn’t you like to learn how to make a fortune in
real estate without needing any money? |
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01:14:01:02 |
Robert Shiller People were so pleased that they had found this
smart, at home, investment that they understood and knew and that they were
very confident about. |
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01:14:09:23 |
John Alexander
(Archive) There’s no reason that you can’t be living the same
life I am in no time at all. |
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01:14:20:10 01:14:33:09 CAPTION Ed Andrews Economics Correspondent New York Times 01:14:36:14 CAPTION Delinquent Borrower |
Ed
Andrews It’s humiliating.
I am an economics correspondent for the New York Times and I’m 10
months past due and in extended discussions with the lender. I’m kind of amazed actually that I’m still
in this house. |
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01:14:42:02 01:14:54:17 CAPTION Anotinette Coffi-Ahibo Optician 01:14:57:01 CAPTION in foreclosure |
Antoinette
Coffi-Ahibo That deal that I got is not a good deal and I
cannot keep the house with this deal.
All the bad mortgage you can ever imagine in this planet that the kind
of mortgage I have. |
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01:15:03:15 01:15:12:01 CAPTION Steve Nahas Real Estate Investor 01:15:16:23 CAPTION underwater 01:15:22:19 CAPTION Clifton, Virginia |
Steve
Nahas I’m a working stiff. I’m a regular guy. I
have a job. I’m trying to get
ahead. And I thought this was a smart
way to do it. |
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01:15:23:07 |
Steve Nahas Here’s how it started for me. I got married 6 years ago. And about a year into our marriage my wife
was saying at home and decided now I want to do something so she looked around
and thought she’d try to sell real estate and she took the course, passed the
test, went to work for a pretty large Century 21 office in our area and the
broker there, that was maybe 2 years into the boom, and he said to her, he
said, I would recommend everybody that owns a house borrow as much as you can
against it. Take out every nickel
that you can and invest it in real estate.
You just can’t lose. |
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01:16:01:08 |
Man
(Archive) You can always tell can’t you a town with good real
estate people is a more substantial community because more people own their
own homes. |
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01:16:10:06 |
Man
(Archive) That’s right.
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01:16:22:15 |
Steve
Nahas You can look at a house that was 2 years ago
300,000 and now they’re 600,000.
They’re just astronomical. And
you see it happening all around you.
Everybody’s getting in on it so I’d been in my house 12 years or
something like that and I’d built up equity and I thought wow he’s right, I
should do that. So that’s what I
did. |
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01:16:46:09 01:16:57:23 CAPTION George Cooper Fund Manager Blue Crest Capital |
George
Cooper The efficient market hypothesis is built on a
simple idea. That as the price of a
good goes up we tend to demand less of it.
So the supply and demand matches.
That’s what gives us the stability in the system. |
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01:17:02:05 |
George Cooper If you imagine for example something like a
refrigerator. If its price rises
dramatically people are going to make do with the refrigerator they’ve
already got. When they start to treat
a good as a financial asset as people started to do with houses in the
boom. |
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01:17:22:23 |
George Cooper That’s when you get into a very unstable
market. |
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01:17:33:09 01:17:38:23 CAPTION Robert Frank Professor of Economics Cornell University |
Robert
Frank Asset markets are dramatically less stable than
goods markets. You don’t see the
price of Chevrolets skyrocket and then plunge. |
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01:17:44:11 |
George Cooper The key difference between an asset and a good is
when you buy a good you want to use it.
You’re not going to resell it.
When you’re buying an asset you’re buying it in the hope of being able
to sell it in the future for a higher price.
So if we see that its price is rising we then tell ourselves that
we’re very smart and we go out and buy some more of that asset. So in goods markets when prices rise
demand falls. In asset markets when
prices rise demand often rises as well. |
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01:18:19:09 |
Robert Frank In the asset market the very fact of its having
grown in price fuels demand for additional purchases of the asset. It also fuels additional purchasing power because
people can borrow more against the value of the assets they own that went up
in price. |
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01:18:45:05 |
George Cooper Most of these assets are bought financed with
debt. |
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01:18:53:20 |
George Cooper When we buy a house we buy it with a mortgage so it’s
debt financed. If one of those assets
goes up you’re able to borrow more money against that asset so your spending
power for new assets rises as the prices go up. |
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01:19:15:05 |
Steve Nahas I bought several investment properties. I buy one and I took equity out of my
house or I’d buy one and then go look at another one, take equity from the
one I’d just bought, in order to buy as much as I could. |
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01:19:31:14 |
Steve Nahas I bought at exactly the wrong time. I went on a buying spree right at the peak. |
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01:19:39:23 |
Steve Nahas In fact the most expensive property I bought in
Hawaii is still today the highest price in that development 3½ years
later. I was the peak. And to buy around the peak I was the
highest one. Immediately after that
the next one was less. |
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01:19:56:10 |
Interviewer How does that make you feel? |
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01:19:57:19 |
Steve Nahas Great. |
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01:20:04:13 01:20:06:06 CAPTION Financial Market Regulators House Oversight Committee |
Henry
Waxwell (Archive) Doctor Greenspan your view of the world, your
ideology was not right. It was not
was working. |
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01:20:10:14 |
Alan Greenspan (Archive) Precisely.
No that’s precisely the reason I was shocked because I had been going
for 40 years or more with very considerable evidence that it was working exceptionally
well. |
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01:20:24:16 |
George
Cooper Greenspan had been working to the assumption that
the financial system was a self-stabilising system. It meant that he took a view of asset price bubbles, which was
that it really wasn’t in his remit to do anything about them. |
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01:20:50:18 |
George Cooper He had this idea that the Central Bank should never
question asset prices. It should only
take action when asset prices started to fall. So whenever there was the tiniest slowdown he’d be leaping in
with monetary stimulus cutting interest rates and trying to boost activity
again. And of course boosting
economic activity is just a euphemism for trying to encourage the economy to
borrow even more. Creating a credit
boom or a credit bubble. So we’re in
this crisis in large part because our Central Banks have, for the last two or
three decades, encouraged us to borrow more and more and more and eventually
got us into this unsustainable state.
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01:21:43:13 |
George Cooper Now if the Central Banks operating its interest
rate policy in a way to encourage asset prices to keep inflating obviously
that’s going to benefit that portion of society that owns assets which is
typically the wealthy end of the spectrum already. |
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01:22:04:07 GRAPHIC MONEY THE RICH THE FILTHY RICH AND THE REST |
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01:22:10:11 01:22:16:01 CAPTION It’s Everybody’s Business 1954 |
Narrator
(Archive) In 1900 many men had to work 10 hours a day, 6 days
a week, to earn enough money to provide their families with the bare
essentials. And labour was the rule
in the home as well as the factory. A
half century later we had invested enough in our business system to provide
the average worker with efficient and expensive buildings and machinery to
enable him to produce enough in a 40 hour week to earn twice as much as the
1900 worker earned in a 60 hour week.
This shorter work week gives us all more leisure time to enjoy a
standard of living beyond the wildest dreams of anyone who lived a half
century ago. The more we earn the
more our families have to spend for the things they need and want. |
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01:23:05:14 01:23:14:21 CAPTION Louis Hyman Economic Historian Harvard University |
Louis
Hyman You ask an American when was America most
prosperous in the 20th century?
Most Americans outside of financiers on Wall Street will tell you the
1950s. It’s thought of as this time
of perfection. This golden age of
capitalism with big fin cars and houses and anybody, any guy, could get a job
and support his wife and kids. And
this kind of lifestyle isn’t possible for most people today. |
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01:23:33:23 |
Narrator
(Archive) And fortunately we have been able to raise our
standard of living without sacrificing the spiritual side of life which means
so much to the American family. |
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01:23:44:16 01:23:53:11 GRAPHICS ON SCREEN Graph showing income and equality 01:24:03:07 TEXT ON
GRAPH SHARE OF U.S NATIONAL INCOME EARNED BY THE TOP 1%
OF TAXPAYERS (on horizontal axis) |
Louis Hyman Now this is also the moment in America that has the
least income inequality in our history.
And I don’t think that’s a coincidence. |
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01:23:58:12 |
Louis Hyman Before the sort of World War II period income
inequality was very high. |
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01:24:06:06 01:24:13:03 CAPTION Robert Wade Professor of Political Economy London School of Economics |
Robert
Wade The share of total American income going to just
the top 1% peaked in 1929 at about 22%.
Which is an extraordinary figure. |
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01:24:22:22 |
Louis Hyman And then as you go into World War II income
inequality falls from 1945 to 1970. |
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01:24:29:10 |
Robert Wade In the 1970s the top 1% were getting only 9%. That was a huge fall. |
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01:24:38:08 |
Louis Hyman And then in the 1970s you start to see it rise
again. Accelerating in the
1980s. |
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01:24:49:07 01:24:52:22 CAPTION Robert Frank Professor of Economics Cornell University 01:24:56:14 GRAPHICS ON SCREEN Graph TEXT ON
GRAPH SHARE OF INCOME TOP 1% (title) SHARE OF U.S NATIONAL INCOME EARNED BY THE TOP 1%
OF TAXPAYERS (on horizontal axis) |
Robert Frank There’s been a big shift in the way income growth
has occurred in the United States certainly but also in other countries as
well but not to the same degree. |
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01:25:00:14 |
Robert Frank What we’ve seen is that unlike the three decades
right after World War II when incomes grew at about the same rate for
everyone starting in the early 70s roughly income growth started accumulating
only at the top. |
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01:25:23:24 01:25:34:22 GRAPHICS ON SCREEN Graph TEXT ON
GRAPH SHARE OF INCOME TOP 1% (title)
SHARE OF U.S NATIONAL INCOME EARNED BY THE TOP 1%
OF TAX PAYERS (on horizontal axis) |
Robert Wade The share of the top 1% went shooting up like a
July the 4th skyrocket back up to about the same as in 1929. |
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01:25:40:03 |
George Cooper And partly that can be explained by the credit boom
or the credit bubble. |
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01:25:43:11 |
Man
(Archive) You were okay up to that credit business, couldn’t
you make that a bit clearer? |
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01:25:47:22 |
Louis
Hyman To really understand it you have to go back to the
1920s. |
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01:25:54:06 |
Louis Hyman There was increasingly inequality but there was
also increasing debt. |
|
01:26:00:03 01:26:04:04 IN-SCREEN
TEXT (Archive) Buy an Electric Refridgerator |
Robert Wade The US was developing great productive capacity in
consumer goods industry such as refrigerators, such as radios, such as automobiles. |
|
01:26:13:01 |
George Cooper And these were very expensive for the average
worker at the time. |
|
01:26:17:22 |
Louis Hyman And so over the mid 20s to late 20s there’s an
incredible explosion of instalment credit in America. People could borrow to pay for all the new
modern electric appliances. |
|
01:26:28:11 |
George Cooper And you had a rapid rise in credit in the economy
to the point at which we got too much credit, too much indebtedness and then
eventually the system collapsed. |
|
01:26:45:00 01:26:53:14 GRAPHICS ON SCREEN Graph TEXT ON GRAPH TOTAL US DEBT AS A PERCENTAGE OF GDP (title) TOTAL US DEBT AS A PERCENTAGE OF GDP (on horizontal axis) |
Robert Wade So the 1920s can actually be seen as a kind of
precursor of what happened in the 2000s.
|
|
01:27:03:04 |
Robert Wade So you have a very pronounced U shape curve just as
we have seen happening with income distribution. |
|
01:27:12:22 |
George Cooper And that’s because economic activity, profit growth
and credit creation are all intimately linked. |
|
01:27:19:12 |
Shop
Assistant (Archive) Ah yes dear lady.
High, high quality at a low, low price. |
|
01:27:26:16 |
George Cooper If the banks are more willing to lend it becomes
easier for companies or for households to spend because they can borrow money
and they can then spend it. |
|
01:27:36:24 |
Narrator
(Archive) Sales dollars from satisfied customers once again. |
|
01:27:40:08 |
George Cooper So as credit rises corporate profits rise. |
|
01:27:44:11 |
Narrator
(Archive) The remainder of the profit is paid out as
dividends. |
|
01:27:48:06 01:28:06:09 GRAPHICS ON SCREEN Graph showing share of income earned by top 1% of taxpayers over
years (from 01:25:34:22) And
Graph showing total US debt as a percentage
of GDP over the years (from
01:26:53:14) |
George Cooper But who tends to own the shares in the corporate
and the shares in the bank? Generally
it’s the wealthier people that own the capital stock of an economy. So if profitability is being boosted then
there’s a natural tendency to polarise wealth distribution within the economy
as well. |
|
01:28:12:19 |
George Cooper That’s a symptom of a credit cycle. |
|
01:28:17:13 |
Man
(Archive) Say that sure was a neat job. |
|
01:28:23:02 IN-SCREEN
TEXT Wall Street |
|
|
01:28:24:07 |
Andrew Luan That building across is the most important building
of Wall Street. That building is the
House of Morgan Building. That’s
where JP Morgan’s original bank was. |
|
01:28:37:04 |
George Cooper The institutions that are going to make the most
profit from that credit creation process are of course the banks. Every time a loan is made they take a
margin on it. Every time a bond is
traded they take a margin on that as well.
So the credit bubble creates a system where you boost financial
profitability more than profitability in the rest of the economy. |
|
01:29:02:14 CAPTION IN 1983, 01:29:04:17 CAPTION THE FINANCIAL SECTOR EARNED 01:29:06:20 CAPTION 15% OF U.S. CORPORATE PROFITS 01:29:10:15 CAPTION IN 1993, THE FINANCIAL SECTOR EARNED 25% OF U.S. CORPORATE PROFITS 01:29:17:01 CAPTION IN 2003, THE FINANCIAL SECTOR EARNED 40% OF U.S. CORPORATE PROFITS |
|
|
01:29:20:01 |
George Cooper So if there’s a boost of profitability for the
banking sector it tends to drop quite quickly through to pay for bankers,
through to the bonuses. |
|
01:29:31:09 01:29:33:06 CAPTION Jim O’Neill Chief Economist Goldman Sachs |
Jim
O’Neill Ha! Here we go.
|
|
01:29:35:15 |
Jim
O’Neill I think the compensation strategy that we’ve had
for many years is in line with best practices to encourage long term incentives. |
|
01:29:44:19 01:29:45:16 CAPTION Andrew Luan former mortgage bond trader |
Andrew Luan The closer you are to the money the more of it you
make. |
|
01:29:49:21 |
Dan Ariely If I took anybody and I paid them $10 million for
their job, I took you and I started paying you $10 million for your job, in 2
weeks you will think you will deserve it. |
|
01:29:58:04 |
Man
(Archive) I’m looking forward to my next million. |
|
01:30:00:14 |
Jim
O’Neill We want to hire and retain the smartest people in
the world. And so we have to offer
them incentives which can compete with those that are trying to attract the
best and the smartest people in the world too. |
|
01:30:15:19 01:30:17:15 CAPTION Nell Minow corporate watchdog The Corporate Library |
Nell Minow You know we just want one thing from Wall Street;
we’d like them to be able to do the maths.
That’s all we want. We just
want them to be able to do arithmetic.
And they got it completely wrong.
|
|
01:30:24:13 01:30:25:05 CAPTION George Cooper formerly of Goldman Sachs, JPMorgan et al |
George Cooper If they were that good we wouldn’t have been in
this mess. |
|
01:30:27:17 |
Andrew Luan Alright so our next stop’s going to be Deutsche
Bank where I used to work.
Alright. Let’s go. |
|
01:30:43:08 |
Robert
Frank So it’s been an enormous pyramiding of income and
wealth in the last 30 years. If you
look at the people in the top deciles, the lion’s share of the growth that
occurred there was in the top 1%.
Slice that up and you’ll see the lion’s share of the growth in the top
1% occurring in the top 1/10th of 1% and so on as far as we’ve
managed to go up and find data to check.
|
|
01:31:07:06 CAPTION IN 2007, 01:31:08:10 CAPTION THE TOP 10% EARNED 01:31:10:17 CAPTION 50% OF ALL U.S. INCOME 01:31:14:02 CAPTION IN 2007, THE TOP 1% EARNED 24% OF ALL U.S. INCOME 01:31:17:23 CAPTION IN 2007, THE TOP 0.1% EARNED 12% OF ALL U.S. INCOME 01:31:22:05 CAPTION IN 2007, THE TOP 0.01% EARNED 6% OF ALL U.S. INCOME 01:31:26:06 CAPTION IN OTHER WORDS, 01:31:27:07 CAPTION 15,000 AMERICANS 01:31:29:12 CAPTION EARNED $700 BILLION BETWEEN THEM 01:31:33:05 CAPTION HALF THE GDP OF BRAZIL |
|
|
01:31:43:08 |
Louis Hyman For everybody else this new inequality meant a
bunch of things. |
|
01:31:50:15 01:31:50:15 CAPTION Going Places 1948 |
Narrator
(Archive) Only a business operating at a steady profit can
give its workers security. |
|
01:31:54:12 |
Louis Hyman From World War II until about 1970 wages grew very
steadily. There was a widespread
well-paid manufacturing economy. Good
steelwork, good car work. |
|
01:32:05:23 |
Narrator
(Archive) Higher wages and steady employment. |
|
01:32:09:09 01:32:20:03 GRAPHICS ON SCREEN Showing US National Income Earned by the
bottom 90% TEXT ON GRAPH SHARE OF INCOME BOTTOM 90% (title) SHARE OF INCOME EARNED
BY BOTTOM 90% OF TAXPAYERS (horizontal
axis) |
Louis Hyman All this changed after 1970. With double whammies of the rise of
globalisation and the industrialisation beginning to hit the American
workforce. |
|
01:32:25:13 01:32:36:04 GRAPHICS ON SCREEN Graph showing share of US income earned by bottom
90% of taxpayers over years TEXT ON GRAPH SHARE OF INCOME BOTTOM 90% (title) SHARE OF INCOME EARNED
BY BOTTOM 90% OF TAXPAYERS (horizontal
axis) |
Robert Wade Through the 1950s, 60s, 70s, the bottom 90% of the
American population was getting roughly 65% of national income. |
|
01:32:41:01 |
Robert Wade That share fell to above 50% in the last few
years. |
|
01:32:51:00 |
Louis Hyman Adjusted for inflation the medium wages stagnated
from the early 1970s except for a small blip in the early 90s until today. |
|
01:33:08:12 CAPTION Meanwhile... 01:33:11:03 CAPTION ...back with the Top 0.1% 01:33:13:12 CAPTION on Westhampton Beach, Long Island |
|
|
01:33:21:13 |
Rose
Alfano Well there are certainly primary residences here in
Westhampton Beach. But for the most
part they’re secondary. Some of these
homes are third and fourth homes for some of the people here. |
|
01:33:37:23 01:33:40:14 CAPTION Rose Alfano Realtor |
Rose
Alfano You can certainly get a small cottage here
somewhere in $500,000 to $1 million but the lower end properties are rare and
you generally need to really put some money into them to make them
liveable. |
|
01:33:54:14 |
Rose
Alfano With that said you can certainly afford a house
here around $900,000 or way up to $10, $12, $20 million. So depending on how much money you have in
your back pocket. |
|
01:34:15:03 |
Lawrence
Citarelli So we’re about 2 weeks away from being
complete. Homeowners taking
possession in about 2 weeks time. |
|
01:34:21:09 |
Rose Alfano It’s stunning. |
|
01:34:21:16 |
Lawrence
Citarelli Thank you.
Right now we’re just doing a final punch list and walkthrough and
final touch ups as you can see. Great
raised panel detail. Custom kitchens. |
|
01:34:34:24 |
Rose
Alfano It’s really coming along amazingly. |
|
01:34:37:01 |
Lawrence
Citarelli Thank you. |
|
01:34:37:24 01:34:40:02 CAPTION Lawrence Citarelli Real Estate Developer |
Lawrence
Citarelli The gentleman who bought the house is a chief
operating officer of a hedge fund in Manhattan. And this is their summer home here in the Hamptons. They have another home up in West Chester,
Upper New York. |
|
01:34:49:02 |
Lawrence Citarelli Here’s your home audio control for
system. Again he’s able to control
the house anywhere in the country or anywhere in the world as a matter of
fact. |
|
01:34:57:06 |
Lawrence Citarelli It used to be that more was better. More was more impressive. More was everything. I think what we have in Westhampton Beach
is what most people are looking for which is simpler. It used to be the 10,000, 15,000 square
foot house had to be. Today that
smart money is saying I want to simplify my life. |
|
01:35:22:05 |
Lawrence Citarelli People are keen to want to scale down. That’s what Westhampton Beach offers to
people. It offers them a simpler
life. Do I need the 17,000 square
foot home or really can I survive with the 8,000 square foot home? There’s plenty here. |
|
01:35:42:06 |
Rose
Alfano And you still get the Hampton address. |
|
01:35:54:04 |
Louis Hyman As you go up the income distribution scale what
people spend their money on changes.
So that consumer goods relatively decrease. Housing increases a
lot. But then when you finally get to
the top of the economy they’re spending most of their money on assets rather
than manufactured goods. |
|
01:36:16:19 |
Robert Wade And so this upwards income redistribution in itself
tends to ignite asset bubbles. |
|
01:36:24:02 |
Robert Frank That process of income distribution created a
bidding for houses indirectly. The
people at the top of the income ladder buy mansions. People in the middle don’t seem offended
by that in America. They want to see
pictures of the mansions. But what
does happen is that when the people at the top build bigger their bigger
houses shift the frame of reference for people who are near them in the
income distribution. People have a
lot of money but not quite at the top. |
|
01:37:07:04 |
Robert Frank So you get a cascade one stage at a time that
drifts down through the income distribution.
|
|
01:37:15:06 |
Robert Frank The medium family now if it wants to buy the medium
priced new house for its area it’s got to buy one that’s now 2400 square feet
in size. In 1970 it was about 1600
square feet. So 50% larger house you
have to buy if you want to match the spending of people at your income level
if you’re in the middle. Well maybe
you shouldn’t because you don’t have any more money, you can’t afford that
house but then you say well if I don’t match the spending of people in my area
it’ll be my kids who go to the inferior schools because there’s a very tight
link between how good the schools are in the area and how much the houses
cost. So it’s really a dilemma for
the family in the middle. |
|
01:38:00:18 01:38:02:14 CAPTION Where the Heart Is 1957 |
Man
(Archive) Oh I don’t know what to do Jenny. I want that house so bad I can taste
it. Maybe we ought to wait. |
|
01:38:10:15 01:38:22:04 CAPTION Robert Shiller Professor of Economics Yale University |
Robert
Shiller My colleague Carl Case and I we wanted to find out
what were the dynamics of home prices and there was surprisingly little
academic or scholarly literature on it.
Someone would publish a paper in you know, 1953 or something and then
it would just be forgotten. |
|
01:38:28:19 01:38:33:01 IN-SCREEN
TEXT GROWTH (on animated book) 01:38:41:02 GRAPHICS ON SCREEN Graph showing United States home price index 1890
to 2009 TEXT ON
GRAPH HOUSE PRICES (vertical axis) UNITED STATES HOME PRICE INDEX 1890 – 2009 (horizontal
axis) |
Robert Shiller I’d find them in dusty volumes. And I thought well I’ll link them
together. So I created for the United
States a home price index from 1890 to the present. |
|
01:38:44:20 |
Robert Shiller And when I corrected these for inflation, consumer
price index inflation, to my surprise there was no increase in home prices
from 1890 to 1990. |
|
01:38:58:23 |
Robert Shiller It was just the same. |
|
01:39:04:00 |
Robert Shiller And then there was this huge bubble in the US
starting in 2000. |
|
01:39:15:22 |
Robert Shiller And that was the only one. |
|
01:39:22:13 |
Narrator
(Archive) [INAUDIBLE] and homeowners are capitalists. They’ve worked and saved to make the
biggest single purchase in their lifetimes.
They have a share of America’s wealth. They’ve seen capitalism work and they’ve made it work at home
and at their own communities. |
|
01:39:39:07 |
Louis
Hyman On the one hand you have homebuyers struggling to
make ends meet, looking for the only way they know how to make money in our
economy. They can’t make money
through their labour so but maybe they can make it through buying a house and
seeing the value of that house increase.
|
|
01:39:54:02 |
Louis Hyman So people look to mortgages, these easy to get
mortgages as a way to finally get their share of the American dream. And on the other hand the income
inequality produced a ready supply of capital at the top to be invested as
well in these kinds of mortgages so while the top was not willing to pay the
bottom wages they were willing to lend them money. |
|
01:40:17:18 CAPTION MORTGAGES 01:40:19:04 CAPTION FINANCING THE
AMERICAN DREAM |
|
|
01:40:24:19 CAPTION What
Makes Us tick 1952 |
|
|
01:40:25:18 |
Narrator of movie In a typical city or
town, on a typical residential street, we find a typical home occupied by a
typical America family. |
|
01:40:37:05 |
Narrator of movie Like millions of his fellow Americans, John Q
Public earns enough money to keep up the payments on a new car. |
|
01:40:49:03 |
Narrator of movie He takes great pride in owning a fine, new,
long-term mortgaged home, that was built to last a lifetime. |
|
01:40:59:03 |
Louis Hyman The way in which mortgages have been sold has
changed tremendously over the 20th century. |
|
01:41:03:00 |
Cartoon mortgage lender Sign right here. |
|
01:41:04:04 |
Cartoon man Mmm, mind if I read it first. |
|
01:41:07:01 01:41:07:19 CAPTION Louis
Hyman Economic
Historian Harvard
University |
Louis Hyman In the 1920s, there were a variety of ways to
borrow for a mortgage. Things that seem as though they were just invented a
few years ago were actually commonplace, like balloon mortgages, or
interest-only mortgages for houses. |
|
01:41:18:10 01:41:18:20 IN-SCREEN TEXT MODEL
HOME (on sign) |
Narrator on movie Thousands of people get a big thrill out of
looking at model houses, and a much bigger thrill when they buy one. |
|
01:41:23:11 |
Louis Hyman They can be amortised, or unamortised. They can
be three years. They can be ten years. |
|
01:41:26:17 |
Narrator on movie …going to a model house now. Suppose we follow
them. |
|
01:41:32:08 |
Narrator on movie The husband apparently isn’t very keen about it
all, but you know how wives are. |
|
01:41:36:23 |
Louis Hyman So they would borrow some large fraction of the
house and then refinance it in three to five years. |
|
01:41:43:04 |
Louis Hyman It’s a part of what causes the mortgage crisis
of the Great Depression is that suddenly not just that everyone lost their
job, because a lot of people obviously lost their job, but that investors
fled the mortgage investment market. So in response to this, the Federal
Government developed the FHA… |
|
01:42:02:01 IN-SCREEN TEXT BETTER
HOUSING PROGRAM (circular logo) FEDERAL
HOUSING ADMINISTRATION (inside logo) |
|
|
01:42:05:13 |
Louis Hyman …the Federal Housing Administration. |
|
01:42:07:10 |
Narrator on movie Do you know how far your pay will go in buying
a house? It may surprise you to learn that you can become a homeowner even on
a small salary with a National Housing Act insured mortgage. |
|
01:42:16:24 01:42:23:09 IN-SCREEN TEXT $40
PER MONTH (on archive footage) |
Louis Hyman The FHA standardised the criteria for a good
mortgage, by banking its standard it made it into a commodity that could be
resold anywhere in America. It enabled investors in New York to be able to
invest in Texas or California. |
|
01:42:30:03 01:42:34:20 IN-SCREEN TEXT AMORTIZED
MORTGAGE GOVERNMENT
INSURED (on archive footage) |
Narrator on movie Home ownership is the basis of a happy,
contented family life. And now, through the use of a National Housing Act
insured mortgage, is brought within the reach of all citizens on a monthly payment… |
|
01:42:40:07 |
Louis Hyman The FHA underwriters’ manual had very explicit
criteria for what made for a good investment. So 20%, for instance, of
whether a mortgage should be approved or not depended on whether or not there
was class and race mixing in a neighbourhood. And so if there were
restrictive deeds to keep out Jews, Asians and, most importantly
African-Americans, it was considered a good investment. |
|
01:43:05:20 |
Narrator on movie Under these roofs Americans can live as
Americans should. These pleasant, helpful surroundings provide the background
that young Americans need and deserve. |
|
01:43:13:09 |
Louis Hyman through this policy
there was the co-creation of both the ghetto and the suburb, and the
consequence was that mortgage capital flooded from basically New York City
into suburbs around the country. It made it very difficult for people who
lived in the city, particularly areas that were multiracial or multiethnic,
to get mortgage loans. And over time, over 30 / 40 years, those kinds of markets
and the housing deteriorated… and it helped bring about what we see as the
urban crisis. |
|
01:44:18:16 01:44:33:23 CAPTION Sarah Ludwig Co-director, NEDAP (Neighbourhood Economic Development Advocacy Project) |
Sarah Ludwig This is Bedford-Stuyvesant in Brooklyn in New York
City. There are something like 2.3 / 2.4 million people living just in
Brooklyn alone. This is a very vibrant community. There is a lot of
immigrants who live here and a lot of old time New Yorkers, Brooklynites,
families that have lived here through the generations. |
|
01:44:47:19 |
Sarah Ludwig The work that I do, I started doing it in the early
1990s and the work was about getting access to loans in neighbourhoods that
had been historically redlined, which means they were cut off from access to
banking services. Bank branches either weren’t there or long abandoned the
community. So we were working with community groups to try to get banks to
make loans in neighbourhoods that had been cut off from financial services. |
|
01:45:21:13 |
Sarah Ludwig By the mid 1990s, the picture was just changing
right in front of us, because these same neighbourhoods were suddenly flooded
with credit. |
|
01:45:34:18 |
Sarah Ludwig Consumer finance companies and other lenders had
realised that there was a lot of money to be made by making mortgages in
neighbourhoods that had been cut off from mainstream banking. |
|
01:45:51:03 |
Louis Hyman So much money was being made during the eighties
and nineties that investors had to put it somewhere. And not just money being
made in the United States, but all over the world. I mean, with oil you know,
with the rise of China, there’s a lot of money that’s sloshing around the
world. Capitalism works. And it’s because capitalism works that there’s more
money to invest than ever before, so people began to invest a lot in
mortgages. |
|
01:46:40:00 01:46:55:20 CAPTION Jim Finkel Chief Executive Officer Dynamic Credit Partners |
Jim Finkel Dynamic Credit’s a specialist investment manager.
We manage portfolios of financial products called mortgage securities. It
really began in the late 1980s. Banks, who made mortgage loans, didn’t wanna
sit and hold those mortgage loans for their full term. But they were ten
year, 15 year or 30-year loans, they were clogging up the capacity of the bank.
You’d lend out the money and it would take all that time to get it back in.
You’re far better off originating the mortgage and selling it off. |
|
01:47:12:10 |
Jim Finkel The origins of securitisation were to take those
mortgages on a pooled basis and form CDOs out of them, Collatorised Debt
Obligations. CDO is that kind of conglomeration of mortgage [UNSURE OF WORD]
securities that can be sold into the capital markets. |
|
01:47:33:04 |
Andrew Luan Have you guys heard about toxic asset, yeah? I’m
gonna show you guys what a toxic asset looks like. I’m gonna let you guys
touch and feel this toxic asset. Be careful when you handle this because it’s
toxic, right? So this is a first page of a legal document of a CDO –
Collaterised Debt Obligation. And the actual document itself is an inch
thick. What it does it tells you how the CDO works. You basically take a pool
of any regular cash-producing instruments, like a mortgage, credit card,
corporate loans, you pull it together, you tronch it up, layer it and risk, different
risk layers, and then you sell that to investors around the world. OK? That’s
essentially what a CDO is. It’s sort of like a Frankenstein sort of security,
that’s what it is. |
|
01:48:35:21 |
Jim Finkel There are a lot of attractions to doing CDOs on the
money management side, you get paid anywhere from one tenth of one percent
per annum on the balance on multiple billions of dollars, which could mean a
couple of million dollars a year fees, to a half a percent per annum on a
couple of hundred million perhaps corporate credit portfolio, which again
could mean a couple of million dollars a year fees. And the best part of that
was, most of the work went into selecting a portfolio on day one, then you
were paid over years of time for I’d say doing a little bit more than
babysitting. |
|
01:49:06:17 |
Cartoon man Ow! |
|
01:49:08:11 |
Jim Finkel I would start with a nice clean portfolio of triple
A, double A and perhaps some single A mortgage backed securities, but I’d
have to add something else, what we all juice. |
|
01:49:22:06 |
Jim Finkel It’s an extra element of risk which would pay a
higher yield. |
|
01:49:28:22 CAPTION Silver Spring, Maryland |
|
|
01:49:33:12 |
Ed Andrews At the time, there was a lot of talk about Liars
Loans. The kind of loan that Patty and I got was one step further down on the
credibility ladder which was called a no-ratio loan, in which I literally
didn’t disclose my income. |
|
01:49:53:01 01:49:55:07 CAPTION Ed Andrews Economists Correspondent New York Times |
Ed Andrews The house cost $460,000 which, even to me, was at
that time an astounding amount of money. The problem that I had was huge
child support payments to my ex-wife, as well as alimony, so I was paying out
about $4,000 a month which is well over half of my take-home pay, well over half
of my take-home pay. |
|
01:50:17:18 |
Man wanting mortgage in movie Mmm, that’s disappointing. |
|
01:50:19:18 |
Mr Chandler in movie Oh, not necessarily, let that be our problem. |
|
01:50:23:13 |
Ed Andrews Borrowing the money, even under my circumstances,
was the easiest thing in the world. The only thing the lender knew, the only
thing that they wanted to know, was that I had a credit rating of over 700m,
that the house had been appraised and, you know, was worth what the purchase
price was, and that I had a job. They did confirm I had a job, but they
didn’t try to confirm what the income would be. |
|
01:50:49:06 |
Mr Chandler in movie Well, what are we waiting for? |
|
01:50:52:13 |
Ed Andrews For me it wasn’t a tall a financial investment. I
had no expectation that I was gonna make a bundle of money on the rising
value of the house. It’s a hormonal thing. It’s a cornerstone to keeping your
family together. It’s a ticket to, you know, continued membership in the
middle class. You know here I had been through this pseudo kind of traumatic,
dramatic, you know, divorce and remarriage, this was normalcy again. I could
still be a normal guy. |
|
01:51:23:21 CAPTION Queens, New York City |
|
|
01:51:33:23 01:51:36:24 CAPTION Antoinette Coffi-Ahibo Optician |
Antoinette Coffi-Ahibo I used to have my own optical store. I needed
financial help, so I went to the bank. And I found that each time I was
talking with some financial people, they was asking me if I have a house. And
they did explain to me that if I have a house, it would be like a collateral.
So after I close my business, I told me my new adventure would be to get
myself a house. And then from a house I can get myself another business. |
|
01:52:03:13 |
Antoinette Coffi-Ahibo So we came here and I liked the house. He told me
the house was $679,000. $679,000! |
|
01:52:18:04 |
Antoinette Coffi-Ahibo I tried to get some older real estate, but in this
neighbourhood the price is about the same. But he told me, you know what,
it’s a two family house too. You can render all the part and you can do the
basement. |
|
01:52:33:15 |
Antoinette Coffi-Ahibo They tell me you’re going to pay about like $4,000
a month. I said, “Listen, 4,000 is very expensive.” They told me don’t worry
about it, after a year you can refinance. When you refinance you can get the
mortgage go lower. So don’t worry, going for me just for one year. |
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01:52:59:02 CAPTION NEDAP Offices, Manhattan |
|
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01:53:00:22 |
Sarah Ludwig So we’re gonna just do some quick announcements and
then turn it over to Herman. |
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01:53:07:11 |
Josh Zimmer We’ve gotten quite a number of folks calling us for
foreclosure assistance. I don’t know if you wanna highlight what’s been going
on? |
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01:53:13:20 |
Woman in NEDAP office We got four last week. I mean there just a bunch of
homeowners who are in loans that were much too expensive for them. |
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01:53:19:23 01:53:24:24 CAPTION Josh Zimmer Co-director NEDAP |
Josh Zimmer The majority of the loans that were generated and
then sold to Wall Street to be securitised were refinanced loans. They
weren’t adding to home ownership, they were taking away and they were
deteriorating homeownership. |
|
01:53:32:02 01:53:32:22 CAPTION Sarah Ludwig Co-director NEDAP |
Sarah Ludwig Right, I was just gonna say, I mean, according to
the Federal Reserve it’s something like 77% [phone ringing] of the sub-prime
loans made were refinancing loans, so they were loans made to people who
also, to add to what Josh was saying, had built up a lot of equity in their
home, so they have a lot of wealth that they’d build up. |
|
01:53:47:03 |
Josh Zimmer And there were lenders and brokers and contractors
who were all working together to try and get people into loans without any
regard to whether they were affordable, because they knew that they could
turn around and sell them the next day to Wall Street investment banks at a
premium and make a profit. And they knew that they could charge high fees
upfront. |
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01:54:07:06 |
Sarah Ludwig Every time the loan is refinanced, the borrower,
and this is what the incentive is for the broker and the lender to keep
flipping the loans, is that they’re charging more upfront points and fees.
And what that does is it strips out the equity each time more and more. |
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01:54:22:08 |
Josh Zimmer If you look at the deed records for neighbourhoods,
particularly neighbourhoods of colour in New York City where there’s a high
rate of home ownership, |
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01:54:47:04 01:54:51:03 CAPTION Joseph Stiglitz Nobel Prize for Economics Columbia University |
Joseph Stiglitz The banks were interested in maximising transaction
cost. One could understand, that’s
capitalism, that maximise their profits, but… they were doing it at the
expense of the poorest Americans. There were attempts to try to stop this. It
was clear that it was predatorial lending, but they fought back. |
|
01:55:11:04 |
Joseph Stiglitz They stopped the legislation that was moving
forward to stop the predatory lending. I’ve seen this. I’ve seen the kind of
lending patterns. I’ve seen what they’ve done to some of these poor people.
And let me tell you, it is outrageous. |
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01:55:34:24 |
Ed Andrews If you are asking me who do I blame for my own
mortgage wows, I will tell you absolutely certainly I blame myself and I
don't put the blame on anybody else. I knew exactly what I was getting into,
and I knew better actually than most other borrowers. |
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01:55:56:03 |
Ed Andrews We began to struggle very quickly. We ran through
what little extra cash cushion I had left in my savings, then we were
borrowing |
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01:56:06:22 |
Patty Andrews I hate this. |
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01:56:08:10 |
Ed Andrews And we were borrowing more than we realised through
our credit cards to keep ourselves afloat. |
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01:56:13:11 |
Patty Andrews But, you know, sometimes these things work. |
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01:56:17:09 |
Ed Andrews We were borrowing on average an extra $2,000 a
month . |
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01:56:22:24 |
Patty Andrews But where would this go then? |
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01:56:24:07 |
Ed Andrews The staggering amount of money and the interest
rates on that money were just through the roof. And I was trying to figure
out what in god’s name to do and that’s when I called my friendly mortgage
broker and started wailing about my problems. |
|
01:56:42:07 |
Mr Chandler in movie (phone ringing) Oh, excuse me. Chandler speaking. |
|
01:56:45:24 |
Ed Andrews He said, look, I’ll figure a way out of this, and
indeed he did. |
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01:56:50:17 |
Mr Chandler in movie Oh, oh, put him on. |
|
01:56:52:21 |
Ed Andrews The value of the house had gone up about 10% over
those two years. |
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01:56:57:23 |
Mr Chandler in movie Yes, sir. |
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01:56:58:22 |
Ed Andrews And we ended up boosting the amount we had
borrowed, another $50,000. |
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01:57:03:15 |
Mr Chandler in movie I thought you would. |
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01:57:04:09 |
Ed Andrews The theory of the whole manoeuvre was if I borrow
more against the house, and pay off my credit cards, my credit scores
automatically go up. Even though the total volume of debt is exactly as high,
maybe a little higher, than it was before. And because I’ve got those higher
credit scores, now I can get a slightly cheaper loan. Go figure! It makes no sense at all. You
have to be pulling the wool over your eyes aggressively to believe this kind
of stuff. |
|
01:57:38:16 |
Man on movie Now we are beginning to see something of what a
mortgage banker really does. A full and active life he leads, much of it
behind the scenes, or the betterment of the community. |
|
01:57:48:13 |
Louis Hyman The reason why the money, this capital, gets
allocated into consumer debt and gets allocated into mortgage debt, is
because it has a better return than investing it in businesses, than
investing it in factories or things that make things. And it’s the simple
banal calculation that’s behind all of this, it’s not some greedy Wall Street
banker. Wall Street bankers, and all capitalists, are always greedy, that’s
the basis of our entire system. It’s that the opportunities for investment
are different than they used to be. And that a dollar put into credit card
debt, or into mortgage debt, makes you more than a dollar put into a factory.
|
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01:58:32:10 CAPTION Miami, Florida |
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01:58:51:22 01:58:54:24 CAPTION Alex Chardiet former Mortgage Broker |
Alex Chardiet Most of the buildings around here had sprung up
within the last five years. I think this building over here, they’re still
building, even though there’s close to 20,000 units that are either available
or are gonna be available in a very short period of time. |
|
01:59:07:21 |
Alex Chardiet And this one just sprung up not too long ago as
well. I think there is 400 units and there’s 50 people in it right now, so it
makes for a lonely existence. In some buildings they’re empty. But what
happens is that these banks, you know, they get the financing to build these
buildings and, you know, they have to keep building. |
|
01:59:37:21 |
Alex Chardiet Started the mortgage business in 2001 and started
in Miami, and started working for this company Ameriquest Mortgage. Last year
as a branch manager I made little under $1 million, nine hundred and 30
something thousand. And most of the work that I did was refinance. Sixty
percent of it was for debt consolidation and the other 30 / 40% was cash out. |
|
02:00:09:05 |
Alex Chardiet We felt like we were helping people, you know. We’d
walk into our office and there was baskets of flowers and fruit from people
that we refinanced that weren’t able to refinance and, you know, we got ‘em a
loan and now they were saving $400 or $500 a month, or you know we pulled
their house out of foreclosure. There was a lot of that we did, so how could
that not make you feel good? At the time it seemed like win, win for
everybody. |
|
02:00:38:13 02:00:42:02 GRAPHICS ON SCREEN Graph line showing drop 02:00:46:21 GRAPHICS ON SCREEN Graph of house prices against years TEXT ON
GRAPH HOUSE PRICES (vertical axis) UNITED STATES HOME PRICE INDEX 1890 TO 2009 (horizontal
axis) |
Louis Hyman It’s wonderful, it turns out, that while incomes
are falling… house prices were rising. |
|
02:00:50:22 |
Louis Hyman As the housing assets grew, and their wages
remained stagnant, people would borrow money from their houses to make up the
gap in their wages. |
|
02:01:03:02 02:01:06:06 CAPTION Robert Wade Professor of Political Economy London School of Economics 02:01:11:08 IN-SCREEN TEXT PAY WINDOW (sign on archive footage) |
Robert Wade This fall in the share of the bottom 90% represents
a transfer upwards of roughly one and a half trillion dollars each year to
the top 1%. |
|
02:01:21:16 02:01:23:12 GRAPHICS ON SCREEN Part of graph showing top 1% of taxpayers |
Robert Wade This enormous upward redistribution of American
income took place in a stable democracy with governments that were promoting
this upwards redistribution being re-elected time and time again. |
|
02:01:40:09 |
Robert Wade It’s a very interesting question of how was the
American elite able to get away with it. |
|
02:01:51:16 |
Alex Chardiet When we were doing refinancing, it was very common
to see people with $20,000 and $30,000 worth of credit card debt. |
|
02:01:57:12 |
Narrator on movie Holy smokes! |
|
02:01:58:08 GRAPHICS ON SCREEN Images of graphs |
|
|
02:02:01:19 |
George Cooper We’ve masked a lack of income growth by the fact
that people have been supporting their living standards with more debt. |
|
02:02:11:13 |
Alex Chardiet So what they were doing is they now had all this
equity in the properties, so a lot of people refinanced to get rid of that
debt, to consolidate the debt. |
|
02:02:21:12 |
Joseph Stiglitz We had, in one year alone, over $900 billion in
what are called mortgage equity withdrawal, much of that money going into
consumption. |
|
02:02:33:01 |
Robert Wade So you have roughly one and a half trillion a year
going up and roughly one trillion a year coming down in the form of house
equity refinancing. If the American population had been receiving something
like the same income share as in the 1950s and 60s, then they would have been
able to increase their consumption in a sustainable way out of rising income,
but that’s not what happened. |
|
02:03:07:15 02:03:09:23 CAPTION Nell Minow corporate watchdog The Corporate Library |
Nell Minow The fatal flaw was the assumption that real estate
values would always go up, and I think even a fourth grader would be able to
tell you that’s impossible. It can’t happen. That’s contrary to the laws of
physics. It’s contrary to history, and yet somehow everyone literally bought
into that. |
|
02:03:21:04 GRAPHICS ON SCREEN Graph line going up and down, then graph of
houses pries against years. TEXT ON
GRAPH HOUSE PRICES (vertical axis) UNITED STATES HOME PRICE INDEX 1890 TO 2009 (horizontal
axis) |
|
|
02:03:34:05 02:03:45:11 CAPTION Antoinette Coffi-Ahibo Optician |
Antoinette Coffi-Ahibo The problem started after a year. So when I call
them, they say, “No, you cannot refinance because the value of the house went
down. “ Then I hear some bell, panic. And she told me, “You know what? You
can do a loan modification, OK?” I say, “OK, fine. If I can do a loan
modification, what is a loan modification?” OK. “That where we going to go
over your loan and lower your end choice, and give you something that you can
afford.” I said, “OK perfect.” When they answered me back they told me that
my loan modification was denied. I say, “Why?” They say, “because you’ve been
paying your mortgage on time. You have never been late, so it means that you
have no hardship. Don’t pay your mortgage. Don’t pay for two or three month
and then you apply for other colleague to do loan modification and then we
will be able to give you the loan modification. “ I said, “OK, fine.” So I
take three month I didn't pay, and I filled out the paperwork again. And
guess what? They deny. |
|
02:04:54:10 02:05:41:14 CAPTION Steve Pennington Head of Financial Engineering Dynamic Credit Partners |
Steve Pennington Tampa, St Peterbsurg, New Orleans, Kenner,
Mansfield, Ohio, Phoenix, Messer Scottsdale, San José, Sunnyvale… Fresno,
Columbus, Ohio, [UNSURE OF WORD], New York, Michigan city, Port, Indiana, New
York, New Jersey, San Francisco, Tampa, St Petersburg, Portland, Vancouver,
Dallas, Fort Worth, Arlington, Tampa, Los Angeles, Long Beach, Riverside, New
York, Cleveland, Boise City, San Diego Carlsbad. Each one of these is a
mortgage that is part of a particular pool for which we have an exposure to,
or in this particular case, we’ve done an analysis for. We’re looking history
of a borrower. And so what you see is this delinquency history for 12
periods. And so there’s C for current. There’s three for 30 days. There’s six
for 60 days and then nine is for 90 days or more delinquent. Then you’ve got
FC which means the process of foreclosure has been started. And then you have
REO which means the process of foreclosure was completed. So C’s good, you
wanna see long lists of C. You wanna see everybody that looks like that. |
|
02:06:20:10 |
Steve Pennington Where it gets bad is when you look at situations
like this where you went foreclosure, REO and then the bank finally
discharged to the home, but they took a $193,000 loss on this home. And so
interesting things are you looked at present status nine, but they started
out current and then they went through five periods of current, and then they
got 30 days delinquent, then they basically fought back to current. It
appears that they’ve survived some event and then they just went down the
slippery slope and this time they’ve turned the corner. Once you’re 90 days
delinquent it’s really tough to get back. It’s kind of a dark world because
you see it happen and it’s somebody’s life. |
|
02:07:16:18 |
Steve Pennington As Americans you’ve been taught this is one of your
major stores of value and a situation where, you know, wages are not rising
in America, this has been one of the major methods for people to ultimately
increase their income in the middle class, is through this house appreciation
factor. But now that that’s gone, it’s a devastating reality, and so you’re
seeing this ripple through the economy. |
|
02:07:46:23 CAPTION MELTDOWN |
|
|
02:08:07:24 02:08:11:07 CAPTION George Cooper Fund Manager Blue Crest Capital |
George Cooper It’s a myth that people didn’t see this crisis
coming. There was a lot of chatter in the industry. |
|
02:08:13:22 |
Reporter on Kudlow & Company (archive) Despite the Dow hitting a three month high, more and more analysts are cautioning that a recession could be just around the corner. |
|
02:08:21:04 02:08:22:02 CAPTION Jim Finkel Chief Executive Officer Dynamic Credit Partners |
Jim Finkel Well things started to go wrong in the fall of
2006. |
|
02:08:28:03 |
Arthur Laffer (archive) In all these years that we’ve been running these trade deficits, the wealth of the average American household has been going up not down. |
|
02:08:34:00 |
Guest 2 on Kudlow & Company (archive) No, it hasn’t. |
|
02:08:34:20 02:08:36:10 CAPTION Ed Andrews Economics Correspondent New York Times |
Ed Andrews The so-called ‘smart money’ people… You know, the
definition of being a ‘smart money’ kind of person or player is that you know
when to get out, and so they all thought they knew when to get out. |
|
02:08:43:19 |
Jim Finkel Sophisticated investors would negotiate for better
protection. They’d said, well I need more protection against potential
defaults in the portfolios, so they get an extra 1% protection. But 1% extra
protection was like saying to somebody, you know, I’m gonna give you an extra
life vest to wear on the Titanic. |
|
02:09:06:14 IN-SCREEN
TEXT RECESSION RISK (on archive footage) |
Guest on Kudlow & Company (archive) When you see the stock market come down and the real estate bubble burst, all that phony wealth is gonna evaporate, and all that’s gonna be left is all the debt. |
|
02:09:14:09 02:09:15:06 CAPTION Steve Nahas Real Estate Investor |
Steve Nahas My safety valve in my mind when I did this, again
no one put a gun to my head, but I always thought if the market starts to
turn, I’ll sell. |
|
02:09:20:10 |
Arthur Laffer (archive) This is an economy that’s driven by good economic policies, by good monetary policy, by good trade policy, and it’s working beautifully. |
|
02:09:28:19 |
Jim Finkel You started having borrowers not paying in the
first month, the second month or the third month, and there’s wave of
mortgages coming back to the originators. |
|
02:09:35:11 IN-SCREEN
TEXT ‘R’ IS FOR RECESSION (on
archive footage) |
Arthur Laffer (archive) It’s a zero sum game - every interest dollar paid is interest dollar earned. Please. |
|
02:09:39:02 |
Guest on Kudlow & Company (archive) Art, the people that earn the dollars are in China. |
|
02:09:42:09 |
Ed Andrews What triggered it was an abrupt lowering of ratings
on hundreds of sub-prime mortgage back securities. |
|
02:09:51:07 |
Jim Finkel And that struck a huge panic into the whole
structural products market. |
|
02:09:55:03 |
Ed Andrews Investors suddenly knew that the game was up. It
wasn’t that they were surprised that the downgrades had happened, but they
now knew that all of the other securities couldn’t hold up either, and
knowing that they bailed out very, very quickly. |
|
02:10:10:07 02:10:11:10 CAPTION Andrew Luan former mortgage bond trader |
Andrew Luan Oh yeah we were surprised at how fast the
devastation took place. |
|
02:10:16:02 |
Steve Nahas There was no time
to sell. Once there’s blood in the water, everybody’s running and there was
just no way out. |
|
02:10:23:00 02:10:25:14 CAPTION Robert Shiller Professor of Economics Yale University |
Robert Shiller The crisis came on us rather fast and it took fast
action. I think that the government had to prevent a collapse in confidence. |
|
02:10:40:06 |
Sarah Ludwig The whole system was predicated on there being a
complete gap between the people on the ground making the loans and the people
packaging them to sell them off, you know, through the securitisation process
on Wall Street. So that you can have people sitting in their high rise
building on Wall Street, or wherever they were, in their fancy offices,
having no connection whatsoever, and no regard, and not even in their
imagination, thinking about what this commodity was that they were bundling
and selling off. They were completely severed, and that was why this was able
to go for so long. Cause one would hope there would be some people within
that machinery that had some conscience, and that if they understood what
they were packaging was actually translating very concretely into loans that
were, let’s just be blunt, ruining people’s lives. I mean wiping out people’s
life savings, stealing their equity, making people homeless, wrecking
families. I mean the devastation can’t really be overstated what it means to
sort of be kind of induced into a loan that then spins out of control and
leaves you without your home. |
|
02:11:45:22 |
Andrew Luan Do I feel any responsibility? |
|
02:12:02:05 |
Jim Finkel I think responsibility is a difficult feeling for
people in the sense that most people’s participation, other than a select few
which had very, very important jobs probably head of the rating agencies,
some chief regulators, couple of chief bankers, etc, most of the other
participants in the system I think kind of felt like hogs in the wheel of a
much larger piece of machinery. |
|
02:12:37:24 02:12:41:22 CAPTION Financial Market Regulators House Oversight Committee 02:12:51:05 CAPTION Alan Greenspan Former Chairman Federal Reserve Board 1987-2006 02:13:02:21 CAPTION Financial Market Regulators House Oversight Committee 02:13:15:07 CAPTION Alan Greenspan Former Chairman Federal Reserve Board 1987-2006 |
Alan Greenspan
(archive) Mr Chairman, I agree with you in the fact that
there are a lot of people who raised issues about problems emerging, but
there are always a lot people raising issues and half the time they’re wrong.
And the question is what do you do. I mean you point out, quite correctly,
that the Federal Reserve had as good and economic an organisation as exists
in, I would say, in the world. If all those extraordinarily capable people
were unable to foresee the development of this critical problem, I think we
have to ask ourselves why is that. And the answer is that we’re not smart
enough. |
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02:13:39:15 |
Steve Nahas My aunt had a riding stables in the Midwest and
every summer I’d go out there and work for her. |
|
02:13:45:20 |
Steve Nahas Go on, girl. |
|
02:13:48:12 02:13:54:16 CAPTION Steve Nahas Real Estate Investor |
Steve Nahas She died 12 / 14 years ago, and there were 50
horses to dispose of, so I thought, “Well, I have the land now, maybe I
should get horses.” So that’s what happened |
|
02:14:00:15 |
Woman on horse Good girl. |
|
02:14:02:10 |
Steve Nahas I owe a lot more on
this place than it’s worth, so hopefully it’ll all work out and I can hang on
to it, but that’s still to be determined. |
|
02:14:16:16 02:14:21:15 CAPTION Antoinette Coffi-Ahibo Optician |
Antoinette Coffi-Ahibo My situation right now is I’m waiting for a loan
modification. I need a loan modification. My only way out is a loan
modification. I don’t want to be live free, I know I have to pay my mortgage,
I’m going to pay my mortgage. |
|
02:14:34:16 |
Antoinette Coffi-Ahibo It would be ashamed if I cannot hang on to my
house. It would be a shame. I don’t want to think about that, because I don’t
think it’s right because I can pay for it, all I’m asking is the loan
modification. OK. The value of the house was too high. The kind of mortgage I
got was a bad mortgage, so why they cannot redo my mortgage for me? Why they
are going to want me to lose my house, or what they going to do with it? |
|
02:15:07:06 02:15:11:12 CAPTION Ed Andrews Economics Correspondent New York Times |
Ed Andrews To have, you know, achieved a measure of respect in
your life, worked hard to become a, you know, correspondent in Washington and
a famous newspaper, and you know kind of been, in a way, a part of the
establishment. And to now, you know, see yourself plunged down to being, you
know, a debtor the likes of which are being made fun of all over the place.
It’s just an awful experience. |
|
02:15:34:06 |
Ed Andrews You find out you’re not as strong as you thought,
you’re a whole lot more foolish than you thought, and furthermore you’ve
lost, maybe, almost everything that you had, in terms of your financial
assets and maybe even in terms of your marriage. It doesn’t get much worse
than that. |
|
02:16:05:12 |
Andrew Luan So thank you all for joining me today. On this tour
I gave you guys a lot of information. I wanna give you guys a few takeaways,
key takeaways. |
|
02:16:19:06 |
Louis Hyman People when they talk about the financial crisis,
they talk about the regulation of financial institutions, they talk about
evil people lending money when they shouldn’t, taking advantage of people,
predatory lending, but I think all those things pale before the real crisis,
which is the way in which capital moves in the economy, and the way in which
wage and equality has caused this capital to move so inefficiently in our
economy. |
|
02:16:43:04 |
Joseph Stiglitz What we are doing in effect is transferring money
from people who would spend it to people who don’t need all that money and
don’t spend it. Record bonuses, you know, hundreds of people getting more
than $1 million a year, even when the company makes a loss. So the problem is
that when you have growing in equality, typically your level of consumption
goes down. In the United States, we said to those whose income was not going
anywhere, we said, “Don’t worry, Continue to spend as if you’re income was
going up. But the only way you do that is through debt. But that particular
model has been broken. |
|
02:17:29:15 |
Louis Hyman We need to have capitalism work for us, not work us
over. This is the real difference, right? We need to figure out a way to make
profits create jobs, not for everybody, not profits create just some wealth
for the very few. If that’s the case, then capitalism will no longer work,
because people will not stand for it. And, what’s made capitalism great for
the last 500 years, is that it’s actually created better standards of living
for everyone. The capitalism the last 30 years, has decreased the standard of
living for everyone except those at the very top. |
|
02:18:17:19 CAPTION Ed Andrews is negotiating a ‘short sale’ of his house. He has left the New York Times, but continues to write about the financial crisis for the National Journal Group. |
|
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02:18:27:19 CAPTION Antoinette Coffi-Ahibo finally got her loan modification. She is once more making mortgage payments, but still owes far more than her house is worth. |
|
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02:18:39:00 CAPTION Steve Nahas is pursuing legal action against the developers and lenders he dealt with. He is still struggling to hang on to his family home – and his horses. |
|
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02:18:49:08 CAPTION Andrew Luan’s tour business has grown. He now employs three guides and is training a fourth. 02:18:58:05 CAPTION Alex Chardiet has moved to Colorado He now advises families on finance and managing debt. |
|
|
Demand for second homes in the Hamptons is buoyant. Lawrence Citarelli has recently sold three 7,000 sq foot ‘beach cottages’. |
|
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02:19:13:24 CAPTION Sarah Ludwig and NEDAP continue to battle predatory lending in New York City. The number of homes in foreclosure is still growing. |
|
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02:19:23:12 CAPTION After falling back in 2008, income inequality is once more on the rise. |
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02:19:28:18 END CREDITS: EXECUTIVE PRODUCERS FOR MOLINARE Steve Milne Mark Foligno SOUND RECORDIST Kevin Meredith CAMERA ASSISTANT Ben Crossley COLOURIST Tin Waller ONLINE EDITORS Laurence Thripp Connan McStay SOUND EDITOR Sandra Portman DUBBING MIXERS Alan Russell Steve Cookman HEAD OF PRODUCTION Jo Crawley PRODUCTION MANAGER Nina Haines PRODUCTION CO-ORDINATOR Sophie Clarke POST PRODUCTION MANAGER Kate George HEAD OF FINANCE Andy Coker BUSINESS AFFAIRS Amanda Greenfield LEGAL Michael Cleaver and Russell Smith, SmithDehn LLP Jan Tomalin, Media Law Consultancy Limited EDIT ASSISTANTS Maeva Belajew Dairy Francis Jana Novosad David Reynolds RUNNER Jessica Lambert THE PRODUCERS WOULD LIKE TO THANK THE FOLLOWING FOR THEIR HELP IN THE MAKING OF THIS FILM Bob Pickel Sean Egan Andrew Smith Paula Rush Bill Buzenburg Eric Dinallo Mark Brickell Grace Downer Griff Carmichael Mark Savit Eric Halperin SCORE PERFORMED BY The Celluloid Steam Orchestra Dir. by Philip Sheppard “Wizard Of Finance” Written by George Jr. Clinton, Ronald Ford, Glenn La Monte Goins © Bridgeport Music Inc Administered by Kobalt Music
Publishing Ltd Performed by Parliament Courtesy of Island Def Jam Music Group Under licence from Universal Music Operations Ltd “Every Man Jack” Composed and performed by Judith Edelman Recorded by Neilson Hubbard at Mr. Lemons Studio, Nashville, TN “Charging Bull” © Arturo di Modica ARCHIVE AP Archive C-SPAN Archives CNBC CNN Image Source FILM Archives E*Trade Footage Farm Getty Images iStockPhoto Ronald Reagan Presidential Library HOTJOBS and HOTJOBS screen shots reproduced with permission of Yahoo! Inc © BEAK STREET FILMS LTD 2010 |
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02:21:35:18 |
CUT |
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