/biz/ - Business & Finance

This time around we have the RLC.

No, the FED learned their lesson.

>>20281032
if Biden is elected yes but worse and with riots

>>20281032
Nothing changed, the FED is still blowing bubbles.
>>20281053
Retard

>>20281032
>Will this happen again,
yes
>and has anything fundamental really
changed?
yes AMPL

>>20281053
>>20281074
>>20281082
Since it doesn't seem to be a secret that the market will fall out again, what makes the most sense for the average person? I have no debt, make around 70k per year, and own a home. Bonds are at all-time lows, the stock market seems overheated, I'm not touching crypto again, and precious metals seems dubious.

Nothing left but kys

>>20281139
Have you considered not being a complete and utter fucking moron and buying link?

>>20281139
If you believe the stock market is overheated and headed for a major dump, just DCA your way down from the ATH -5% at a time on your fav 0.0x% ter etf (or -2.5% if you feel more cautious).
Choose 1:
>congrats you're now rich
>whoops, I guess the fed WILL keep pumping the markets regardless of the real economy, good luck next time bubbleboy ;)

didn't you even understand it at a surface level

>>20281139
keep your money in nice safe cash. everything else is too risky

>>20281032
People over-levered themselves out the ass to buy houses with mortgages that were artificially "de-risked" by government controlled agencies trying to increase minority housing ownership by insuring high risk mortgages and lowering standards/creating quotas that were incentivized by the government. Unfortunately, in order to get the average sub-90 iq goblino american to buy houses, you basically have to ignore credit scores and make up income. Mortgage brokers and realtors quickly caught wind and used this opportunity to get every person with a pulse to buy houses. Banks then took these loans and packaged them together into large diversifed portfolios called CMBS, the idea being that a well diversified portfolio would make the investment less risky than individual loans inside the portfolio. These loan portfolios were rated to be very credit worthy by the major rating agencies being paid by the banks trying to sell these loans for more than they paid. Institutional-level investors would purchase them based on their low risk profile and relatively solid returns vs alternative investments of the same risk profile, so they became very high in demand. To make these portfolios ad attractive as possible, each loan portfolio was able to be divided into tranches. Theoretically, an investor could buy the entire mbs to get 4% return, or only the part of the mbs that paid 8% but was much riskier, etc, or the part that paid 3% with practically zero risk, etc.

The really fucky part happened when banks had left over tranches, so they had to package those leftovers from separate portfolios and turn them into a new portfolio with similar characteristics, but backed by cashflow from tranches instead of loans directly.

Then there were the dudes selling insurance on these portfolios, which are called swaps. The idea being that if these portfolios ever stopped paying out, the insuring entity would pay out of pocket in exchange for a pre-agreed premium.

>>20281052
Lol
>>20281032
>Has anything changed
The problems worse then ever and the Fed are proven liars. Remember QE started before Covid was even a blip on the screen.

>>20281512

>>20281032

Jesus Christ you sound like your IQ is 80

>>20281479
people then sold pools of these swaps as another form of CDO. Anyways, this caused practically every bank and investor to be leveled out the ass assuming the risks were fair.
Then home owners stopped paying.
The main portfolios started to default, causing buyers to stop buying, causing those buyers to stop paying their obligations to the guys who bought from them, etc etc. Pretty much everyone got fucked except the dudes who bought swaps against the market, but only because they sold before even that market dried up and killed even dudes who shorted the market.

But anyways, ya that shit still goes on, alive and well.

>>20281032
who cares? wh*teness will be abolished, your wealth will be redistributed

>>20281474
hehe

>>20281139
>precious metals seems dubious.
Lol. Just do what this anon says then:
>>20281474
I'm sure things will work out just fine for you and your future.

it's a good movie, but it really downplays the role the government had in creating the issue, and even more egregiously, doesn't mention the federal reserve at all. i get that they had to create a tight and compelling story, which may be why they ignored the root of the problem, and focused on the downstream consequences. even still, it deserved a foundational mention.

>>20281139
>and precious metals seems dubious.

>>20281139
>precious metals seems dubious.
There's no helping you. Let me know how hoarding cash works out during hyper inflation.

>>20281512
This chart is the perfect embodiement of the current clownworld honkery

>>20281570
This. "Too Big To Fail" is a movie that focuses more on the government, although it incorrectly paints Hank Paulson and the Fed as some kind of heros. Everything changed after they bailed out Bear Sterns and it sent a precedence that holds true to this day the government will be there to bail out mega corporations and dump all of the cost on the people down the road.

>>20281139
> I'm not touching crypto again
This is the time that crypto was made for you to touch.

>>20281570
This.