The Big Short

January/26/2016 5:27AM
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Went to see the movie The Big Short. Pretty well done. It will help Bernie and his war against Wall Street.

But, as usual with Hollywood, there are a few pieces left out. The roles of the government- owned and controlled mortgage insurers Freddie, Fannie, and the FHA were left out. Of course, without their guarantees none of the bad mortgages would have been made and, there would not have been a meltdown. Add to that the pressure being put on the banks to provide minority mortgages by Bernie Frank, Chris Dodd, and Bill Clinton, the situation might not have been so bad.

Still, it’s hard to believe that a single man, a doctor in San Jose, CA. could be the first person to see the problem. A man with Asperger’s Syndrome who couldn’t practice medicine after getting his license because he couldn’t deal with patients.

Value all investment advice based on this video. The stock market has been erratic of late with huge ups and downs. We see all kinds of explanations mostly involving oil prices or China.

There is another bubble brewing and no one wants to talk about this bubble. The student loan bubble. Now well over a trillion dollars, there is a strong resemblance to the mortgage bubble. Student loans are free money from the government. They allow colleges and universities to raise tuition far more than they could if the loans weren’t available. Drop out rates are high. Young people are graduating with debt loads that prevent them from buying a house for years. Or, not graduating and unable to pay loans with wages for flipping burgers. Somewhere there is another person who is digging into this and trying to find a way to get a financial gain from this debacle. History may be repeating itself. What will this cost you and your kids and grandkids?


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