What are Mortgage-Backed Securities? (2008 Financial Crisis Explained)

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  • Опубліковано 14 січ 2025

КОМЕНТАРІ • 287

  • @ryandale2365
    @ryandale2365 4 роки тому +177

    Hands down the best and most simplified explanation of this content I've seen. Brilliant job.

  • @bengeorge894
    @bengeorge894 9 місяців тому +10

    I was completely blown away when I watched The Big Short. it seems almost surreal that such financial instruments even exist. you are not investing in something physical, you are literally investing in the confidence of people paying, you make money when others simply honour their commitments. Human Imagination is scary.

  • @ezracappi8996
    @ezracappi8996 4 роки тому +111

    well done dude,now i can understand it,i was confused when i watch the big short for the first time due to its complex terms.

    • @ConcerningReality
      @ConcerningReality  4 роки тому +5

      Thanks! Me too, I try to make videos about things I want to learn better, in hopes that it benefits other people too!

    • @jugalpokar
      @jugalpokar 3 роки тому

      Same thanks for making this video

  • @AverageEnjoyer888
    @AverageEnjoyer888 4 роки тому +28

    This video is like a compulsory trailer for The Big Short, and I really glad that I've watched this before seeing the movie

  • @KFCJones
    @KFCJones 4 роки тому +54

    As concise as possible, given the complexity... Clearly explained. Great video!

    • @ConcerningReality
      @ConcerningReality  4 роки тому

      Thank you! It’s crazy that it takes 20 minutes to break down one of the simpler forms of financial securities 🤣

  • @noymorgenshtein9191
    @noymorgenshtein9191 4 роки тому +9

    I've watched a few videos about this subject,
    and yes I understood the basics and the background,
    but man your explanation was as simple and sharp as it gets.
    Very well done!
    I had no way of leaving this video without subscribing.

  • @ClementRusso2
    @ClementRusso2 Рік тому +182

    Basically , mortgage rates have reached their highest point since 1998, spanning 25 years. Considering inflation trends, there's potential for them to rise even further. Just a year ago, a 28year fixed rate was only 6%. This prompts the question: should I wait for a housing market downturn before buying or shift my focus towards the equity market?

    • @antonnohr
      @antonnohr Рік тому +2

      The stock market follows a similar pattern, in order to sustain profits, it's crucial to possess a deep understanding of the market.

    • @AlexanderDanielley
      @AlexanderDanielley Рік тому

      I think investing was simpler in the 70s, but it's more complex now. Those consistently profiting today are usually professionals. That's why I've had an advisor for 7 years to steadily grow my retirement portfolio.

    • @AlexanderDanielley
      @AlexanderDanielley Рік тому

      My CFA, Stacey Lee Decker, is highly esteemed for her proficiency and deep expertise in the financial market. She possesses an in-depth knowledge of portfolio diversification and is considered an authority in this field.

    • @VickyAlvy
      @VickyAlvy Рік тому

      Fascinating. I'm currently on her webpage, conducting my research. She appears to be quite skilled. I've sent her an email and scheduled a phone call.

    • @User-kt7kj
      @User-kt7kj Рік тому

      Go all in to Bitcoin

  • @TheSuperZufan
    @TheSuperZufan Рік тому +3

    Best explanation on the 2008 crash and the different components that lead to and impacted the crash. I needed to explain this to someone and was looking for a simplified way to explain all of it. Now, I can just share this video with them.

  • @President_MerkinMuffley
    @President_MerkinMuffley 4 роки тому +318

    I came here in order to understand the movie THE BIG SHORT

  • @TheZorboidOrbb
    @TheZorboidOrbb 2 роки тому +19

    Great job with the video, breaking it down and giving right examples. I had about 20% understanding of what happened but now I think I am at 75%. Thanks!

  • @fernandofernandez8067
    @fernandofernandez8067 2 роки тому +7

    Having watched several videos about MBS, I think this video is one of the best. The detailed explanation about MBS, CDO Collateralized Debt Obligations and Credit Default SWAPS is great!

  • @omaimabentaleb2001
    @omaimabentaleb2001 3 роки тому +2

    This video is so underrated in term of views. Well done, you just make it easy to understand.

  • @FunFacts-gx8gq
    @FunFacts-gx8gq 4 роки тому +17

    Actually some really interesting stuff! Thanks for putting this together!

    • @ConcerningReality
      @ConcerningReality  4 роки тому

      Thanks! Took a crazy long time to compile this information, so it's much appreciated.

  • @AbigailT9
    @AbigailT9 2 роки тому +1

    Utterly enjoy this video. Simple and easy to understand.

  • @mirdesai4875
    @mirdesai4875 4 роки тому +6

    Your way of explaining is simply indescribable ....amazing work brother! Respect!❤️

  • @abhishekshukla4606
    @abhishekshukla4606 Рік тому +1

    bro such a simple and effective explanation.Nice work

  • @1996sarvesh
    @1996sarvesh Рік тому +2

    I never comment on videos, but I've watched about 100 videos on this understanding nothing, while you sir just made me understand the whole movie in 20 minutes! KUDOS!

  • @phatPplH8
    @phatPplH8 4 місяці тому

    insane job.None of other videos explains in this detail the whole story.Awesome job man !

  • @alexanderwinter9171
    @alexanderwinter9171 4 роки тому +6

    Amazing quality you're on the road to a million subs

  • @chaging1
    @chaging1 2 роки тому +4

    This video was well- explained and well-thought.
    I have learned a lot in a short video, plus your sequence of your explanations were clear and made perfect sense throughout.
    I salute you for a video well done!!!

  • @sebastiansantiagodiazrodri424
    @sebastiansantiagodiazrodri424 3 роки тому +3

    Very good explanation, man. Congrats for the video!

  • @jamesbaz4403
    @jamesbaz4403 3 роки тому +2

    One of the best quality videos on youtube.

  • @jovial1234567
    @jovial1234567 3 роки тому +3

    Excellent. Thanks for simple descriptive explanation, bcos this topics not easy to explain. Yet well done by you and your team.

  • @shashikiranneelakantaiah6237
    @shashikiranneelakantaiah6237 4 роки тому +4

    Seriously even I'm here after watching the movie Big Short, as I'm not from US, I couldn't understand most of the financial terms used in the movie, but now I know what MSB is all about, thanks to you.

  • @checksandbalances6714
    @checksandbalances6714 2 роки тому +1

    Wow that was great - just saw 2 other videos that didn’t really explain properly but this explained a lot -thank you !

  • @sharathykumar314
    @sharathykumar314 4 дні тому

    It wouldn't be justified if i dont drop this comment.
    I've seen several videos on this topic. But this video's explanation is mind blowing. Crystal clear and pitch n perfect. Thank you very much. You're great. Hats off to you.

  • @tgbyhn841997
    @tgbyhn841997 2 роки тому +2

    Just one word for the efforts you've put into making this video. WOW !

  • @shenay9377
    @shenay9377 4 роки тому +3

    This was a great coverage. Well done! Thank you.

  • @uncoolhodler
    @uncoolhodler 2 роки тому +1

    Amazing explanation! Well done sir.

  • @siddhantbajpai5889
    @siddhantbajpai5889 3 роки тому +1

    You are awesome dude!
    Wonderful explaination!!

  • @sophiaj794
    @sophiaj794 4 роки тому +2

    This was so helpful thank you! All makes sense now!

  • @arunkenta
    @arunkenta 4 роки тому +3

    This was a really well out together video. I'm watching this after watching the big short and now I understand the movie so much better

  • @shmuel961
    @shmuel961 4 роки тому +14

    If I understand the 2008 crisis correctly, the same banks who made the bad loans (and got them rated triple A) also bought CDS on those mortgages. It was a double swindle. Not only did they knowingly make and sell terrible loans and lie about it, they also bet against their own product (the MBS) by buying CDS.

    • @ConcerningReality
      @ConcerningReality  4 роки тому +3

      Correct! Pretty crazy.

    • @cstinson70
      @cstinson70 4 роки тому

      Actually you don't know it correctly if you think big banks make bad loans all on their own.

    • @johnyossarian9059
      @johnyossarian9059 Рік тому

      Not exactly.
      The big investment banks buy those bad loans (subprime mortgages) from the mortgage lenders, package them into MBS, and sell them to investors (mostly institutional investors). Then they take out CDS against those MBS.

  • @CanadianGeneralContractor
    @CanadianGeneralContractor 2 роки тому +1

    THIS WAS BRILLIANT. YOU'RE AMAZING

  • @mathewharrison5659
    @mathewharrison5659 3 роки тому +1

    This video was stellar! Thank you

  • @themikapnias2771
    @themikapnias2771 8 місяців тому +1

    terrific video

  • @charlesbosse9669
    @charlesbosse9669 4 місяці тому

    Great video,thank you. This helped me understand a little more.

  • @donn7161
    @donn7161 4 роки тому +31

    Amazing, clear and concise explanation! Many people are blaming MBS's and CDS's for the 2008 financial crisis, but do you think the crisis could have been avoided if the rating agencies rated the MBS's correctly such that the CDS's for senior tranches would be priced higher to reflect the increased risk?

    • @sonnyjohnson8887
      @sonnyjohnson8887 2 роки тому +1

      He addressed the conflict of interest between the credit rating agencies & and those that sold such said security

  • @Iseenoobpeoples
    @Iseenoobpeoples 4 роки тому +2

    Great video

  • @eraybulgaria
    @eraybulgaria 6 місяців тому

    This explanation was brilliant

  • @user-tk7sc4gz2v
    @user-tk7sc4gz2v 3 роки тому +1

    Amazingly explained!

  • @laurelharper123
    @laurelharper123 Рік тому +3

    Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

    • @TheresaAnderson-kf5xw
      @TheresaAnderson-kf5xw Рік тому +3

      If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.

    • @maryHenokNft
      @maryHenokNft Рік тому +2

      Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.

    • @maggysterling33254
      @maggysterling33254 Рік тому +2

      @@maryHenokNft Please tell me how can I connect to your advisor. My funds are being murdered by inflation, therefore I'm looking for a more profitable investing strategy to put them to work.

    • @maryHenokNft
      @maryHenokNft Рік тому +1

      I’m guided by *Mary Onita Wier* An experienced coach with extensive financial market knowledge. While you can consider other options, her strategy has yielded positive results for me. She offers valuable insights, including entry and exit points for the securities I concentrate on.

    • @BiancaSherly-qt6sb
      @BiancaSherly-qt6sb Рік тому +1

      I appreciate the information. I did my own research, and your advisor seems to possess a great deal of expertise and knowledge. I've reached out to her via email and scheduled a phone call. I'm impressed by her expertise, and I'm looking forward to our discussion.

  • @radityadjatnika424
    @radityadjatnika424 2 роки тому +1

    Best explanation for technical terms in the big short movie.

  • @ryanyao5
    @ryanyao5 4 роки тому +9

    Not all heroes wear capes. Awsome video!

  • @Internetspider
    @Internetspider 5 місяців тому

    Best explanation ✅

  • @anahernandez-dm4gh
    @anahernandez-dm4gh 4 роки тому +1

    Thank you for all the examples and explanations!

  • @Shemdoupe
    @Shemdoupe 3 роки тому +2

    This is an incredible video. Nice job. Super informative and easy to follow.

  • @henrynwosu6277
    @henrynwosu6277 Місяць тому

    Thank you for giving insight wheb you said the credit default swaps "Short" the market. In the next statement, you now explain what that means. Nobody ever explains "shorting" means. Thanks for keeping it really down to earth.❤❤❤

  • @SeparateMentality
    @SeparateMentality 11 місяців тому

    Phenomenal video!

  • @xinyi6139
    @xinyi6139 Рік тому

    Thank you so much for explaining it! You have made it so much easier to understand 🙏

  • @aaronkohlhoff
    @aaronkohlhoff Рік тому

    Currently studying CFA
    Thanks for explaining it

  • @Sheblah1
    @Sheblah1 2 роки тому

    Excellent explanation, thanks for making this episode

  • @lacindizzle
    @lacindizzle Рік тому

    Very helpful video! Thanks!

  • @mehtaabvirpabla7174
    @mehtaabvirpabla7174 4 роки тому +1

    Amazing Video! Super easy to understand and the visuals helped a lot! This summed everything up!

  • @sylaroneill3100
    @sylaroneill3100 4 роки тому +1

    Nicely explained!

  • @MedPro-pac
    @MedPro-pac 2 роки тому

    Phenomenally explained. Many 🙏 thanks

  • @bobbysands5385
    @bobbysands5385 Рік тому

    Thank you! Great job explaining.

  • @cedricleclercq7733
    @cedricleclercq7733 4 роки тому +2

    Amazing! Thanks for the simple explanations. Keep doing it!

  • @ahmadkarim2994
    @ahmadkarim2994 4 роки тому +2

    Ur just amazing you helped me alot with my homework and with understanding the big short ...keep ''learning things'' as u love to do and keep informing the new students with you amazing summaries ..Regards from middle east

  • @ninjamaplesyrup
    @ninjamaplesyrup 2 роки тому

    Beautifully explained! Thank you!

  • @Reem.H.A
    @Reem.H.A 3 роки тому +1

    this was great! thank u

  • @arielaw4
    @arielaw4 2 роки тому

    Brilliant explanation

  • @gabicristache
    @gabicristache 2 роки тому +1

    Amazingn content! This is the only video that helped me understand how MBS worked.

  • @aws7142
    @aws7142 3 роки тому +1

    Nicely done!

  • @莳念
    @莳念 9 місяців тому

    wonderful explanation! I finally get the core of 2008 GFC . Thx!

  • @manojrenikunta2301
    @manojrenikunta2301 2 роки тому +8

    I dont know how to praise you for such an incredible video. Explanation at its best you deserve an award in this category.. great job 👏👏👏👏

  • @thiagohobi
    @thiagohobi 2 роки тому

    Great video! Well done!

  • @willyh.r.1216
    @willyh.r.1216 4 роки тому +1

    Very helpful and well prepared. Thank you so much.

  • @saibrungi
    @saibrungi 3 роки тому

    Thank you so much. Explained the concept in the finest way.....thank you.

  • @mayamaheshwari9440
    @mayamaheshwari9440 4 роки тому

    Very well explained.
    This video should get much more views.

  • @vic98
    @vic98 Рік тому +1

    Thank you for making this complicated thing simple and easy to understand great job

  • @TheRamsclaiton
    @TheRamsclaiton 3 роки тому

    thank you so much for the video .. you explained it so much better .. others just confused me

  • @MechanizedFnnFntr
    @MechanizedFnnFntr 3 роки тому

    Great content.

  • @Tattvashe
    @Tattvashe 4 роки тому +1

    Amazingly explained....

    • @ConcerningReality
      @ConcerningReality  4 роки тому +1

      Thank you!

    • @Tattvashe
      @Tattvashe 4 роки тому

      @@ConcerningReality I'm Trainer too, and I was surprised to see most of the story i created for my presentation at work is the same.. Infact the way how you connected the entire story is amazing... Appreciate it... Looking forward to more such financial jargons used, explained beautifully with stories... Kudos!

  • @FranzKamikaze
    @FranzKamikaze 3 роки тому

    Great video. Very well explained. Thanks!

  • @anjanaashokkumar1994
    @anjanaashokkumar1994 3 роки тому

    You are amazing. I understood everything pretty clearly. Thanks a lot 🙏

  • @snowball9913
    @snowball9913 4 роки тому

    Excellent quality video

  • @Xelferd
    @Xelferd 4 роки тому +1

    Thank you so much!! Very helpful especially the oversimplified calculations:)

  • @videospride8439
    @videospride8439 4 роки тому +1

    I finally understood it. 😃😃😃😃😃😃😃😃😃😃😃😃thank u sir.❤❤

  • @AndyElliottrealtor
    @AndyElliottrealtor 2 роки тому

    Excellent! Thank you.

  • @npz1838
    @npz1838 2 роки тому +2

    Great explanation. However, you left out the fact that it wasn't just the banks that loosened their guidelines to make more money; the government forced them to loosen guidelines to allow lower income ppl obtain loans. This produced a massive amount of risky mortgages. There was blame all around.

  • @aaravgulati2
    @aaravgulati2 26 днів тому

    Deserves millions of views

  • @بوخرصأحمدأمين
    @بوخرصأحمدأمين 3 роки тому +1

    Finally I understood MBS, think you

  • @phjbeck
    @phjbeck 2 роки тому

    Very accurate and clear

  • @Eugene_Liu304
    @Eugene_Liu304 3 роки тому

    WELL EXPLAINED, TY

  • @bobbyomari5500
    @bobbyomari5500 Рік тому

    This stuff is so confusing to understand, so I wish I saw this video first! Now I gotta watch the big short again to REALLY understand it.

  • @nidhivora9872
    @nidhivora9872 3 роки тому +2

    wow god bless you

  • @JD-hf6wb
    @JD-hf6wb 2 роки тому +1

    This video deserves to be standard course in schools

  • @JoshFlorii
    @JoshFlorii 3 роки тому

    very very well said

  • @x-perimentalthoughts
    @x-perimentalthoughts 3 роки тому +1

    Thank you for making this video. Now I understand the bigger picture of MBS. Again thank you 💯💯💯

  • @cellmaker1
    @cellmaker1 7 місяців тому

    Great explanation! It would be great if you could talk about some of the other issues around mortgagees, around MBSs, CDOs and CDS's.
    a) Who ends up keeping track of (servicing) mortgages and making sure the right people are getting paid? This sounds trivial but it seems like it could become increasingly complex and expensive. When the mortgages are securitized and chopped up, etc., how can they keep all this straight? And who keeps all this straight?
    b) In the Big Short, they kept saying "and then the entire [bond/CDO] goes to zero." What does this mean if there are still mortgages that are not in default (which was how you showed it in this video)?
    c) Not explained here, but in the Big Short they talked about "synthetic CDOs" as side bets on CDOs, etc. Whose money funded those side bets? How did this affect financial markets, perhaps globally?
    d) Not explained here, what about the insurers who (I guess) were selling the CDSs (or buying the other side of CDSs sold by the banks)? And reinsurers. How did this work in reality? (Personal note: I lost a ton of money because I was holding the bluest or bluechip stocks at the time - AIG.)

  • @ankitdhn004
    @ankitdhn004 3 роки тому

    Thanks Bade Bhai for clearing the very basic of MBS and CDO. Its time for me to re-watch Big Short, Margin Call, Inside Job. Thanks Again. Keep Going.

  • @emiliospowerballer1441
    @emiliospowerballer1441 3 роки тому +4

    So, institutions and organizations bought securities which were backed on the assumption that housing prices would have kept increasing while homeowners would be able to pay for their homes. So they basically played a bet on people buying homes for profits. If that isn't ethical business conduct, I don't know what is. This is a great video, and more people need to understand what happened in 2008 because they would understand just how greedy businesses can become for profits and revenue.

    • @kennyguevara6277
      @kennyguevara6277 3 роки тому +3

      It's crazy. I'm learning all about this to buy my first investment property but the more I look into things the more I realize we are trending into another crash.

  • @nathonbrown3596
    @nathonbrown3596 2 роки тому

    thank you

  • @iveyhealth2266
    @iveyhealth2266 Рік тому

    Nice! 💯

  • @anonymous1432341
    @anonymous1432341 2 роки тому

    I am not based in US but I remember the 2008 crisis. That was the year I married. I never understood how it happened. This really made it easy to understand. Thanks

    • @mortyjr5890
      @mortyjr5890 2 роки тому

      help me understand this.. if borrower were not actually able to pay back their loan, then mbs investor had to suffer,, but they had the security in their hand,, couldn't they just sell the mortgage?

  • @LidijaJovanovskaMJ
    @LidijaJovanovskaMJ Місяць тому

    Amazing explanation, thanks for that! What still baffles me is how it was possible (maybe it still is), to buy insurance on something you don’t own?

  • @RichHustleR_333
    @RichHustleR_333 2 роки тому

    Excellent

  • @Raymondjohn2
    @Raymondjohn2 Рік тому +3

    I paid up all my mortgages in 2yrs while working with a Financial Adviser. I’m 50 and my husband 54 we are both retired with over $3 million in net worth and no debts. We got to realize that the secret to financial freedom is making better investments.

    • @hermanramos7092
      @hermanramos7092 Рік тому +3

      That is so amazing, I’m trying to get onto the investing ladder at 40. I wish at 55 I will be testifying to similar success..

    • @martingiavarini
      @martingiavarini Рік тому +3

      How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings

    • @bob.weaver72
      @bob.weaver72 Рік тому +3

      @@martingiavarini Catherine Morrison Evans is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..

    • @martingiavarini
      @martingiavarini Рік тому +2

      @@bob.weaver72 Benevolence, this reference seems valid.. Just inputted her full name on my browser and found her site without sweat, 20 years of experience is certainly striking! very much appreciate it

  • @albertjoseph9684
    @albertjoseph9684 3 роки тому

    Loved it