Excellent!

love the video, great job!

With the collapse of the DEBT based monetary system, sooner or later there will be huge shrinkage of the global economy and entire industries will disappear, as there will not be enough EFFECTIVE consumer demand (the one that has money and not just bare demand). Slowly but surely we will slide back to WELL MANUFACTURED items that last, BUT VERY EXPENSIVE. What will all of this Global transformation do to YOUR life style, one can only imagine. One thing for sure, we are on the DOWN slope now.

There is a MUCH broader problem that is causing this crisis. It is not just CDO mortgages etc. In the nutshell the problem is that: All of these financial instruments were supposed to help financing production of goods and services. Now days (past 35 years or so) the only reason why companies still produce things is so they could issue DEBT. The banksters even converted our money in to someone else's DEBT. It is TOTAL speculation and INDEBTEDNESS that cause this SYSTEMIC CRISIS.

it all began when the Fed was created. recessions arnt some kind of nessasary evil.

fuck interest fuck worthess fiat paper. if you want a loan, just ask me, i would be happy to write a number on a piece of paper and ill just give it to you, you wont have to pay it back or pay interest and i wont be out of pocket, it will cost me nothing to write on worthless paper

At first sight the image with the glasses is impressive. But you get the impression that to fill the AAA-tranches, you need just little champagne (or cashflow). I think you know, that this is wrong. The biggest tranches of CDOs or CDO-squared were the AAA-tranches - usually at least 90%. And that was the problem: the subordinated tranches were to thin to bear the losses to justify the highest rating. This doesn't match with your image. Anyways for non-experts a catchy explanation.

I like this guy a lot, and would like to find more of him/his work. What is "Marketplace"? Is it a magazine... a blog/website? Does this guy do videos elsewhere?

That's what is so confounding. These CDO derivatives (i.e. CDO's of CDO's) are divided into sections reflecting risk. So even though the BBB bonds have inherent risk, once divided they were allowed to be chopped up into different traunches (so that the least risky of the BBB bonds get rated AAA, AA and so on - these would be the last traunches in the original BBB bonds to default). You're right that this makes no sense and ratings agencies are to blame for allowing this practice.

How is it possible to split BBB bond into groups containing AAA and AA ratings if they're inherently high-risk?