HardTalk & Kyle Bass 1 of 2 on The Global Economy & Finance Situation – BBC Interview, recorded 15.11.2011 Kyle Bass is a hedge fund founder who saw the financial crisis coming and made a fortune from it – first from America’s sub-prime mortgage crisis and then from betting that Greece would default. Mr Bass told Sarah Montague that Germany cannot be expected to bail out the PIIGS countries – Portugal, Ireland, Italy, Greece and Spain, and that only a massive write-down in those countries’ debts will solve the crisis. news.bbc.co.uk . Video Rating: 4 / 5
A Lesson in Disguise: How New Orleans Avoided the Subprime Mortgage Crisis
Article by michaelrussell56
Recent attention paid to New Orleans and Louisiana has largely focused on Hurricane Katrina and the state’s attempt to recover from its widespread damage.
But while the rest of the country endures a weak economy brought on by the subprime mortgage crisis, New Orleans and the state of Louisiana are experiencing slow, steady growth. If you are looking for signs of the real estate bottom falling out there, it already happened, back in ’04 when Katrina struck.
No single state is impervious to a national financial crisis, but Louisiana is moving forward because it did not employ some of the more questionable loan strategies that were used by other states. This means that people who could make mortgage payments bought real estate in New Orleans. This means lenders did not grant unreliable loans. This means there was no bubble. This means New Orleans and Louisiana are on the right track, especially in the real estate market.
The Times-Picayune ran an article recently about this blessing in disguise.
While home prices soared to giddy heights in other states, owners in Louisiana have seen steady but unglamorous annual gains of 5 percent in recent years. As a result, lenders in Louisiana never resorted to issuing exotic loans designed to shoehorn buyers into homes they couldn’t afford.
“We never had the inflated values, and we never came up with contrived funding mechanisms to support ever-increasing home prices not backed by real economics,” said Arthur Sterbcow, president of real estate company Latter & Blum.
Recently released figures show that those years of slow and steady growth in home values in Louisiana have insulated the state from the waves of foreclosures occurring in other states.
This is a classic tortoise and the hare scenario. The nation zoomed forward, breaking records and making people rich. Then it crashed, its artificial energy spent, and in its wake left thousands of homes in foreclosure, on the market, or plummeting in value.
Nobody wished the carnage of Katrina of New Orleans. But from disasters perseverance and lessons must be learned. New Orleans is not licking its wounds. It is working towards health. With an honest, conservative and rationale real estate market, it is on the way to recovery.
Again from the article:
Because so many home loans in this state are 30-year, fixed-rate mortgages with predictable monthly payments, owners tend to lose houses to foreclosure when the economy weakens and they lose their job, or when they suffer a personal calamity such as illness or divorce.
The good news on that front: While the country as a whole lost 1.5 million jobs between October 2007 and October 2008, the greater New Orleans area added 9,600 jobs during that same period.
“We never had the economic disasters or tremendous layoffs that some states did,” Sterbcow said. “The hurricane brought a lot of money into this area and has given us a false bottom. It has given us a bit of insulation from the economic downturn that exists in many other areas of the country.”
An additional positive result is for renters. Apartments are available for affordable rates because landlords and property owners are not panicked. And with more people staying in their homes, or buying new ones, that keeps the rental community vital and accessible.
Michael Russell writes about a variety of subjects, including real estate, environmentalism, and modern architecture. This article discusses real estate in New Orleans. For more information on New Orleans apartments, visit Apartment Finder.
Mortgage Crisis News
HardTalk & Kyle Bass 2 of 2 on The Global Economy & Finance Situation – BBC Interview, recorded 15.11.2011 & Contemporary Related News Background Kyle Bass is a hedge fund founder who saw the financial crisis coming and made a fortune from it – first from America’s sub-prime mortgage crisis and then from betting that Greece would default. Mr Bass told Sarah Montague that Germany cannot be expected to bail out the PIIGS countries – Portugal, Ireland, Italy, Greece and Spain, and that only a massive write-down in those countries’ debts will solve the crisis. news.bbc.co.uk . Video Rating: 4 / 5
@tewindavis > In short – It provides me with lots of material and viewer comments … In greater detail, it provides you with an insight into the Western mentality (profit now & F*** the rest) … Ultimately “This woman” is a mirror of what is wrong, since she only shows what people want to see … But Finally I posted this, not to present the anchor, but to present this wonderful interview … Cheers & thanks for viewing and commenting, Runi Toconillo
Gawd, she’s just interested in how much money Kyle made out of his great call, as if it was some kind of crime. Her inference that his prediction on Greece is somehow a self fulfilling prophecy, or a scheme to make more money is just absolutely retarded.
@mphailey I’m afraid I don’t share your view or optimism but respect anyone who can continue to hold such a positive outlook against such an awful backdrop globally.
@eventuallythetruth no disrespect but I think the average person is smarter than that. We have to be or else we are doomed. Be patient and respectful and inform those around you.
@mphailey Correct, but what you have to realise is that the majority of the audience on TV that will have primarily watched on release are retarded sheeple and will need it regurgitated again in CNBC speak if they can put the iphone and FB link down long enough to even grasp any of it.
@RuniEvents And who should you blame? Kyle Bass? The government that caused the bubbles and deceived the markets? Or yourself? This lady is blaming Kyle Bass instead of focusing on the policies that lead to the crisis! That’s wrong!
@RuniEvents She sounds bitter that she didn’t have Kyle’s foresight in what would occur in the world and missed out on profiting from it herself. Kyle is only doing his job as a fund manager.
how much does the host need to shut up and let the guest talk? We aren’t retarded and we don’t need you to re-explain what Kyle Bass is fucking saying. It is quite clear lady!
I hate reporters who ask a question and then don’t listen to the full response. SHe interupted him at the moment when he was making the key salient point to his argument. Listen lady, we don’t want hear your grating voice, we want to hear the wisdom of someone who is actually working for a living.
@smcclurk Vote Ron Paul then! I know I am! He is the only one not getting money from Investment banks! Printing money is destroying the middle class through inflation.
So many of you posting don’t know what the hell you’re talking about. We’re not in this crisis because of loans to the poor or CRA any other right wing claptrap. We’re in this because of unmitigated greed by moneyed interests and their bought and paid for friends in the political establishment.
Wow, that guys is as eloquent a speaker as they come. The reporter was openly hostile and Bass wasn’t thrown off for a second. Cool, calm, well spoken, if that doesn’t open your eyes to what is going on in the world right now nothing will.
@SuperHedgehoggy > Guess I’m in Good Company … E.G. Alone … rich but happy … You are totallly right on instinct though … Rats are not stupid when being first to leave a sinking ship …they have no idea on technology or ship architecture, but somehow they know the ship is sinking …
@RuniEvents Almost ALWAYS follow your instincts, particularly if you sense something is not quite right. Always best to panic early! Following you common sense instinct is not luck! Warning signs were everywhere to be seen – most of the dumb-asses in the mainsteam media chose to ignore these signs probably because they didnt want to upset their politico-friends, and were all speculating on real estate breathing in the same fumes!
@penwell82 Who are “they”? Sloppy thinking. The whole problem has been a long long time in the making. Clinton appointed his mates to Freddie and Fannie, and got schmoozer Greenspan to keep interest rates artificially low. Banks were then encouraged to lend to the poor. They didnt want crap on their balance sheets so they re-packaged it and sold it off. Freddia and Fannie was run by incompetant political appoitees. Result – the biggest ever debt crisis!
@RuniEvents The chronic crisis we face was a long long time in the making. Clinton put pressure on Freddie and Fannie to lend to people who barely had a pulse – all good housing policy for the poor etc This was manipulated by the FED keeping interest rates at the wrong level for political purposes. The warning signs were early 2004/5? when Freddie got its debits confused with credits thus making Freddie look very profitable. Later …auditors discovered “the mistake(?!!!)
@SuperHedgehoggy > this is interestiing, thanks.. From a non-financial perspective I’d like to know, sure lucky & sold my assets about a week before the Crisis. I bought Gold & made quite a bundle. But this was instinct rather than savvy.. Do you think that this chronic crisis is somehow manipulated? I mean everything seemed fine one day and suddenly it was not, even though nothing changed outwardly.. Sure, some was inevitable from past & present trading.. But this was over 3 years ago…
@KMxStd Goldman was merely making a market – there was a buyer and there was a seller! John Paulson wanted to bet against the idiocy of the politically inspired property boom so Goldmans stepped up to the plate. This would not have happened if government had not interferred withe the workings of the free market- Interest rates would not have been kept artificially low. As regards Greece entering Eurozone – dishonest politicians invited Goldmans to help!!
First, SuperHedgehoggy and RuniEvents are the Same person; Second, YOU’RE A TROLL !
I replied giving you four specific arguments to argue that also financial markets are guilty for this crisis; you just answered me saying: “oh, markets are the good guys, the politicians are the only bad guys”! One thing is to understand the other’s position, something different is only saying: NO, NO, I DON’T CARE, JUST NO!
@KMxStd > “Free Maket Fan” ??? Guess You mean Someone Else … I may buy Gold, but support some control of our Makets … Just see what they got us into without minimal control … My Grandmother could have done better …
I understand that you’re a free market fan, but that does not relieve the markets from their responsibility! For example: Goldman Sachs was convicted of fraud by the SEC in the U.S., for betting against the housing market instruments, while he sold these same tools to their customers. In addition, Goldman has used public funds and was accused of being benefited from the AIG bailout, coordinated by the U.S. Treasury, at the time led by a former Goldman chairman! So…
@kno1self >> Dude don’t do that … If you still have a hair line, let me tell you its worth more than a pinkie (even the middle bone…) If you have no hair line then the middle pinkie might be most valuable… Cheers
@KMxStd The politicians set the policy. If the policy encourages bankers to lend out vast amounts of money that will never be repaid whose fault is that? Politicians should leave free markets alone. Since they have made a habit of interferring in the way capitalism works the problems have got worse. If you let people look after themselves they normally do a pretty good job. When politicians get involved everything gets screwed up – including the very people the politicians shld protect
@SuperHedgehoggy Ok it is true that many of our politicians are corrupt, but don’t tell me that the bankers of Lehman Brothers, Goldman Sachs, AIG and other investment funds are saints! Wall Street has an increasing force in the American government – not only because of the millions of dollars to campaign funds, but also because the Wall Street bankers are chosen for positions of power in the U.S. and Europe! There are many examples: Hank Paulson, Mario Draghi, Robert Zoellick..
@KMxStd Mr Bass has not committed any crime. He has merely used his time and intellect to figure out how incompetent and dishonest politicians and their bureaucrats really are. The government interference in the housing and mortgage markets in the USA, UK and a lot of Europe coerced the banks into lending to unsuitable borrowers. Citizens such as Mr Bass are merely trying to protect themselves and their clients from the consequences of the idiots in power!
Of course, Mr. Bass made a fortune and predicted the euro zone crisis! But how? First, banks such as Goldman Sachs helped Greece since 2002 to cover the deficit through exchange “swaps” with fictitious interest rates. And in 2010 recommended to their clients to bet on “credit-default swaps” on the Greek, Portuguese and Spanish bank debts, to earn money with the worsening financial conditions of these countries! I am Portuguese and I tell you: this is a crime and a fraud!
This woman sounds like those silly Occupy Wall Street folks. When you are talking to someone of the intelligence and education of Kyle Bass, who can very clearly explain his position……….you better prepare better than this silly woman.
This bitch is so annoying
@tewindavis > In short – It provides me with lots of material and viewer comments … In greater detail, it provides you with an insight into the Western mentality (profit now & F*** the rest) … Ultimately “This woman” is a mirror of what is wrong, since she only shows what people want to see … But Finally I posted this, not to present the anchor, but to present this wonderful interview … Cheers & thanks for viewing and commenting, Runi Toconillo
What a self-righteous cunt. This woman has no concept of basic portfolio theory, nor of elementary portfolio immunization.
Why do you britons allow this tripe on your state television?
Gawd, she’s just interested in how much money Kyle made out of his great call, as if it was some kind of crime. Her inference that his prediction on Greece is somehow a self fulfilling prophecy, or a scheme to make more money is just absolutely retarded.
@mphailey I’m afraid I don’t share your view or optimism but respect anyone who can continue to hold such a positive outlook against such an awful backdrop globally.
@eventuallythetruth no disrespect but I think the average person is smarter than that. We have to be or else we are doomed. Be patient and respectful and inform those around you.
@mphailey Correct, but what you have to realise is that the majority of the audience on TV that will have primarily watched on release are retarded sheeple and will need it regurgitated again in CNBC speak if they can put the iphone and FB link down long enough to even grasp any of it.
@RuniEvents And who should you blame? Kyle Bass? The government that caused the bubbles and deceived the markets? Or yourself? This lady is blaming Kyle Bass instead of focusing on the policies that lead to the crisis! That’s wrong!
This anchor is pathetic.
I love how snarky he is toward this witch… it’s kinda hot, lol.
@RuniEvents She sounds bitter that she didn’t have Kyle’s foresight in what would occur in the world and missed out on profiting from it herself. Kyle is only doing his job as a fund manager.
how much does the host need to shut up and let the guest talk? We aren’t retarded and we don’t need you to re-explain what Kyle Bass is fucking saying. It is quite clear lady!
kyle boss
I hate reporters who ask a question and then don’t listen to the full response. SHe interupted him at the moment when he was making the key salient point to his argument. Listen lady, we don’t want hear your grating voice, we want to hear the wisdom of someone who is actually working for a living.
@smcclurk Vote Ron Paul then! I know I am! He is the only one not getting money from Investment banks! Printing money is destroying the middle class through inflation.
So many of you posting don’t know what the hell you’re talking about. We’re not in this crisis because of loans to the poor or CRA any other right wing claptrap. We’re in this because of unmitigated greed by moneyed interests and their bought and paid for friends in the political establishment.
Wow! Nuff said! All gain with no pain will never work! Scary times coming!
Wow, that guys is as eloquent a speaker as they come. The reporter was openly hostile and Bass wasn’t thrown off for a second. Cool, calm, well spoken, if that doesn’t open your eyes to what is going on in the world right now nothing will.
Does she even know what a put option IS?
@SuperHedgehoggy > Guess I’m in Good Company … E.G. Alone … rich but happy … You are totallly right on instinct though … Rats are not stupid when being first to leave a sinking ship …they have no idea on technology or ship architecture, but somehow they know the ship is sinking …
@RuniEvents
Almost ALWAYS follow your instincts, particularly if you sense something is not quite right. Always best to panic early! Following you common sense instinct is not luck!
Warning signs were everywhere to be seen – most of the dumb-asses in the mainsteam media chose to ignore these signs probably because they didnt want to upset their politico-friends, and were all speculating on real estate breathing in the same fumes!
@penwell82
Who are “they”? Sloppy thinking. The whole problem has been a long long time in the making. Clinton appointed his mates to Freddie and Fannie, and got schmoozer Greenspan to keep interest rates artificially low. Banks were then encouraged to lend to the poor. They didnt want crap on their balance sheets so they re-packaged it and sold it off. Freddia and Fannie was run by incompetant political appoitees. Result – the biggest ever debt crisis!
@SuperHedgehoggy > Thanks … Guess I was lucky … Runi
@RuniEvents
The chronic crisis we face was a long long time in the making. Clinton put pressure on Freddie and Fannie to lend to people who barely had a pulse – all good housing policy for the poor etc This was manipulated by the FED keeping interest rates at the wrong level for political purposes. The warning signs were early 2004/5? when Freddie got its debits confused with credits thus making Freddie look very profitable. Later …auditors discovered “the mistake(?!!!)
@SuperHedgehoggy > this is interestiing, thanks.. From a non-financial perspective I’d like to know, sure lucky & sold my assets about a week before the Crisis. I bought Gold & made quite a bundle. But this was instinct rather than savvy.. Do you think that this chronic crisis is somehow manipulated? I mean everything seemed fine one day and suddenly it was not, even though nothing changed outwardly.. Sure, some was inevitable from past & present trading.. But this was over 3 years ago…
@KMxStd
Goldman was merely making a market – there was a buyer and there was a seller! John Paulson wanted to bet against the idiocy of the politically inspired property boom so Goldmans stepped up to the plate. This would not have happened if government had not interferred withe the workings of the free market- Interest rates would not have been kept artificially low.
As regards Greece entering Eurozone – dishonest politicians invited Goldmans to help!!
@RuniEvents Finally, I realized two things:
First, SuperHedgehoggy and RuniEvents are the Same person;
Second, YOU’RE A TROLL !
I replied giving you four specific arguments to argue that also financial markets are guilty for this crisis; you just answered me saying: “oh, markets are the good guys, the politicians are the only bad guys”!
One thing is to understand the other’s position, something different is only saying: NO, NO, I DON’T CARE, JUST NO!
Please, DON’T FEED THE TROLLS!
@KMxStd > “Free Maket Fan” ??? Guess You mean Someone Else … I may buy Gold, but support some control of our Makets … Just see what they got us into without minimal control … My Grandmother could have done better …
I understand that you’re a free market fan, but that does not relieve the markets from their responsibility!
For example: Goldman Sachs was convicted of fraud by the SEC in the U.S., for betting against the housing market instruments, while he sold these same tools to their customers. In addition, Goldman has used public funds and was accused of being benefited from the AIG bailout, coordinated by the U.S. Treasury, at the time led by a former Goldman chairman!
So…
@kno1self >> Dude don’t do that … If you still have a hair line, let me tell you its worth more than a pinkie (even the middle bone…) If you have no hair line then the middle pinkie might be most valuable… Cheers
Kyle I’ll trade you my hair line for the knowledge in your pinkie finger?
@KMxStd
The politicians set the policy. If the policy encourages bankers to lend out vast amounts of money that will never be repaid whose fault is that? Politicians should leave free markets alone. Since they have made a habit of interferring in the way capitalism works the problems have got worse. If you let people look after themselves they normally do a pretty good job. When politicians get involved everything gets screwed up – including the very people the politicians shld protect
@SuperHedgehoggy Ok it is true that many of our politicians are corrupt, but don’t tell me that the bankers of Lehman Brothers, Goldman Sachs, AIG and other investment funds are saints! Wall Street has an increasing force in the American government – not only because of the millions of dollars to campaign funds, but also because the Wall Street bankers are chosen for positions of power in the U.S. and Europe! There are many examples: Hank Paulson, Mario Draghi, Robert Zoellick..
@KMxStd
Mr Bass has not committed any crime. He has merely used his time and intellect to figure out how incompetent and dishonest politicians and their bureaucrats really are. The government interference in the housing and mortgage markets in the USA, UK and a lot of Europe coerced the banks into lending to unsuitable borrowers.
Citizens such as Mr Bass are merely trying to protect themselves and their clients from the consequences of the idiots in power!
Of course, Mr. Bass made a fortune and predicted the euro zone crisis! But how?
First, banks such as Goldman Sachs helped Greece since 2002 to cover the deficit through exchange “swaps” with fictitious interest rates. And in 2010 recommended to their clients to bet on “credit-default swaps” on the Greek, Portuguese and Spanish bank debts, to earn money with the worsening financial conditions of these countries!
I am Portuguese and I tell you: this is a crime and a fraud!
This woman sounds like those silly Occupy Wall Street folks. When you are talking to someone of the intelligence and education of Kyle Bass, who can very clearly explain his position……….you better prepare better than this silly woman.