Great Basic members have developed in sound and images excellent book of Aurore Lalucq,
Great Basic members have developed in sound and images excellent book of Aurore Lalucq, bankers against banks (published with William Black to the ECLM).
The search for new markets by private to the United States
As recalls the animation, the search for new markets by private to the United States in the 2000s banks coincided with the willingness of the Government to facilitate accession to the property, pushing to overindebtedness of households.
Highlights the central role of brokers
Above all, the film highlights the central role of brokers, at the origin of the creation of a large number of loans, which will then resell on the financial markets. This is themechanism of “securitization”, a bit difficult to understand, and animations make clear.
Then come the fraud and different ways to increase lending: resources unverified borrowers, overestimation of the value of the real estate “acquis”, etc. And as warning mechanisms is not working, because of the belief in self-regulation of the markets (cannot be enough the importance of beliefs), the machine revving, until the crash.
Faced with this, we must strengthen mechanisms for control and regulation, stop Transact financially and put the guilty behind bars when their actions warrant.
It must also innovate, as proposed by Aurore Lalucq, for example by creating an authority of placing on the market of financial products imposing any new financial product to meet security and reliability tests until it is proposed to customers.
A video circulated urgently before the next banking crisis!