Scenes: The Fall of 2008 - Opening Sequence

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The sequel to the Audience Award winning documentary THE HOUSING BUBBLE is here! Co-written by NY Times bestselling author Tom Woods, THE FALL OF 2008 is a non-partisan, critical examination of the responses to the housing crash, which only set us up for the failures we're now seeing.| Ron Paul | Jim Rogers | Jim Grant | Marc Faber | Doug Casey | Peter Schiff | David Stockman | Gene Epstein | Joseph Salerno | Robert Murphy | Mark Thornton | Jeff Herbener | Roger Garrison | Peter Wallison | Patrick Barron |

Episode Transcript

(00:00):
All this has happened before andit will all happen again.
The reality is we have gone froma stock market bubble, now we
have a housing bubble. And when it breaks, whatever
causes it to pop, then a lot of people are going to find out, Oh
my God, you know, not on are my stocks down?

(00:23):
My house is down too. And now what do I do?
This guy says that the housing market's a giant bubble.
People are going to lose their fucking houses, their jobs,
their livelihoods, they're fucking everything.
The truth is, and I read about it in granted from the great
Observer. To protect ourselves from the

(00:43):
bubbles to come, we set out to find the people who predicted
the crash and the people who didn't.

(01:05):
Do you think there's a risk in arecession?
How do you rate that? Oh honey, he wouldn't know that
he's the president. You know you need to talk to
economists. I think I got AB in econ one O
1. I got an A however, in keeping
taxes low and being fiscally responsible with the people's

(01:28):
money. I will say that the Federal
Reserve, in collaboration with the President's working Group,
has been closely monitoring the markets.
They seem to be working well normally.
And Wall Street closed out its worst week in four years with
another down day. Another casualty in the subprime

(01:51):
mortgage Mass. Recent disturbances in the
subprime mortgage industry are modest.
They're modest in relation to the size of our economy.
I I don't see a imposing a serious problem.
I think it's going to be largelycontained.

(02:14):
We think that by the spring early next year, that is as
these credit problems resolve and as we hope the the housing
market begins to find a bottom. The Federal Reserve is not
currently forecasting A recession.
The banking system remains sound.

(02:48):
Bank of America will get its hands on America's largest
independent mortgage company. Last year, one out of every six
loans was handled by Countrywide.
The company currently handles nearly 1 1/2 trillion dollars in
loan servicing. I don't think we're headed to
recession, but no question we'rein a slow down.

(03:09):
Peter writes Should I be worriedabout Bear Stearns in terms of
liquidity and get my money out of there?
No, no, no, Bear Stearns is fine.
Do not take your money out. This is real.
Look, if there's one take away, Bear Stearns is not in trouble.
Bear. Stearns, Bear Stearns.
Bear. Stearns today leading the.
Tumble. On Wall Street.

(03:40):
Instead of letting them fail, the Federal Reserve created $30
billion and lent it to another bank to buy Bear Stearns.
In the case of Bear Stearns, there was the shotgun marriage
at JP Morgan. A Fed loan facilitated the

(04:03):
takeover of Bear Stearns by JP Morgan Chase, avoiding a failure
of that firm. Let's say if I'm a manufacturer
and I'm a bad businessman and I go out of the of business, who
is going to help me? Who's going to help me?
But Bear Stearns and the Wall Street elite, because they're
tied into the Treasury and into the Federal Reserve and they

(04:26):
lunch together. It's a club and it's a horse.
They're bailed out. What signals did that send to
the market? Hey.
Larry, where's the forklift? Forklift it's.
Open up. That sends some very dangerous
signals. 1 is that just about every other large financial

(04:47):
institution, at least larger than Bear Stearns, is going to
be rescued. I really support the feds work
here. To me this was not difficult
because their priority at a timelike this.