The End of Wall Street: Part 1 of 3
In the first of this three-part series, Journal reporters explain how the housing bubble inflated and burst, and why easy money led to the collapse of Wall Street’s biggest financial institutions.
May 2, 2011 4:44 pm 
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By YunGProphetLove, May 2, 2011 @ 5:17 pm
@cyrusfruean The White MANS Empire is Going DOWN…….
Wall Street is One of Them……………Black Man Will Come to POWER
More Wealth/Homes/Peace/Women/Gods Blessing with Touch The BELIEVERs
By YunGProphetLove, May 2, 2011 @ 5:25 pm
@peruface The White MANS Empire is Going DOWN…….
Wall Street is One of Them……………Black Man Will Come to POWER
More Wealth/Homes/Peace/Women/Gods Blessing with Touch The BELIEVERs
By YunGProphetLove, May 2, 2011 @ 5:42 pm
The White MANS Empire is Going DOWN…….
Wall Street is One of Them……………Black Man Will Come to POWER
More Wealth/Homes/Peace/Women/Gods Blessing with Touch The BELIEVERs
By YunGProphetLove, May 2, 2011 @ 5:44 pm
The White MANS Empire is Going DOWN…….
Walle Street is One of Them……………Black Man Will Come to POWER
By ninuxy, May 2, 2011 @ 6:28 pm
What a hogwash piece of drivel. Fannie Mae had a very small percentage of Sub-prime mortgages originated and as a matter of fact, they got into the game after the investment banks were partying hard in the Wall Street that left them no other choice to compete. Regardless, their share for these mortgages was slim compare to the private sector. But leave it to these reactionary thugs at WSJ to twist the facts.
By peruface, May 2, 2011 @ 7:13 pm
@LeMaestro123 You sound like a HAndicap
By LeMaestro123, May 2, 2011 @ 7:59 pm
@peruface Not you made 713 % !! It´s made by million of people, they get almost no money for their work and it´s made by simple bets. Who is stupid?
By cyrusfruean, May 2, 2011 @ 8:15 pm
I love it when people get scared and sell their stocks.That’s when I go in for the kill.
By peruface, May 2, 2011 @ 8:30 pm
I made 713% during the 2008 Market Cash, you make money going down too. There’s a lot of dumb money out there that people don’t deserve to have. Don’t be made cause your stupid.
By peruface, May 2, 2011 @ 9:29 pm
everything video on wall street is FEAR….
By kroovyandcal, May 2, 2011 @ 10:26 pm
i hate to inform everyone, but this bubble has merely been reinflated by our government, meaning the pain is going to get worse when it bursts again. a toxic asset is a toxic asset. nothing has changed.
By busterkeaton1001, May 2, 2011 @ 10:36 pm
Like a game of hot potato. Who would get stuck holding the risk. Lots of folks did, Fannie, Freddy, Bear Stearns, Lehman Brothers, and ultimately it was AIG, becuase Goldman wised up and sold all its risk to AIG (and then shorted the subprime market). Poor people have defaulted on their mortgages before and it’s never caused a financial collaspe. It took the financial wizards in our banking industry to figure out a way to do that. Michael Lewis says, Capitalism almost destroyed Captialism
By busterkeaton1001, May 2, 2011 @ 11:33 pm
The demand on Wall Street was so great for these packages of mortgages they kept demanding “more product” from the banks. Do you think Banks don’t understand that a NINJA loan, that is a loan you don’t have show your income or employment status is risky. OF COURSE, they knew they just wanted to pass the risk fast enough to someone else. In the end when interest rates rose, and the payments ballooned, these mortgages failed. (So did prime mortgages with adjustable rates, at the same levels).
By busterkeaton1001, May 2, 2011 @ 11:56 pm
Wall Street made money by selling packages of these mortgages to pension funds and other big buyers. This is was cause the banks/mortgage companies to lower their standards. With so much cheap money around, by 2003/2004, everyone who was in the hosuing market with good credit, had a house. So what to do? Get the ones with houses to buy bigger ones. and lower your standards to get the ones with no credit into a house.
By busterkeaton1001, May 3, 2011 @ 12:10 am
Were banks and mortgage companies giving these mortgages because they were feeling charitable. Was Wall Street buying packages of these screwy mortgages hand over fist because they were concerned with the plight of the poor? NO, it was because they were making tons of money doing so. Banks and Wall Street found a way to profit from mortgages without having the risk of mortgages. Banks decided to make their money up front and sell the mortgages out the back door where Wall Street was waiting
By busterkeaton1001, May 3, 2011 @ 12:44 am
This decision by the Fed, to cut interest rates so low, meant money was practically free for banks and Wall Street firms. so real estate which had been doing well really starts to boom in 2002. The original decision by the Fed to cut the rates so low, might have been the correct one, but everyone agrees that they made a realy bad decision to keep rates so low, even as people started to see signs of a housing bubble. This inflated the bubble way beyond the size of the recent tech bubble.
By busterkeaton1001, May 3, 2011 @ 1:08 am
This video is stunningly bad journalism.
Government pressure to increase home ownership did not create the crisis. Fannie and Freddie Mae didn’t start this party. They were late to it and everybody was drunk once they got there. Most of the subprime mortgages firms that went bankrupt were not traditional banks with neighborhood branches so they were subject to the Community Reinvestment Act. Government policy that did contribute to crisis was the decision after 9/11 to cut interest to 1%
By ddrahul85, May 3, 2011 @ 1:46 am
as much as i hate the recession, i know that very soon, business processes will be changed to suit the flat world economy. and new york city will rise yet again, to greater heights. there will be many cities that try to rival nyc, but nyc will be firmly perched on top.
By gazoorap, May 3, 2011 @ 2:39 am
its called dilusion of granduer
tldmdotorg
cant wait to see jesus