Capitalism: A Love Story, Part II

Author: Unknown. Link to original: http://www.opensubtitles.org/en/subtitles/3643638/capitalism-a-love-story-en (English).
Tags: capitalism, Michael Moore Submitted by CAHE4KA 23.02.2010. Public material.
Part II

Translations of this material:

into Russian: Капитализм: История любви, Часть Вторая.. 0% translated in draft.
Submitted for translation by CAHE4KA 23.02.2010

Text

1
00:00:00,028 --> 00:00:01,928
Moore:
That's exactly how l felt

2
00:00:01,963 --> 00:00:04,124
when l started hearing
these new terms.

3
00:00:04,165 --> 00:00:08,295
So l went down to the New York Stock
Exchange to get some answers.

4
00:00:08,336 --> 00:00:10,065
Sir, can you explain
derivatives to me?

5
00:00:10,105 --> 00:00:12,335
Can anybody explain
derivatives or credit default swaps?

6
00:00:12,373 --> 00:00:13,601
Can someone explain
to me what these are?

7
00:00:13,641 --> 00:00:15,871
Sir, can you tell me what
a credit default swap is?

8
00:00:15,910 --> 00:00:17,434
Can you explain
a derivative to me?

9
00:00:17,479 --> 00:00:18,946
Can you tell me
what a derivative is?

10
00:00:18,980 --> 00:00:21,244
- Nobody'll talk to me.
- l'm just a blue-collar guy.

11
00:00:21,282 --> 00:00:22,943
l can see that.
Hey.

12
00:00:22,984 --> 00:00:25,509
- l'm looking for some advice.
- Yeah, good.

13
00:00:25,553 --> 00:00:28,681
You guys got any
advice for me here?

14
00:00:28,723 --> 00:00:30,714
A derivative?
Credit default swap?

15
00:00:30,759 --> 00:00:32,226
( sighs )

16
00:00:32,260 --> 00:00:34,785
Moore:
l did find one guy on Wall Street

17
00:00:34,829 --> 00:00:36,660
who wasn't a film critic.

18
00:00:36,698 --> 00:00:40,065
Marcus Haupt is an lvy League
educated engineer

19
00:00:40,101 --> 00:00:42,729
who was a vice president
of Lehman Brothers

20
00:00:42,771 --> 00:00:45,262
and spent 15 years
on Wall Street

21
00:00:45,306 --> 00:00:48,332
creating what they call
complex financial instruments.

22
00:00:48,376 --> 00:00:49,866
What is a derivative?

23
00:00:49,911 --> 00:00:52,004
A derivative
is a secondary bet

24
00:00:52,046 --> 00:00:53,843
on an underlying product.

25
00:00:53,882 --> 00:00:55,907
So you may have a stock
and you have an option on that stock.

26
00:00:55,950 --> 00:00:59,181
And that option on that stock
allows you the privilege

27
00:00:59,220 --> 00:01:01,586
but not the obligation
to buy or sell.

28
00:01:01,623 --> 00:01:04,649
How should we put this?
You are allowed to make a decision

29
00:01:04,692 --> 00:01:07,183
of whether or not you want to ultimately
take that exposure.

30
00:01:07,228 --> 00:01:09,788
Let me explain it another way.
The derivative's price

31
00:01:09,831 --> 00:01:11,822
is based on the price
of something else.

32
00:01:11,866 --> 00:01:13,800
lt's kind of like
a second-degree equation.

33
00:01:13,835 --> 00:01:16,565
lf you think of,
let's say...

34
00:01:16,604 --> 00:01:20,040
um, maybe l should go back.

35
00:01:20,074 --> 00:01:22,235
Let me start this over again.
Let's go back here.

36
00:01:23,311 --> 00:01:25,905
Moore:
l was lost.

37
00:01:25,947 --> 00:01:28,643
Maybe there's someone
at Harvard University

38
00:01:28,683 --> 00:01:30,310
who could explain it to me.

39
00:01:30,351 --> 00:01:32,785
Yeah, the-- the-- the--

40
00:01:32,821 --> 00:01:35,756
the-- the-- the--
the buyer--

41
00:01:35,790 --> 00:01:38,953
so the seller holds the loan
and it might default.

42
00:01:38,993 --> 00:01:42,190
And they sell off--

43
00:01:42,230 --> 00:01:44,994
somebody-- somebody else--

44
00:01:45,033 --> 00:01:48,002
Sorry, let me just back up.

45
00:01:48,036 --> 00:01:51,733
l apologize.
These are pretty exotic.

46
00:01:51,773 --> 00:01:53,798
Moore:
Derivatives are nothing more

47
00:01:53,842 --> 00:01:56,072
than complicated
betting schemes.

48
00:01:56,110 --> 00:01:59,045
Here's what the math equation
of one looks like.

49
00:01:59,080 --> 00:02:00,911
Can't figure it out?

50
00:02:00,949 --> 00:02:03,440
That's okay.
You're not supposed to.

51
00:02:03,484 --> 00:02:05,748
They've made them
purposely confusing

52
00:02:05,787 --> 00:02:07,846
so they can get away
with murder.

53
00:02:07,889 --> 00:02:09,857
Let's say you're a lawyer
and you're coming in

54
00:02:09,891 --> 00:02:11,722
and you're from the government
and you're trying to evaluate

55
00:02:11,759 --> 00:02:14,250
if these things
violate the tax code or not.

56
00:02:14,295 --> 00:02:16,195
lf you can figure out
what they're doing,

57
00:02:16,231 --> 00:02:18,563
most likely that Wall Street
firm will offer you a job.

58
00:02:18,600 --> 00:02:22,127
Could l go to Wall Street
and just ask them

59
00:02:22,170 --> 00:02:24,263
to set up a derivative
on anything?

60
00:02:24,305 --> 00:02:25,704
Yes.

61
00:02:25,740 --> 00:02:27,207
Believe me,
if it's out there

62
00:02:27,242 --> 00:02:28,834
there's a derivative on it.

63
00:02:28,877 --> 00:02:31,368
Moore:
So this is what Wall Street has come to--

64
00:02:31,412 --> 00:02:33,880
an insane casino.

65
00:02:33,915 --> 00:02:36,406
We've allowed them
to bet on anything,

66
00:02:36,451 --> 00:02:39,687
including our family home.

67
00:02:45,793 --> 00:02:48,762
Reporter #1 : ...the most powerful central
banker of the 20th century.

68
00:02:48,796 --> 00:02:51,060
Reporter #2:
Greenspan has become an economic icon.

69
00:02:51,099 --> 00:02:54,330
Reporter #3: Alan Greenspan says
the economy is hunky-dory.

70
00:02:54,369 --> 00:02:56,769
Reporter #4: Greenspan gone wild.
lt's like ''Girls Gone Wild.''

71
00:02:56,804 --> 00:02:59,671
What do Mick Jagger
and Alan Greenspan have in common?

72
00:02:59,707 --> 00:03:02,972
Alan Greenspan,
who at that moment in time

73
00:03:03,011 --> 00:03:05,206
was surely thought to be
the smartest man

74
00:03:05,246 --> 00:03:07,009
who had walked the face
of the earth,

75
00:03:07,048 --> 00:03:10,176
he starts using a phrase,
''tap your home equity,''

76
00:03:10,218 --> 00:03:13,051
--that Americans can tap
their home equity,

77
00:03:13,087 --> 00:03:15,317
which is just
Alan Greenspan-speak

78
00:03:15,356 --> 00:03:18,291
for ''borrow against
your home.''

79
00:03:18,326 --> 00:03:20,521
And if you can't repay it
you'll lose your house.

80
00:03:20,561 --> 00:03:24,725
lt actually started by talking
mostly older Americans,

81
00:03:24,766 --> 00:03:26,290
people who already
had homes,

82
00:03:26,334 --> 00:03:29,201
into refinancing
their homes

83
00:03:29,237 --> 00:03:31,000
to get them out of houses.

84
00:03:31,039 --> 00:03:34,873
Moore: Yes, get senior citizens
out of their houses.

85
00:03:34,909 --> 00:03:37,901
The scam to swindle people
out of the homes

86
00:03:37,946 --> 00:03:40,938
they already owned
was masterful.

87
00:03:40,982 --> 00:03:43,507
Here's how it worked.

88
00:03:43,551 --> 00:03:47,214
First, tell these homeowners
that they own a bank.

89
00:03:47,255 --> 00:03:50,224
And that bank is your home.

90
00:03:50,258 --> 00:03:53,989
So if your home
is worth $250,000,

91
00:03:54,028 --> 00:03:57,088
that makes you
a quarter millionaire.

92
00:03:57,131 --> 00:03:59,497
You're sitting
on a goldmine.

93
00:03:59,534 --> 00:04:02,435
You own your own bank.

94
00:04:02,470 --> 00:04:04,768
The bank of you.

95
00:04:04,806 --> 00:04:08,173
And you can use your bank
to get more money.

96
00:04:08,209 --> 00:04:09,676
Just refinance.

97
00:04:09,711 --> 00:04:11,406
Everyone's doing it.

98
00:04:11,446 --> 00:04:14,745
Of course hidden in the dozens
or hundreds of pages of fine print

99
00:04:14,782 --> 00:04:17,046
are tricky clauses that allow the bank
to raise your interest rate

100
00:04:17,085 --> 00:04:18,746
to a number
you didn't know about,

Pages: ← previous Ctrl next
1 2 3 4 5 6 7 8 9 10 11 12 13