Newsweek: Mortgage Lessons from "It's a Wonderful Life"
"It's traditional during the holiday season to watch the great Frank Capra movie "It's a Wonderful Life," and this year, the film is particularly relevant—it can help us to better understand our current economic malaise and the mortgage credit problem that is at the center of the crisis.
"In one of the most famous scenes, there's a run on the Bailey Building and Loan, a small bank owned by George Bailey, the tortured character played by Jimmy Stewart. As depositors clamor to get their money back, Stewart tells them, "You're thinking of this place all wrong, as if I had the money back in the safe. The money's not here. Your money's in Joe's house, that's right next to yours. And in the Kennedy house and Mrs. Macklin's house and a hundred others. Why, you're lending them the money to build. … Give us 60 days."
"In the language of finance, Bailey is explaining that the Bailey Building and Loan made and held "whole loans," mortgages that have not been securitized. Its liabilities are. . ."
Read the rest of the article at the link.
http://www.newsweek.com/id/176794
I agree to you. It is a great movie and many things to learn too
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