14
   

The Financial Crisis: I have no clue what is happening.

 
 
cicerone imposter
 
  2  
Reply Wed 24 Sep, 2008 07:48 pm
@JPB,
When we had an uptick in the market last week, most funds increased by two or three percent, and BRK-B increased by over 8 percent.
shewolfnm
 
  2  
Reply Wed 24 Sep, 2008 07:58 pm
@cicerone imposter,
cicerone imposter wrote:

TRUISM: What goes up will usually come down - it's only a matter of time.

It's almost impossible to fight gravity.


That would be the hollow american dollar that this society is built on.

I have said it before, this country is standing on toothpicks squeaking about how much they have yet they pay Visa, mastercard, discover..etc.. 80% of their income with only 10% going to the principal of the loan.
With that kind of an unstable ground, all it takes is a good wind and not only does the tax payer / visa customer go down, but so does the item they are paying for, the job that is supporting that payment, Visa, Visa's stock, Bank of America......sheesh.. the names are specific, but the trail is infinite.

I would be willing to bet my guess of 4 cents worth of available gold behind each american dollar is out the window as well..

And since all you have to do is print the paper with out insuring if there is gold to back it up, it is easy to create new toothpicks to hold up the several thousand pounds of financial problems this country has.
cjhsa
 
  1  
Reply Wed 24 Sep, 2008 08:24 pm
@cicerone imposter,
Buy guns and ammo.

They do still sell those in California, don't they?
JTT
 
  2  
Reply Wed 24 Sep, 2008 08:47 pm
Quote:
The Financial Crisis: I have no clue what is happening.


You're in good company.

Quote:

Treasury explains how it came up with $700 billion: We just wanted ‘a really large number.’

Forbes writes on part of the reason that the American public is so skeptical of the Bush administration’s bailout proposal:

In fact, some of the most basic details, including the $700 billion figure Treasury would use to buy up bad debt, are fuzzy.

“It’s not based on any particular data point,” a Treasury spokeswoman told Forbes.com Tuesday. “We just wanted to choose a really large number.”

http://thinkprogress.org/2008/09/24/treasury-large-number/

cicerone imposter
 
  1  
Reply Wed 24 Sep, 2008 09:03 pm
@cjhsa,
I have an air pistol someplace, and some bb's in another. That's enough for me to practice some shooting in my back yard.
cicerone imposter
 
  1  
Reply Thu 25 Sep, 2008 11:28 am
@cicerone imposter,
Here's a problem that has not been answered by this bailout:
Quote:

New home sales plummet in August, prices tumble

By MARTIN CRUTSINGER, AP Economics Writer 2 hours, 4 minutes ago

WASHINGTON - New home sales tumbled in August to the slowest pace in 17 years, while the average sales price fell by the largest amount on record, demonstrating the depth of the problem that Washington is trying to solve.
ADVERTISEMENT


The Commerce Department said Thursday that new homes sales fell by 11.5 percent in August to a seasonally adjusted annual sales rate of 460,000 units, the slowest sales pace since January 1991.


It's almost impossible to value "these" assets," because the real value will not be known in the near future, and buying these assets is a gamble. Our government is now allowing this gamble to go forward without understanding the value and putting $700 billion into it.
0 Replies
 
talk72000
 
  2  
Reply Sun 28 Sep, 2008 12:01 pm
@shewolfnm,
The whole problem can be traced to the Iraq war and free trade. The Iraq costs about $250 bikkion a year and the world is not buying American products because of the war. Europe, Middle East, South America and Africa are turned off by W's foreign policy. On top of that all the multi-nationalsare out to destroy the unions so the good paying jobs are outsourced. The cost of the war and the trade deficit drains money fromthe treasury. W's tax cuts further increased the outflow of funds. Normally, in order to pay for government services it issues bonds or loans. To attract money the government has to have high interest. High interest would affect the economy and cause a recession. So W didn't want recession while he was president so he decided to stoke the housing market with low interest rates. Low interest rates stimulates all industries. Housing industry has a great -Global Warming and W's term limit helped seed the financial crisis. As he was no longer seeking office in 2008 he let the Federal Reserve to raise interest rates to pay for the debt and deficit. Quite a few mortgages defaulted but the press downplayed it. W was alarmed and interest rates were again lowered. However, Global Warming which W was denying, brought on worse weather and the housing along storm regions were damaged creating havoc with mortgages and insurance.

The deregulation brought on by Republican Phil Gramm allowed companies to print false certificates on shaky mortgages as financial instruments. The deregulation allowed the merger of banks, insurance, brokerage and investment. Banks no longer behave as banks but as shills for financial products such as stocks, bonds, and highly leveraged financial products as derivatives, etc. Banks did not check for credit risk and took those mortgage-based certificates at face value. So the banks overloaded themselves with these certificates which were debts as mortgages are debt or loans. The banks did not have enough money to cover the debt as the bank managers looked at the certificates as assets and not as liabilities.

The merger of the mass media also contributed to the mess as they hid this crisis. Republicans control the mass media.

The big boys, including former Treasury Secretary Snow, not aware of the credit crush started on a leveraged buy-outs of smaller companies. Large steel, aluminmum, coal and telecommunication companies were being raided. They were being financed by the same banks that were loaded with the mortgage-based certificates. The big swirl of buyouts revealed the credit crunch as banks realized finally that the certificates could not be cashed. Former Treasury Secretary Snow was involved with the leveraged buy-out of Bell Canada for $30 billion. It was dropped.

Mean while, Paulson wrote a Shock Doctrine set of proposals knowing of the looming crisis and the Congressional Elections and the short amount of time for Congress to look into the matter, waited until the last moment to go to Congress to solve the matter giving himself immense power. This is the work of psychopaths and jerks. He is trying to jerk Congress using the crisis to give him more powers.

Congress should fire back that the Bush was irresponsible to not approached Congress earlier to stave off the crisis but waited at the last moment to take advantage of the situation to create a crisis mode toadvance his agenda of more Executive power.


cicerone imposter
 
  3  
Reply Sun 28 Sep, 2008 12:16 pm
@talk72000,
Can you interpret $250 bikkion for us? LOL
Miller
 
  2  
Reply Sun 28 Sep, 2008 12:18 pm
@cicerone imposter,
Go to the Treasury Website and check out the SAVINGS BONDS debt.
Then trot over to the SOCIAL SECURITY site for an update.

You should be glad you're as old as you are...You may come out ahead of the game.
talk72000
 
  1  
Reply Sun 28 Sep, 2008 12:28 pm
@cicerone imposter,
I was trying to correct billion but instead hit the 'k' button on the keyboard.
Wink Mr. Green Drunk
0 Replies
 
cicerone imposter
 
  1  
Reply Sun 28 Sep, 2008 12:38 pm
@Miller,
I know that; have already "collected" more than I paid in. Last year with my prostate cancer treatment which estimates at $35,000 to $50,000, I'm way ahead, and I've been collecting for over ten years social security - about $120,000.
0 Replies
 
talk72000
 
  2  
Reply Sun 28 Sep, 2008 12:38 pm
@cicerone imposter,
I copied what I did on to Word and tried to correct the mistakes. Here is the reprint:

The whole problem can be traced to the Iraq war and free trade. The Iraq costs about $250 billion a year and the world is not buying American products because of the war. Europe, Middle East, South America and Africa are turned off by W's foreign policy. On top of that all the multi-nationals are out to destroy the unions so the good paying jobs are outsourced. The cost of the war and the trade deficit drains money from the treasury. W's tax cuts further increased the outflow of funds. Normally, in order to pay for government services it issues bonds or loans. To attract money the government has to have high interest. High interest would affect the economy and cause a recession. So W didn't want recession while he was president so he decided to stoke the housing market with low interest rates. Low interest rates help stimulate all industries. Housing industry has a great effect on the economy as it employs many people.

Global Warming and W's term limit helped seed the financial crisis. As he was no longer seeking office in 2008 he let the Federal Reserve to raise interest rates to pay for the debt and deficit. Quite a few mortgages defaulted but the press downplayed it. W was alarmed and interest rates were again lowered. However, Global Warming which W was denying, brought on worse weather and the housing along storm regions were damaged creating havoc with mortgages and insurance.

The deregulation brought on by Republican Phil Gramm allowed companies to print false certificates on shaky mortgages as financial instruments. The deregulation allowed the merger of banks, insurance, brokerage and investment. Banks no longer behave as banks but as shills for financial products such as stocks, bonds, and highly leveraged financial products as derivatives, etc. Banks did not check for credit risk and took those mortgage-based certificates at face value. So the banks overloaded themselves with these certificates which were debts as mortgages are really loans. The banks did not have enough money to cover the debt as the bank managers looked at the certificates as assets and not as liabilities.

The merger of the mass media also contributed to the mess as they hid this crisis. Republicans control the mass media.

The big boys, including former Treasury Secretary Snow, not aware of the credit crush started on a leveraged buy-outs of smaller companies. Large steel, aluminmum, coal and telecommunication companies were being raided. They were being financed by the same banks that were loaded with the mortgage-based certificates. The big swirl of buyouts revealed the credit crunch as banks realized finally that the certificates could not be cashed. Former Treasury Secretary Snow was involved with the leveraged buy-out of Bell Canada for $30 billion. It was dropped.

Mean while, Paulson wrote a Shock Doctrine set of proposals knowing of the looming crisis and the Congressional Elections and the short amount of time for Congress to look into the matter, waited until the last moment to go to Congress to solve the matter giving himself immense power. This is the work of psychopaths and jerks. He is trying to jerk Congress using the crisis to give him more powers.

Congress should fire back that the Bush was irresponsible to not approached Congress earlier to stave off the crisis but waited at the last moment to take advantage of the situation to create a crisis mode toadvance his agenda of more Executive power.
cicerone imposter
 
  2  
Reply Sun 28 Sep, 2008 12:40 pm
@talk72000,
talk, Look at current mortgage rates; it's so high, more Americans with good credit will be kept out of the market.
Miller
 
  2  
Reply Sun 28 Sep, 2008 12:43 pm
@cicerone imposter,
6.5% isn't that high. Do you remember when rates were 11% or even higher?
Miller
 
  1  
Reply Sun 28 Sep, 2008 12:44 pm
@Miller,
Perhaps folks need to put down 30-50% cash before they can show good faith in their mortgage contract.
0 Replies
 
cicerone imposter
 
  1  
Reply Sun 28 Sep, 2008 12:59 pm
@Miller,
Miller, Look at what bank deposits earned when the mortgage interest rates were 11% or higher, and also what wages have been for the past eight years against the cost of inflation.
0 Replies
 
hamburger
 
  3  
Reply Sun 28 Sep, 2008 01:20 pm
@JPB,
warren buffett knows what he is doing !

Quote:
Through Berkshire Hathaway Inc., the insurance conglomerate, he bought $5-billion (U.S.) worth of Goldman Sachs Group Inc. preferred shares that come with at least two big advantages. They pay a yield of 10 per cent, putting a cool $500-million a year into his company's coffers. And, they can be converted into common shares within five years, at a price of $115 a share. With Goldman shares currently trading at about $135, Mr. Buffett's investment is already up 17 per cent.


not bad for starters ! <GRIN>

so what are you going to do with YOUR 5 billion dollars ?
hbg
roger
 
  3  
Reply Sun 28 Sep, 2008 01:40 pm
@hamburger,
Hoard one dollar bills for the paper content.
cicerone imposter
 
  1  
Reply Sun 28 Sep, 2008 01:41 pm
@roger,
But they're so crimped and dirty!
0 Replies
 
Debra Law
 
  2  
Reply Sun 28 Sep, 2008 01:46 pm
@JTT,
Quote:
Quote:

The Financial Crisis: I have no clue what is happening.


You're in good company.

Quote:
Treasury explains how it came up with $700 billion: We just wanted ‘a really large number.’


In other words, BushCo is pulling off the greatest heist in the entire history of the world. Bush: "Everyone, a moment of your time: This is a matter of extreme urgency. Before I leave office, my 'friends' and I want to raid the national treasury one last time. Since this is our last time, we want a really large number of dollars as a going away present."
 

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