super thread: The global credit crisis

concidering both the numbers of threads on this issue and the suggestions from the other mods and posters i have decided this issue needs a super thread. of course the problem is that at the moment no one seems to be posting about anything EXCEPT the credit crisis but oh well

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anyway all posts\threads to do with the global finantial crisis will be merged into this thread

 

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The Stimulus Package: Is Wall Street Worth 700 Billion?

Personally, I think that we shouldn't be in this problem in the first place. If a business is large enough to severely damage the US economy if it fails, it should have been broken up long ago. Also, this package is essentialy rewarding large companies and CEOs for reckless, not economically viable behavior. It sends the message that you can do any dumbbutt stupid thing you want, and the government will bail you out.

 

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A 0.7b open welfare check, for the banking sector. Now they can all keep their bonuses and retirement pensions.

 

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Wonderful. That's what we all need.

 

Where were the REGULATORS when this all started over 5 years ago?

Where were the Congressmen when all of this was going on for the past 5 years?

Why is money missing to begin with because the banks only lend money to people they don't give it away?

 

All making themselves massive fortunes taking bribes.

And allersby, WTF do you mean by taking my picture. How immature can you get?

 

It looks like Wall Street is doing just fine without a bailout, so why give them it?

If the money was loaned out that only means other banks and financial institutions have the money in their own businesses so in reality no money is actually "missing" so why give away money to those who already have it ?

 

Fannie Mae & Freddy Mac were created to loan money to poor people who couldn't pay it back, anyway. They've been subsided by the US gov't for years. The heads at both companies rightfully assumed that by lending to people who wouldn't pay their loans back they'd
a) default, and if the housing market was still going up, make a profit
or
b) default, and if the housing market wasn't going up, get a government bailout.

This problem was pretty much created by the feds, given that the treasury has a history of bailing banks out.


This isn't a market failure- it's further demonstration that regulated markets fail because government gives them the wrong incentives.

 

Amen.

 

It is critical that the markets are stabilized. If they are not, everyone will be hurt. Wall Street needs confidence that the issue is going to be resolved in order to not massively drop. If the exchanges collapse, then everything collapses. Where do you all think much of the money comes from for companies to raise capital for expansion and jobs?

 

Economic Collapse - Bad Economic Crash Coming 2008

This was posted on YouTube in January... seems spot on to me. What do you think?

Economic Collapse - Bad Economic Crash Coming 2008

Economic Collapse - Bad Economic Crash Coming 2008 (Part 2)

will it crash in 2008?

 

Short Selling Goes Boom

dollar about to crash?

 

can anyone tell me if they know that Cheney has bought a house in Dubai and moved out of USD? I'm just curious what that f*cker is doing with his ill gotten gains....

 

also, and not to sound paranoid, but, if the USA seriously TANKS and by tanks I mean bye bye greenback hellow Amero what happens to other currencies like the Euro or the AUD?

 

from here

 

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This is what happens when you sit around watching YouTube CT vids all morning

:bawl:

 

Roots of financial crisis

The root of the problem is, apparently the wrong way that Federal Reserve decides, what to do with interest rates.
They assume that it is safe to lower interest rates as long as core inflation is low.
It is not the case, as it allows banks to lend with low interest rates that do not reflect risks of lending.

So:

1. Too easy money - with low interest rates "justified" by absence of "core inflation"( withour food and fuel and shelter included.)

It is the most wrong way of accounting, as in fact all the values are defined by the food, fuel, and shelter, needed to produce them.

2. Wishful/fraudulend ways of lending, as overestimating of the ability to repay is used to make fast money now and wait for consequences later, after us.


In fact, this was the root cause of self-destruction of socialist economies, only on lower level of products' values estimates, as prices were assigned without actual market arbitership.

CONCLUSION:

Unless the real inflation will be taken properly into account, the capitalist economy will collapse like socialist economies did.

eS

 

Exactly right!

Here's a great video on this subject:
http://www.huffingtonpost.com/michael-fauntroy-phd/obama-and-the-bradley-eff_b_120286.html
and another:
http://www.youtube.com/watch?v=H5tZc8oH--o

 

What happened to my bank WAMU?