Financial Mkt Meltdown

Hurricane Mike · Since 19 Jun 2006 128 Posts Stoked

hahahah - I need to get me a personal "Ball Washer" - Lewis Black is helarious

pkh · Since 27 Feb 2005 6549 Posts Couve / Hood Honored Founder

I like the concept of the Fed, and I think the model works, but I still put the blame on Greenpants for all of this.

People were talking about the housing bubble many years ago, then the talk became "subprime mortgages" now its "financial market crisis"

Its really all the same problem, caused by too much free money for too long.

Isn't the Fed's worst enemy supposed to be inflation? Seems to me like housing prices going up 20% a year for many years in a row is some serious inflation.

Then when people's only option is to make the stretch to buy a 500k dollar home because that's all that's available in places like California. They go for the adjustable rate mortgage because its a damn good deal at the time (and their only affordable option)... then interest rates start to return to normal levels... Of course they will default.

I'm glad through all of this recent carnage they didn't lower interest rates. Okay take over ownership of the empty houses until some day they can sell for a reasonable price... but don't continue the problem by supporting an over inflated housing market with super low interest rates.

Spike · Since 13 May 2007 1414 Posts Alameda Spelling Expert

welcome to

registered · Since 12 Jul 2005 1319 Posts tsunami Sandbagger

our government spends 100 dollars for every 10 dollars they hope to make next year....your right vote in some bigger government options...

don't let competition guide markets let ignorance rule....

the world is affraid of us failing otherwise we would be screwed...

our government does lots of great services however there is lots of waste..lots.

when the bridges we used to build pay out 125 million for construction and the company profits 80+ million of it ....hmmmm

every heard of weopons contracts ..theres ssome overpriced stuff.

think Iran pays full price for the same stuff Rolling Eyes

I am no economist ..but ignorance and bliss are not the combined answer folks.

don't retire if you can you need to keep paying income tax help your big brother out.

blowhard · Since 26 Dec 2005 2027 Posts Windward

other downturns where so much shorter
by allowing the people at the top who overindulged TO
lose everything (instead of giving gov. handouts)
the new deal and other socialist BS
just strung it out for a much longer time.

The obscene reality is that if the top producers are losing
so are we

brass · Since 15 Jul 2006 152 Posts Stoked

The obscene reality is that if the top producers are losing
so are we[/quote]

Man somewhere some "fiscal conservative" needs to come up with a new concept. I am still waiting for the Reagonomics trickle down to hit me with something other than the piss that it is.

need less.

Moto · Since 03 Sep 2006 2698 Posts Still a gojo pimp! Moto Mouth

Moto · Since 03 Sep 2006 2698 Posts Still a gojo pimp! Moto Mouth

colby · Since 23 Apr 2005 613 Posts Celebrity Photographer

good discussion... Would be interested to know the breakdown of where a 1 trillion dollar bailout would really come from (http://www.politico.com/news/stories/0908/13602.html) ...what % is paid out on any loans taken from which countries, how it hits a taxpayer, etc.

..and isn't the US bankrupt, or at least technically? Couldn't imagine running a business the way the government does it and lasting more than a week, and they don't seem far off of the firms they are bailing out.

In hindsight, Bloomberg or even Romney might have been better VP picks, especially for the repubs this election.

blowhard · Since 26 Dec 2005 2027 Posts Windward

eli_anderson · Since 04 Jun 2007 507 Posts Addicted

voodo economics...call up Perot again...is he still alive?

trevorsmith · Since 25 Apr 2005 501 Posts PDX Addicted

a financial person said on TV last night said something interesting:

The AIG buyout is one of the best business deals I have ever seen.
85 billion dollars for 80% of AIG..I think that is a good deal.

AIG assets top $1 trillion Shocked

so even if AIG fails we should be able to get $85 billion back out of liquidation.

colby · Since 23 Apr 2005 613 Posts Celebrity Photographer

I believe that deal is structured in favor of the FED as the incentive is on AIG NOT to borrow the full 80 billion amount. It's basically a lifeline. If AIG wants to use it then they can by a specific date and then the FED has an option to take a % of AIG.

The trillion dollar figure they are talking about now is buying up the sub prime mortgages that got hit and is in a whole other ballpark as they are essentially asking to put 800 billion+ in the control of one person, and in the language of the proposal they want NO oversight or review whatsoever. Nice maneuver! Check this language...

"Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency."

no wind up here in the North...can't you tell?? Wink

tstansbury · Since 06 Jun 2006 649 Posts Rowena and P.C Addicted

Someone at the summit in Oklahoma with Blumeberg called are fiscal policies "fiscal child abuse" I thought that was a great statement.

chanson · Since 31 Jan 2006 1874 Posts WISCONSIN Chimey

http://www.msnbc.msn.com/id/26837854

some more literature for those who feel inspired Wink

crazy to think how "loose" everyone(investors, banks, etc.) was when buying/selling all these portfolios... I guess they didn't think it would come to an end..? Confused

gabe · Since 16 May 2005 491 Posts Obsessed

jake, as a loan officer didn't you create a bunch of this bad debt yourself Question

colby · Since 23 Apr 2005 613 Posts Celebrity Photographer

someone couldn't resist bringing the French into this...

How We Became the United States of France
http://www.time.com/time/nation/article/0,8599,1843168,00.html?cnn=yes