Main > Everything Else
Oh No, Times must be tight
Ummon:
Someone has to throw some comic relief in for you working stiffs.
RayB:
--- Quote from: Ummon on January 15, 2009, 08:53:40 pm ---Someone has to throw some comic relief in for you working stiffs.
--- End quote ---
I'm stiffly working.
pinballwizard79:
Politics is business & our economy is a reflection of that.
The government wanted in on many things but if they forced their way in we wouldn't be a free country would we? Its common knowledge "Wall Street" is easily influenced by rumors, possibilities & future meetings which determine stock values today based on tomorrows speculation.
Example, the banking "liquidity crisis".
Realtors, brokers, construction workers, appraisers, wall street & even the investors made money on these securities in one way or another. Restaurants, clubs, retailers & etc made money by those previously mentioned spending that money. Some made it, some borrowed it but no matter what there was work & money to be lent & spent with employment there to pay it off & start again.
I believe the word for that is "economy".
Banks do not lend their own money, they lend the investors money (aka a Koren school teacher's mutual fund or a 401k in the Ukraine for example is packed with these "bonds" so to say). Well the investors tell the wall street links to the "secondary market" aka the banks who then tell their underwriters what is approvable (based on what the investors will buy) & their average margins determine pricing which is usually hedged for protection.
Long story short yes people who didn't deserve money were getting it.....but not many...now people who deserve it cant get it & soon there will be no more jobs.
But wait, how did this happen?
A public announcement by our government stating "we may look into federally regulating certain areas of banking, such as stated loans & subprime notes".
They never even had to, all they needed to do was simply say something about it to drive down the bond value to nothing on those types of notes because investors were scared to touch something the government speaks of.
Wow, nice, there goes todays bond value....banks cant sell at a negative revenue.....better wait to sell that paper till tomorrow.....wait, now the investors wont even buy it......oh no we are only bonded for about a week of fundings (hey, thats a lot of cash actually)......a week passed, we lost our liquidity.......so yeah um we close.
Maybe the acceleration in these deals going sour is from ARM's that are expiring/adjusting & now loans do not exist for people who need to refi thus increasing foreclosures & market cool downs & job losses.
Wow, so liquidity is realitive to our economy?
Bummer, we better drop the fed rate....oh it cant go lower, well we better give bailout money to banks so they can approve the people we told them to decline.
Wait, bailout money.....wtf, when the bonds existed we didnt need bailout money..
Nevermind, forget it :soapbox:
mccoy178:
I think you need to do more research.
Kevin Mullins:
I found a penny today ...
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