The libor rate on Wednesday mourning was the highest since the 1987 crash. This means credit was tightening big time and banks were afraid to lend money to other banks. They feared the return of their money rather the return on their money There was lots of fear until Paulson's rescue plan. The domino effect leading to a major crash and followed by a possible depression was real close this week! Get on your hands and knees and hope and pray everything works out OK and confidence is restored! For now we have bought some time and things look better. There is hope! We live in very interesting times!
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Re: We have been spared for now!!!
I wish this rescue plan would get Nashville and other areas in the southeast gas. -
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Re: We have been spared for now!!!
This entire mess really pisses me off! We live in a very undisciplined society that wants instant gratification, and the finacial insitutions that are driven by greed have giving these finanical irresponsible people loans. Now these fine folks have stuck it to the banks, so what are we going to do? Lets just bail everyone out! Now guess who is going to get stuck with the bill? The good old American taxpayer."What I would like for every football team to do that we play is to sit there and say, I hate playing against these guys." -Nick SabanComment
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Re: We have been spared for now!!!
Yep. Let the companies fail. That is true free-market capitalism. You don't bail out (or basically they are nationalizing it) a failing company because they're just going to fail again. That is socialism.
I understand that letting the companies fail is detrimental to the economy, but this is going to cost possibly $1 trillion from what I have heard (don't believe what they tell you on the news), which is far worse.
If Fannie Mac and Freddie Mae were not government supported all along, these phonies would be going to jail. But the government doesn't want to admit their own terrible faults, plus the companies happen to give a whole lot of donations to the political party which happens to control both houses of Congress right now (without mentioning names...).Comment
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Re: We have been spared for now!!!
Interest should've taken longer than 5 years to kick in and it might not be as bad, but ah well.
Then again the greed of brokers who knew people couldn't pay that crap did it for their bonus checks. Too many people lost in this fiascal because of people only thinking $$$$$$$$$$$4
Now its going to make things harder for newer people to get in a place when things bounce back.Comment
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Re: We have been spared for now!!!
Some of the financial companies like Lehman Brothers were leveraged 30 to 1! Even a small decline in asset prices can mean financial ruin with that much leverage. The bankers are going to learn the value of risk management. They thought that credit default swaps would reduce their risk and save them, but someone has to pay for that insurance against risk! AIG sold insurance for risky mortgages and it is ruining their balance sheet. The government had no choice but to do this bailout otherwise there would be runs on banks and money market funds which would destroy the credit markets and the economy.
We face the greatest crisis since the great depression!
I do not want to access blame because there is plenty of blame to go around. We desperately need new regulation, transparency, and old fashioned risk management so nothing like this happens for a very long time.
Hope and pray everything goes well because we will all feel the pain of this crises.Comment
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Re: We have been spared for now!!!
We are dying a slow, painful death thanks to Bush. We just need to get it over with, it isn't gonna be good. This is what happens when people get into debt. The Bible clearly states "not a debtor nor creditor shall be", if only people were smart enough to understand this principle. Now my generation is stuck with Trillions of dollars of debt.
WUSTLComment
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Re: We have been spared for now!!!
Privatize Profits.
Socialize Risk.
All we're doing is making the Federal Reserve even richer. Our country can't keep living on invisible money forever. I fear that things in this country are going to get really bad at some point.Comment
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Re: We have been spared for now!!!
Bush didn't cause this. It had a lot more to do with Congress. There was a bill sponsored by a certain presidential candidate back in 2005 which would have reformed Fannie Mae and Freddie Mac and may have helped us avoid this, but it didn't pass, even though the Republicans were the majority at the time.We are dying a slow, painful death thanks to Bush. We just need to get it over with, it isn't gonna be good. This is what happens when people get into debt. The Bible clearly states "not a debtor nor creditor shall be", if only people were smart enough to understand this principle. Now my generation is stuck with Trillions of dollars of debt.
You may like to know that one of our presidential candidates knows a whole lot of people in the two failed companies and has some which are on his economic advisory staff. And they were some of the same people that Clinton employed in his economic advisory staff that were the heads at these two companies. Not to mention that that certainly presidential candidate was the #2 receiver of donations from the company. Think he had a little interest invested in the company?
Bush cited 17 times in his presidency that we need to reform Fannie Mae and Freddie Mac. It was Congress which never carried out their end of the bargain. Don't blame Bush as much as you should blame the phonies in Congress (from both parties).
Bush was a big spender, though, so he does deserve criticism there. But so was Clinton (he balanced the budget by slashing the military, something that we have had to build back now that we need it) and Obama and McCain seem to be the same 'ole same 'ole in that regard as well.
Everyone always has the tendency to blame the president for these types of things. Remember, the executive branch is only one out of three branches of the federal government. Not everything falls solely on his shoulders.Last edited by superjames1992; 09-22-2008, 05:14 PM.Comment
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Re: We have been spared for now!!!
If you want to blame Bush, you've got to throw Clinton under the bus too. This sucker stared quite some time ago.Comment
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