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Can Someone Explain Whats Going On With The Economy And The Banks And What Will Fix It?


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#1 cowsgonemadd3

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Posted 18 September 2008 - 09:34 PM

I am very confused here. The government let the Lehmans brothers bank go out to save AIG or something:
http://www.irishtimes.com/newspaper/financ...1690003445.html

The stock market fell to its lowest since September 11 2001.

My poppa is saying we wont have jobs or much of a economy in 6 months.

Basically everybody is speaking negative and its a little scary.

I mean should we all get prepared for another great depression?

Do we need to fear this or is this problem able to be fixed?

Edited by garmanma, 19 September 2008 - 04:33 PM.
Moved to Speakeasy-Mark


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#2 Wildabeast

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Posted 19 September 2008 - 12:04 AM

I don't know if I can answer this right, but yes it can be fixed. I just don't believe the Government can fix it. (Name one thing they run that works well..) But corporations need to be run smarter, not investing in risky stuff like mortgages that are given to people with bad credit and/or have a history of not paying bills. Then, quit this crap of guarenteeing (spelling?) millions of dollars to the people who run the company, into the ground, when they leave. Think about it, what do they care if the company goes under, they get million$ in $everance no matter what. Hold them accountable, and maybe then the companies will do better. Don't give them the severance, use the money to help out the company instead.

If the Government keeps buying out, and bailing out, then pretty soon the government will be running everything. Like the USSR, or Venezuala (spelling?), Cuba all those real quality of living places... :thumbsup:
"The nine most feared words in the english language, 'I'm from the government, and I'm here to help'..."
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#3 MattV

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Posted 19 September 2008 - 01:30 AM

This kind of sh*t happens to a degree every four years, and to an even larger degree every eight years. This kind of Wall Street turmoil takes place every time there is a Presidential election.

Before anything positive will be done, control of the Congress and Senate has to be taken from the Democrats. Hell, every serious problem this country has is a result of Leftists being allowed to run rampant and unchecked for the last forty years.

Edited by MattV, 19 September 2008 - 01:31 AM.


#4 cowsgonemadd3

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Posted 19 September 2008 - 11:08 AM

So you think its just another one of these pre election things and not a total country failure?

#5 woodyblade

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Posted 19 September 2008 - 07:04 PM

I don't think it is just a Pre-Election thing, the main causes are the Mortgage Market or Toxic Assets as Banks call them, basically the Banks have invested in things that are too High Risk and they have back fired so they have to pay for it. It's been quite Bad all week when Lehmans Collapsed but because of the UK stopping Short Selling till the New Year (Link for those who don't know what Short Selling is - Short Selling) and the US said they would as well but only till October and also many other Central Banks in the World, the Markets seem to have recovered for now anyway. Our Market is nearly back to what it was at the beginning of the Summer (5400 on the FTSE in June), currently around 5300 today plus we had the Biggest Rise on our Market in History over 8.8% Growth since yesterday.

But it is certainly messed up and doesn't look to be getting any better I'm afraid, I have to say UK is the only European Country yet to have our Economy lose anything with Growth in the First Quarter of the Year and only small Growth in the Second Quarter but we still expect to go into Recession meaning 2 months of Negative Growth or a Bad Third Quarter which is likely because of this Financial Crisis.

A few combination's come into this Economy Crisis including the Rise of Oil in the Summer, rising Food Costs and the Banks being too Greedy and lending too much money out as well as Money to people who couldn't pay it back, those unpaid Mortgages being the Toxic Assets I talked about.

Don't expect a Depression the Central Banks are smarter than that now they'll pump Money into the Economy if something is going to happen, it just might be a Rough Year or 2 with some Negative Growth and Maybe a Little Growth come Next year. Something really bad has got to happen for a Depression to occur now that the Federal Bank has announced it may put money in the Financial Market and UK is about to as well, Japan already has.

Yeah a bit of a long Post as well but thats how I see it anyway.

Edited by woodyblade, 19 September 2008 - 07:06 PM.


#6 flavius

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Posted 20 September 2008 - 04:28 PM

short selling is now outlawed by your government now, the greedy spivs as the papers call them over here are now in london being bled to death with all the money they had in these shorties going down the pan and not before time,by buying shares in a bank and driving them down only caused pre emtive with drawal of cash deposits, you call it a run when this happens all confidence in that bank goes out of the window and makes trading virtually impossible, what is frightening in this country is we do not have experts at the helm, a man/ woman gets elected to be a member of parliment and is instantly capable of running a country when last week they where a dental receptionist ,only if they make a cabinet post do they have the luxury of having a set of qualified experts in the particular field that the cabinet post is for health/foriegn affairs/ transport/ welfare even then the mp doesnt have to take their advice but rely entirely on their own opinion/bias, so what is the answer, simple if a person in industry can pull a near bankrupt company back into the red in less than two years employ him and his confederates in all the other branches of industry to run the country with a just reward for doing so.here endeth the lesson
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#7 Guest_Abacus 7_*

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Posted 24 September 2008 - 03:14 AM

Maybe this will Help?

"Pentagon can't find $2.3 trillion, wasting trillions on 'national defense'
By Paul B. Farrell, MarketWatch"



http://rinf.com/alt-news/business-news/pen...l-defense/4435/

:thumbsup:

#8 DSTM

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Posted 24 September 2008 - 06:02 AM

Responding to the Topic heading,I am convinced America is going bankrupt slowly,by spending too much on National Defence,and staying in Iraq too long.Trying to protect your Oil interests in Iraq is a huge cost.Now it's being undermined by China.Was it all worth the Lives lost and Trillions of Dollars? Interesting read.Course the Economy is going to suffer.
http://www.thehindu.com/2008/09/17/stories...91756161100.htm















#9 ryan_w_quick

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Posted 24 September 2008 - 08:37 AM

well, i think the country has been heading toward this for a while. of course the risky investments and government bail outs don't help the rest of the country, those of us who just try to find a way to live day to day. I mean, i only have health insurance cause i'm in school and i'm still on my parents.

but, anyway, its obvious that there were going to be problems. when inflation and price of necessary goods (food, gas, soap, etc.) is going up faster than anyones salaries are going up, theres going to be problems.

a change of revolutionary proportions is required to TRULY fix the problem
"To do less than your best is to sacrifice the gift." Steve Prefontaine

"The things you own end up owning you." Tyler Durden

"I do not feel obliged to believe that the same god who has endowed us with sense, reason and intellect has intended us to forgo their use." Galileo

#10 Guest_Abacus 7_*

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Posted 24 September 2008 - 10:28 AM

May the Gods be on your side, Mate, if you believe in them?

:thumbsup:

#11 Poppy32174

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Posted 24 September 2008 - 10:45 AM

a change of revolutionary proportions is required to TRULY fix the problem


I just hope it doesn't take a revolution to fix the problem.

Poppy
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#12 MattV

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Posted 24 September 2008 - 03:01 PM

a change of revolutionary proportions is required to TRULY fix the problem


I just hope it doesn't take a revolution to fix the problem.

Poppy
:thumbsup:


Actually, that would probably be a good thing right about now.

#13 Wildabeast

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Posted 25 September 2008 - 12:16 AM

Responding to the Topic heading,I am convinced America is going bankrupt slowly,by spending too much on National Defence,and staying in Iraq too long.Trying to protect your Oil interests in Iraq is a huge cost


I kinda disagree with you DSTM, I agree Iraq is and was a bad idea, but as far as oil? Come on, I heard that during the 1st gulf war, so where is the oil? If were over there for that, nobody is sending it here like you would think they should if that is what we are after. And during the 90's our defense spending was cut so drastically it was scary for some of us who have been in the milatary and know what that does to the armed forces. But I agree, we are going bankrupt slowly. We are still giving money (they say loaning) to coulntries who have never paid any back and probably don't plan to. That's just stupid. And just where are they planning to get the money to bail out? From the taxpayers, the ones losing the jobs over this problem. Like I said before, the execs get thier $$$$$ severance and the employees get to file for unemployment. :thumbsup:
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#14 Guest_Abacus 7_*

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Posted 25 September 2008 - 03:26 AM

But what would happen to all the War Factories across America if America did not have a War to Fight?

More Unemployment and heaps more Reccession?

Hmmm? Bit like Catch 22?

Meantime the Average American Pays and Suffers? Rest Laugh at it all the way to the Bank.

:thumbsup:

Edited by Abacus 7, 25 September 2008 - 03:30 AM.


#15 ryan_w_quick

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Posted 25 September 2008 - 08:17 AM

well, world war 2 solved our economics problem at the time.

i'm just wandering when america will make a war, in order to solve our economics problem now. they've had miniature wars since world war 2, like iraq and vietnam, in order to appease the world bank. but, they need a bigger war to save the country.

i just hope i dont die in it
"To do less than your best is to sacrifice the gift." Steve Prefontaine

"The things you own end up owning you." Tyler Durden

"I do not feel obliged to believe that the same god who has endowed us with sense, reason and intellect has intended us to forgo their use." Galileo




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