Anyone watching/listening to the news?

[Reinbeau]

Quote:
So that means without credit all would have to stay within their means. Doesn't sound like a bad plan to me at all. This mess had already affected Main Street, it's Wall Street that needed to get a clue. Now they've been smacked hard with a clue stick, and I'm glad for it.

This means your local car dealer might not be able to finance inventory, retailers might not be able to finance for Christmas season, businesses might not be able to borrow for their seasonal needs, this will mean that people will be losing jobs, businesses will be going out of business, and the economy might go into another great depression.

Looks like that is going to happen anyways, mainly because of the overuse of credit.

Maybe we should talk to our congressmen, and urge them to approve a bail out package.

I'd rather they work on a 'make them pay' package that doesn't cost the taxpayers, who didn't cause this mess, billions. The corporations need to pay for this, not the consumer. But of course those at the top protect each other, so we'll all end up paying for things we couldn't do a darned thing about. Or maybe not. We'll see.

I'm sorry, but the house of cards has started to fall. All of the free and easy money is (and should be) gone. The fast-eddy accounting with fat options for the ones at the top needed to be brought down. I think we've been in sore need of a smackdown, and it's coming down on us all right now. How we pick up the pieces and move forward will determine whether or not we fail as a society or succeed.

(edited to fix typo)​

 

[Rosalind]

We're Talking 700 BILLION divided by I think it's 200 Million people. Think you have to figure all the zero's

700x10^9/200x10^6 == $3500/person

In fact we've got something like 300 million citizens now. Even if you only count adults, you're still looking at about 250 million.

And, as DK said, it's not actual money, it's credit. I can pass on a $3500 credit line from China with untold interest rates, thanks.​

 

[Lunachick]

"The FDIC should raise the insurance limits on accounts in the banks. This way people will have more confidence in the banking system. And this will stop the run on banks that's currently going on. It's whats putting banks out of business." (Perhaps 250,000.00 per account) (100,000.00 was from like 25 years ago.)

Example: Wamu and Wachovia in the last 5 business days.


~I'm still possessed by hubby.

I should be over it by the morning....

 

[rufus]

I think it all started with the "Community Reinvestment Act" in 1977. The government virtually compelled banks to loan money to unqualified borrowers with the intention of increasing minority home ownership.

Banks as a result, built in protection by selling people adjustable rate mortgages. They insured these mortgages with private mortgage insurers like AIG.

These mortgages were bundled with other loans and sold as packages to investors. When interest rates went up, so did the house payment. Times got tough and people started to default on their payments.

Unfortunatly, credit card companies also escalated their interest rates to usurious rates. Some bad court decisions allowed them to do this. Miss one payment somewhere, and all of your credit accounts bump up to a much higher rate.

The problem escalated. When people realized that if they lived a hundred years, they still couldn't pay off their debts. So why try?

No good deed goes unpunished. The law of unintended consequences has kicked in.

Keyensian economics do not work in a global economy. When the US Treasury increases the money supply to stimulate the economy, it just makes it easier for foreign investors to borrow our money to buy us out with our own cash.

Money flows from the area with the lowest interest rate to the area paying the highest interest. It is futile to try to manipulate the money supply.

Yes we will have a depression, but if you are prepared you can survive it. The government will print money to solve it's problems and a terrible inflation will result. Remember what happened in Germany in 1923 under the Weimar Republic? Also, remember what followed!

Hang on to hard assets, gold, real estate, stocks in durable industries that are likely to survive.

Good Luck,

Rufus

 

[hatchaholic]

I hope someone, be it the FBI or whoever, investigates those responsible for making such ridiculous sub-prime interest loans to people they knew could not pay back the loans once the economy turned!

 

[mtnhomechick]

Great post Reinbeau. The truth is they will likely pass this......we lost a trillion today alone. They're just taking a couple days off til Thursday cause it's the Jewish Holidays. I figure by Thursday they will pass a bill.

Although it will delay the inevitable.

 

[BeardedChick]

A hundred thousand dollar 401k invested in the market in stock mutual funds lost 10,000.00 in value today.

Well, not exactly... You only lost $10k IF you sold your stock today.

If you panicked and sold today - well you created a nice bargain buying opportunity for someone else. I'd buy more stock today if I had cash on hand. Wonder if I could get a loan for that?

 

[SterlingAcres]

This sh*t is depressing!
Not a fantastic time to be buying a house, that's for sure. I really want to get this homestead off the ground now.

 

[redhen]

sterling..what exactly does a "homestead" mean?..is it a farm?..thanks, Wendy

 

[lengel]

Quote:
Honestly, after reading every article in the Wall Street Journal for the last week, your idea is the best I've seen. We're well on our way and hope the best for you and your family as well.