2008 American Recession goes global/Stock market crashing

dan7 · 10-10-2008, 06:02 PM

Quote:

Originally Posted by Phoenix

Quite simply, banks and mortgage brokers have lent money out that they didn't have for too long, borrowing from one-another and loaning to people who never had the ability to pay it back, and now a few of them have gone bust because of this method, the ones who loaned them that now are short themselves, and thus the dominos begin to fall. It's a crippling time financially for every developed nation, and any "third world" nation that relies on products being exported to the West.

However, long-term, the housing market is lower, so first-time buyers will have a better time getting on the property ladder, globally, provided that there are mortgage companies (probably government-funded) who can lend them the money to give them that helping hand. Long-term, this benefits us all. Short term, we all struggle with the cost of day-to-day living, unemployment and increased crime rates. Right on election time, too!

There is no quick fix. Throwing money at it won't solve it. It only slows the process down. Money needs to only be given to those who have means to repay and money needs to not be borrowed from global markets and other companies, because if one fails, the rest have to compensate and we get this fiasco. Joy.

you are exactly right, it is the increasing FHA loans that caused the problems, the government told the lending companies to loan out to those who cant afford it, and guess what... they cant afford it and the money does not came back in.

Quote:

Originally Posted by Girshwin

This has been a long time in coming, and there isn't a lot we can do except ride it out- it's a cycle in the market. Although there's certainly a lot of blame to go around.

Homeowners, lenders, and the government all did a lot of silly things, and Obama's "Main Street did everything right, Wall Street screwed up America" mantra, while perhaps politically popular, is a lie.

the economy will always fluctuate up and down and we are in a very low part right now. it will turn around eventually as it always does. the economy is something that should not be meddled with because mistakes will happen and cause blips like this one.

Quote:

Originally Posted by Hrundi

Yeah I wasn't really too informed of what's happened to the market, but by the sound of it, the bailout plan doesn't fit well with me.

On the other hand, my economics professor discussed this and noted that a similar bailout plan saved Sweden's economy when it was in a similar situation, and the bad economy of Japan in the 90's was due to the fact that they didn't adopt this kind of plan right away. Japan also evidently used a similar strategy to eventually overcome this recession.

Japan and Sweden: A tale of 2 gov't bailouts - washingtonpost.com

EDIT: Oh yeah, and about that AIG "retreat", apparently after those antics the government doled out another handout to AIG for ANOTHER $37 billion!

spoiled brats...

business's need to earn their money through steady income, not have a lump sum given to you.

if someone gave you $2,000,000 you would go nuts, buy a house, nice car, furnish the place and live large and quicker than you think, you would be in a position where it is all gone and you cannot afford to keep many of the things you bought and find yourself in trouble. if you earned $100,000 a year for 20 years you would be a lot smarter about things, you would get a mortgage for a house and pay it off, get a car and pay it off pretty easily, you would have a steady amount of income for expenses and able to save and invest little bits all the time. this would create a growing wealth or your future instead of someone blowing through the $2,000,000 too quickly.

Quote:

Originally Posted by DIGID

The bailout bill increases economic regulation, which will probably help unfreeze the markets. A similar period of federal power and economic regulation occurred to finally get out of the Great Depression in the U.S. Although I suppose I support it, I uneasily favor any bill of this kind of concept.

this bail out is a band aid for a bullet wound, it will not stop the economy decline, only the American people can do that. WWII is all that got us out of the depression, the whole nation rallying to exponentially increase our military and military production is what brought about the economic influx.

Quote:

Originally Posted by Hrundi

We don't know that for sure though. The New Deal may have helped eventually, it may not have... but it took WWII to pull America's industry together and get America out of the depression.

yup...

Hrundi · 10-10-2008, 06:34 PM

Quote:

Originally Posted by dan7

if someone gave you $2,000,000 you would go nuts, buy a house, nice car, furnish the place and live large and quicker than you think, you would be in a position where it is all gone and you cannot afford to keep many of the things you bought and find yourself in trouble. if you earned $100,000 a year for 20 years you would be a lot smarter about things, you would get a mortgage for a house and pay it off, get a car and pay it off pretty easily, you would have a steady amount of income for expenses and able to save and invest little bits all the time. this would create a growing wealth or your future instead of someone blowing through the $2,000,000 too quickly.

qft

This is why people who win state lotteries all too often end up with heroin addictions and a life worse-off than before.

But then again most corporations and corporate leaders are a little more far-sighted than the type of individual who gambles on lottery tickets. That might be a key difference between your analogy and the bailout.

The AIG fiasco isn't really typical of the behavior of how these firms will act... apparently they had already had the retreat planned before they knew they were receiving a handout

Bl00d · 10-11-2008, 03:59 AM

Quote:

Originally Posted by Wizzy

If obama doesn't become president, i'm bailing out to canada.

Second great depression is upon us.

Have the people around here got "stupider" or what?

History shows the democrats can actually do the right things. This mess we are in, it is because of the republicans. Dow is below 8k, and people actually beleive that it is because of the 2 years the democrats had control of the senate.

My dad works in Lehman Bros, and frankly, he is pissed of at the goveremnt. This tremendous downwards spiral of the economy was triggered by the collapse of Lehman Bros. If you look at the stock of Morgan Stanley, you will see that they are in the same position. The difference? The govt. learned its lesson from Lehman, and would not dare commit the same mistake again.

Hrundi · 10-11-2008, 04:15 AM

Actually, it seems like they've gotten "more stupid"...

Just saying

Bl00d · 10-11-2008, 04:19 AM

Quote:

Originally Posted by Hrundi

Actually, it seems like they've gotten "more stupid"...

Just saying

I know...

dan7 · 10-11-2008, 09:05 AM

bl00d, ask yourself, when was the countries economy at its absolute highest ever??? directly following the 2001 and 2003 tax cuts. people had money and spent it, the government cannot keep the economy going, only the people can.

the economic crash happened because of the mortgage companies were forced to loan money to those who could not afford it as well as some greed and corruption in certain companies.

also, It's the democrats who are defending the fraudulent mortgages by Fannie May and Freddie Mac and going after anyone who brought up the concerning issue.

i say this over and over but I'm never heard, look at both sides of the story and come to a logical conclusion, don't just take the media's word for it.

DIGID · 10-12-2008, 04:55 AM

Quote:

Originally Posted by dan7

bl00d, ask yourself, when was the countries economy at its absolute highest ever??? directly following the 2001 and 2003 tax cuts. people had money and spent it, the government cannot keep the economy going, only the people can.

the economic crash happened because of the mortgage companies were forced to loan money to those who could not afford it as well as some greed and corruption in certain companies.

also, It's the democrats who are defending the fraudulent mortgages by Fannie May and Freddie Mac and going after anyone who brought up the concerning issue.

i say this over and over but I'm never heard, look at both sides of the story and come to a logical conclusion, don't just take the media's word for it.

By economy, if you mean when did America's richest have the biggest tax breaks, then that would be directly following the illogical tax cuts imposed by President Bush.

Deregulation caused the huge effect on the economy by the mortgage crisis. The Democratic party, by its basic principles, is far more in favor of economic regulation than the Republican party.

Hrundi · 10-12-2008, 06:28 AM

Quote:

Originally Posted by DIGID

The Democratic party, by its basic principles, is far more in favor of economic regulation than the Republican party.

WOW what a revelation! /sarcasm

Actually the big question is whether economic regulation in and of itself is the right thing to do, and if so, what kind of economic regulation.

Most people agree that economic regulation is not always good. Therefore don't just believe that one party or another is always right just because they're principally for economic regulation. You should decide for yourself what truly makes sense, and make your own decision.

KamikazePilot · 10-15-2008, 03:02 AM

The United States goes through a recession every 8-10 years. Well bounce back, maybe not as quick this time. Whenever the global market does bad, America suffers the least. China owning 40% of Americas debt doesnt mean blah, thats exactly it, they own DEBT. Not cash flow... this whole thing was very impulsive. And to think they wanted it passed with no strings attatched... pffft. The bill is "financial socialism". The bush admin has usurped far too many powers under a banner of urgency time and time again. Even if the Bush Admin werent so untrustworthy it was still a rash idea to blow through this like its New Orleans. If this doesnt work were going to have to Nationalize the banking system. We should have just cut out the capital gains tax and poured half the money they used in that bill into the housing market. I wonder who well start a war with for this one?

Quote:

Originally Posted by Bl00d

Have the people around here got "stupider" or what?

History shows the democrats can actually do the right things. This mess we are in, it is because of the republicans. Dow is below 8k, and people actually beleive that it is because of the 2 years the democrats had control of the senate.

My dad works in Lehman Bros, and frankly, he is pissed of at the goveremnt. This tremendous downwards spiral of the economy was triggered by the collapse of Lehman Bros. If you look at the stock of Morgan Stanley, you will see that they are in the same position. The difference? The govt. learned its lesson from Lehman, and would not dare commit the same mistake again.

Sorry to double post but, Obama will cause inflation to rise 14-15 percent. Soooooo. Obama 08' Paint the white house black! blah

Jounin Kilika · 10-15-2008, 07:44 PM

I say... vote for Pedro. If he wins this election, all of our wildest dreams will come true.

10-11-2008, 04:15 AM	#24 (permalink)
Hrundi stuff of myths Join Date: Jun 2006 Location: The New World Posts: 446	Actually, it seems like they've gotten "more stupid"... Just saying __________________ _______________________________________________________________________

10-11-2008, 09:05 AM	#26 (permalink)
dan7 Friendliest User07 +Toby Join Date: Nov 2006 Location: There is, ocean, mountains, desert, snow, traffic, wine, famouse theme parks, and babes. Where am i? Posts: 3,940	bl00d, ask yourself, when was the countries economy at its absolute highest ever??? directly following the 2001 and 2003 tax cuts. people had money and spent it, the government cannot keep the economy going, only the people can. the economic crash happened because of the mortgage companies were forced to loan money to those who could not afford it as well as some greed and corruption in certain companies. also, It's the democrats who are defending the fraudulent mortgages by Fannie May and Freddie Mac and going after anyone who brought up the concerning issue. i say this over and over but I'm never heard, look at both sides of the story and come to a logical conclusion, don't just take the media's word for it. __________________ How to Forum Gifts 1\|Gifts 2 Toby Fan<-use it

10-15-2008, 07:44 PM	#30 (permalink)
Jounin Kilika 1 1 0 t h Join Date: Oct 2007 Location: Village Hidden in Potato Chips ...and Salsa Verdé Posts: 537	I say... vote for Pedro. If he wins this election, all of our wildest dreams will come true. __________________ 110th Tile Guard <---click that to join 110th Giftage: \| Fearliss \|

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