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Mannu | http://money.cnn.com/2008/03/17/news/economy/gothere/index.htm?cnn=yes Lehman brothers used to trade at 80 a year ago, now they are in their 30s. I think citibank is hit badly too. When a king goes to war he surely empties his treasures. I hope the war will spurt will fill US treasure over the years. How could the US congress be so dumb when they approved the war? What is the congress lacking? |
AcousticGod | The war is a separate issue. |
Mannu | Oh yeah? Unemployement is the lowest in many years. People can't pay their mortgage? Why? Its the economy, stupid
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BlueRoamer | War. |
AcousticGod | quote: Unemployement is the lowest in many years. People can't pay their mortgage?
Once again, unrelated...and unrelated to the war. This financial crisis was caused by financial institutions giving home loans to people of questionable credit and/or means. Very few, if any, of the people who have defaulted on their loans have been unemployed at the time of getting their loans. Even when the banks were loaning to anyone, there was still a requirement to prove income sufficient to pay the loan. You'll often hear the term "credit" thrown in when speaking about this crisis, and that's all it really boils down to: Banks extending credit when they shouldn't have. The first line of the article you posted sums it up: "It started last summer when borrowers with weak credit started defaulting on their mortgages." That has set in motion an international crisis, and the dominos are still falling. |
Mannu | These institutions was lending because home prices were rising. No risk involved to lenders. Now the home prices are crashing. Consumers confidence has decreased since 9 11. This will be the worst recession in 60 years in America. Wordwide countries such as korea are no longer pegging their currency value with US dollar. If other countries follows suit, the dollar will be more weak in coming years . Now look at the irony Bush wants to jump in and put some federal money in to Sterns from making it to be bought dirt cheap. Thats the only way to prevent the dominos falling in the financial market or the word here is "financial meltdown". Guess what ?Who will take the hit in this process? The fed will take it from the taxpayers.
And the dumb Americans will say - heh its a capitalist country not a socialist one. We are like that only. I think all these golf playing rich people will be fool proof for the most part. Its ordinary employees of these institutions that will be affected the most. Who will want to employ them if they get laid off ? Its a scary problem and the fed is saying everything is ok. We are under control |
Mannu | The only thing I am optimistic about is that if US is in recession then it won't last more than 6 months. I hope US economy does not go in to depression. Thats more dangerous for a country.
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ghanima81 | It's pretty atrocious what the financial institutions have done. That's all you can really say. It's called predatory real estate, and giving lines of credit that big to people who cannot make the payments, especially once the initial low interest rates of their flex-morgatages skyrocket, was despicable. The prices of real estate have come way down, great for buyers. But what about all the people who have lost their homes and screwed their credit for years to come so the banks and real estate agents could make a buck? I'm not saying the people who signed on the dotted line are blameless, but everyone who is in the market to buy a house should take a home buyers education course and know what they are getting themselves into. It's cruel to keep the ins and outs of loans from the consumer. Not everyone is educated enough in this kind of business to even know what kind of questions they should be asking, let alone the stuff that is purposely shifted aside to close the deal. It's one of the worst examples of non-humanitarian capitalism I've seen... |
AcousticGod | Good post! |
TINK | ghanima exactly |
Mannu | Ignorance of the laws and rules are not the best defense
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Mannu | BTW, heres the latest: Netherland is unpegging from USD. Same is Vietnam and same are some of the Gulf countries. |