why and how is this , if you agree or disagree?
btw, which area of the world are you?
and how is it there?|||I don't have any contact with police men and women so I wouldn't know. I'm in North America.|||nothing has changed you can look a copper in the eye an he thinks you got a problem with him..so will provoke you so he can arrest you by pushing you an telling you to go away which he or she knows will wind you up...|||Police have ALWAYS been arrogant... And now the government claims we are ALL domestic terrorists...
GOODBYE AMERICA!
Hello crazy totalitarian government.|||The police have always been arrogant|||I live in Malibu, CA, everything is good here|||the where arrogant way before the credit crunch.
Friday, September 9, 2011
Are Oil and Gold the next Housing and credit crisis?
Both Oil and Gold have dramatically risen in price in the last couple of years. Do you think that these prices are justified or is this another bubble waiting to burst? On a Supply / Demand view, has the demand actually tripled in the last 2 years or is it just a speculative market that is getting ready to pop?|||possibly.|||The rising price of oil, gold, commodities, food, groceries,... are all sharing the same cause, which is our weak US dollar.
Because we have 2 wars, because we have extremely high national deficit, because we have huge imbalance of our trade deficit, because we are gradually loosing competition to Japan, China, Korea, European nations ... by loosing our manufacturing jobs, ... our US dollar has hit its lowest level against Euro today.
Give you one example:
Given today's crude oil price of $118 per barrel, if our dollar still has the same value as 2 years ago, today's crude oil price should be only less than $80 per barrel. Another words, the difference of $38 is due to our weak dollar. One can use the same ratio to justify today's price of gold, silver, iron, ....
The rapid rising price of food, gasoline, gold, commodities, ... will pretty soon to force Fed to raise interest rate, which may easily push the whole country into a much deeper recession and will affect every one in this country.
Because we have 2 wars, because we have extremely high national deficit, because we have huge imbalance of our trade deficit, because we are gradually loosing competition to Japan, China, Korea, European nations ... by loosing our manufacturing jobs, ... our US dollar has hit its lowest level against Euro today.
Give you one example:
Given today's crude oil price of $118 per barrel, if our dollar still has the same value as 2 years ago, today's crude oil price should be only less than $80 per barrel. Another words, the difference of $38 is due to our weak dollar. One can use the same ratio to justify today's price of gold, silver, iron, ....
The rapid rising price of food, gasoline, gold, commodities, ... will pretty soon to force Fed to raise interest rate, which may easily push the whole country into a much deeper recession and will affect every one in this country.
What do you think of my credit card crisis solution?
The US government just made a bunch of new credit card rules, all of them are nice, but people will continue to spend more than they have. If I could apply one rule to the credit card companies it would be...."No more rewards programs". I believe this is one of the major factors why people choose to use credit vs cash or debit.
This would suck, and a lot of people would be pissed, but I think it would slowly work.
What do you think?|||Actually, the vast majority of rewards card holders never redeem any of their points or are unaware that they even have rewards on their cards, so it's not the driving force behind the cards. Credit cards and store credit accounts have been popular long before anyone devised a plan to couple rewards with them. People in this culture are geared towards spending more than they make and many have no idea how to manage their finances. Also, it's pretty hypocritical for the government to tell anyone how to manage finances. Have you checked the national debt lately? Oh, and they offer rewards programs on debit cards as well, so you're not eliminating the problem.|||I love my rewards program.
Last year I made about $500 cash back in my pocket.
Now, I know that for top credit scores I need to pay my credit card in full each month.
This allows me to never pay interest - ever. Not a cent APR.
More than 50% of the population never carry balances and are actually making money by using credit cards.
/|||I don't think it's a good idea. People should just learn to be more responsible with their finances or credit card companies should make it harder to obtain credit which is what will probably happen if it hasn't already. I only have three cards and don't plan on getting any new ones.
This would suck, and a lot of people would be pissed, but I think it would slowly work.
What do you think?|||Actually, the vast majority of rewards card holders never redeem any of their points or are unaware that they even have rewards on their cards, so it's not the driving force behind the cards. Credit cards and store credit accounts have been popular long before anyone devised a plan to couple rewards with them. People in this culture are geared towards spending more than they make and many have no idea how to manage their finances. Also, it's pretty hypocritical for the government to tell anyone how to manage finances. Have you checked the national debt lately? Oh, and they offer rewards programs on debit cards as well, so you're not eliminating the problem.|||I love my rewards program.
Last year I made about $500 cash back in my pocket.
Now, I know that for top credit scores I need to pay my credit card in full each month.
This allows me to never pay interest - ever. Not a cent APR.
More than 50% of the population never carry balances and are actually making money by using credit cards.
/|||I don't think it's a good idea. People should just learn to be more responsible with their finances or credit card companies should make it harder to obtain credit which is what will probably happen if it hasn't already. I only have three cards and don't plan on getting any new ones.
What reasons will people blame the banks for the credit crisis?
just some bullets points would be great. thanks|||1: Banks made loans and gave credit cards to people that had proven poor credit scores.
2: Banks created loan products for the sole purpose of getting people qualified that otherwise would not have been able to get a traditional loan. See examples like "option arm" mortgages with their negative amortizing payment option. Bad stuff.
2: Banks created loan products for the sole purpose of getting people qualified that otherwise would not have been able to get a traditional loan. See examples like "option arm" mortgages with their negative amortizing payment option. Bad stuff.
Do you think the current credit crisis will result in more than a recession?
it seems to me people are confident maybe to confident it wont sink us in to a depression!|||Yes, because we will use this unstoppable world crisis to ferment unrest.Capitalism is crying "Bury me!Bury me!".
We love crisis.And this one is the mother of all crisises.|||For some it may, for others, no. It depends on person's financial condition; to people who have a lot of debt, who own stocks, who have 401(k) plans, people who work for major corporations and employees in down-line businesses (vendors ans suppliers) will be particularly hard hit. But if you are not exposed to risk, have discretionary income, and manageable debt levels, then the effects of a recession should be minimal. |||It all depends how we react to it, and I do not mean governments, and banks, and stock exchange, but the normal everyday people.
If we search and find for the root cause of the crisis we will be able to find the solution.
Here is an excellent analysis on the current economical crisis, and hopefully it will help with your answer:
http://www.laitman.com/2008/10/analysis-鈥?/a>
All the best.
We love crisis.And this one is the mother of all crisises.|||For some it may, for others, no. It depends on person's financial condition; to people who have a lot of debt, who own stocks, who have 401(k) plans, people who work for major corporations and employees in down-line businesses (vendors ans suppliers) will be particularly hard hit. But if you are not exposed to risk, have discretionary income, and manageable debt levels, then the effects of a recession should be minimal. |||It all depends how we react to it, and I do not mean governments, and banks, and stock exchange, but the normal everyday people.
If we search and find for the root cause of the crisis we will be able to find the solution.
Here is an excellent analysis on the current economical crisis, and hopefully it will help with your answer:
http://www.laitman.com/2008/10/analysis-鈥?/a>
All the best.
What is the good news connected to the credit crisis for you ?
i dunno i live to pay bills :(|||stocks are very low thus making it a great time to buy. Ford Motor company's stock is 1.99 ! that's just begging to be bought up .|||I like to see the so called rich squirm.|||gas prices are going down|||At the moment not a thing. :(|||The fact that the new place I'm moving into has lowered the rent :D|||~~The rise in Obama's numbers on converted voters. Its my only hope left.~~
Has your opinion of bankers changed since the credit crisis and housing bubble?
There has been quite an upheaval in this once very respectable community minded profession.|||It's further evidence that it only takes a few bad apples....
The problem started back in the 1970s and 1980s when the bank regulators encouraged lenders to securitize their loans. The regulators thought it was too risky for a financial institution to carry mortgage loans with fixed interest rates over a long period of time. But these days, most mortgages are paid off within 5-7 years. They're either refinanced or the home is sold. Very few mortgages stay on the books of a financial institution until maturity.
Then, with the risk to the lender effectively eliminated, people started to get reckless and greedy. If a loan was not repaid, it was the investors who lost money, not the lender. Everyone wanted something out of this deal - the bankers and mortgage brokers wanted their fees; the investors craved higher yields, the developers and speculators wanted a super-heated housing market... it goes on and on.
The bankers have done an excellent PR job of blaming the victims - the people who borrowed the money. All they did was what their realtors, bankers, financial advisers and possibly their family members and friends told them to do. Get in the market now before you cannot afford to buy at all.
Others already owned their homes and were the victims of predatory lending practices. It's easy to judge and say they should know better. In many cases, the lenders broke the law and did not disclose the terms. Talk to any state Attorney General and ask them how many pending cases they have for deceptive advertising and unfair trade practices among subprime and Alt-A lenders. They'll tell you the whole story, and it isn't pretty.
Now, we need to wait until the market settles down again, and it will be hard on everyone. Fewer housing starts means lots of unemployment among a host of industries, from lumber mills to appliance manufacturers, etc.
For some people, their home was their single largest asset, and they will suffer. If they had a 401k, that is down, too.
Even lenders who made no subprime or Alt-A loans will suffer. Anyone holding real estate debt is going to take a beating.|||I blame society. It was the idiots that walked into banks and got talked into these loans. The papers clearly stated that the interest would go up by a certain amount. They also fully disclosed early payment penalties. It was all in plain, easy to read, black and white. I asked questions if I didn't understand something.
I read my mortgage. Obviously a lot of people don't know how to read.
Bankers were just doing their job on commission - just like sales people at Sears.
.
|||Honestly, no. There are good people and there are bad people in every profession. And I don't blame the bankers for everything anyway. There are a ton of reasons that we're in the current financial mess right now.|||No, my opinion of them hasn't changed at all..............I've always believed they were bunch of unscrupulous, robbing bastards|||Bankers are all crooked thieves you just need to be able to outsmart them!
The problem started back in the 1970s and 1980s when the bank regulators encouraged lenders to securitize their loans. The regulators thought it was too risky for a financial institution to carry mortgage loans with fixed interest rates over a long period of time. But these days, most mortgages are paid off within 5-7 years. They're either refinanced or the home is sold. Very few mortgages stay on the books of a financial institution until maturity.
Then, with the risk to the lender effectively eliminated, people started to get reckless and greedy. If a loan was not repaid, it was the investors who lost money, not the lender. Everyone wanted something out of this deal - the bankers and mortgage brokers wanted their fees; the investors craved higher yields, the developers and speculators wanted a super-heated housing market... it goes on and on.
The bankers have done an excellent PR job of blaming the victims - the people who borrowed the money. All they did was what their realtors, bankers, financial advisers and possibly their family members and friends told them to do. Get in the market now before you cannot afford to buy at all.
Others already owned their homes and were the victims of predatory lending practices. It's easy to judge and say they should know better. In many cases, the lenders broke the law and did not disclose the terms. Talk to any state Attorney General and ask them how many pending cases they have for deceptive advertising and unfair trade practices among subprime and Alt-A lenders. They'll tell you the whole story, and it isn't pretty.
Now, we need to wait until the market settles down again, and it will be hard on everyone. Fewer housing starts means lots of unemployment among a host of industries, from lumber mills to appliance manufacturers, etc.
For some people, their home was their single largest asset, and they will suffer. If they had a 401k, that is down, too.
Even lenders who made no subprime or Alt-A loans will suffer. Anyone holding real estate debt is going to take a beating.|||I blame society. It was the idiots that walked into banks and got talked into these loans. The papers clearly stated that the interest would go up by a certain amount. They also fully disclosed early payment penalties. It was all in plain, easy to read, black and white. I asked questions if I didn't understand something.
I read my mortgage. Obviously a lot of people don't know how to read.
Bankers were just doing their job on commission - just like sales people at Sears.
.
|||Honestly, no. There are good people and there are bad people in every profession. And I don't blame the bankers for everything anyway. There are a ton of reasons that we're in the current financial mess right now.|||No, my opinion of them hasn't changed at all..............I've always believed they were bunch of unscrupulous, robbing bastards|||Bankers are all crooked thieves you just need to be able to outsmart them!
Because of the credit crisis in the US?
I cannot find student loans to go to an American university in France. I really want to go but where can i find the money?
Every one has stopped giving out the student loans to study abroad students because of the credit crisis.
Its sad that US citizens cant even get an education. Who can afford these $200,000 schools anyways?
I cant take out private loans because i cant afford to pay them back every month....Is there an solution to this problem?|||Bank of Mom and Dad
My suggestion is YOU work and SAVE the money for college.
Then pay cash to go. That is what I did and so did a lot of people I know.
Going into debt for college is not a smart idea.|||Yup you're gonna have to get a job...save....then go to school and work part time while you're studying. People have done it for years even before the credit crisis.
Every one has stopped giving out the student loans to study abroad students because of the credit crisis.
Its sad that US citizens cant even get an education. Who can afford these $200,000 schools anyways?
I cant take out private loans because i cant afford to pay them back every month....Is there an solution to this problem?|||Bank of Mom and Dad
My suggestion is YOU work and SAVE the money for college.
Then pay cash to go. That is what I did and so did a lot of people I know.
Going into debt for college is not a smart idea.|||Yup you're gonna have to get a job...save....then go to school and work part time while you're studying. People have done it for years even before the credit crisis.
What is the primary cause of this credit crisis to a an ordinary person on the street?
Regulation. Starting in 1999 the government was urging banks and Fannie Mae to reduce qualifying standards for mortgages. Basically, they started to give out mortgages to people that couldn't afford them. Banks buy these mortgages from creditors, like Countrywide. The mortgagee then defaults and the mortgage agreement is worthless. That is why the banks started "writing off bad debt". People stopped paying their mortgages and they owned the debt. |||Your question is not clear. If you are asking about the negative impact of the crisis on the ordinary person, then the answer would be:
1. Not being able to get loans to buy cars and other items.
2. Losing employment as companies fail.
3. Stress from worrying about our financial future 鈥tc
If you are asking about what caused the crisis, then the answer would be (mainly) the sub-prime mortgage loan given to many homebuyers and speculators. The requirement was very relaxed and in some cases proof of income was not required. Most of the loans had a teaser rate with low fixed monthly payment for a short time (one, three or five years). After the fixed rate changed to adjustable, many homeowner were not able to pay the higher mortgage payments. When they attempted to refinance, they couldn鈥檛 because their homes dropped in value. As the result, they foreclosed.
Like many home buyers I made a mistake in purchasing a home at the height of the market (priced at 595k). While some of my coworkers have foreclosed on their homes, I managed to pay off my two mortgages on my two homes. If I had known about the government鈥檚 plan to help homeowners by lowering their principal on their mortgages, I could have postponed paying off my mortgage.
If you are curious about how I managed to pay off my two mortgages and for more money management techniques read my new book: How I Became a Millionaire Bushman (available at Amazon).
1. Not being able to get loans to buy cars and other items.
2. Losing employment as companies fail.
3. Stress from worrying about our financial future 鈥tc
If you are asking about what caused the crisis, then the answer would be (mainly) the sub-prime mortgage loan given to many homebuyers and speculators. The requirement was very relaxed and in some cases proof of income was not required. Most of the loans had a teaser rate with low fixed monthly payment for a short time (one, three or five years). After the fixed rate changed to adjustable, many homeowner were not able to pay the higher mortgage payments. When they attempted to refinance, they couldn鈥檛 because their homes dropped in value. As the result, they foreclosed.
Like many home buyers I made a mistake in purchasing a home at the height of the market (priced at 595k). While some of my coworkers have foreclosed on their homes, I managed to pay off my two mortgages on my two homes. If I had known about the government鈥檚 plan to help homeowners by lowering their principal on their mortgages, I could have postponed paying off my mortgage.
If you are curious about how I managed to pay off my two mortgages and for more money management techniques read my new book: How I Became a Millionaire Bushman (available at Amazon).
Do you think we could have civil unrest in the uk if the credit crisis gets worse?
It seems to me the average Joe Bloggs takes peace for granted and thinks it'll never happen here.|||No, the U.K has come a long way from that, might happen in France though!|||For most people, their own "credit crisis" is self made. Living well beyond their means, trying to dress like Grazia mag or pretend to be wags, buying houses that they couldn't afford, etc etc etc.
So who are they going to have unrest against? Banks? banks didn't force them to spend beyond their means.
The government? The government isn't supposed to babysit.
people have only themselves to blame.|||Gee do you think people that can't live on a budget are going to shot up the town because the ******* spent more money than they could afford to pay back.
When a person get's credit it's a privlidge not a right they are the one's that screwed up their own life.
Do you think these jack-Azz's are going to go to jail for their own mistakes.Duh Duh i doubt it.
no brains no balls.
Let them sacrifice to pay back their over expenditures.
So who are they going to have unrest against? Banks? banks didn't force them to spend beyond their means.
The government? The government isn't supposed to babysit.
people have only themselves to blame.|||Gee do you think people that can't live on a budget are going to shot up the town because the ******* spent more money than they could afford to pay back.
When a person get's credit it's a privlidge not a right they are the one's that screwed up their own life.
Do you think these jack-Azz's are going to go to jail for their own mistakes.Duh Duh i doubt it.
no brains no balls.
Let them sacrifice to pay back their over expenditures.
Are you in debt, do you owe money, are you part of our credit crisis problem?
I'm not, I'm proud to say, I am not in debt and I do not live beyond my means. I have never owned a vehicle that I did not pay cash for, but then again, I've never owned a brand new vehicle, I've never taken out a loan, that I could not pay off and when I do go shopping, I try to look for that good old fashioned made in the USA label.|||did your parents pay for your college?
or you just magically krapped out thousands of dollars every semester?
...or maybe you just got one of those high-paying part time jobs|||You forgot to mention Mom, apple pie and buying Girl Scout Cookies.|||I'm in debt. There is no problem with debt as long as you pay your bills.
Most people can't come up with a quarter million or more for a house,
or 25k+ for a car.
The credit crisis comes from the combination of debt and joblessness, with a
health dose of high prices because of a devalued dollar.
Add in it the housing crisis with all the people on minimum wage buying quarter million
homes---what were they thinking?|||Yes(my home), no(not a cent) and Hell no(I have always paid it off month by month).
I do have new vehicles that I have taken out loans for but only to keep my credit rating up and only for 1 or 2 years. Everything else is cash, cash cash. You'd have to be a moron to have been caught up in that stuff for the past few years......oh, yeah....Americans.|||I am not in debt.I owe nothing to no one.|||in uk. im not in debt. i dont use credit cards. i buy my cars from an auction and pay cash. i dont buy anything if i cant pay outright. its a good way to live.|||I owe nothing to no one. I only buy what i can afford %26amp; save up for things i really want. I have always worked %26amp; have a great deal of respect. I am happy to help family %26amp; friends out who are in trouble. If i don't get it back, i will not ask for it but i never lend to that person again.
or you just magically krapped out thousands of dollars every semester?
...or maybe you just got one of those high-paying part time jobs|||You forgot to mention Mom, apple pie and buying Girl Scout Cookies.|||I'm in debt. There is no problem with debt as long as you pay your bills.
Most people can't come up with a quarter million or more for a house,
or 25k+ for a car.
The credit crisis comes from the combination of debt and joblessness, with a
health dose of high prices because of a devalued dollar.
Add in it the housing crisis with all the people on minimum wage buying quarter million
homes---what were they thinking?|||Yes(my home), no(not a cent) and Hell no(I have always paid it off month by month).
I do have new vehicles that I have taken out loans for but only to keep my credit rating up and only for 1 or 2 years. Everything else is cash, cash cash. You'd have to be a moron to have been caught up in that stuff for the past few years......oh, yeah....Americans.|||I am not in debt.I owe nothing to no one.|||in uk. im not in debt. i dont use credit cards. i buy my cars from an auction and pay cash. i dont buy anything if i cant pay outright. its a good way to live.|||I owe nothing to no one. I only buy what i can afford %26amp; save up for things i really want. I have always worked %26amp; have a great deal of respect. I am happy to help family %26amp; friends out who are in trouble. If i don't get it back, i will not ask for it but i never lend to that person again.
How long you think the credit crisis will last?
Personally..... there is no recovery and this is just the begging of the end. The world is changing. We are in troubles as the money go to China and sooner or later we are going to live in a world of total unemployment and depression with the only good place China and India for jobs.
Some say things will be alright after 5 years, some say 2 years but I believe there is no way out|||You are wrong in some ways as far as the economy goes
#1 The worlds economies are changing on a daily basis
#2 With banks around the world reporting record losses
#3 China is not doing much better than any other country because as long as people are not spending money on new products they will soon be in the same boat as we are,( exports declining) the only difference is that they have 2 trillion dollars in reserves to stabilize their economy to weather the financial storm that has wrecked havoc on the the rest of the world. In this type of economic downturn there will be no country immune from the type of global depression that is unfolding by the hour. It will effect everyone in every country in the world and it will take some time to restore confidence in the economies of the world .
It will take all world leaders to join in unity as one to to confront what was once just a United States problem. In the end I see a new world economy that will change the way this nation does business with all nations.As for the credit crisis there will be no relief until the banks stabilize and recoup the massive losses that continue to effect the loan industry. It will not be before at least spring of 2009 at the earliest before the credit crisis starts to rebound.|||We can start a recovery when the MEDIA stops sensationalizing gloom and doom! I think a whole lot of the non recovery from all the govt attempts is due in part to the MEDIA.|||people don't even watch the media|||There is a way out, there is always a way out. Personally, I'm against most bail outs, they are just propping up institutions and practices that were faulty to begin with. These things want to fail -- let them, the strong and properly built institutions will survive and get stronger. That's what we are seeing now, the governments are putting band-aids on the situation and they are not sticking! I know this is painful, but this is how all the junk gets cleaned out of the economy.
My financial adviser says nobody really knows where the bottom is, but he is guessing 18 to 24 months. In 36 months, things should be looking really good - and strong.
Some say things will be alright after 5 years, some say 2 years but I believe there is no way out|||You are wrong in some ways as far as the economy goes
#1 The worlds economies are changing on a daily basis
#2 With banks around the world reporting record losses
#3 China is not doing much better than any other country because as long as people are not spending money on new products they will soon be in the same boat as we are,( exports declining) the only difference is that they have 2 trillion dollars in reserves to stabilize their economy to weather the financial storm that has wrecked havoc on the the rest of the world. In this type of economic downturn there will be no country immune from the type of global depression that is unfolding by the hour. It will effect everyone in every country in the world and it will take some time to restore confidence in the economies of the world .
It will take all world leaders to join in unity as one to to confront what was once just a United States problem. In the end I see a new world economy that will change the way this nation does business with all nations.As for the credit crisis there will be no relief until the banks stabilize and recoup the massive losses that continue to effect the loan industry. It will not be before at least spring of 2009 at the earliest before the credit crisis starts to rebound.|||We can start a recovery when the MEDIA stops sensationalizing gloom and doom! I think a whole lot of the non recovery from all the govt attempts is due in part to the MEDIA.|||people don't even watch the media|||There is a way out, there is always a way out. Personally, I'm against most bail outs, they are just propping up institutions and practices that were faulty to begin with. These things want to fail -- let them, the strong and properly built institutions will survive and get stronger. That's what we are seeing now, the governments are putting band-aids on the situation and they are not sticking! I know this is painful, but this is how all the junk gets cleaned out of the economy.
My financial adviser says nobody really knows where the bottom is, but he is guessing 18 to 24 months. In 36 months, things should be looking really good - and strong.
How do you think you will do in this "credit crisis" going on now and getting worse by the day?
do you think you will make it okay or not?
how do you plan to weather it?
please describe and explain.
btw, how about others you know?
which area of the world are you too btw?
Thanks for your answers!|||this credit crunch sucks, i cant have a blance transfer anymore
and ive just got married and still live at home with my mum!
how crap is that!!|||whoa sensible question !! ALERT.......|||I'm layed off.Very hard finding work.Just have to weather it out.|||by saving money, and only buying things that are neccesary...it's really stressful at times, but there has to be a light at the end of the tunnel|||Yes, I will be ok - this has been going on with me already for a year, I've buckled down on everything in my household, paid off outstanding debt, aside from my loan it will be the only unpaid debt I have.
I've lived through worse -|||I'll make it just fine. I'm not in any debt. I have savings. I think the whole thing has been vastly exaggerated. The only people I know who are struggling are people whose hours have been cut, and even they are just fine. Just might not go away this summer.
I live in the North West of England|||I will make it because I am a survivor. I have trimmed my budget back, I turn off unused lights, conserve water usage, and I am in the process of planting a vegetable garden. I am going to can or freeze vegetables, make my own spaghetti sauce, salsa, pickles and anything else I can think of. I have also quit buying junk food opting to prepare meals at home. Many of my neighbors are following this same plan. I live in Texas.|||find out on monday weather or not we still have jobs
if not i will sell up and move to the coast
might as well be broke there as anywhere.
how do you plan to weather it?
please describe and explain.
btw, how about others you know?
which area of the world are you too btw?
Thanks for your answers!|||this credit crunch sucks, i cant have a blance transfer anymore
and ive just got married and still live at home with my mum!
how crap is that!!|||whoa sensible question !! ALERT.......|||I'm layed off.Very hard finding work.Just have to weather it out.|||by saving money, and only buying things that are neccesary...it's really stressful at times, but there has to be a light at the end of the tunnel|||Yes, I will be ok - this has been going on with me already for a year, I've buckled down on everything in my household, paid off outstanding debt, aside from my loan it will be the only unpaid debt I have.
I've lived through worse -|||I'll make it just fine. I'm not in any debt. I have savings. I think the whole thing has been vastly exaggerated. The only people I know who are struggling are people whose hours have been cut, and even they are just fine. Just might not go away this summer.
I live in the North West of England|||I will make it because I am a survivor. I have trimmed my budget back, I turn off unused lights, conserve water usage, and I am in the process of planting a vegetable garden. I am going to can or freeze vegetables, make my own spaghetti sauce, salsa, pickles and anything else I can think of. I have also quit buying junk food opting to prepare meals at home. Many of my neighbors are following this same plan. I live in Texas.|||find out on monday weather or not we still have jobs
if not i will sell up and move to the coast
might as well be broke there as anywhere.
How and why did the credit crisis happen?
I really don't understand the in depth financial terminology|||It is very simple: people borrowed more than they could afford.
What were the challenges ahead for the insurance industry in the context of the global credit crisis?
Telling this out of a personal experience of a friend working in Insurance industry..
For Life insurance....market has become choosy as far as insurers are concerned..
after the TATA-AIG debacle, ppl are doubting every foreign firm involved in insurance..
With AIG;s dropout, ppl have started questioning SUNLIFE's credentials...(in Birla Sunlife)
Challenges ahead include:
restoring faith of ppl in the industry
Credit worthiness of investors
recessionary pressures and cost cutting scenario
overall demand from general market.|||Depends on the type of insurance. PMI insurance companies are losing their butts and going bankrupt as the number of defaults is more than reserves can cover. The insurance companies that insured the mortgage backed securities are going bankrupt because the securities are basically worthless and investors are suing.
Insurance will also have problems with a high level of fraud, desperate people commit fraud more often.
Then for insurance like health, car, rental. long term disability, etc, they are in trouble because people with no jobs and no money don't buy insurance or let theirs lapse.
Finally, health %26amp; life insurance companies will be dealing with higher than average claims as stress over money makes people sick, is linked to cancer and of course, suicide and early death.
Small to mid sized businesses (big ones too) are filing bankruptcy and closing in record numbers, which equates to fewer and fewer customers. Reduced sales and miles driven are linked to lower insurance premiums.
So, I would think that the challenges are many, just as they are for nearly all companies, especially in America.
In China, they will be just fine.
For Life insurance....market has become choosy as far as insurers are concerned..
after the TATA-AIG debacle, ppl are doubting every foreign firm involved in insurance..
With AIG;s dropout, ppl have started questioning SUNLIFE's credentials...(in Birla Sunlife)
Challenges ahead include:
restoring faith of ppl in the industry
Credit worthiness of investors
recessionary pressures and cost cutting scenario
overall demand from general market.|||Depends on the type of insurance. PMI insurance companies are losing their butts and going bankrupt as the number of defaults is more than reserves can cover. The insurance companies that insured the mortgage backed securities are going bankrupt because the securities are basically worthless and investors are suing.
Insurance will also have problems with a high level of fraud, desperate people commit fraud more often.
Then for insurance like health, car, rental. long term disability, etc, they are in trouble because people with no jobs and no money don't buy insurance or let theirs lapse.
Finally, health %26amp; life insurance companies will be dealing with higher than average claims as stress over money makes people sick, is linked to cancer and of course, suicide and early death.
Small to mid sized businesses (big ones too) are filing bankruptcy and closing in record numbers, which equates to fewer and fewer customers. Reduced sales and miles driven are linked to lower insurance premiums.
So, I would think that the challenges are many, just as they are for nearly all companies, especially in America.
In China, they will be just fine.
What is the difference between a credit crisis and a crisis of debt / or liquidity?
I think the term "credit crisis" refers to to the relative unavailability of new credit for individuals and businesses.
A "crisis of debt" refers to individuals and businesses carrying unsustainable debt loads (at some point they won't be able to pay it back).
A "liquidity crisis" refers to the unavailability of cash for businesses (to pay debts among other things) and for banks (to lend money.
So a crisis of debt can lead to a "liquidity crisis" which in turn can lead to a "credit crisis".
A "crisis of debt" refers to individuals and businesses carrying unsustainable debt loads (at some point they won't be able to pay it back).
A "liquidity crisis" refers to the unavailability of cash for businesses (to pay debts among other things) and for banks (to lend money.
So a crisis of debt can lead to a "liquidity crisis" which in turn can lead to a "credit crisis".
Does anyone feel like we are all entering a dumbed down communistic police state now since credit crisis began?
which month did your mood or outlook change last year, if so? (or when did you really start to think this?
what was your mood or outlook like before? please describe and why
what changed it?|||We have already been in a dumbed down society surrounded by celebs who offer no contributions to society but the public enjoyment of their stupidity so there just as much to blame as well! Not a communist ideal but an ideal of western folk!|||The economy doesn't effect my mood in any way shape or form.
Only my husband has that power.|||I have always felt the government trying to dumb us down and I think it might be getting a bit better since the Bush days but still not great
I'm kind of a fan for Socialism in some aspects but I do know that it'll probably fail because everyone is so Capitalism - obsessed and will not accept the aspects of Socialism that will probably help most of its criticizer
I also know that it will never be achieved in a good manner and will probably not work in which ever way government tries to make it work on a large scale - So I'm not very hopeful
what was your mood or outlook like before? please describe and why
what changed it?|||We have already been in a dumbed down society surrounded by celebs who offer no contributions to society but the public enjoyment of their stupidity so there just as much to blame as well! Not a communist ideal but an ideal of western folk!|||The economy doesn't effect my mood in any way shape or form.
Only my husband has that power.|||I have always felt the government trying to dumb us down and I think it might be getting a bit better since the Bush days but still not great
I'm kind of a fan for Socialism in some aspects but I do know that it'll probably fail because everyone is so Capitalism - obsessed and will not accept the aspects of Socialism that will probably help most of its criticizer
I also know that it will never be achieved in a good manner and will probably not work in which ever way government tries to make it work on a large scale - So I'm not very hopeful
How was the credit crisis of 2008 was different from the one in 1930?
I need four different ways the crisis was different for my Business Class|||One paragraph could be about how savings deposits were not federally insured back then.
People lost everything.
/|||Ok so one would be the speculation on credit and people buying on credit in the stocks, which is illegal now. the other would be that credit was worse back then than now...... credit caused for massive expansion of the gov't unlike now/depends on ur views. and the last is housing costs had a majority of the current credit failure unlike the stocks and peoples irresponsibility back then.
People lost everything.
/|||Ok so one would be the speculation on credit and people buying on credit in the stocks, which is illegal now. the other would be that credit was worse back then than now...... credit caused for massive expansion of the gov't unlike now/depends on ur views. and the last is housing costs had a majority of the current credit failure unlike the stocks and peoples irresponsibility back then.
What do real "beach bums" do and have they increased a lot since credit crisis started?
also, how do they feed themselves?
where do they sleep? do they use tents atleast?
are laws on beaches more strict in CA or FL or what other states are they found and why so for this?
please explain.
also , how about in Mexico?
what do you think of them and how do they look , smell?
what do they do all day?
please describe and explain.|||they can be either very rich (trust funders) or used to have a good job to homeless. they dont reallly fit a certain definition. the homeless ones beg for food and money or they go to shelters every now and then or crash at friends houses. if not they sleep wherever they find a spot. Fl laws are more relaxed because i see more here all over the place. they might like to drink all day or do drugs. they do it because either they have mental problems or they are addicts and they like the beach atmosphere since it is so laid back. they walk around all day or hang depends what mission they are on that day. Again there is no one answer to your question since these are human beings we are talking about with very complex motives to their actions and different needs. in mexico it would be worse since they have a lower GDP and less resources to go around|||Your question has win my attention.....
I am a Beach Bum...and I have no Idea what is Your Idea ,about beach bums.
I am a Beach Bum and I am ,on the beach, every time I have the chance to do it.
rent a hotel room in front of the ocean,spend 4 days in a row ,parting and drinking and "hang around" the exclusive restaurants in Miami Beach...play piano at a local Jazz Bar ,with the musicians. and pay everything with my black metallic American Express Card.
I know some other Multimillionaires whom does it.
smelling me? I don't know,may be .|||ohkay this is the lamest question ever.
but ill answer.
most are just washed up wannabe pro-surfers that live straight on the beach hiding from cops or crashing place to place at friends house if they dont have house.
most buy there food, fish, or eat free food that there local frineds that there friends cook, buy, or own restraunts.
idk know about mexico.
here where i live in florida the cops dont really let them sleep on the beach, no tents execpt for in the national camping parks.
the look like surfers, partyiers, someitms alcholics, druggies.
long hair.
idfk how they smell the ones i know normal there not fffn hobos and freaks.
the surf.
hangout with friends
drink party
w/e.|||Now and then I drive over to the Mediteranean and bum around Europe, I eat what I can find and If I cant find I dont eat. One trip got me to India and when I got back to the UK I was about 90 pounds. Smell? not me, I swam every day, if I was inland I would find a canal or river. CA or FL beachbums are on the biggest bathtubs in the world, why would they smell?|||uh beach bum?? you mean like surfer beach bum?? they do work brah...its called they work the 3-11 shift washing dishes or bartending at the local whatever so they can get their surfing in during the day..alot like ski bums do....i dont think "real" beach bums have increased due to the credit crisis--if they were real "bums" they never had credit to begin with|||real beach bums?? many are homeless and live near the beach and come to the beach with basically nothing with them and soak the sun.... or beg for money..i've seen some sleep under palm trees its kinda sad tho
your question is so weird btw
where do they sleep? do they use tents atleast?
are laws on beaches more strict in CA or FL or what other states are they found and why so for this?
please explain.
also , how about in Mexico?
what do you think of them and how do they look , smell?
what do they do all day?
please describe and explain.|||they can be either very rich (trust funders) or used to have a good job to homeless. they dont reallly fit a certain definition. the homeless ones beg for food and money or they go to shelters every now and then or crash at friends houses. if not they sleep wherever they find a spot. Fl laws are more relaxed because i see more here all over the place. they might like to drink all day or do drugs. they do it because either they have mental problems or they are addicts and they like the beach atmosphere since it is so laid back. they walk around all day or hang depends what mission they are on that day. Again there is no one answer to your question since these are human beings we are talking about with very complex motives to their actions and different needs. in mexico it would be worse since they have a lower GDP and less resources to go around|||Your question has win my attention.....
I am a Beach Bum...and I have no Idea what is Your Idea ,about beach bums.
I am a Beach Bum and I am ,on the beach, every time I have the chance to do it.
rent a hotel room in front of the ocean,spend 4 days in a row ,parting and drinking and "hang around" the exclusive restaurants in Miami Beach...play piano at a local Jazz Bar ,with the musicians. and pay everything with my black metallic American Express Card.
I know some other Multimillionaires whom does it.
smelling me? I don't know,may be .|||ohkay this is the lamest question ever.
but ill answer.
most are just washed up wannabe pro-surfers that live straight on the beach hiding from cops or crashing place to place at friends house if they dont have house.
most buy there food, fish, or eat free food that there local frineds that there friends cook, buy, or own restraunts.
idk know about mexico.
here where i live in florida the cops dont really let them sleep on the beach, no tents execpt for in the national camping parks.
the look like surfers, partyiers, someitms alcholics, druggies.
long hair.
idfk how they smell the ones i know normal there not fffn hobos and freaks.
the surf.
hangout with friends
drink party
w/e.|||Now and then I drive over to the Mediteranean and bum around Europe, I eat what I can find and If I cant find I dont eat. One trip got me to India and when I got back to the UK I was about 90 pounds. Smell? not me, I swam every day, if I was inland I would find a canal or river. CA or FL beachbums are on the biggest bathtubs in the world, why would they smell?|||uh beach bum?? you mean like surfer beach bum?? they do work brah...its called they work the 3-11 shift washing dishes or bartending at the local whatever so they can get their surfing in during the day..alot like ski bums do....i dont think "real" beach bums have increased due to the credit crisis--if they were real "bums" they never had credit to begin with|||real beach bums?? many are homeless and live near the beach and come to the beach with basically nothing with them and soak the sun.... or beg for money..i've seen some sleep under palm trees its kinda sad tho
your question is so weird btw
What is Obama going to do now that the credit crisis has wiped out any hopes of universal health care?
Oh he'll figure out a way....watch and see.|||His plan would never happen anyways. It is too expensive.
After just 10 years with his plan, America would have $20 trillion in new debt. Economists say there are not enough "rich people" to tax to pay for his spending plans.
Currently, America spends around $2 trillion a year on NHE. That is expected to increase to $3 trillion within 10 years.|||what is mccain going to do now that the credit crisis has wiped out any hopes of universal health care?
hmmmmm think about it....|||Don't give up yet|||He won't join the dark side like McCain, the side of lobbyists.|||Watch this! Yeah the beginning looks a little O_o but give it a chance!
http://www.youtube.com/watch?v=yTp_atr2G鈥?/a>|||Show me where Obama had a universal health care plan.|||Actually it may force Universal Healthcare. Universal Healthcare costs far less than what we have now. Somewhere between 1 half and 1 ninth what we pay now.
We have Universal healthcare now via emergency room.
When the majority of Amercans cannot afford our form of healthcare we will go to it.
Bob the builder, and Joe the plumber and thomas the tank engine will all agree the way things are going.
Obama never had a Universal Healthcare plan by the way. You are getting your news about him from McCain.|||The best thing for Republicans is for Barrack to win and get blamed for all the stuff that's going to happen under the "dems" watch. The Repubs will pick up an easy win with One Term Barrack!|||Very little will actually happen. It would be analogous with a 1st round draft pick who seems promising, but just doesn't have the tools to be a top level pro. And yet, the franchise signed him to a 4 year contract....and they can't get out of it.|||It's strange McCain's plan can still work. Obama's may take years. He will have to raise taxes on middleclass to get this done. There are more middleclass than rich.
People will have to let the wealth "trickle" down. |||That was wiped out 15 years ago when Bill Clinton tried to have it passed.|||Get the economy on its feet and do it in his second term.
After just 10 years with his plan, America would have $20 trillion in new debt. Economists say there are not enough "rich people" to tax to pay for his spending plans.
Currently, America spends around $2 trillion a year on NHE. That is expected to increase to $3 trillion within 10 years.|||what is mccain going to do now that the credit crisis has wiped out any hopes of universal health care?
hmmmmm think about it....|||Don't give up yet|||He won't join the dark side like McCain, the side of lobbyists.|||Watch this! Yeah the beginning looks a little O_o but give it a chance!
http://www.youtube.com/watch?v=yTp_atr2G鈥?/a>|||Show me where Obama had a universal health care plan.|||Actually it may force Universal Healthcare. Universal Healthcare costs far less than what we have now. Somewhere between 1 half and 1 ninth what we pay now.
We have Universal healthcare now via emergency room.
When the majority of Amercans cannot afford our form of healthcare we will go to it.
Bob the builder, and Joe the plumber and thomas the tank engine will all agree the way things are going.
Obama never had a Universal Healthcare plan by the way. You are getting your news about him from McCain.|||The best thing for Republicans is for Barrack to win and get blamed for all the stuff that's going to happen under the "dems" watch. The Repubs will pick up an easy win with One Term Barrack!|||Very little will actually happen. It would be analogous with a 1st round draft pick who seems promising, but just doesn't have the tools to be a top level pro. And yet, the franchise signed him to a 4 year contract....and they can't get out of it.|||It's strange McCain's plan can still work. Obama's may take years. He will have to raise taxes on middleclass to get this done. There are more middleclass than rich.
People will have to let the wealth "trickle" down. |||That was wiped out 15 years ago when Bill Clinton tried to have it passed.|||Get the economy on its feet and do it in his second term.
How much have you lost during this current credit crisis?
Has it even affected you?|||It hasn't affected us (knock on wood). We don't live on credit, we pay cash for everything and we don't have any stocks or anything like that. It has affected people I know-my uncle lost all his retirement.|||I don't live on credit so it's affected me none. All my other losses like home value and retirement losses are only paper losses. Both will eventually go back up and I have a good 30 years to wait on that. The house, maybe not but it's paid off so no big deal.|||My home value down 20% from what I bought it at.
Pay cuts at work.
Higher health insurance.
I'm not an idiot when it comes to investing. I sold my measly stock Oct 2007. I saw this coming. Some old folks buy and hold stocks - for some dumb reason.
/|||I haven't lost any real money. My stocks are down as the value of the companies that I am invested in has decreased but I still own the same number of shares. I am actually saving money again after a while where I wasn't.|||Counting losses in the market and real estate values.. I have lost over ONE MILLION DOLLARS in the past 13 months.... some will everntually come back.. but probably $200,000 to $300,000 is gone forever.|||It hasnt affected me im careful with my money and dont quander it on rubbish i dont need|||So far, I haven't lost much, but things are definitely tighter now.|||Yes the money I have invested is earning bugger all interest.|||i have no money, so nothing to loose.|||i lost my job
but luckily got myself a new one..
Pay cuts at work.
Higher health insurance.
I'm not an idiot when it comes to investing. I sold my measly stock Oct 2007. I saw this coming. Some old folks buy and hold stocks - for some dumb reason.
/|||I haven't lost any real money. My stocks are down as the value of the companies that I am invested in has decreased but I still own the same number of shares. I am actually saving money again after a while where I wasn't.|||Counting losses in the market and real estate values.. I have lost over ONE MILLION DOLLARS in the past 13 months.... some will everntually come back.. but probably $200,000 to $300,000 is gone forever.|||It hasnt affected me im careful with my money and dont quander it on rubbish i dont need|||So far, I haven't lost much, but things are definitely tighter now.|||Yes the money I have invested is earning bugger all interest.|||i have no money, so nothing to loose.|||i lost my job
but luckily got myself a new one..
I don't understand the current economic credit crisis how is it a problem?
I don't understand how some people failing to pay off their debts or mortgages can have such an impact. How exactly does it come about?|||When banks loan money the money they use to loan belongs to the depositors. The bank uses this money to generate income from the interest on the loans.
Example is that you deposit $1,000 in a savings account and the bak gives you 2% interest on your money.
I walk in and borrow $ 1,000 from the bank and they charge me 8% interst on the loan. The bank has made a profit of 6% using your money.
That was way simplified but now what is happening is the bank is not getting paid back from the $ 1000 loan to me but still has to back your $ 1000 savings.
To do that they are using up all the profits they made and money from investors into the bank. To cover this the banks have been borrowing money from other banks, who may be borrowing money from other banks.
Now you see just how complicated this gets.
Now add to that the fact that the car I bought with the $ 1000 the bank loaned me is only worth $500. So if the bank takes the car they are still out the other $ 500.
Now it gets real complicated. If your bank has too many bad loans out there and can not collect on them they can not make the payments to the banks they borrowed money from and those banks call the loans, meaning pay up.
Your bank can't pay because all the people like you with savings accounts heard the bank was in trouble and where at the door the next day to get all your money out, called a run on the bank.
So the problem is that the banks are running low on money the can loan.|||Lot of people bought into the low arm;s loans three years ago but their time is up and so is their interest rates on their homes|||It really doesn't have the impact they are making of it. The problem is that it is an election year in the US, and therefore there must be a "crisis" that the political people can "solve". How they plan on doing that varies between the candidates, but there it is.
If you look back over the history of credit for the masses in general, you will see a sine curve. People charging way over the amount they can pay back in a reasonable time, then just paying the minimum and therefore getting deeper in debt. Then they panic, and rather than owning up to the mistake and working with the creditors, they go to court, declare bankruptcy, never pay back their debts, and the banks are left holding all the bad debt. Then those same people blame the banks for giving them the credit in the first place, wait several years, get more credit cards, and replay the scenario again.
It all comes down to wanting more than you can pay for, and getting it on credit, then the sine wave occurring around the time of a major election.
Second problem - the US is big enough that money problems there affect more than just the US now. All the stock markets are interwoven, and so when one shakes, they all shake.
And you end up with what we have. My "money" is on things becoming much more stable after the election, especially if the Republicans win the presidency. When the Democrats when the presidency, all the money people run for the hills because they know they're going to lose their business to taxes to pay for free stuff for non-workers.|||PEOPLE ARE DEFAULTING ON THEIR PAYMENTS WHICH CREATES A DOMINO EFFECT ON THE BANKS AN BEING ABLE TO PAY OFF THEIR LOAN.|||People aren't paying off their debts and the lenders are suffering financially because of it. They need money to pay their employeees, pay their bills, and pay their other operating costs.|||The reasons for this crisis are varied and complex. [19] Understanding and managing the ripple effect through the world-wide economy poses a critical challenge for governments, businesses, and investors. Due to innovations in securitization, the risks related to the inability of homeowners to meet mortgage payments have been distributed broadly, with a series of consequential impacts. The crisis can be attributed to a number of factors, such as the inability of homeowners to make their mortgage payments; poor judgment by either the borrower or the lender; inappropriate mortgage incentives, and rising adjustable mortgage rates. Further, declining home prices have made re-financing more difficult. There are three primary risk categories involved: (1)Liquidity risk: A related risk involves the commercial paper market, a key source of funds (i.e., liquidity) for many companies. Companies and SPE called structured investment (2) Asset price risk: CDO valuation is complex and related "fair value" accounting for such "Level 3" assets is subject to wide interpretation. CDO is collaterlized Debt Obligations. For deals with market value tests, if the valuation falls below certain levels, the CDO may be required by its terms to sell collateral in a short period of time, often at a steep loss, much like a stock brokerage account margin call. If the risk is not legally contained within an SPE or otherwise, the entity owning the mortgage collateral may be forced to sell other types of assets, as well, to satisfy the terms of the deal. (3) Credit risk In exchange for purchasing the MBS, third-party investors receive a claim on the mortgage assets, which become collateral in the event of default. Further, the MBS investor has the right to cash flows related to the mortgage payments.Asset securitization began with the structured financing of mortgage pools in the 1970s. The securitized share of subprime mortgages (i.e., those passed to third-party investors) increased from 54% in 2001, to 75% in 2006. Alan Greenspan stated that the securitization of home loans for people with poor credit 鈥?not the loans themselves 鈥?were to blame for the current global credit crisis.
Summary: When homebuyers could pay their mortgages in such an overwelming amount, then lender and other third party investors cant pay their debt. Investors can sometimes sell their shares (that money that used to loan to homebuyers) so not only are companies not getting income from default mortgage payments but now they must now give back monies invested to make those, liquidity is trouble. They dont have money to buy goods, they do not money to hire or they need to lay off, and so on and so on.
Example is that you deposit $1,000 in a savings account and the bak gives you 2% interest on your money.
I walk in and borrow $ 1,000 from the bank and they charge me 8% interst on the loan. The bank has made a profit of 6% using your money.
That was way simplified but now what is happening is the bank is not getting paid back from the $ 1000 loan to me but still has to back your $ 1000 savings.
To do that they are using up all the profits they made and money from investors into the bank. To cover this the banks have been borrowing money from other banks, who may be borrowing money from other banks.
Now you see just how complicated this gets.
Now add to that the fact that the car I bought with the $ 1000 the bank loaned me is only worth $500. So if the bank takes the car they are still out the other $ 500.
Now it gets real complicated. If your bank has too many bad loans out there and can not collect on them they can not make the payments to the banks they borrowed money from and those banks call the loans, meaning pay up.
Your bank can't pay because all the people like you with savings accounts heard the bank was in trouble and where at the door the next day to get all your money out, called a run on the bank.
So the problem is that the banks are running low on money the can loan.|||Lot of people bought into the low arm;s loans three years ago but their time is up and so is their interest rates on their homes|||It really doesn't have the impact they are making of it. The problem is that it is an election year in the US, and therefore there must be a "crisis" that the political people can "solve". How they plan on doing that varies between the candidates, but there it is.
If you look back over the history of credit for the masses in general, you will see a sine curve. People charging way over the amount they can pay back in a reasonable time, then just paying the minimum and therefore getting deeper in debt. Then they panic, and rather than owning up to the mistake and working with the creditors, they go to court, declare bankruptcy, never pay back their debts, and the banks are left holding all the bad debt. Then those same people blame the banks for giving them the credit in the first place, wait several years, get more credit cards, and replay the scenario again.
It all comes down to wanting more than you can pay for, and getting it on credit, then the sine wave occurring around the time of a major election.
Second problem - the US is big enough that money problems there affect more than just the US now. All the stock markets are interwoven, and so when one shakes, they all shake.
And you end up with what we have. My "money" is on things becoming much more stable after the election, especially if the Republicans win the presidency. When the Democrats when the presidency, all the money people run for the hills because they know they're going to lose their business to taxes to pay for free stuff for non-workers.|||PEOPLE ARE DEFAULTING ON THEIR PAYMENTS WHICH CREATES A DOMINO EFFECT ON THE BANKS AN BEING ABLE TO PAY OFF THEIR LOAN.|||People aren't paying off their debts and the lenders are suffering financially because of it. They need money to pay their employeees, pay their bills, and pay their other operating costs.|||The reasons for this crisis are varied and complex. [19] Understanding and managing the ripple effect through the world-wide economy poses a critical challenge for governments, businesses, and investors. Due to innovations in securitization, the risks related to the inability of homeowners to meet mortgage payments have been distributed broadly, with a series of consequential impacts. The crisis can be attributed to a number of factors, such as the inability of homeowners to make their mortgage payments; poor judgment by either the borrower or the lender; inappropriate mortgage incentives, and rising adjustable mortgage rates. Further, declining home prices have made re-financing more difficult. There are three primary risk categories involved: (1)Liquidity risk: A related risk involves the commercial paper market, a key source of funds (i.e., liquidity) for many companies. Companies and SPE called structured investment (2) Asset price risk: CDO valuation is complex and related "fair value" accounting for such "Level 3" assets is subject to wide interpretation. CDO is collaterlized Debt Obligations. For deals with market value tests, if the valuation falls below certain levels, the CDO may be required by its terms to sell collateral in a short period of time, often at a steep loss, much like a stock brokerage account margin call. If the risk is not legally contained within an SPE or otherwise, the entity owning the mortgage collateral may be forced to sell other types of assets, as well, to satisfy the terms of the deal. (3) Credit risk In exchange for purchasing the MBS, third-party investors receive a claim on the mortgage assets, which become collateral in the event of default. Further, the MBS investor has the right to cash flows related to the mortgage payments.Asset securitization began with the structured financing of mortgage pools in the 1970s. The securitized share of subprime mortgages (i.e., those passed to third-party investors) increased from 54% in 2001, to 75% in 2006. Alan Greenspan stated that the securitization of home loans for people with poor credit 鈥?not the loans themselves 鈥?were to blame for the current global credit crisis.
Summary: When homebuyers could pay their mortgages in such an overwelming amount, then lender and other third party investors cant pay their debt. Investors can sometimes sell their shares (that money that used to loan to homebuyers) so not only are companies not getting income from default mortgage payments but now they must now give back monies invested to make those, liquidity is trouble. They dont have money to buy goods, they do not money to hire or they need to lay off, and so on and so on.
I blame the media for blowing the credit crisis out of proportion?
they just want to sell newspapers and get people tuning in, they dont understand economics. they want car crash tv.
discuss|||It's The Daily Mail and it's cohorts, praying for any disaster that may embarrass Gordon Brown. They and it's readers are really enjoying themselves, having a good snigger.|||You kidding me . . . Media hasn't covered half of it. So you want them to provide you a fairy tale? You know what happened in the markets today? Believe me media still haven't provided the full picture, you see leaders around the world dying for a mere nickel.
That inflammatory language is half of reality. Economists and experts had been warning about it for couple of years now, and warnings were becoming louder and louder past few months. Media was suppose to do this months ago and it was suppose to be dealt with at least a year ago. The problem is real, no delusions about it.|||The media either adds fuel to the fire or puts a cover over the story.
The following site ( http://www.a2dvoices.com/realitycheck/co鈥?/a> )contains a great credit crisis time line of the events leading to the housing bubble and credit crunch.
It appears that our elected government created the current economic problem inorder to subsidize housing.
The story would not exist without help from congress.|||My thinking is that we live in a free market society.
Let the companies that suck crash and burn and go out of business.
Other smaller companies will buy up the leftovers.
No $700billion bailout
Credit crisis averted.
I agree that this was blown up by politicians and the media to make a story for the republicans to come in and save the day. I think it got away from them and now they are scrambling to prevent a bigger problem. |||I think you are wrong. The credit crisis is very bad and will get worse. We have all become too greedy and the financial institutions have thrown money at too many weak customers who at the best of times would have been potential bad debts. The Government has stirred up this financial turmoil to enable them to rake in tax income from the sales that ensued. The media has merely opened our eyes to the problem.|||They are definitely partially to blame for its continuance. When tv or radio channel you turn on tells you the world is over! Everyones going to lose every thing. We are heading toward another great depression! People freak out and get scared and go out and sell all there investments, which keep the market heading downward.|||Normally i would agree with you but this time around i,m glad the media are there to expose some of the details.
If a financial institution i invest in is having to go to the govt to be backed up that exposes my funds to risks i should know about.
|||completely agree with you, I think the media hyped up the initial problem with Northern Rock causing a run on the bank and in this country everything has spiralled downwards (fuelled by journalists outdoing each other on doom and gloom projections).|||I blame greedy bank executives for creating the credit crisis. I am grateful to the media for accurately reporting it|||basically. Who cares about these fu***ng credit places that were dumb and gave bad loans in the first place? When unemployment goes up to 25% like in the 1930s, then I will worry.|||Me too, it's like they're talking us into a irreversible situation.|||You may be right.|||sarah palin is a fri**en dumb a*s
discuss|||It's The Daily Mail and it's cohorts, praying for any disaster that may embarrass Gordon Brown. They and it's readers are really enjoying themselves, having a good snigger.|||You kidding me . . . Media hasn't covered half of it. So you want them to provide you a fairy tale? You know what happened in the markets today? Believe me media still haven't provided the full picture, you see leaders around the world dying for a mere nickel.
That inflammatory language is half of reality. Economists and experts had been warning about it for couple of years now, and warnings were becoming louder and louder past few months. Media was suppose to do this months ago and it was suppose to be dealt with at least a year ago. The problem is real, no delusions about it.|||The media either adds fuel to the fire or puts a cover over the story.
The following site ( http://www.a2dvoices.com/realitycheck/co鈥?/a> )contains a great credit crisis time line of the events leading to the housing bubble and credit crunch.
It appears that our elected government created the current economic problem inorder to subsidize housing.
The story would not exist without help from congress.|||My thinking is that we live in a free market society.
Let the companies that suck crash and burn and go out of business.
Other smaller companies will buy up the leftovers.
No $700billion bailout
Credit crisis averted.
I agree that this was blown up by politicians and the media to make a story for the republicans to come in and save the day. I think it got away from them and now they are scrambling to prevent a bigger problem. |||I think you are wrong. The credit crisis is very bad and will get worse. We have all become too greedy and the financial institutions have thrown money at too many weak customers who at the best of times would have been potential bad debts. The Government has stirred up this financial turmoil to enable them to rake in tax income from the sales that ensued. The media has merely opened our eyes to the problem.|||They are definitely partially to blame for its continuance. When tv or radio channel you turn on tells you the world is over! Everyones going to lose every thing. We are heading toward another great depression! People freak out and get scared and go out and sell all there investments, which keep the market heading downward.|||Normally i would agree with you but this time around i,m glad the media are there to expose some of the details.
If a financial institution i invest in is having to go to the govt to be backed up that exposes my funds to risks i should know about.
|||completely agree with you, I think the media hyped up the initial problem with Northern Rock causing a run on the bank and in this country everything has spiralled downwards (fuelled by journalists outdoing each other on doom and gloom projections).|||I blame greedy bank executives for creating the credit crisis. I am grateful to the media for accurately reporting it|||basically. Who cares about these fu***ng credit places that were dumb and gave bad loans in the first place? When unemployment goes up to 25% like in the 1930s, then I will worry.|||Me too, it's like they're talking us into a irreversible situation.|||You may be right.|||sarah palin is a fri**en dumb a*s
How do you think the current credit crisis will influence political relations?
with China? A few months ago, the mood of the country was protectionist . . .|||If your talking about sub prime loans, than think it will have zero effect.
If you mean Bush printing money to pay the debt, then he will take the easy way out for elections and quietly give China almost anything they want as they continue to get large amount of dollars when it's cheap, and buy bonds when it is strong, as he pretend all is fine.
If your talking manufactured crisis to get best possible terms for one party at Annapolis don't think he has his fathers ego so crisis will ease. Don't think country was in protectionist mood.
If you mean Bush printing money to pay the debt, then he will take the easy way out for elections and quietly give China almost anything they want as they continue to get large amount of dollars when it's cheap, and buy bonds when it is strong, as he pretend all is fine.
If your talking manufactured crisis to get best possible terms for one party at Annapolis don't think he has his fathers ego so crisis will ease. Don't think country was in protectionist mood.
Why did mortgage backed securities go down in value and cause the credit crisis?
I thought the problem was that these had a implicit guarantee of the US Government / Fannie / Freddie. With that guarantee, why did they go down in value even if people defaulted on their mortgages?|||Not all mortgage backed securities were sold by Fannie/Freddie. A whole bunch were sold by Wall Street outside of those two. Trillions worth. And among those mortgages were a very large amount that were not worth the paper they were printed on--interest only mortgages, adjustable rate mortgages, no money down mortgages. Surprisingly, the paper was snapped up by a whole lot of people who should have known better. And then there were the mortgages that were held by a lot of banks that should never have issued them. How many banks have failed during these last two years? 600? If the government had not handed C and BAC all the money they wanted those two would have failed also, but we can not let those very large banks fail now can we.
As for the two twins, what have they cost we taxpayers so far? 600 billion is it?
As for the two twins, what have they cost we taxpayers so far? 600 billion is it?
How many months will you give Barack Hussein Obama 2fix the deficit, wall street, credit crisis & nation debt?
He will be in office for 48 months %26amp; i just want to know what will you expect? And what's you're definition of fix as well.|||Consider you much crap the republicans got us into, I'd be amazed if anyone could fix anything within a year. I have faith that Obama will do his best to get us out of this mess. I don't care if it takes 4 years.|||as much time as he needs!!!!!|||I would say maybe about 6 to 12 months. How many decades would you give Mccain?|||The American people created the credit crisis and horrible economy on their own, and unless they change their habits (knowing Americans, not likely) having a new President is not going to fix anything. |||longer then what is gonna be in office for it took 7 years to get this way its gonna take double to fix this country from bush and the congress..
and to the 1 above me you cant blame all this on the Americans of this country....it has alot more to do with the politicians of this country...not the Americans|||im reading and hearing on the news its gonna take a long time. but im gonna be shocked if he an fix it. you have to remember, the president isn't the only guy in washington. he cant make anything happen with out approval of congress. that's why i cant figure out why people only hate bush, he isn't the only one to blame, congress is just as guilty if not more. |||I don't know. Just thank God he won.
and to the 1 above me you cant blame all this on the Americans of this country....it has alot more to do with the politicians of this country...not the Americans|||im reading and hearing on the news its gonna take a long time. but im gonna be shocked if he an fix it. you have to remember, the president isn't the only guy in washington. he cant make anything happen with out approval of congress. that's why i cant figure out why people only hate bush, he isn't the only one to blame, congress is just as guilty if not more. |||I don't know. Just thank God he won.
How many of you know the Democrats are behind the credit crisis?
The Democrats in Congress led an effort to close a lending gap to make homes more affordable, interest rates were very low for a long time. This was not an accident. Here is a 1992 Fed link.
http://www.bos.frb.org/commdev/commaff/c鈥?/a>
Look up Barney Frank and see the news, and then think if you want to trust that party.|||Look up the Keating Five, and look up George Bush's ties to Roland Arnall. There are complicities on both sides of the aisle. |||Obama supporters are sheep at this point. It does not matter. It's well known among those that do not follow the Messiah.
No worries. Bobby Jindal will fix this mess in 2012...
Another 4 years of Jimmy Carter. More CHANGE of the SAME BS back to the 70's.
Just hope we survive it...|||Under the liberal mandates, if banks didn't offer loans to "lower income" individuals (even to those whose only income was welfare) they would be penalized and fined. Also look up the term "redlining"
Other sources:
http://www.realclearpolitics.com/article鈥?/a>
http://query.nytimes.com/gst/fullpage.ht鈥?/a>
http://rs6.net/tn.jsp?e=001-E2q0YCRMdLJi鈥?/a>
http://www.youtube.com/watch?v=ASvqtD6g8鈥?/a>|||Yes, the democrats pushed to make housing more affordable to those who couldn't afford it. Risky, but home ownership does a lot for the economy and helps people get ahead. However, the current mess was caused by speculators that tried to get rich quick during a housing bubble. A housing bubble that occurred during the Bush administration. I live in Las Vegas, homes here were being bought sight unseen within minutes of being put on the market, banks were lending 100% or more, no down. People got greedy, banks got greedy, mortgage companies got greedy. The Republican president and congress (at that time) did nothing. You can blame the democrats, but frankly I believe both democrats and republicans dove into the housing bubble and are now trying to blame anyone but the idiots who bought a $600,000 home with a $50,000 year income on a 3 year arm just because the banks would lend them the money. The American people don't want to hear they were stupid, they want to blame the banks for giving them the money. |||1992? If that's true...what were Bush and his Republican congress doing for SIX YEARS? There's plenty of blame on both sides of the aisle.
Do you REALLY think it was poor people who bought all those McMansions that are now sitting in foreclosure across the country? Those 400k - 500k homes in Arizona, California and Nevada?|||The derivitives market is responsible for this mess Sorry. The mortgages are smallest piece of that pie. Credit swaps could account for 45-65 Trillion Bucks from the last article I read.
The derivatives sold from repackaged loans vastly exceed the worth of the property by many times over. Also, if you are gonna go on about Fannie and Freddie you must know that they do not sell mortgages and are only 15% of the securities market. The 85% of the market just got going in about 2002 after the deregulation of financial institutions in 2000.
Barney Frank nor any other Congressmen had any control what AIG and Goldman Sachs were doing. A lot of these monster transactions were sold overseas.
Now looking at the Republican Senate and Phil Gramm who wrote both of the bills that unravelled our last protections from rampant greed since the last Republican Great Depression of the 1930s. (Caused by the same kinds of deregulations)
The Senate is supposed to be the deliberative body. It has changed radically in the last 20 years.
If I were you I would educate yourself so that you understand the subject first. Until you understand credit swaps you d not know what is going on.
You might have heard that T. Boone Pickens just filed suit against Goldman Sachs for 1/2 a billion dollars on one credit swap he had with them. There are articles all over about this. It will help you understand what kind of Ponzi scheme they had going. When you really understand it you will be really mad. That is when you figure out that our trillion tax dollars will not help much in this phony bailout. It is a giveaway.|||Democrats and Republicans caused it. No individual party is to blame; they all are. The people of America are also responsible for believing they could actually take out a mortgage that, if they thought about it, they could never actually afford - it was obvious that in the next (inevitable) downturn, they would be unable to keep up the payments.
http://www.bos.frb.org/commdev/commaff/c鈥?/a>
Look up Barney Frank and see the news, and then think if you want to trust that party.|||Look up the Keating Five, and look up George Bush's ties to Roland Arnall. There are complicities on both sides of the aisle. |||Obama supporters are sheep at this point. It does not matter. It's well known among those that do not follow the Messiah.
No worries. Bobby Jindal will fix this mess in 2012...
Another 4 years of Jimmy Carter. More CHANGE of the SAME BS back to the 70's.
Just hope we survive it...|||Under the liberal mandates, if banks didn't offer loans to "lower income" individuals (even to those whose only income was welfare) they would be penalized and fined. Also look up the term "redlining"
Other sources:
http://www.realclearpolitics.com/article鈥?/a>
http://query.nytimes.com/gst/fullpage.ht鈥?/a>
http://rs6.net/tn.jsp?e=001-E2q0YCRMdLJi鈥?/a>
http://www.youtube.com/watch?v=ASvqtD6g8鈥?/a>|||Yes, the democrats pushed to make housing more affordable to those who couldn't afford it. Risky, but home ownership does a lot for the economy and helps people get ahead. However, the current mess was caused by speculators that tried to get rich quick during a housing bubble. A housing bubble that occurred during the Bush administration. I live in Las Vegas, homes here were being bought sight unseen within minutes of being put on the market, banks were lending 100% or more, no down. People got greedy, banks got greedy, mortgage companies got greedy. The Republican president and congress (at that time) did nothing. You can blame the democrats, but frankly I believe both democrats and republicans dove into the housing bubble and are now trying to blame anyone but the idiots who bought a $600,000 home with a $50,000 year income on a 3 year arm just because the banks would lend them the money. The American people don't want to hear they were stupid, they want to blame the banks for giving them the money. |||1992? If that's true...what were Bush and his Republican congress doing for SIX YEARS? There's plenty of blame on both sides of the aisle.
Do you REALLY think it was poor people who bought all those McMansions that are now sitting in foreclosure across the country? Those 400k - 500k homes in Arizona, California and Nevada?|||The derivitives market is responsible for this mess Sorry. The mortgages are smallest piece of that pie. Credit swaps could account for 45-65 Trillion Bucks from the last article I read.
The derivatives sold from repackaged loans vastly exceed the worth of the property by many times over. Also, if you are gonna go on about Fannie and Freddie you must know that they do not sell mortgages and are only 15% of the securities market. The 85% of the market just got going in about 2002 after the deregulation of financial institutions in 2000.
Barney Frank nor any other Congressmen had any control what AIG and Goldman Sachs were doing. A lot of these monster transactions were sold overseas.
Now looking at the Republican Senate and Phil Gramm who wrote both of the bills that unravelled our last protections from rampant greed since the last Republican Great Depression of the 1930s. (Caused by the same kinds of deregulations)
The Senate is supposed to be the deliberative body. It has changed radically in the last 20 years.
If I were you I would educate yourself so that you understand the subject first. Until you understand credit swaps you d not know what is going on.
You might have heard that T. Boone Pickens just filed suit against Goldman Sachs for 1/2 a billion dollars on one credit swap he had with them. There are articles all over about this. It will help you understand what kind of Ponzi scheme they had going. When you really understand it you will be really mad. That is when you figure out that our trillion tax dollars will not help much in this phony bailout. It is a giveaway.|||Democrats and Republicans caused it. No individual party is to blame; they all are. The people of America are also responsible for believing they could actually take out a mortgage that, if they thought about it, they could never actually afford - it was obvious that in the next (inevitable) downturn, they would be unable to keep up the payments.
How are you affected by the current global credit crisis?
I'm okay, Jack. My lifestyle remains unchanged but how about yours?|||I owe nothing, don't use credit (anymore), If I want something I save and pay cash. The global credit problems are from people not having savings.
Look at the U.S. Government and what they spend money on. 2008 is going to be a year to watch. The greedy are going to put us in a 1929 depression. We have to many talking heads in this country and no solutions.|||Sort of. The interest rate on my credit card doubled but I don't carry a balance so it doesn't really affect me.|||Not affected in any way, but I'm hoping maybe I can pick up a supercheap house when all is said and done.|||To many people with solutions are the problem
Look at the U.S. Government and what they spend money on. 2008 is going to be a year to watch. The greedy are going to put us in a 1929 depression. We have to many talking heads in this country and no solutions.|||Sort of. The interest rate on my credit card doubled but I don't carry a balance so it doesn't really affect me.|||Not affected in any way, but I'm hoping maybe I can pick up a supercheap house when all is said and done.|||To many people with solutions are the problem
Have you been impacted by the global financial credit crisis?
If so in what way? Doesn't matter how big or small it is just interested in knowing.|||Yes, bank loans are hard to come by for my customers. And everyone is nervous about spending any money at all..|||Yes. I'm retired. I had to go to the bank recently and start drawing money from an annuity because prices have gone up so much my ss and pension weren't enough. Thank God I had it to draw off of.|||Yep. We had to move to a different state (for other reasons) which means I had to quit my stable, good paying job, and now with the way economy is, not many employers are hiring. Thank god my family can afford for me not to work, but it's still living on one income(no longer by choice) and me trying and trying to get a job (and I am in management).
Using your new tools of supply and demand - how do you look at the credit crisis in terms of supply & demand?
Using your new tools of supply and demand - how do you look at the credit crisis in terms of supply %26amp; demand? Feel free to talk about mortgage rates, credit card rates, automobile rates, business banking, etc.|||Well, market collapse or crash occurs when the sellere cant find any buyers. This is because the prices is resilient to increase and likely to fall. Especially when the credit is not available because either prices are either too high or the lenders are reluctant to lend market collapses. When the supply of shares or whatever is more than demand, investors loose confidence and more people rush to sell. Prices fall until the supply, demand reaches equibilrium.|||Uncle is printing money to beat the band and throwing it at everyone with their hand out and even those who do not have their hands out. What that most likely means is INFLATION in capital letters.
If we are in a credit crisis, why do I get 5 or 6 credit card and loan offers in the mail each week?
And then there are the emails and pop up ads on on my computer. Someone still wants to loan money! Do we really need a bailout?|||If you have reasonable credit, you can borrow money from a credit card company at 21% interest + fees.
Oh joy.|||There is NO crisis. The sky is NOT falling. This whole thing was manufactured by the Bush White House, looking to save those Golden Parachutes.
No Bil Out. Sign the petition. And then pass it on.
http://www.sanders.senate.gov/index.cfm
And this one too.
http://www.votenobailout.org/|||Credit card offers in the mail don't mean squat. I received credit card offers right after filing bankruptcy. |||cos they want your life. they need you in debt, so that you can keep paying them forever and ever and ever.|||( sigh ) I dont know man, what the hell do you want me to do.
Heh? heeeh??? HaaaaH??!!!!!!! yo HAAAAAH!????!!!!
fake|||That will all change soon.|||This is about banks lending other banks money. Its not about you...when the credit dries up for these institutions guess what...you won't be able to get a mortgage, car loan, student loan. If you have less that perfect credit...you will be shown the door.|||Still you are not sold 100%.;) People out there knows this. and putting the money....
Childern's Childern......;)
Oh joy.|||There is NO crisis. The sky is NOT falling. This whole thing was manufactured by the Bush White House, looking to save those Golden Parachutes.
No Bil Out. Sign the petition. And then pass it on.
http://www.sanders.senate.gov/index.cfm
And this one too.
http://www.votenobailout.org/|||Credit card offers in the mail don't mean squat. I received credit card offers right after filing bankruptcy. |||cos they want your life. they need you in debt, so that you can keep paying them forever and ever and ever.|||( sigh ) I dont know man, what the hell do you want me to do.
Heh? heeeh??? HaaaaH??!!!!!!! yo HAAAAAH!????!!!!
fake|||That will all change soon.|||This is about banks lending other banks money. Its not about you...when the credit dries up for these institutions guess what...you won't be able to get a mortgage, car loan, student loan. If you have less that perfect credit...you will be shown the door.|||Still you are not sold 100%.;) People out there knows this. and putting the money....
Childern's Childern......;)
Why is Obama blaming the Republicans for the credit crisis and Wall Street's resulting downturn?
2 points to share what you know.
Thats right share what you know-you know what they say about OPINIONS.|||Yes he did.
Here is your culprit, start here:
Christopher John Dodd
Chairman of the Senate Banking Committee
http://en.wikipedia.org/wiki/Christopher_Dodd
In June 2008, the committee chairman, Christopher Dodd, was linked to troubled subprime mortgage lender Countrywide Financial.
Chuck Schumer, fourth-ranking Democrat in the Senate
http://en.wikipedia.org/wiki/Chuck_Schumer
Charles Bernard "Charlie" Rangel
chairman of the powerful House Ways and Means Committee.
http://en.wikipedia.org/wiki/Charles_Rangel
Franklin Delano Raines
The former chairman and chief executive officer of Fannie Mae who served as White House budget director under President Bill Clinton. He is currently employed by Barack Obama's Presidential Campaign as an economic adviser.
http://en.wikipedia.org/wiki/Franklin_Raines|||Phil Gram, the creator of the Housing problem and the Americans are whiners is Mc Cain's economic adviser and Republican.|||Ds and Rs are both to blame . both are corrupt .im voting for Nader.|||He absolutely blamed the Republicans for the credit crisis! My guess is he obviously can't put any blame on the Democrats. Good old partisan politics again.|||The major deregulation of the financial markets took place in the latter part of Bill Clinton's reign when Robert Rubin, former CEO of Goldman Sachs (one of our two remaining independent investment banks), was Treasury Secretary. Dems oughta put THAT in their pipe and smoke it!|||OBAMA EXPOSED: FINANCIAL/HOUSING SCANDAL
An independent counsel must be appointed to investigate Barack Obama and his closest advisors for their involvement in the Financial/Housing Crisis. The witness list must include:
BARACK OBAMA: $525,000 of contributions from bankrupt Fannie Mae/Freddie Mac and Lehman Brothers. Barack Obama has received more money from this bankrupt and corrupt organization than any other member of Congress. In his very short time as a lawyer, Obama represented clients seeking to force Lenders to provide high-risk, subprime mortgage loans which are now at the center of our nation's major crisis.
FRANKLIN RAINES (Obama Top Advisor): former CEO of bankrupt Fannie Mae who was fired for “accounting irregularities” and was given a $90 million Golden Parachute.
JIM JOHNSON (Obama Top Advisor who chose Joe Biden as V.P.): former CEO of bankrupt Fannie Mae and CEO of bankrupt Lehman Brothers.
PENNY PRITZKER (Obama National Finance Chair): former Chair of bankrupt subprime lender, Superior Bank of Chicago. Paid $450 Million in fines to avoid potential criminal prosecution|||It's all part of the master plan.
45 Declared Goals Of The Communist Takeover Of America
As you read the "45 Declared Goals Of The Communist Takeover Of America", you will see that many of these goals have been accomplished with utmost effectiveness. We as Americans need to take this serious. Like so many other agendas being pushed upon us, this too is a part of the Global Government movement.
Communist Goals (1963) Congressional Record--Appendix, pp. A34-A35 January 10, 1963
1. U.S. acceptance of coexistence as the only alternative to atomic war.
2. U.S. willingness to capitulate in preference to engaging in atomic war.
3. Develop the illusion that total disarmament [by] the United States would be a demonstration of moral strength.
4. Permit free trade between all nations regardless of Communist affiliation and regardless of whether or not items could be used for war.
5. Extension of long-term loans to Russia and Soviet satellites.
6. Provide American aid to all nations regardless of Communist domination.
7. Grant recognition of Red China. Admission of Red China to the U.N.
8. Set up East and West Germany as separate states in spite of Khrushchev's promise in 1955 to settle the German question by free elections under supervision of the U.N.
9. Prolong the conferences to ban atomic tests because the United States has agreed to suspend tests as long as negotiations are in progress.
10. Allow all Soviet satellites individual representation in the U.N.
11. Promote the U.N. as the only hope for mankind. If its charter is rewritten, demand that it be set up as a one-world government with its own independent armed forces.
12. Resist any attempt to outlaw the Communist Party.
13. Do away with all loyalty oaths.
14. Continue giving Russia access to the U.S. Patent Office.
15. Capture one or both of the political parties in the United States.
16. Use technical decisions of the courts to weaken basic American institutions by claiming their activities violate civil rights.
17. Get control of the schools. Use them as transmission belts for socialism and current Communist propaganda. Soften the curriculum. Get control of teachers' associations. Put the party line in textbooks.
18. Gain control of all student newspapers.
19. Use student riots to foment public protests against programs or organizations which are under Communist attack.
20. Infiltrate the press. Get control of book-review assignments, editorial writing, policy-making positions.
21. Gain control of key positions in radio, TV, and motion pictures.
22. Continue discrediting American culture by degrading all forms of artistic expression. An American Communist cell was told to "eliminate all good sculpture from parks and buildings, substitute shapeless, awkward and meaningless forms."
23. Control art critics and directors of art museums. "Our plan is to promote ugliness, repulsive, meaningless art."
24. Eliminate all laws governing obscenity by calling them "censorship" and a violation of free speech and free press.
25. Break down cultural standards of morality by promoting pornography and obscenity in books, magazines, motion pictures, radio, and TV.
26. Present homosexuality, degeneracy and promiscuity as "normal, natural, healthy."
27. Infiltrate the churches and replace revealed religion with "social" religion. Discredit the Bible and emphasize the need for intellectual maturity, which does not need a "religious crutch."
28. Eliminate prayer or any phase of religious expression in the schools on the ground that it violates the principle of "separation of church and state."
29. Discredit the American Constitution by calling it inadequate, old-fashioned, out of step with modern needs, a hindrance to cooperation between nations on a worldwide basis.
30. Discredit the American Founding Fathers. Present them as selfish aristocrats who had no concern for the "common man."
31. Belittle all forms of American culture and discourage the teaching of American history on the ground that it was only a minor part of the "big picture." Give more emphasis to Russian history since the Communists took over.
32. Support any socialist movement to give centralized control over any part of the culture--education, social agencies, welfare programs, mental health clinics, etc.
33. Eliminate all laws or procedures which interfere with the operation of the Communist apparatus.
34. Eliminate the House Committee on Un-American Activities.
35. Discredit and eventually dismantle the FBI.
36. Infiltrate and gain control of more unions.
37. Infiltrate and gain control of big business.
38. Transfer some of the powers of arrest from the police to social agencies. Treat all behavioral problems as psychiatric disorders which no one but psychiatrists can understand [or treat].
39. Dominate the psychiatric profession and use mental health laws as a means of gaining coercive control over those who oppose Communist goals.
40. Discredit the family as|||Hes not, I think you should pay attention more.
Thats right share what you know-you know what they say about OPINIONS.|||Yes he did.
Here is your culprit, start here:
Christopher John Dodd
Chairman of the Senate Banking Committee
http://en.wikipedia.org/wiki/Christopher_Dodd
In June 2008, the committee chairman, Christopher Dodd, was linked to troubled subprime mortgage lender Countrywide Financial.
Chuck Schumer, fourth-ranking Democrat in the Senate
http://en.wikipedia.org/wiki/Chuck_Schumer
Charles Bernard "Charlie" Rangel
chairman of the powerful House Ways and Means Committee.
http://en.wikipedia.org/wiki/Charles_Rangel
Franklin Delano Raines
The former chairman and chief executive officer of Fannie Mae who served as White House budget director under President Bill Clinton. He is currently employed by Barack Obama's Presidential Campaign as an economic adviser.
http://en.wikipedia.org/wiki/Franklin_Raines|||Phil Gram, the creator of the Housing problem and the Americans are whiners is Mc Cain's economic adviser and Republican.|||Ds and Rs are both to blame . both are corrupt .im voting for Nader.|||He absolutely blamed the Republicans for the credit crisis! My guess is he obviously can't put any blame on the Democrats. Good old partisan politics again.|||The major deregulation of the financial markets took place in the latter part of Bill Clinton's reign when Robert Rubin, former CEO of Goldman Sachs (one of our two remaining independent investment banks), was Treasury Secretary. Dems oughta put THAT in their pipe and smoke it!|||OBAMA EXPOSED: FINANCIAL/HOUSING SCANDAL
An independent counsel must be appointed to investigate Barack Obama and his closest advisors for their involvement in the Financial/Housing Crisis. The witness list must include:
BARACK OBAMA: $525,000 of contributions from bankrupt Fannie Mae/Freddie Mac and Lehman Brothers. Barack Obama has received more money from this bankrupt and corrupt organization than any other member of Congress. In his very short time as a lawyer, Obama represented clients seeking to force Lenders to provide high-risk, subprime mortgage loans which are now at the center of our nation's major crisis.
FRANKLIN RAINES (Obama Top Advisor): former CEO of bankrupt Fannie Mae who was fired for “accounting irregularities” and was given a $90 million Golden Parachute.
JIM JOHNSON (Obama Top Advisor who chose Joe Biden as V.P.): former CEO of bankrupt Fannie Mae and CEO of bankrupt Lehman Brothers.
PENNY PRITZKER (Obama National Finance Chair): former Chair of bankrupt subprime lender, Superior Bank of Chicago. Paid $450 Million in fines to avoid potential criminal prosecution|||It's all part of the master plan.
45 Declared Goals Of The Communist Takeover Of America
As you read the "45 Declared Goals Of The Communist Takeover Of America", you will see that many of these goals have been accomplished with utmost effectiveness. We as Americans need to take this serious. Like so many other agendas being pushed upon us, this too is a part of the Global Government movement.
Communist Goals (1963) Congressional Record--Appendix, pp. A34-A35 January 10, 1963
1. U.S. acceptance of coexistence as the only alternative to atomic war.
2. U.S. willingness to capitulate in preference to engaging in atomic war.
3. Develop the illusion that total disarmament [by] the United States would be a demonstration of moral strength.
4. Permit free trade between all nations regardless of Communist affiliation and regardless of whether or not items could be used for war.
5. Extension of long-term loans to Russia and Soviet satellites.
6. Provide American aid to all nations regardless of Communist domination.
7. Grant recognition of Red China. Admission of Red China to the U.N.
8. Set up East and West Germany as separate states in spite of Khrushchev's promise in 1955 to settle the German question by free elections under supervision of the U.N.
9. Prolong the conferences to ban atomic tests because the United States has agreed to suspend tests as long as negotiations are in progress.
10. Allow all Soviet satellites individual representation in the U.N.
11. Promote the U.N. as the only hope for mankind. If its charter is rewritten, demand that it be set up as a one-world government with its own independent armed forces.
12. Resist any attempt to outlaw the Communist Party.
13. Do away with all loyalty oaths.
14. Continue giving Russia access to the U.S. Patent Office.
15. Capture one or both of the political parties in the United States.
16. Use technical decisions of the courts to weaken basic American institutions by claiming their activities violate civil rights.
17. Get control of the schools. Use them as transmission belts for socialism and current Communist propaganda. Soften the curriculum. Get control of teachers' associations. Put the party line in textbooks.
18. Gain control of all student newspapers.
19. Use student riots to foment public protests against programs or organizations which are under Communist attack.
20. Infiltrate the press. Get control of book-review assignments, editorial writing, policy-making positions.
21. Gain control of key positions in radio, TV, and motion pictures.
22. Continue discrediting American culture by degrading all forms of artistic expression. An American Communist cell was told to "eliminate all good sculpture from parks and buildings, substitute shapeless, awkward and meaningless forms."
23. Control art critics and directors of art museums. "Our plan is to promote ugliness, repulsive, meaningless art."
24. Eliminate all laws governing obscenity by calling them "censorship" and a violation of free speech and free press.
25. Break down cultural standards of morality by promoting pornography and obscenity in books, magazines, motion pictures, radio, and TV.
26. Present homosexuality, degeneracy and promiscuity as "normal, natural, healthy."
27. Infiltrate the churches and replace revealed religion with "social" religion. Discredit the Bible and emphasize the need for intellectual maturity, which does not need a "religious crutch."
28. Eliminate prayer or any phase of religious expression in the schools on the ground that it violates the principle of "separation of church and state."
29. Discredit the American Constitution by calling it inadequate, old-fashioned, out of step with modern needs, a hindrance to cooperation between nations on a worldwide basis.
30. Discredit the American Founding Fathers. Present them as selfish aristocrats who had no concern for the "common man."
31. Belittle all forms of American culture and discourage the teaching of American history on the ground that it was only a minor part of the "big picture." Give more emphasis to Russian history since the Communists took over.
32. Support any socialist movement to give centralized control over any part of the culture--education, social agencies, welfare programs, mental health clinics, etc.
33. Eliminate all laws or procedures which interfere with the operation of the Communist apparatus.
34. Eliminate the House Committee on Un-American Activities.
35. Discredit and eventually dismantle the FBI.
36. Infiltrate and gain control of more unions.
37. Infiltrate and gain control of big business.
38. Transfer some of the powers of arrest from the police to social agencies. Treat all behavioral problems as psychiatric disorders which no one but psychiatrists can understand [or treat].
39. Dominate the psychiatric profession and use mental health laws as a means of gaining coercive control over those who oppose Communist goals.
40. Discredit the family as|||Hes not, I think you should pay attention more.
Is the credit crisis really as bad as it's made out to be?
I have to say i think it's a load of rubbish. I work in transport and my porfits have doubled in the last 3 months. Are people just hyping up all this talk of a credit crunch and a lack of money do you think? Does is really exist as badly as the news makes out or are people just making it worse by cutting back and panic buying fuel?|||I'm being made redundant at the end of July.
Believe me, I am not making that up.
So it might be great for you, but not for everybody else.|||the credit crunch only hits those who survive on credit. if you can pay then all you suffering right now is an extra tenner a month on petrol whihc isn't exactly a catastrophe let's face it.
but if you survive on 0% transfer deals and acquiring credit you just lost all your income as high risk loans are not being made. the bubble had to burst sometime !|||it is for some yes.... we had to get an interest only mortgage because the payments on a repayment were way to high for us to continue and the interest only is killing us! mr brown has a lot to answer for.. the 10p tax, fuel tax.... he is one big greedy fat cat who needs a damn good taste of his own medicene. i can can see britan becoming economically crippled if things carry on the way they are.|||Yes it is happening.
Just give it 6 months or so to filter down to your company and you may think differently.
Unless of course youre one of the greedy little truck drivers who think that sitting on your backside all day means your 'worth' 拢36,000?|||Only for people with poor credit.|||It's true. Pawn Shops are making a killing!
Believe me, I am not making that up.
So it might be great for you, but not for everybody else.|||the credit crunch only hits those who survive on credit. if you can pay then all you suffering right now is an extra tenner a month on petrol whihc isn't exactly a catastrophe let's face it.
but if you survive on 0% transfer deals and acquiring credit you just lost all your income as high risk loans are not being made. the bubble had to burst sometime !|||it is for some yes.... we had to get an interest only mortgage because the payments on a repayment were way to high for us to continue and the interest only is killing us! mr brown has a lot to answer for.. the 10p tax, fuel tax.... he is one big greedy fat cat who needs a damn good taste of his own medicene. i can can see britan becoming economically crippled if things carry on the way they are.|||Yes it is happening.
Just give it 6 months or so to filter down to your company and you may think differently.
Unless of course youre one of the greedy little truck drivers who think that sitting on your backside all day means your 'worth' 拢36,000?|||Only for people with poor credit.|||It's true. Pawn Shops are making a killing!
The wall street Journal Deal offers a Ray of Hope In Credit Crisis?
I would like to know if anyone read about Bausch %26amp; Lombd bankers, Credit Suisse Group, Bank of America attracting new investors?|||No, and this questions doesn't looks that clear to what is being asked.
How bad is the current credit crisis?
I've heard people say that our current situation could send us into an economic depression similar in magnitude to the one that hit during the 20s.
How realistic is this?|||mind me, but its the 30s not 20s mate....... nywayz, this is VERY realistic!! because america is such a big country, is very well connected globally and plays a very very important role as a buyer and seller in the global economy, a slight change in the US behaviour can lead to similar impacts globally. the current credit crisis is pretty bad for america and the global economies because in america people just dont have money to pay off their mortgage! this is because of no jobs...... see, this is all like connected, if u understand each part, it all makes sense at the end. so, this is very realistic!
How realistic is this?|||mind me, but its the 30s not 20s mate....... nywayz, this is VERY realistic!! because america is such a big country, is very well connected globally and plays a very very important role as a buyer and seller in the global economy, a slight change in the US behaviour can lead to similar impacts globally. the current credit crisis is pretty bad for america and the global economies because in america people just dont have money to pay off their mortgage! this is because of no jobs...... see, this is all like connected, if u understand each part, it all makes sense at the end. so, this is very realistic!
Why do economists tell is we have a problem of low spending and a credit crisis, are they that dumb?
Economists want banks to lend but a bank can only lend what the depositors save.
They then tell us that savings is bad for the economy.
So how can we fix the credit crisis without stopping spending?|||Some Keynesian economists have resurrected the thrift paradox (http://krugman.blogs.nytimes.com/2009/07鈥?/a> arguing that the overall savings, and thereby the supply of loanable funds have in fact declined, despite increased saving rates of the private households. However, somehow I don't believe that a shortage of loanable funds is the problem.
The problem is that the risk aversion of banks has increased dramatically since the mortgage crises and since the government let Lehman default. There is sufficient liquidity in the market for the banks to lend. But instead of lending, banks prefer to invest excess liquidity in the bond and money markets. The liquidity comes from an expansive monetary policy of the Fed. This easy money policy of the Fed is to provide an incentive for banks to lend and not, as many observers believe, to monetize the federal debt or to increase the GDP.
Increased savings mean that households save a higher portion of their income for future consumption instead of consuming now. This adds to the loanable funds, which are currently not channeled through to productive investments, because of (1) the risk aversion of the banks, but also (2) because of pessimistic business confidence of the firms, delaying their investments. Net result is that the economy is stuck: consumers don't spend, demand decreases, banks do not lend, businesses do not invest. To break the circle, the governement has to increase its spending to jump start the economy, increase business and consumer confidence, businesses will increase production, demand for labor will increae which will provide additional income and increase consumer spending.
In summary: we need higher consumer spending (not higher savings) and the banks to return to a sound lending practice (not the kind of high risk, reckless lending, motivated by moral hazard and adverse selection) by unlocking the currently unproductive funds sitting on their balance sheets. This is not mutually exclusive, in concept.|||We can't. We're knee deep in Keynes pointed out to be "the paradox of thrift." On an individual level it's good to save rather than spend money on consumer goods. When a nation as a whole decides to increase its saving rate demand for goods dries up and stores close laying off their employees.
@additional details: yes, yes they are mutually exclusive goals, hence the term "paradox of thrift." Right now the Federal Reserve is monetizing the debt of the US government so that banks can loan out more than individuals save. That will present a host of problems later. Addressing your question directly and in simple terms: Both of those mutually exclusive things need to happen, that's why they call it a crisis.
They then tell us that savings is bad for the economy.
So how can we fix the credit crisis without stopping spending?|||Some Keynesian economists have resurrected the thrift paradox (http://krugman.blogs.nytimes.com/2009/07鈥?/a> arguing that the overall savings, and thereby the supply of loanable funds have in fact declined, despite increased saving rates of the private households. However, somehow I don't believe that a shortage of loanable funds is the problem.
The problem is that the risk aversion of banks has increased dramatically since the mortgage crises and since the government let Lehman default. There is sufficient liquidity in the market for the banks to lend. But instead of lending, banks prefer to invest excess liquidity in the bond and money markets. The liquidity comes from an expansive monetary policy of the Fed. This easy money policy of the Fed is to provide an incentive for banks to lend and not, as many observers believe, to monetize the federal debt or to increase the GDP.
Increased savings mean that households save a higher portion of their income for future consumption instead of consuming now. This adds to the loanable funds, which are currently not channeled through to productive investments, because of (1) the risk aversion of the banks, but also (2) because of pessimistic business confidence of the firms, delaying their investments. Net result is that the economy is stuck: consumers don't spend, demand decreases, banks do not lend, businesses do not invest. To break the circle, the governement has to increase its spending to jump start the economy, increase business and consumer confidence, businesses will increase production, demand for labor will increae which will provide additional income and increase consumer spending.
In summary: we need higher consumer spending (not higher savings) and the banks to return to a sound lending practice (not the kind of high risk, reckless lending, motivated by moral hazard and adverse selection) by unlocking the currently unproductive funds sitting on their balance sheets. This is not mutually exclusive, in concept.|||We can't. We're knee deep in Keynes pointed out to be "the paradox of thrift." On an individual level it's good to save rather than spend money on consumer goods. When a nation as a whole decides to increase its saving rate demand for goods dries up and stores close laying off their employees.
@additional details: yes, yes they are mutually exclusive goals, hence the term "paradox of thrift." Right now the Federal Reserve is monetizing the debt of the US government so that banks can loan out more than individuals save. That will present a host of problems later. Addressing your question directly and in simple terms: Both of those mutually exclusive things need to happen, that's why they call it a crisis.
How are reverse mortgages affected by the current credit crisis in the united states?
Are the benefits of them better or worse than they were before?|||There are MANY terrible companies but much to Judy's dismay, I am sure, there are many good companies out there as well. Research is the key word.
I would imagine that right now it might be harder to find one of the good ones willing to give much at all against your equity.|||Reverse mortgages carry so many closing fees and maintenance fees they have never been a good idea.
Most people move out of their home on average when they are 85. When you move out = you have nothing - nothing to your name.
You can't even buy a small apartment. Your children won't want to take care of someone that owns nothing.
I forsee reverse mortgage business booming, but only because people like to borrow and not make wise decisions about their future.
/
I would imagine that right now it might be harder to find one of the good ones willing to give much at all against your equity.|||Reverse mortgages carry so many closing fees and maintenance fees they have never been a good idea.
Most people move out of their home on average when they are 85. When you move out = you have nothing - nothing to your name.
You can't even buy a small apartment. Your children won't want to take care of someone that owns nothing.
I forsee reverse mortgage business booming, but only because people like to borrow and not make wise decisions about their future.
/
What do you see in your own personal live about the credit crisis?
You lost your job? Sold your house? Do you know people who have happened this?|||I think that, as long you keep your job, you're OK. Then you're also able to pay your bills.|||nope, im perfectly fine
What banks will healthy once the credit crisis ends?
Now seems like a prime time to buy bank stocks, I plan to invest some money into that sector. There are so many regional and national branches to consider that pinpointing an undervalued winner is a hard task.
Can someone point me in a good direction?|||I did buy banks stocks on 5 big banks but I am long on them.
Till the sub prime problem has come to a end there will be some volatility with them. I think they are safe in the long run, the government would not want to see the banks go under.
Take a look at JPM ONB MS C WFC BAC.Also it would not hurt to have some GLD.|||The banks that were not heavily leveraged into the high risk lending wll come out the best.|||Wells Fargo is in good shape.|||catching falling knives is dangerous.
if people knew who would be left standing, then the stock of that company would be up instead of down.
Can someone point me in a good direction?|||I did buy banks stocks on 5 big banks but I am long on them.
Till the sub prime problem has come to a end there will be some volatility with them. I think they are safe in the long run, the government would not want to see the banks go under.
Take a look at JPM ONB MS C WFC BAC.Also it would not hurt to have some GLD.|||The banks that were not heavily leveraged into the high risk lending wll come out the best.|||Wells Fargo is in good shape.|||catching falling knives is dangerous.
if people knew who would be left standing, then the stock of that company would be up instead of down.
How many banks have gone bankrupt since the current credit crisis began?
Starting from late 2007, early 2008, how many major banks have declared bankruptcy, been bought out, etc. ?|||http://www.fdic.gov/bank/individual/fail鈥?/a>|||So far in 2009, 34 banks have been taken over by FDIC as of a week or two ago. I'd have to check to see what was taken over over the weekend (they like to go in Fridays %26amp; close, whenever possible). This year's total already exceeds the 2008 total.
The "troubled bank" list is still growing by leaps %26amp; bounds. Last I checked (a couple weeks ago), it had jumped from 170-something (around February) to over 300 by end-April.
The "troubled bank" list is still growing by leaps %26amp; bounds. Last I checked (a couple weeks ago), it had jumped from 170-something (around February) to over 300 by end-April.
With the credit crisis should we start storing our acorns in another tree?
During the fifties and sixties Europes best and brightest fled to America to escape socialism's confiscatory taxes. It was called the European brain drain. As America goes more and more socialist, money will flee America.
With the ongoing credit crisis and housing slump do you think it would be a good time to invest ?
I've noticed some of the homebuilders and mortgage lenders stocks have plummeted by more than 1/2 their value and in some case more.|||Depends on what you want to invest in. Or how.|||I'd wait a bit longer-- some of the lenders, especially, are in real trouble. Obviously, it would be great to get in while their stocks are low, but not if the companies might fail altogether. Also, it seems like many analysts think the housing slump might last for a little while. I'd keep your eye on the stocks you are interested in for a little while longer before investing.|||no.
these things take much more time to work out than has passed up to now. i subscribe to a newsletter that had started to forecast as early as march 2006 that a massive housing slump was coming. they had analyzed data forward from the summer 2005 peak and concluded that this was the likely outcome, and that it could take much longer than anyone would have thought. with billions in mortgage resets still set to happen in 2008, and the growing concern into consumer and auto loans, i wouldn't even think about bottom fishing until 2009, even 2010...
these things take much more time to work out than has passed up to now. i subscribe to a newsletter that had started to forecast as early as march 2006 that a massive housing slump was coming. they had analyzed data forward from the summer 2005 peak and concluded that this was the likely outcome, and that it could take much longer than anyone would have thought. with billions in mortgage resets still set to happen in 2008, and the growing concern into consumer and auto loans, i wouldn't even think about bottom fishing until 2009, even 2010...
If there's a credit crisis, then why are retail shops still hounding me to sign up for their credit cards?
I can't buy a bolt at Home Depot without them offering to sign me up for a credit card. Same at Target and half the shops at the Mall. What's going on?|||Because the more credit card holders that default on their loans - the BIGGER the company's bailout check will be.....................
Besides - the American consumers are stupid - they will do just about anything to save 10% on their purchase.|||The downturn takes a long time to get into people's minds. For most people , today is pretty much like yesterday. They need to have a friend laid-off from work before they believe the newspapers. So business keeps going as usual..|||Because the credit card companies need more card holders who pay their bills. Just say no.|||Because the media is WAY overblowing the availability of credit. If you're qualified, you can get credit for anything, anywhere, at a good rate.
I work for a mortgage lender and we're practically begging people to buy houses and refinance. We have tons of money waiting to be sent out to qualified borrowers, but the damn media has scared the daylights out of everyone.
If you've paid your bills on-time and used credit wisely in the past, you will have no problem getting a loan for anything.
Besides - the American consumers are stupid - they will do just about anything to save 10% on their purchase.|||The downturn takes a long time to get into people's minds. For most people , today is pretty much like yesterday. They need to have a friend laid-off from work before they believe the newspapers. So business keeps going as usual..|||Because the credit card companies need more card holders who pay their bills. Just say no.|||Because the media is WAY overblowing the availability of credit. If you're qualified, you can get credit for anything, anywhere, at a good rate.
I work for a mortgage lender and we're practically begging people to buy houses and refinance. We have tons of money waiting to be sent out to qualified borrowers, but the damn media has scared the daylights out of everyone.
If you've paid your bills on-time and used credit wisely in the past, you will have no problem getting a loan for anything.
What stock will be the next casuality of this credit crisis?
Yesterday, Pilgrim's Pride stock plunged 38%. It isn't a financial company either. Has the ripple effect made its way outside the financial and housing sectors yet? I think so. I wonder when the industrial stocks will take their plunge.|||I work for PP. Believe me, the problem with the poultry industry is the ever rising cost of corn and soybean. I am all for finding a different source of fuel, but burning our food supply is not the answer. To end the problem we are facing here, we ned to end ethanol production. Sorry environmentalists, it's the facts.
Sunday, August 21, 2011
In light of the credit crisis what is the liklihood my 4th studentloan will be approved?
I have used the same bank for my 3 years of undergrad loans and have always been approved automatically BUT with my 4th year loan (FINAL YEAR), i received word I will have to wait until next week to hear back regarding my approval- nothing has changed financially, but do you think I will receive my final student loan?|||It is hard to say. No one can anticipate your credit profile since we don't know it.
You will prob be find based on your statements.
You will prob be find based on your statements.
How is a blank check for the credit crisis different than Iraq?
Okay a 700 billion limit, but no restrictions on how it is spent? These are the same guys who never found weapons of mass destruction or Osama Bin Ladin. Nearly a trillion spent on that. Are we really going to do that again?|||The Iraq war sent taxpayer funds to defensive and oil companies. The Paulson bailout plan sends taxpayer funds to Financial Companies. Either way... it's stealing money from the taxpayer all while trying to convince them they are paying less taxes. Only problem is... the money has to come from the taxpayer eventually.
I'd be better off if I just took half my paycheck and threw it in the garbage can each week.|||It' NOT any different. Americans are being lied to AGAIN. LIES, LIES,LIES.The administration wants a blank check with no review by ANY agency or NO COURT. NOTHING for the American taxpayer but now they want to include FOREIGN BANKS to be eligible for the bailout.|||There's no way this needs to be done in the rushed manner it is being presented.
Making tax payers pay for financiers blatant greed not only is morally objectionable, but makes you wonder why anyone would try to save to get ahead. Much better to go into debt and make someone else pay for it.
Why aren't we complaining directly to our Congressmen and women.
https://forms.house.gov/wyr/welcome.shtm鈥?/a>
If they add bailing out people who took bad mortgages too, that is just teaching another generation that it is better to spend more than you have than save.
What should be happening is interest rates need to be hiked so people have a safe way to save. Interest on credit cards needs to be reduced immediately.
And the big banks that over extended themselves, along with the pension plans, should be allowed to go under. Let's use our tax dollars to make sure we can survive our bad leadership that keep somehow getting elected, by fortifying our social security system, so when our money is worth nothing in a decade, we will at least be able to survive on governmental services.
The way this bail out is worded it is not going to be limited to $700 billion. It is only limited to $700 billion plus all assets collected for the first 2 years. And the government can foreclose on ANY loans they deem needed to stabilize the economy.
Like the Iraq War, nobody is going to complain until they get shafted.
We should all complain now. Write your representatives.
I'd be better off if I just took half my paycheck and threw it in the garbage can each week.|||It' NOT any different. Americans are being lied to AGAIN. LIES, LIES,LIES.The administration wants a blank check with no review by ANY agency or NO COURT. NOTHING for the American taxpayer but now they want to include FOREIGN BANKS to be eligible for the bailout.|||There's no way this needs to be done in the rushed manner it is being presented.
Making tax payers pay for financiers blatant greed not only is morally objectionable, but makes you wonder why anyone would try to save to get ahead. Much better to go into debt and make someone else pay for it.
Why aren't we complaining directly to our Congressmen and women.
https://forms.house.gov/wyr/welcome.shtm鈥?/a>
If they add bailing out people who took bad mortgages too, that is just teaching another generation that it is better to spend more than you have than save.
What should be happening is interest rates need to be hiked so people have a safe way to save. Interest on credit cards needs to be reduced immediately.
And the big banks that over extended themselves, along with the pension plans, should be allowed to go under. Let's use our tax dollars to make sure we can survive our bad leadership that keep somehow getting elected, by fortifying our social security system, so when our money is worth nothing in a decade, we will at least be able to survive on governmental services.
The way this bail out is worded it is not going to be limited to $700 billion. It is only limited to $700 billion plus all assets collected for the first 2 years. And the government can foreclose on ANY loans they deem needed to stabilize the economy.
Like the Iraq War, nobody is going to complain until they get shafted.
We should all complain now. Write your representatives.
Is America's credit crisis more of a result of predatory banks or irresponsible consumer spending?
On one side, I hear it's credit card companies preying on customers with high interest rates, fee hikes and numerous fees. On the other hand, I hear it's people who spend money they don't have.|||I would say that it is the result of irresponsible banks and irresponsible consumers.
The banks were supposed to be evaluating loans and following the rule: 'Only lend money to people who can pay it back.'
The consumers signed contracts that they did not understand (and about 80% of the time never bothered to read) and assumed that the good times would never end.
In addition - both the banks and the consumers failed to observe the warning signs that the housing market was becomming overvalued. They were both looking at the past where the prices were increaseing without considering that just bcause something happened in the past does not mean that it will happen in the future. As a result both the consumers and the banks thought that if anything happened - the increased value of the house would be enough to settle all debts.
Another thing that caused problems was the HELOC (Home Equity Line Of Credit). With these homeowners were taking out mortagages in order to buy new cars and other non-house related items in order to qualify for tax breaks on the interest. Personally, I feel that the tax laws should be ammended that HELOC interest only gains a tax advantage if the money was spent on remodeling or creating an addition on an existing home.|||Predatory lending.
People in general didn't know that the banks had all of that leeway in what they could charge and when. Did you also know that all credit cards are insured so if you don't pay the banks get their money from insurance companies? The banks can then sell the account to another entity that can then collect the SAME AMOUNT that it already obtained through insurance? If that isn't predatory then you can't understand anything.|||it's the banks job to evaluate people they lend money to, there are huge credit systems run by companies such as Experian, lenders should know how much people are in for.
Unbelievably in this case, 'bundled' loans were being sold on to other investors, and the lender did not care if the loans were paid back. By getting credit ratings attached to the loan bundles, they could then sell them and they didn't care that they were lending huge amounts to unemployed cleaners or whatever ludicrous stories emerged.
Fault of banks for being stupid. The borrower can't lose, he might lose his home, but then he'd never have had it in the first place if he hadn't borrowed. In the UK you can go bankrupt and write it all off permanently.|||It's the case of the strong preying on the weak. Think of a 5 yr old child who eats healthy (fruits, veg, water, no sweets) and all of a sudden given a chance to eat all the sweets and candy their little heart desires. Of course they will take the op pt regardless of the cost. They've never been allowed before so why not take the op pt.
Everything is not for everybody and it shouldn't be advertised or accessible as such.|||Both. Greedy consumers and Greedy lenders (who are also greedy consumers!)
But let's not forget Greedy Congressmen ....
Many thanks to Christopher Dodd for doing such an outstanding job [per Harry Reid] with his Committee on Banking, Housing, and Urban Affairs. He has done so very much for the American consumer over the last few years. So very, very much ....
Countrywide Financial loan controversy
Fannie Mae/Freddie Mac controversies
Irish Cottage controversy
AIG federal assistance and bonuses controversy
What a guy, eh? Been hard at work for the American people [per Harry Reid]. Look at all the things Dodd has done for us..... We need more Democrats like him around, don't we?
"We鈥檙e not going to mince words. Chris Dodd is a lying weasel. It is hard enough to swallow that the senator had no idea that he got preferential treatment on his home mortgages that saved him thousands of dollars. Or that, simply out of friendship, a wealthy New York man, who was later convicted in a huge stock swindle, picked up much of the cost of a condo Dodd bought in Washington; or that the stock swindler鈥檚 business partner out of a love of Ireland did the same for Dodd when the senator bought a waterfront house in Ireland."|||In a sense its a conspiracy, the banks lend out money, the people borrows and spend and spend. without thinking of paying.|||Common sense, it is the people who AGREE to the terms and borrow money they cannot pay back.|||the bankers and federal reserve.
The banks were supposed to be evaluating loans and following the rule: 'Only lend money to people who can pay it back.'
The consumers signed contracts that they did not understand (and about 80% of the time never bothered to read) and assumed that the good times would never end.
In addition - both the banks and the consumers failed to observe the warning signs that the housing market was becomming overvalued. They were both looking at the past where the prices were increaseing without considering that just bcause something happened in the past does not mean that it will happen in the future. As a result both the consumers and the banks thought that if anything happened - the increased value of the house would be enough to settle all debts.
Another thing that caused problems was the HELOC (Home Equity Line Of Credit). With these homeowners were taking out mortagages in order to buy new cars and other non-house related items in order to qualify for tax breaks on the interest. Personally, I feel that the tax laws should be ammended that HELOC interest only gains a tax advantage if the money was spent on remodeling or creating an addition on an existing home.|||Predatory lending.
People in general didn't know that the banks had all of that leeway in what they could charge and when. Did you also know that all credit cards are insured so if you don't pay the banks get their money from insurance companies? The banks can then sell the account to another entity that can then collect the SAME AMOUNT that it already obtained through insurance? If that isn't predatory then you can't understand anything.|||it's the banks job to evaluate people they lend money to, there are huge credit systems run by companies such as Experian, lenders should know how much people are in for.
Unbelievably in this case, 'bundled' loans were being sold on to other investors, and the lender did not care if the loans were paid back. By getting credit ratings attached to the loan bundles, they could then sell them and they didn't care that they were lending huge amounts to unemployed cleaners or whatever ludicrous stories emerged.
Fault of banks for being stupid. The borrower can't lose, he might lose his home, but then he'd never have had it in the first place if he hadn't borrowed. In the UK you can go bankrupt and write it all off permanently.|||It's the case of the strong preying on the weak. Think of a 5 yr old child who eats healthy (fruits, veg, water, no sweets) and all of a sudden given a chance to eat all the sweets and candy their little heart desires. Of course they will take the op pt regardless of the cost. They've never been allowed before so why not take the op pt.
Everything is not for everybody and it shouldn't be advertised or accessible as such.|||Both. Greedy consumers and Greedy lenders (who are also greedy consumers!)
But let's not forget Greedy Congressmen ....
Many thanks to Christopher Dodd for doing such an outstanding job [per Harry Reid] with his Committee on Banking, Housing, and Urban Affairs. He has done so very much for the American consumer over the last few years. So very, very much ....
Countrywide Financial loan controversy
Fannie Mae/Freddie Mac controversies
Irish Cottage controversy
AIG federal assistance and bonuses controversy
What a guy, eh? Been hard at work for the American people [per Harry Reid]. Look at all the things Dodd has done for us..... We need more Democrats like him around, don't we?
"We鈥檙e not going to mince words. Chris Dodd is a lying weasel. It is hard enough to swallow that the senator had no idea that he got preferential treatment on his home mortgages that saved him thousands of dollars. Or that, simply out of friendship, a wealthy New York man, who was later convicted in a huge stock swindle, picked up much of the cost of a condo Dodd bought in Washington; or that the stock swindler鈥檚 business partner out of a love of Ireland did the same for Dodd when the senator bought a waterfront house in Ireland."|||In a sense its a conspiracy, the banks lend out money, the people borrows and spend and spend. without thinking of paying.|||Common sense, it is the people who AGREE to the terms and borrow money they cannot pay back.|||the bankers and federal reserve.
Would you agree that the Current Worldwide Credit Crisis Is a fitting curtain to close out Bush's presidency?
Would you agree with me that the Current Worldwide Financial Crisis Is a fitting curtain to close out George Bush's presidency as he is singly remarkable for being the worst President in the USA for this century???|||No. That's like wishing you would catch smallpox to make your neighbor look bad. |||It certainly stands as a monument to the Bush legacy; disaster, death, dishonor, deceit, depravity, and catastrophe.
But we still have four more months to go, and he certainly is capable of doing even more damage.
And his protege, McCain is waiting in the wings, ready to continue the road to ruin that we've been on for the past eight years.
Bush is the worst president ever, surpassing even Nixon in the amount of damage he has done to the United States, and the world.|||No, since the worst President ever was Bill Clinton that did so much damage to the military machine it took years to overcome and is still in the works to fix. The people Obama is in league with like Fannie Mae, and Freddie Mac are the true criminals here allowing people to have loans they knew could not repay them. You should put the blame where it squarely belongs, and that is for the Democrats that want everyone to have a home no matter how much it costs me.|||congress has as much power as he does when it comes to manipulating the market. Our gov't has many other agencies besides the presidency that influence our economy. It was the Bush administration that warned acorn and democrats in congress that we need more oversight on fannie and freddie mac. But, the dems WANT Bush to look bad, so NO ACTION WAS TAKEN BY OUR CONGRESS to help the problem. You should do your research to see who is really to blame. |||Oh, if only the destruction of the world economy were his last act. Allot of people forget that he'll be playing the part of U.S. president until January (at least). He just signed a deal with India which will allow them to start developing and expanding a nuclear arsenal. If they do Russia, China and Pakistan will have little choice but to do the same. Ready for another nuclear arms race?|||yes yes yes yes YES!!!!!! I completely agree. This entire disaster is a result of Bush's presidency, and it's just so perfect that it's getting even worse as his presidency comes to an end. I wish he had a 401k that's dwindled down to nothing, then he'd know how the average American feels.|||Yes because the credit card companies bribe Washington to get the laws they want to cheat us basically....Kevin Trudeau's book on the credit card companies goes into great detail on this and as we know Bush will do as the big businesses want him to do while ignoring the little guy.|||You got it baby........Bush don't let the door hit you on the way out of the white house........thanks for the memories........you complete boob!!! Bush never succeeded at a damn thing except bringing every one down with him. I think maybe, just maybe the country is starting to not drink the kool aid anymore......we have a long road to recovery......that is for damn sure!!|||it would have happened regardless of who was president. No one wants to admit the fact that the reason that we are where we are is because Americans want to finance everything and pay for nothing. |||if obama is elected this is the best you will see for a very long time. just wait untill you have to grow your own food and live without electricity.|||There is something troubling about his Presidency- Who no one had the testicular fortitude to stand up against and said" Mr. President you are wrong".|||why do you say that , he worked for this for eight years almost. this and killing young brave Americans that he does not know. (if he knew you are your family, you would be safe.)|||yes hes screwed the rest of the world, so why not go out with a bang here at home?
I have a theory that Bush is secretly the fifth member of the Axis of Evil..lol|||Uh no. Its not a good thing no matter who is president you liberal nutjob. Congress caused it anyway, not Bush.|||Don't get too far ahead of yourself, there are still a few weeks left to go, he can scr*w up a lot more in that amount of time.|||Oh come on. The worst...
There was Nixon.
But then Bush still has 23 days to do something awful, and a little voice in my mind keeps telling me he will manage.|||I agree
G.W.B.=W.P.E.|||Amen|||He is like a failure junky..who's veins have long since collapsed, so now has to inject failure into his scrotum.|||talk about going out with a bang.|||not really|||No|||only if you ignore the facts
But we still have four more months to go, and he certainly is capable of doing even more damage.
And his protege, McCain is waiting in the wings, ready to continue the road to ruin that we've been on for the past eight years.
Bush is the worst president ever, surpassing even Nixon in the amount of damage he has done to the United States, and the world.|||No, since the worst President ever was Bill Clinton that did so much damage to the military machine it took years to overcome and is still in the works to fix. The people Obama is in league with like Fannie Mae, and Freddie Mac are the true criminals here allowing people to have loans they knew could not repay them. You should put the blame where it squarely belongs, and that is for the Democrats that want everyone to have a home no matter how much it costs me.|||congress has as much power as he does when it comes to manipulating the market. Our gov't has many other agencies besides the presidency that influence our economy. It was the Bush administration that warned acorn and democrats in congress that we need more oversight on fannie and freddie mac. But, the dems WANT Bush to look bad, so NO ACTION WAS TAKEN BY OUR CONGRESS to help the problem. You should do your research to see who is really to blame. |||Oh, if only the destruction of the world economy were his last act. Allot of people forget that he'll be playing the part of U.S. president until January (at least). He just signed a deal with India which will allow them to start developing and expanding a nuclear arsenal. If they do Russia, China and Pakistan will have little choice but to do the same. Ready for another nuclear arms race?|||yes yes yes yes YES!!!!!! I completely agree. This entire disaster is a result of Bush's presidency, and it's just so perfect that it's getting even worse as his presidency comes to an end. I wish he had a 401k that's dwindled down to nothing, then he'd know how the average American feels.|||Yes because the credit card companies bribe Washington to get the laws they want to cheat us basically....Kevin Trudeau's book on the credit card companies goes into great detail on this and as we know Bush will do as the big businesses want him to do while ignoring the little guy.|||You got it baby........Bush don't let the door hit you on the way out of the white house........thanks for the memories........you complete boob!!! Bush never succeeded at a damn thing except bringing every one down with him. I think maybe, just maybe the country is starting to not drink the kool aid anymore......we have a long road to recovery......that is for damn sure!!|||it would have happened regardless of who was president. No one wants to admit the fact that the reason that we are where we are is because Americans want to finance everything and pay for nothing. |||if obama is elected this is the best you will see for a very long time. just wait untill you have to grow your own food and live without electricity.|||There is something troubling about his Presidency- Who no one had the testicular fortitude to stand up against and said" Mr. President you are wrong".|||why do you say that , he worked for this for eight years almost. this and killing young brave Americans that he does not know. (if he knew you are your family, you would be safe.)|||yes hes screwed the rest of the world, so why not go out with a bang here at home?
I have a theory that Bush is secretly the fifth member of the Axis of Evil..lol|||Uh no. Its not a good thing no matter who is president you liberal nutjob. Congress caused it anyway, not Bush.|||Don't get too far ahead of yourself, there are still a few weeks left to go, he can scr*w up a lot more in that amount of time.|||Oh come on. The worst...
There was Nixon.
But then Bush still has 23 days to do something awful, and a little voice in my mind keeps telling me he will manage.|||I agree
G.W.B.=W.P.E.|||Amen|||He is like a failure junky..who's veins have long since collapsed, so now has to inject failure into his scrotum.|||talk about going out with a bang.|||not really|||No|||only if you ignore the facts
Total Cost of Government bail-outs/nationalisation due to the credit crisis? For the UK and the World?
What is the total cost to the UK government of its attempts to combat the banking crisis through it's bail-outs, nationalisations etc.
Also any idea of the costs to all governments in the world, or how would find these figures?
No rough guesses please, and preferably cite a source. Thanks in advance!|||There is a lot of controversy over this question. Tony Brown still insists that the little green fairies at the bottom of his garden will give him a pot of gold. Tony Blair denies that he's already stolen it (even though he now has 4 houses).
David Cameron insists that abolishing free school milk will help and Santa Clause is asking for donations.
So, without making a rough guess, and with my calculator warmed up, the answer is coming out at 拢7.67p.|||hmmmm...........!
i would have to say between $1 to around $100 Godzillion Dollars.......!
of course that is just a Ballpark Figure~!!!
Also any idea of the costs to all governments in the world, or how would find these figures?
No rough guesses please, and preferably cite a source. Thanks in advance!|||There is a lot of controversy over this question. Tony Brown still insists that the little green fairies at the bottom of his garden will give him a pot of gold. Tony Blair denies that he's already stolen it (even though he now has 4 houses).
David Cameron insists that abolishing free school milk will help and Santa Clause is asking for donations.
So, without making a rough guess, and with my calculator warmed up, the answer is coming out at 拢7.67p.|||hmmmm...........!
i would have to say between $1 to around $100 Godzillion Dollars.......!
of course that is just a Ballpark Figure~!!!
The credit crisis collapsing share prices?
Can someone tell me how the credit crisis caused collapsing share prices. include a few examples if possible. And if you know, can you tell me why this happened.|||Basically, consumer confidence is down. In a credit crisis, consumers have less money to spend. Therefore, not as many people are going to invest.
If people sell their shares, this means that the value of a share will go down. Nobody will want to hold on to a share that is losing value. They will lose money from it. Therefore, speculators perceive that shares will be sold in this crisis, and they will do so accordingly.
In a way, people's expectations about what is happening in the market can actually become real because after all, it is the consumers that make decisions about how to save and spend their money.|||Fear and fund redemptions are driving down stock prices.
If people sell their shares, this means that the value of a share will go down. Nobody will want to hold on to a share that is losing value. They will lose money from it. Therefore, speculators perceive that shares will be sold in this crisis, and they will do so accordingly.
In a way, people's expectations about what is happening in the market can actually become real because after all, it is the consumers that make decisions about how to save and spend their money.|||Fear and fund redemptions are driving down stock prices.
How did the credit crisis of a few months ago affect the Quantitative Analysis division in an investment bank?
I'd also appreciate it if anybody knew of any other major developments in the Quant industry and how the industry is affected by them. Thank you!|||It showed that the models that were commonly used to price Mortgage Backed Obligations in the secondary market were wrong.
The biggest error was that the models focused almost totally on the credit score of the borrower. They ignored the down payment and treated two borrowers the same if they had a 650 credit score, even if one put down 25% and the other put down 0%. It is intuitively obvious to the casual observer that it would be very expensive for someone with 25% equity to just walk away and thus would be unlikely, while a person with no equity would suffer no such difficulty. Yet, this was not reflected in the models.
The biggest error was that the models focused almost totally on the credit score of the borrower. They ignored the down payment and treated two borrowers the same if they had a 650 credit score, even if one put down 25% and the other put down 0%. It is intuitively obvious to the casual observer that it would be very expensive for someone with 25% equity to just walk away and thus would be unlikely, while a person with no equity would suffer no such difficulty. Yet, this was not reflected in the models.
Is the current credit crisis and housing slump due to the bankruptcy law changes made a year ago?
I can't help but think that the changes weren't the right ones. It seemed like it would have been better to limit how much above and beyond interest the creditors could charge than to make it harder for people to abandon their debt.|||No, it is caused by irresponsible lenders and borrowers. The changes in bankruptcy laws were not as drastic as the public has been led to believe. The changes do not even apply to lower income people. Anyone with lower than average income is exempt completely. It only applies to higher income people who are abusing the system to avoid paying bills.|||There is a lot of merit to your thoughts, but I think these issues are more directly related to the overall downturn in the economy. The rising gas prices and the gradual decrease in the American standard of living are combining to make it more difficult for people to afford the lifestyle they are accoustomed to and our government is deceiving people by telling us, "We're not in a recession. Go spend money. The unemployment roles are down, the economy created 100,000 new jobs last month." But, they neglect to point out that 95,000 of those new jobs pay minimun wage.
Credit Crisis: American financial illiteracy versus predatory lending practices?
In your estimation, what percentage of the current credit crisis is a result of American financial illiteracy versus predatory lending practices?
Should the spending American public - predominantly house buyers - "step up to the plate" and take on all or part of the blame for the current economic crisis?
Thanks for your responses. Please, I'd prefer no flames or rants.|||And here's even another thought: financial illiteracy isn't completely to blame because much of the "fine print" isn't easily understood to the average person. It isn't even that Americans are stupid or ignorant or illiterate. It's that the verbiage buried in the fine print is wrapped in legalese which even the most intelligent among us have a difficult time understanding, let alone the average person.
How many times in a month do you receive mailings from a creditor that would take an attorney to decipher? If you're an average American, probably at least four or five.
Having said that, I think the current credit crisis is a combination of people not truly understanding what they're signing, lenders not wanting them to understand, and our country hemorrhaging jobs in many areas, leading to people's losing everything in huge numbers.|||50/50 at best. Shame on the mortgage industry for lending money to people who would otherwise never be credit worthy. The problem with this country now is that everybody wants everything and they want it now. Instead of saving their money, Americans abuse credit.
It is so sad to drive by the all popular payday loan places that are on every street corner. When you see the people inside you can't help but feel sorry for them.|||I'd say about 80% illiteracy and 20% lending practices.|||It is truly shameful that so many people spend and fritter away their learning years learning nothing! Where has personal responsibility gone????????????
"IF IT SEEMS TOO GOOD TO BE TRUE IT PROBABLY IS!"
Should the spending American public - predominantly house buyers - "step up to the plate" and take on all or part of the blame for the current economic crisis?
Thanks for your responses. Please, I'd prefer no flames or rants.|||And here's even another thought: financial illiteracy isn't completely to blame because much of the "fine print" isn't easily understood to the average person. It isn't even that Americans are stupid or ignorant or illiterate. It's that the verbiage buried in the fine print is wrapped in legalese which even the most intelligent among us have a difficult time understanding, let alone the average person.
How many times in a month do you receive mailings from a creditor that would take an attorney to decipher? If you're an average American, probably at least four or five.
Having said that, I think the current credit crisis is a combination of people not truly understanding what they're signing, lenders not wanting them to understand, and our country hemorrhaging jobs in many areas, leading to people's losing everything in huge numbers.|||50/50 at best. Shame on the mortgage industry for lending money to people who would otherwise never be credit worthy. The problem with this country now is that everybody wants everything and they want it now. Instead of saving their money, Americans abuse credit.
It is so sad to drive by the all popular payday loan places that are on every street corner. When you see the people inside you can't help but feel sorry for them.|||I'd say about 80% illiteracy and 20% lending practices.|||It is truly shameful that so many people spend and fritter away their learning years learning nothing! Where has personal responsibility gone????????????
"IF IT SEEMS TOO GOOD TO BE TRUE IT PROBABLY IS!"
Can you explain ot me what the subprime credit crisis means?
i heard the word subprime credit/mortgage, and i dont know what it means and what can change it, and why it happened...can you please explain this to me.|||The Sub Prime Credit crisis is commonly referred to borrowers with fair and poor credit but it really is not. People with poor credit were not able to get 100%.
Here's what happened. During 2003 thru 2006 Lenders (not brokers) were offering money to homeoweners or buyers of homes with high credit scores up to 100% of the value of their home. The money was lent in two loans, not one, commonly called and 80/20 where the 1st mortgage was at 80% and the 2nd mortgage was at 20% of the value making both loans totalling 100%. Greenspan had lowered short term rates so buyers were getting into homes with no money down and financing 100% expecting the values to continue to rise. The first mortgage was generally written on a 2 or 3 year fixed rate and the 2nd mortgage on a 15 year fixed rate. Greenspan started raising rates. The effect was not immediate because the loans were not set to re-adjust until 2006 and 2007 and 2008. The interest on the first mortgages started to adjust from 5.75% to 8%, then to 10% and the owners could not and cannot afford their payments. Properties stopped selling and foreclosures rose and soon the 2nd mortgage holder was left holding a bag of air. Now that same home that sold for $500,000 is now worth $400,000. The 2nd mortgage is not going to throw money on the first mortgage to keep it current so the property goes into default. Billions of dollars in 2nd mortgage money are now worthless and property values keep falling. Builders are holding Fire Sales to sell inventory thus insuring a more drastic drop in values. Also the Federal government has told the lenders that they must re-allocate for losses as their loans which cannot be sold to anyone must now have a portion set aside for loss. This is called a loss reserve. The lenders who have survived cannot make loose loans as no one will buy them thus causing a credit crunch. The credit crunch is basically the inability of a homeower or buyer to obtain financing at a high loan to value ratio based on what he, she or they STATE what their income is. This loan is basically still available, not to 100%, but only to those clients with high credit scores say above 740. Whereas 1 year ago someone with a 550 FICO could get financing with a low loan to value at 8% or less, now, if they can get it, the rate is 10%+, hence a credit crunch.
Now the short sales are starting to impact but the lenders have too much at stake so for the first time in modern history we are going to see the original homebuyer or homeower renting their home from the lender who made them the bad loan in the first place. The lenders will hold on to the properties until the next boom happens or when they can sell the property. There are trillions of dollars at risk and the lender will look out for themselves as they always have.
This credit crunch is no where close to the one in the early 1980's when the prime lending rate was 21%. Just think about home loans at 17%|||also known as the credit crunch, i knw it has something to do with fixed rate mortgage and the recent low interest rates, but im not sure exactly what happened.
Here's what happened. During 2003 thru 2006 Lenders (not brokers) were offering money to homeoweners or buyers of homes with high credit scores up to 100% of the value of their home. The money was lent in two loans, not one, commonly called and 80/20 where the 1st mortgage was at 80% and the 2nd mortgage was at 20% of the value making both loans totalling 100%. Greenspan had lowered short term rates so buyers were getting into homes with no money down and financing 100% expecting the values to continue to rise. The first mortgage was generally written on a 2 or 3 year fixed rate and the 2nd mortgage on a 15 year fixed rate. Greenspan started raising rates. The effect was not immediate because the loans were not set to re-adjust until 2006 and 2007 and 2008. The interest on the first mortgages started to adjust from 5.75% to 8%, then to 10% and the owners could not and cannot afford their payments. Properties stopped selling and foreclosures rose and soon the 2nd mortgage holder was left holding a bag of air. Now that same home that sold for $500,000 is now worth $400,000. The 2nd mortgage is not going to throw money on the first mortgage to keep it current so the property goes into default. Billions of dollars in 2nd mortgage money are now worthless and property values keep falling. Builders are holding Fire Sales to sell inventory thus insuring a more drastic drop in values. Also the Federal government has told the lenders that they must re-allocate for losses as their loans which cannot be sold to anyone must now have a portion set aside for loss. This is called a loss reserve. The lenders who have survived cannot make loose loans as no one will buy them thus causing a credit crunch. The credit crunch is basically the inability of a homeower or buyer to obtain financing at a high loan to value ratio based on what he, she or they STATE what their income is. This loan is basically still available, not to 100%, but only to those clients with high credit scores say above 740. Whereas 1 year ago someone with a 550 FICO could get financing with a low loan to value at 8% or less, now, if they can get it, the rate is 10%+, hence a credit crunch.
Now the short sales are starting to impact but the lenders have too much at stake so for the first time in modern history we are going to see the original homebuyer or homeower renting their home from the lender who made them the bad loan in the first place. The lenders will hold on to the properties until the next boom happens or when they can sell the property. There are trillions of dollars at risk and the lender will look out for themselves as they always have.
This credit crunch is no where close to the one in the early 1980's when the prime lending rate was 21%. Just think about home loans at 17%|||also known as the credit crunch, i knw it has something to do with fixed rate mortgage and the recent low interest rates, but im not sure exactly what happened.
Where is the safest place to bank given the current credit crisis?
With all this talk of bank closures and mergers I really have no idea if my money is safe with Nationwide Building Society anymore? Are building societies still as vulnerable to the credit problems?|||Under your mattress!
What is going on with Global credit crisis. Please answer me i just want to understand it.?
I just want to understand what is going on with global credit crisis|||Do you want to understand the obvious financial/political side of it, or would you like to know the deeper causes for this crisis?
If you would like to look at the root cause, I would recommend this excellent analysis of the current economical crisis:
http://www.laitman.com/2008/10/analysis-鈥?/a>
I hope you find it helpful.|||Right now the central banks are loaning money to major banks and buying equity in them.This will bring on a worldwide recession but it is felt that this is better than a worldwide depression.
If you would like to look at the root cause, I would recommend this excellent analysis of the current economical crisis:
http://www.laitman.com/2008/10/analysis-鈥?/a>
I hope you find it helpful.|||Right now the central banks are loaning money to major banks and buying equity in them.This will bring on a worldwide recession but it is felt that this is better than a worldwide depression.
How is it possible to make a loan of 700 billion when we are in a credit crisis?
When we are in a crisis like this, when normal people are declined a loan, how is it possible that the government (already in huge debt) is capable of taking out such a huge loan??? Wouldn't be great to be employed at the Federal Reserve bank - now there's a bank that will never go down and can always lend any amount of money no matter the crisis. Why can't we just take out our mortgages from them???|||Ever since the Government did away with the Silver Certificates in Kennedy's Administration, The United States has not kept enough precious metals in reserve to pay debts internationally or to those who do not want to be paid with paper currency, instead by our sheer insolence we believe no one will call us on our debt like China whom we owe Billions if not a Trillion to. We instead keep borrowing and keep buying goods without enough export to even slightly resemble Free Trade, and expect nothing will happen to us we are the United States of America!!! Yet, in politics we now realize how much we depend on others to give us what we need, and are in no way self sufficient in any way shape or form. We could take our mortgages from them if we would have got together and got lobbyists to rally favor for our issues for the last 30 years, then they would bail us out instead of them, but since we didn't know our politicians were for sale the last 30 years, we will have to watch their loyalty for the last 30 years paid to the cronies that bought them for the aforementioned time.
Subscribe to:
Posts (Atom)