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.
Sunday, August 21, 2011
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.
Does the credit crisis mean banks will lower credit standards just to stay afloat?
Citicards and GMAC just announced HUGE losses. What will they do to stay afloat? Does this mean it is a good time for applicants with less than desireable credit have a better chance when they apply?|||The exact opposite is what is occurring. Lenders are tightening criteria for loans, so that they don't have to write off these huge losses in the future. Tightening standards reduces risks to the lenders, and helps them remain solvent.|||The opposite. They can't stand to have more debtors with lousy credit. Their interest rates will be worse.|||The opposite. They will sell assets if they need cash.|||Hell no! That is exactly what they WON'T be doing again anytime soon until they think the government isn't looking anymore. They are going to be tighter than ever about loans if they know what's good for them.|||No, they'll get more selective on who they give loans to. Giving loans to people who can't/won't pay them back is what got the country into this mess.
Can You Watch This And Still Put The Blame On Poor Americans For This Credit Crisis?
Is this clip plain enough that even conservative right wingers can understand who is at fault for the credit crisis?
http://www.vimeo.com/3261363
Watch it and tell us (honestly, if that is an option) if what happened has become clearer to you after viewing this.|||An excellent reason why investment banking and consumer banking should be totally and forever separate.
Unless you did your homework when you bought your house during this period of time, you were most likely a victim of a shady deal. Just like the used car dealer who guarantees that the high-mileage clunker he just painted out back was previously owned by a little old lady who only drove it to church on Sundays. It didn't help that people were told that rising home prices were a sure guarantee that they could sell, and buy another palace in the same manner.
It also doesn't help that in communities like mine, the only homes that were built during the last 25 years were all luxury models, aimed at the upper middle class, and not the first-time home-buyer. But, first-time home-buyers were shown these extravagant homes, and were none the wiser.
I could feel the pressure when I was shopping for a home in 2002. After being shown 85 totally unsuitable houses, I finally did my own searching and found this one I now own: a 40 year old converted modular home on a half-acre.
First-time, or even second-time, home buyers should be required to attend several hours of homeowner counseling, but I don't see this happening soon because of the potential commission losses to those who benefit at the first step in the sales process: the real estate salesperson.|||"This mess was caused by corrupted mortgage lenders and greedy investment houses and a federal government that did not aggressively police financial corruption. Both political parties are to blame." - Bill O'Reilly
Poor Americans didn't have anyone twisting their arms when they took out mortgages that couldn't be paid for.|||Common sense needs to become a factor at some point. If you know you cannot afford a mortgage, don't get it. And yes, the lendors did take advantage of people by approving the loans, but it takes two which are the borrower and the lender. And please refer to a few years ago when McCain did nail this and said this was happening, and he was pushed aside and ignored.|||It sounds like a defense lawyer crying out
for those unqualified home buyers who cheated their income during their mortgage application,
for those who enjoyed their new bathroom , new kitchen, new swimming pool,new bikes, new boats ... with their imaginary home equity loans, ....|||This is part of the equation - perhaps the biggest part - but the problem extends beyond lending and borrowing. Business has been caught up in an unrealistic world of increasing profits for some time now, and it has helped to create this mess. I understand that every company is going to seek the maximum profit that it can get, but it can have negative effects in the long run. Think about the number of jobs that have been shipped overseas in favour of cheaper labour. Good paying jobs have left North America, which has cut the resources of the middle class. If the "working man" has less money to spend, then the economy will slow down. People have to work longer hours for a lower pay, and the cost of living only continues to rise. Shareholders and company executives made a lot of money for a few years by gutting the middle class, but it has now come back to haunt everyone.
Protectionism will probably help keep some jobs at home, but it will create new issues to deal with as well. All I can say is that the insanity that caused this problem is still running as strong as ever. Instead of restoring the middle class, we're taking their tax dollars and pumping it back into the companies who have gone bankrupt and created this mess.
We need a strong corporate base AND a strong middle class if we're going to get back to any form of prosperity. How long is it going to take to get them back?
http://www.vimeo.com/3261363
Watch it and tell us (honestly, if that is an option) if what happened has become clearer to you after viewing this.|||An excellent reason why investment banking and consumer banking should be totally and forever separate.
Unless you did your homework when you bought your house during this period of time, you were most likely a victim of a shady deal. Just like the used car dealer who guarantees that the high-mileage clunker he just painted out back was previously owned by a little old lady who only drove it to church on Sundays. It didn't help that people were told that rising home prices were a sure guarantee that they could sell, and buy another palace in the same manner.
It also doesn't help that in communities like mine, the only homes that were built during the last 25 years were all luxury models, aimed at the upper middle class, and not the first-time home-buyer. But, first-time home-buyers were shown these extravagant homes, and were none the wiser.
I could feel the pressure when I was shopping for a home in 2002. After being shown 85 totally unsuitable houses, I finally did my own searching and found this one I now own: a 40 year old converted modular home on a half-acre.
First-time, or even second-time, home buyers should be required to attend several hours of homeowner counseling, but I don't see this happening soon because of the potential commission losses to those who benefit at the first step in the sales process: the real estate salesperson.|||"This mess was caused by corrupted mortgage lenders and greedy investment houses and a federal government that did not aggressively police financial corruption. Both political parties are to blame." - Bill O'Reilly
Poor Americans didn't have anyone twisting their arms when they took out mortgages that couldn't be paid for.|||Common sense needs to become a factor at some point. If you know you cannot afford a mortgage, don't get it. And yes, the lendors did take advantage of people by approving the loans, but it takes two which are the borrower and the lender. And please refer to a few years ago when McCain did nail this and said this was happening, and he was pushed aside and ignored.|||It sounds like a defense lawyer crying out
for those unqualified home buyers who cheated their income during their mortgage application,
for those who enjoyed their new bathroom , new kitchen, new swimming pool,new bikes, new boats ... with their imaginary home equity loans, ....|||This is part of the equation - perhaps the biggest part - but the problem extends beyond lending and borrowing. Business has been caught up in an unrealistic world of increasing profits for some time now, and it has helped to create this mess. I understand that every company is going to seek the maximum profit that it can get, but it can have negative effects in the long run. Think about the number of jobs that have been shipped overseas in favour of cheaper labour. Good paying jobs have left North America, which has cut the resources of the middle class. If the "working man" has less money to spend, then the economy will slow down. People have to work longer hours for a lower pay, and the cost of living only continues to rise. Shareholders and company executives made a lot of money for a few years by gutting the middle class, but it has now come back to haunt everyone.
Protectionism will probably help keep some jobs at home, but it will create new issues to deal with as well. All I can say is that the insanity that caused this problem is still running as strong as ever. Instead of restoring the middle class, we're taking their tax dollars and pumping it back into the companies who have gone bankrupt and created this mess.
We need a strong corporate base AND a strong middle class if we're going to get back to any form of prosperity. How long is it going to take to get them back?
What do see as the fault for the the present day credit crisis?
Automation and resultant loss of jobs from that automation?
Subprime mortgage crisis?
Do you thing automation is gradually eating away at earning's potentials except for the really affluents mostly?
I mean, can't man pretty much do away with most jobs over time through automation?|||For many years the basic fundamentals of lending money were set in stone. They were tried and tested and had been working just fine for a long time.
However some bright spark decided that lending money to people who could not afford it, and increasing the LVR % (loan to value ratio) greatly increasing the risk or exposure to the financier, was a brilliant idea.
They figured that the high cost of funding for this type of lending would be sufficient to cover the losses created from the delinquencies bound to occur and the subsequent repossesions. These clients would pay much more by way of interest and fees and this increased profit would cover the losses the financiers expected from a higher rate of repossession and quick sales.
Unfortunately like many things that look good on paper there was very little evidence that it would be viable in the long term.
However the prospect of a quick buck (or a few billion of them) blinded many to this.
Pretty soon any Fanny, Freddie or Flop, was a mortgage broker, banks were doling out money left right and centre and 100% lending on low doc or no doc loans was rife.
We all know how the unfortunate saga ended.
Cheers
david
http://www.equipfin.com.au/Content_Common/pg-Equipment-Finance.seo|||Greed
Subprime mortgage crisis?
Do you thing automation is gradually eating away at earning's potentials except for the really affluents mostly?
I mean, can't man pretty much do away with most jobs over time through automation?|||For many years the basic fundamentals of lending money were set in stone. They were tried and tested and had been working just fine for a long time.
However some bright spark decided that lending money to people who could not afford it, and increasing the LVR % (loan to value ratio) greatly increasing the risk or exposure to the financier, was a brilliant idea.
They figured that the high cost of funding for this type of lending would be sufficient to cover the losses created from the delinquencies bound to occur and the subsequent repossesions. These clients would pay much more by way of interest and fees and this increased profit would cover the losses the financiers expected from a higher rate of repossession and quick sales.
Unfortunately like many things that look good on paper there was very little evidence that it would be viable in the long term.
However the prospect of a quick buck (or a few billion of them) blinded many to this.
Pretty soon any Fanny, Freddie or Flop, was a mortgage broker, banks were doling out money left right and centre and 100% lending on low doc or no doc loans was rife.
We all know how the unfortunate saga ended.
Cheers
david
http://www.equipfin.com.au/Content_Common/pg-Equipment-Finance.seo|||Greed
With the credit crisis, is it worth it to invest in a secured credit card?
I am interested in opening a secured credit card but thinking about it twice because of the funds i'd be locking in... is it really worth it right now to open one up?|||Stay away from credit cards. You'll thank me for it. I went from $15,000 in debt to having over that much in a savings account in just a few years and i did it by myself without paying any get out of debt fast scammers.
You just have to learn to save your money and budget a little. There are many financial books you can read for sale on Amazon.com for cheap.|||Your best credit card to build a good credit rating is one where you have your checking %26amp; savings account.
There are also credit unions that have better rates for credit cards and other financial accounts. They are usually located near your home, and that is a great way to build your credit.
I do not suggest ever paying for a credit card.
I suggest you always pay off the TOTAL AMOUNT of the monthly bill in full before the due date.
If you have more questions, just send them via this yahoo site.
GOD bless us always.
MBA-Boston Univ.
CPA-retired|||I have 5 different credit cards that all have a total credit limit of $59K. The companies gave them to me and upped the limits over the years. However, I only make about $20k a year.
Sooo...it all comes down to how you spend. My first card was through Bank of America...it was a secured Visa Gold card. I gave them $99, and they gave me a $500 credit limit. I used it so well that after 10 months, they gave me a regular Visa (unsecured) card and doubled my credit limit. The bank lady had never seen that before.
I don't know why so many people are scared of credit cards. With all of this credit...they haven't bumped my available credit down at all. I was not hit with a credit line decrease by AmEx, like so many others. Probably due to how the people paid their bill (for example, only paying the bare minimum on large balances).
My solution is very simple: don't put on a credit card what you don't currently have the cash for, presently. Or, what you will genuinely have the cash for soon, to pay the bill at the end of the month. It's best to pay in full to avoid interest. I use one main card and can get money back from the company every once in a while, because i use the card for purchases i would have made with a debit card or cash. Then you pay that off at the end of the month. Very simple. Not sure why people are scared of credit. I'm only 26 years old and I don't make a ton of money, but I try to be smart with what I can. People tell me a lot that they're "scared of credit cards because they would charge up too much." That's like an alcoholic sitting around saying, "I'll never quit" in front of a bottle. Clearly, we have the ability to make our own decisions, and make good ones. Why...why...do people act like they are stupid and will get in massive debt if they "get credit cards"??? I never will get that. Can't afford it, don't put it on it. I don't see how people got themselves into massive debt using that principle. It's stupid to me to even hear someone tell me that they'd willingly charge more than they can afford, and that's why they're "scared" of credit cards and *will* for sure (not 'might', not 'maybe', but for sure) charge up more than they can pay by stating that with their own mouth before they get the card with a $0 balance on it. That is pure stupidity to me. It's about self-control, and apparently people are scared to learn self-control. It's not that hard.
So while a lot of these people are 'scared' of credit cards and don't have any - they can't get a mortgage with poor/no credit and/or a low credit score. Which, conveniently enough, credit cards contribute massively to. Watch your overall debt to credit ratio: it should not exceed 30% of your entire credit line in total (if multiple cards or a single card)....that helps you keep a good credit score.|||If you have no credit or bad credit, you will find it difficult to get a credit card in the current economy. A secured credit card may be your only option, if you want a credit card.
I suggest that you don't get more than a $500 limit. Use the card and pay it in full every month. In a year, you should be able to convert the account to a regular account or apply for a regular credit card.|||If you don't need a credit card......don't get one. Simple as that. I can see having one for emergencies, but having 2 is really dumb.
It's not worth being another contributor to the bad economy if you can help it.
You just have to learn to save your money and budget a little. There are many financial books you can read for sale on Amazon.com for cheap.|||Your best credit card to build a good credit rating is one where you have your checking %26amp; savings account.
There are also credit unions that have better rates for credit cards and other financial accounts. They are usually located near your home, and that is a great way to build your credit.
I do not suggest ever paying for a credit card.
I suggest you always pay off the TOTAL AMOUNT of the monthly bill in full before the due date.
If you have more questions, just send them via this yahoo site.
GOD bless us always.
MBA-Boston Univ.
CPA-retired|||I have 5 different credit cards that all have a total credit limit of $59K. The companies gave them to me and upped the limits over the years. However, I only make about $20k a year.
Sooo...it all comes down to how you spend. My first card was through Bank of America...it was a secured Visa Gold card. I gave them $99, and they gave me a $500 credit limit. I used it so well that after 10 months, they gave me a regular Visa (unsecured) card and doubled my credit limit. The bank lady had never seen that before.
I don't know why so many people are scared of credit cards. With all of this credit...they haven't bumped my available credit down at all. I was not hit with a credit line decrease by AmEx, like so many others. Probably due to how the people paid their bill (for example, only paying the bare minimum on large balances).
My solution is very simple: don't put on a credit card what you don't currently have the cash for, presently. Or, what you will genuinely have the cash for soon, to pay the bill at the end of the month. It's best to pay in full to avoid interest. I use one main card and can get money back from the company every once in a while, because i use the card for purchases i would have made with a debit card or cash. Then you pay that off at the end of the month. Very simple. Not sure why people are scared of credit. I'm only 26 years old and I don't make a ton of money, but I try to be smart with what I can. People tell me a lot that they're "scared of credit cards because they would charge up too much." That's like an alcoholic sitting around saying, "I'll never quit" in front of a bottle. Clearly, we have the ability to make our own decisions, and make good ones. Why...why...do people act like they are stupid and will get in massive debt if they "get credit cards"??? I never will get that. Can't afford it, don't put it on it. I don't see how people got themselves into massive debt using that principle. It's stupid to me to even hear someone tell me that they'd willingly charge more than they can afford, and that's why they're "scared" of credit cards and *will* for sure (not 'might', not 'maybe', but for sure) charge up more than they can pay by stating that with their own mouth before they get the card with a $0 balance on it. That is pure stupidity to me. It's about self-control, and apparently people are scared to learn self-control. It's not that hard.
So while a lot of these people are 'scared' of credit cards and don't have any - they can't get a mortgage with poor/no credit and/or a low credit score. Which, conveniently enough, credit cards contribute massively to. Watch your overall debt to credit ratio: it should not exceed 30% of your entire credit line in total (if multiple cards or a single card)....that helps you keep a good credit score.|||If you have no credit or bad credit, you will find it difficult to get a credit card in the current economy. A secured credit card may be your only option, if you want a credit card.
I suggest that you don't get more than a $500 limit. Use the card and pay it in full every month. In a year, you should be able to convert the account to a regular account or apply for a regular credit card.|||If you don't need a credit card......don't get one. Simple as that. I can see having one for emergencies, but having 2 is really dumb.
It's not worth being another contributor to the bad economy if you can help it.
Where can I find a lot of info about the credit crisis.?
I need to know about the credit crisis for a paper I have to write on it. I need info about its beginning up to now as I haven't followed it till recently. Any help appreciated.|||Try here... http://directory.stocksbuyorsell.com|||http://www.frontlinethoughts.com/subscri鈥?/a>
What would you change at credit crisis-hit Liverpool?
English Premier League side Liverpool FC's American owners are reported to be ready to sell the club after feeling the effects of the global credit crunch.
If you were in charge at Liverpool, what would you change to help get the club ease the impact of the financial crisis?|||To ease the impact of the financial crisis?
There is none. Time to sell up and find another plaything.|||If all prem clubs continue in this way there will not be a prem no more as they will sell up and leave all club in debt STAY BRITISH and we will get through it|||Sell the club to the Arabs.
That's if I was a big fat greasy American who wanted to gain profit out of people's peeves and give very little financial backing to help this cause out.
If it were me, I would fire Rick Parry. That'd be a cool 拢200M we wouldn't have to pay him in wages so that'd pretty much save us.|||Repent, for the end is near
actually, I would like to see all the clubs lose lots of money, then it would be EPL, not FPL ( Foreigner Premiere League)|||Nothing. Let them stay at Anfield and not desecrate Stanley Park.
|||at the moment i'd be more worried about things on the pitch. with john terry saying liverpool remind him of mourinho's chelsea champions, and benitez getting frustrated by liverpool doing an arsenal and trying to score the perfect passing goal, liverpool need to be very careful - theres a real danger they could peak too soon|||Id get that nice man mr lennon to come and play football for you from tottenham......he knows a thing or two !|||Nothing they dont deserve any help.
Hope they go the same way as spurs rock bottom|||Sell to the DIC, get rid of both Degen and Dosena for someone who can PLAY.
If you were in charge at Liverpool, what would you change to help get the club ease the impact of the financial crisis?|||To ease the impact of the financial crisis?
There is none. Time to sell up and find another plaything.|||If all prem clubs continue in this way there will not be a prem no more as they will sell up and leave all club in debt STAY BRITISH and we will get through it|||Sell the club to the Arabs.
That's if I was a big fat greasy American who wanted to gain profit out of people's peeves and give very little financial backing to help this cause out.
If it were me, I would fire Rick Parry. That'd be a cool 拢200M we wouldn't have to pay him in wages so that'd pretty much save us.|||Repent, for the end is near
actually, I would like to see all the clubs lose lots of money, then it would be EPL, not FPL ( Foreigner Premiere League)|||Nothing. Let them stay at Anfield and not desecrate Stanley Park.
|||at the moment i'd be more worried about things on the pitch. with john terry saying liverpool remind him of mourinho's chelsea champions, and benitez getting frustrated by liverpool doing an arsenal and trying to score the perfect passing goal, liverpool need to be very careful - theres a real danger they could peak too soon|||Id get that nice man mr lennon to come and play football for you from tottenham......he knows a thing or two !|||Nothing they dont deserve any help.
Hope they go the same way as spurs rock bottom|||Sell to the DIC, get rid of both Degen and Dosena for someone who can PLAY.
How will the housing and credit markets crisis affect yours or your kids future?
is the housing and credit markets crisis just another form of terrorism or is it cannibalism, and why is the government not responding to the needs of the people effected by the crisis meaning the familys that are loosing there homes? Why does the government alow these so called Preditorial mortgage companys to abuse the human race. Is there a cure for the problem and if so WHAT IS IT?|||I am making lemonade!
This is a great opportunity to make yourself some serious long term profit. I am buying as much property as I can now, while the getting is good.
My children and my grandchildren should be set up for a pretty cushy life. There really is no excuse for people not to see this as a positive experience.|||Um, because a smart government lets the markets work it out. Government intervention only leads to more problems.|||No one got abused in this situation. There are two parties to every transaction, in this case, the lender and the borrower. The lender offered the product and the borrower accepted it. So the government should bail out those who accepted a stupid product which they could not afford ?
Do be aware that, if this sub prime situation had never been offered to borrowers, they would never have had a home to lose. They would STILL be renting, which is what they should have done instead of signing stupid ARM mortgages.|||Who is being abused? People were given money and they spent the money. They are refusing to repay their debts. They are NOT victims!
This "crisis" is assuring my children of a bright future! I am now able to purchase more then ever before.|||The government should not do anything.
All these morons who got these gimmicky loans were told that their payments would go up later.
They didn't care, because they were greedy and thought even if that happens "I can just flip my house and make tons of cash"
All that's happening now, is that the prices are going back down in the direction of what the houses are actually worth to someone who buys a house to live in - not to "flip for a profit".
The banks and the speculators made tons of cash on the run-up, now they should take the hit and suck the loss.
Unfortunately, a lot of stupid people are going to get stung along with them, but it's not fair for ME (my taxes) to bail out these idiots.|||the Fed started the whole thing rolling by lowering interest rates to next to nothing, so if you want to blame anyone, blame Alan Greenspan.
but the banks and mortgage companies did only what companies normally exist to do, which is to provide a wanted product/service and make a profit. their lending terms may seem now to have been overly easy, but the folks who took the loans also thought they would be making way more money down the line. and for those who didn't read the contracts, how can you legislate against irresponsibility, laziness and stupidity?
and now with house prices falling like a ton of bricks, that simply tells me that there are now TOO MANY houses, so no one is going to be homeless. the people who lose ownership of their homes will now just become renters, like they should have been all along.
there's still some grand myth (perpetrated no less by government itself) that owning a home is the "American Dream". what a pile of CRAP. there is no shame in renting, and frequently you're much better off.
This is a great opportunity to make yourself some serious long term profit. I am buying as much property as I can now, while the getting is good.
My children and my grandchildren should be set up for a pretty cushy life. There really is no excuse for people not to see this as a positive experience.|||Um, because a smart government lets the markets work it out. Government intervention only leads to more problems.|||No one got abused in this situation. There are two parties to every transaction, in this case, the lender and the borrower. The lender offered the product and the borrower accepted it. So the government should bail out those who accepted a stupid product which they could not afford ?
Do be aware that, if this sub prime situation had never been offered to borrowers, they would never have had a home to lose. They would STILL be renting, which is what they should have done instead of signing stupid ARM mortgages.|||Who is being abused? People were given money and they spent the money. They are refusing to repay their debts. They are NOT victims!
This "crisis" is assuring my children of a bright future! I am now able to purchase more then ever before.|||The government should not do anything.
All these morons who got these gimmicky loans were told that their payments would go up later.
They didn't care, because they were greedy and thought even if that happens "I can just flip my house and make tons of cash"
All that's happening now, is that the prices are going back down in the direction of what the houses are actually worth to someone who buys a house to live in - not to "flip for a profit".
The banks and the speculators made tons of cash on the run-up, now they should take the hit and suck the loss.
Unfortunately, a lot of stupid people are going to get stung along with them, but it's not fair for ME (my taxes) to bail out these idiots.|||the Fed started the whole thing rolling by lowering interest rates to next to nothing, so if you want to blame anyone, blame Alan Greenspan.
but the banks and mortgage companies did only what companies normally exist to do, which is to provide a wanted product/service and make a profit. their lending terms may seem now to have been overly easy, but the folks who took the loans also thought they would be making way more money down the line. and for those who didn't read the contracts, how can you legislate against irresponsibility, laziness and stupidity?
and now with house prices falling like a ton of bricks, that simply tells me that there are now TOO MANY houses, so no one is going to be homeless. the people who lose ownership of their homes will now just become renters, like they should have been all along.
there's still some grand myth (perpetrated no less by government itself) that owning a home is the "American Dream". what a pile of CRAP. there is no shame in renting, and frequently you're much better off.
What was the domino effect (self fulfilling prophecy) of the credit crisis?
what was the domino effect (self fulfilling prophecy) of the credit crisis.
Please give as much info as you can and try to make it simple to understand.|||Investors discovered that their investments were in sub prime mortgages, felt nervous and required higher interest to take that risk. This cascaded down to the borrowers as total interest payments required that could not be supported. Thus fear of risk turned into risk realized as default came in response to the expectation of higher interest.
Now the insurers of these mortgages did not take a big enough premium to cover systemic meltdown. They were counting on just the normal level of defaults and most of those defaults the homes would be very close to the value of the mortgage, often higher.
When large numbers of defaults and dropping house prices hit the insurers the investors in asset backed securities found themselves effectively uninsured. But their willingness to buy those asset backed securities with very modest return had been predicated on exactly that insurance which could not pay off because the system had paid a low enough premium to make sure there would not be enough reserve for a meltdown.
Please give as much info as you can and try to make it simple to understand.|||Investors discovered that their investments were in sub prime mortgages, felt nervous and required higher interest to take that risk. This cascaded down to the borrowers as total interest payments required that could not be supported. Thus fear of risk turned into risk realized as default came in response to the expectation of higher interest.
Now the insurers of these mortgages did not take a big enough premium to cover systemic meltdown. They were counting on just the normal level of defaults and most of those defaults the homes would be very close to the value of the mortgage, often higher.
When large numbers of defaults and dropping house prices hit the insurers the investors in asset backed securities found themselves effectively uninsured. But their willingness to buy those asset backed securities with very modest return had been predicated on exactly that insurance which could not pay off because the system had paid a low enough premium to make sure there would not be enough reserve for a meltdown.
Is Paypal affected by the credit crisis?
Does someone know whether Paypal is affected by the worldwide credit crisis? They're not regulated as a real bank in the US while they received a banking license in Luxembourg last year to service its European clients. They're not only doing money transfers these days but also offer loans and credit cards. What are the chances they go down, are they related with other banks and are customers savings secured by local regulations?|||The whole credit crisis is mainly affecting banks that made too many stupid loans and now they're paying the price. PayPal is not a bank, nor will it ever claim to be. The credit cards you speak of are actually issued by a third party credit company called GE Money whom are pretty widely known. Now there is one reality I would like to point out, because PayPal is not a bank you do not qualify for the $100,000 of FDIC insurance that all banks offer.
I Hope This Helps!
|||Paypal has nothing to do with ongoing credit crisis. Cheer up!!
visit:- http://www.paisawaisa.com/|||of course not!!!
I Hope This Helps!
|||Paypal has nothing to do with ongoing credit crisis. Cheer up!!
visit:- http://www.paisawaisa.com/|||of course not!!!
What's the relationship between subprime/credit crisis and the Treasury Bond rate?
The Federal Reserve has been resistant to lowering the its bond interest rate on the ground that inflation is its first priority to cope with, and it claims the subprime mortage problem is still confined to credit market, despite investment market critics urges for lower interest rates in attempt to save the industry(most of which are investment banks getting involved in ABS, MBS, and particularly CDO).
How can low interest rate save the plagued credit crisis, most notably the CDO trade between investors and investment banks?
Any rational or professional analysis is welcomed.|||Much of the subprime mess relates to variable rate mortgages that lots of people are barely able to pay. If interest rates werre to go up, millions of these mortgages would adjust up and many more people could not afford the payments. Thus, foreclosures wold skyrocket (more than they have) causing more of a housing glut making this market even softer. So, the few really needs to keep interest rates as low as possible to avoid this problem as much as possible, but as you mentioned they also need to worry about inflation and may need to raise rates in fear of that. In short they walk a tight rope between the 2 fears (inflation and housing problems) as well as other fears and must set the rates taking these both into account.|||Try to read these 2 articles!
http://minute-class.com/?p=94
http://minute-class.com/?p=95
How can low interest rate save the plagued credit crisis, most notably the CDO trade between investors and investment banks?
Any rational or professional analysis is welcomed.|||Much of the subprime mess relates to variable rate mortgages that lots of people are barely able to pay. If interest rates werre to go up, millions of these mortgages would adjust up and many more people could not afford the payments. Thus, foreclosures wold skyrocket (more than they have) causing more of a housing glut making this market even softer. So, the few really needs to keep interest rates as low as possible to avoid this problem as much as possible, but as you mentioned they also need to worry about inflation and may need to raise rates in fear of that. In short they walk a tight rope between the 2 fears (inflation and housing problems) as well as other fears and must set the rates taking these both into account.|||Try to read these 2 articles!
http://minute-class.com/?p=94
http://minute-class.com/?p=95
Can somebody explain in summary what exactly is meant by the global "credit crisis"?
I am ramping up as an investor and don't totally understand when people refer to the credit crisis. What is it? What caused it? And how does it affect companies and the markets? I know this is a lot to ask, I'm not expecting somebody to write me an essary but a good paragraph would really help.|||After the internet bubble, the FED lowered interest rates to stimulate the economy. The US moved into a new bull market. Times were good. People had money to spend. Interest rates were low. And banks were looking for new ways to make money.
Thus the CDO was born. Banks realized they could take mortgages, auto loans, and credit card debt and bundle it all together as a Collateralized Debt Obligation (CDO). And even better, CDOs were rated as investment grade.
Banks sold CDOs to anyone and everyone. Pension funds, hedge funds, asset management companies, and wealthy individual investors. Banks made billions. Everyone was happy. Large banks started buying the small banks which issued subprime loans to cut out the middle man so to speak (or vertically integrate loan origination with CDO bundling).
Then something completely unexpected happened. The FED started raising interest rates again. (I know. What were they thinking?) Well, subprime loans are risky to begin with. Then tack on an adjustable interest rate and . . voila. People start defaulting.
But the real problem became the CDOs held off balance sheet. What does that mean? With mortgage defaults rising, the risky subprime mortgages bundled in the CDOs lost value. But no one really knew how much. The opacity of the debt instruments made them undesirable as collateral.
So when a hedge fund went to a bank asking for a loan using CDOs as collateral, they wouldn't touch it. If you don't know the value of the debt security how can you borrow against it? Banks, hedge funds, anyone who held CDOs became the lepers of the financial world. Banks were afraid to lend money because they didn't know what kind of CDO exposure the borrowers faced. Without proper risk assessment, you can't price a loan. Thus you have a "credit crunch".
The market effects we're seeing are largely due to falling home prices. For most people, their home is their largest asset. Now home equity has been reduced or is even negative. People use the equity in their home to secure loans for home improvements, new cars, vacations, etc. And consumer spending accounts for 60% of the GDP. So you see there are direct ties between home values and economic growth.|||Phips is right but maybe I can simplify.
Banks loan money for homes, and much of that is borrowed, like they loan out the depositor's money or borrow elsewhere. Only 20% is theirs.
In return they get a mortgage. Then they sell the mortgage to an investor and get their money back collecting the loan fees as their profit. Then they loan the money out again.
But those loans were riskier than known and some started to fail.
This scared the investors so much they refuse to buy the mortgages or will only buy them at a very low price (costing the banks money).
So the banks won't sell them for such a low price but that means they don't have money coming in to loan. Thus the money stops moving.
So with no money coming in to loan, people or businesses can't get "credit", they can't borrow. There is no money there.
That is the crisis.
I think that is about as simple as I can make it.|||Credit was too loosely extended by loan originators, which provided them highly profitable business for a time, but buckled under pressure when underqualified mortgage holders began defaulting on loans they were not capable of paying back (and were not legitimately qualified to commit to a loan).
As a result, lenders are now much more protective of their current porftolios, and stringent with their loan acceptance, creating crunches in consumer confidence, and reducing liquidy
Thus the CDO was born. Banks realized they could take mortgages, auto loans, and credit card debt and bundle it all together as a Collateralized Debt Obligation (CDO). And even better, CDOs were rated as investment grade.
Banks sold CDOs to anyone and everyone. Pension funds, hedge funds, asset management companies, and wealthy individual investors. Banks made billions. Everyone was happy. Large banks started buying the small banks which issued subprime loans to cut out the middle man so to speak (or vertically integrate loan origination with CDO bundling).
Then something completely unexpected happened. The FED started raising interest rates again. (I know. What were they thinking?) Well, subprime loans are risky to begin with. Then tack on an adjustable interest rate and . . voila. People start defaulting.
But the real problem became the CDOs held off balance sheet. What does that mean? With mortgage defaults rising, the risky subprime mortgages bundled in the CDOs lost value. But no one really knew how much. The opacity of the debt instruments made them undesirable as collateral.
So when a hedge fund went to a bank asking for a loan using CDOs as collateral, they wouldn't touch it. If you don't know the value of the debt security how can you borrow against it? Banks, hedge funds, anyone who held CDOs became the lepers of the financial world. Banks were afraid to lend money because they didn't know what kind of CDO exposure the borrowers faced. Without proper risk assessment, you can't price a loan. Thus you have a "credit crunch".
The market effects we're seeing are largely due to falling home prices. For most people, their home is their largest asset. Now home equity has been reduced or is even negative. People use the equity in their home to secure loans for home improvements, new cars, vacations, etc. And consumer spending accounts for 60% of the GDP. So you see there are direct ties between home values and economic growth.|||Phips is right but maybe I can simplify.
Banks loan money for homes, and much of that is borrowed, like they loan out the depositor's money or borrow elsewhere. Only 20% is theirs.
In return they get a mortgage. Then they sell the mortgage to an investor and get their money back collecting the loan fees as their profit. Then they loan the money out again.
But those loans were riskier than known and some started to fail.
This scared the investors so much they refuse to buy the mortgages or will only buy them at a very low price (costing the banks money).
So the banks won't sell them for such a low price but that means they don't have money coming in to loan. Thus the money stops moving.
So with no money coming in to loan, people or businesses can't get "credit", they can't borrow. There is no money there.
That is the crisis.
I think that is about as simple as I can make it.|||Credit was too loosely extended by loan originators, which provided them highly profitable business for a time, but buckled under pressure when underqualified mortgage holders began defaulting on loans they were not capable of paying back (and were not legitimately qualified to commit to a loan).
As a result, lenders are now much more protective of their current porftolios, and stringent with their loan acceptance, creating crunches in consumer confidence, and reducing liquidy
What businesses other than Woolworth's is the credit crisis affecting?
I haven't really been with the credit crisis recently so it would be great if i could know what shops businesses have been affected|||There probably isn't one business out there that isn't being affected by the credit crisis.
It is so diverse, covering the globe, that unless you have a very unique business, you are affected.
Even city governments are tightening their belt.
Here is a made up and all too common scenario in a nutshell:
Bob %26amp; Betty Jones married own a home
Lease a foreign car and SUV
Bob looses his job
Betty gets her hours cut
Their home equity line of credit gets cut or completely lost
They get late on their bills
They can't borrow, with income loss and value of home diminishing
They can't buy much at all
Their cars get repossessed and they still owe money on them
Their house gets reposessed and they still owe money on it
They have to give up their pets to a shelter
They have no home and no car but they have debt!
Why this has happened to so many:
So many of the US business' left the US
Therefor, production in the US has diminished
Therefor, the past 15 years we have been increasing purchases to other countries while living in an inflated belief of property values and other material values in general.
We have lost jobs at tremendous levels in which we have never seen before.
Blind prosperity and now we decide to arrest the business operators for being in debt.
Just perfect isn't it?
So, while this is happening, people are so affected that their once happy spending on "Blind Faith" has brought the economy to a halt.
The banking systems, after foreclosing in many properties who are now in the real estate market have been given money. They don't have to say where it is being spent. They can do whatever they want.
So, what happens to Bob and Betty? Their bank was paid for the loss the bank encountered by their default but Bob and Betty still owe the bank money.
Is that the American way? Right now I would like to type a four letter word about this but it would be unappropriate.
So that is why so many business' are being hit. The one business that seems to be doing relatively well is McDonalds. I suppose that when you can't afford to shop or you don't have a refridgerator to put food in, it is easier to spend $2 in their dollar menu. It does concern me that McDonalds is no longer supposed to be using cows not treated with antibiotics to prevent humans from becoming antibiotic resistant.
We need to have more productivity in the US in order for America to grow, we have been decreasing in growth, if we do not grow we cannot be a prosperous America.|||Zavvi,
PC world,
MFI,
Adams,
Homebase,
TK maxx are also reported to be having problems.|||Linens and Things
Burlington Coat Factory
Mervyns
WAMU (its a bank but still a business)
Indy Mac Bank
Bennigan's
and so on........|||Most of the above mentioned stores have gone into liquidation, which means that they have handed their assets over to another company, in order to realise cash.|||These are just some of the other shops/stores affected:-
MFI
Adams Kids
Morgans
Zawi|||ALL businesses are feeling the pinch but Adams, mfi, and zavvi have also gone bust|||Zavvi and Adams the kids store have went into administration as well|||Joe's Pie and Mash Shop in Leytonstone High Street.|||KB Toys all of them and Circuit City have gone belly up and Korets womens clothing store
It is so diverse, covering the globe, that unless you have a very unique business, you are affected.
Even city governments are tightening their belt.
Here is a made up and all too common scenario in a nutshell:
Bob %26amp; Betty Jones married own a home
Lease a foreign car and SUV
Bob looses his job
Betty gets her hours cut
Their home equity line of credit gets cut or completely lost
They get late on their bills
They can't borrow, with income loss and value of home diminishing
They can't buy much at all
Their cars get repossessed and they still owe money on them
Their house gets reposessed and they still owe money on it
They have to give up their pets to a shelter
They have no home and no car but they have debt!
Why this has happened to so many:
So many of the US business' left the US
Therefor, production in the US has diminished
Therefor, the past 15 years we have been increasing purchases to other countries while living in an inflated belief of property values and other material values in general.
We have lost jobs at tremendous levels in which we have never seen before.
Blind prosperity and now we decide to arrest the business operators for being in debt.
Just perfect isn't it?
So, while this is happening, people are so affected that their once happy spending on "Blind Faith" has brought the economy to a halt.
The banking systems, after foreclosing in many properties who are now in the real estate market have been given money. They don't have to say where it is being spent. They can do whatever they want.
So, what happens to Bob and Betty? Their bank was paid for the loss the bank encountered by their default but Bob and Betty still owe the bank money.
Is that the American way? Right now I would like to type a four letter word about this but it would be unappropriate.
So that is why so many business' are being hit. The one business that seems to be doing relatively well is McDonalds. I suppose that when you can't afford to shop or you don't have a refridgerator to put food in, it is easier to spend $2 in their dollar menu. It does concern me that McDonalds is no longer supposed to be using cows not treated with antibiotics to prevent humans from becoming antibiotic resistant.
We need to have more productivity in the US in order for America to grow, we have been decreasing in growth, if we do not grow we cannot be a prosperous America.|||Zavvi,
PC world,
MFI,
Adams,
Homebase,
TK maxx are also reported to be having problems.|||Linens and Things
Burlington Coat Factory
Mervyns
WAMU (its a bank but still a business)
Indy Mac Bank
Bennigan's
and so on........|||Most of the above mentioned stores have gone into liquidation, which means that they have handed their assets over to another company, in order to realise cash.|||These are just some of the other shops/stores affected:-
MFI
Adams Kids
Morgans
Zawi|||ALL businesses are feeling the pinch but Adams, mfi, and zavvi have also gone bust|||Zavvi and Adams the kids store have went into administration as well|||Joe's Pie and Mash Shop in Leytonstone High Street.|||KB Toys all of them and Circuit City have gone belly up and Korets womens clothing store
How long will it take the subprime credit crisis to stop?
hope this makes sense...the stock market is hurting because of a weaker dollar and the credit crisis...what will it take for the dollar to strengthen? and does the weakening dollar to result of the credit promblems people are having?|||How long will it take for the credit crisis to end? It's taken at least a decade to get in the shape we're in. If we immediately started saving more and spent money more wisely, it would be probably another decade.
American currency weakens because the people who trade currency thinks that the economy supporting the currency isn't healthy.
What constitutes a "healthy" economy?
-Exports. (not necessarily balanced imports/exports but lots of trading with other nations)
-Savings. Americans don't save money, so we have little/nothing to invest in the economy and borrow from others to support our standard of living. Now, not enough borrowers can pay all of the money we borrowed for sub-prime loans. Thus the huge losses and devaluation of our currency.
-Good government finance policies. The government doesn't save money or operate with a balanced budget. Currency traders know this is irresponsible and it drives our currency value down.
-Good government investment decisions. For example, is going to war a better use of government resources than, say, making trade more efficient? Bad decisions drive the value of our currency down.
Address the above-mentioned factors and the currency should strengthen again. But the political will of individuals to get off the easy credit crack pipe is not there.
American currency weakens because the people who trade currency thinks that the economy supporting the currency isn't healthy.
What constitutes a "healthy" economy?
-Exports. (not necessarily balanced imports/exports but lots of trading with other nations)
-Savings. Americans don't save money, so we have little/nothing to invest in the economy and borrow from others to support our standard of living. Now, not enough borrowers can pay all of the money we borrowed for sub-prime loans. Thus the huge losses and devaluation of our currency.
-Good government finance policies. The government doesn't save money or operate with a balanced budget. Currency traders know this is irresponsible and it drives our currency value down.
-Good government investment decisions. For example, is going to war a better use of government resources than, say, making trade more efficient? Bad decisions drive the value of our currency down.
Address the above-mentioned factors and the currency should strengthen again. But the political will of individuals to get off the easy credit crack pipe is not there.
What does it mean when the banks are becoming more conservative and how does this effect the credit crisis.?
What does it mean when the banks are becoming more conservative and how does this effect the credit crisis
Please give as much info as you can and try to make it simple to understand.|||In the run up to all of this banks were free %26amp; easy with lending, there was a thing called a "no-doc" loan where one went to a bank, asked for a loan, and the bank gave it without normal procedures of providing details of your credit history, job, salary, taxes, etc. However, those loose policies are biting us real hard right now, so things like no-doc loans are pretty much gone and if you want to borrow money, you have to prove your capability and willingness to repay. Even at that, the higher traditional standards are sometimes not enough.|||In fact, banks have not enought Liquidities/ money to run its operation and they have lost money for all bad/ not good judments on last investments therefore they are tight the procedure/policy how to loan money out to consumers by review and pally such harsh regualitons:
1. Good Job
2. Income
3. Credit History
All those main categories to based on how much they can let you to borrow.
Please give as much info as you can and try to make it simple to understand.|||In the run up to all of this banks were free %26amp; easy with lending, there was a thing called a "no-doc" loan where one went to a bank, asked for a loan, and the bank gave it without normal procedures of providing details of your credit history, job, salary, taxes, etc. However, those loose policies are biting us real hard right now, so things like no-doc loans are pretty much gone and if you want to borrow money, you have to prove your capability and willingness to repay. Even at that, the higher traditional standards are sometimes not enough.|||In fact, banks have not enought Liquidities/ money to run its operation and they have lost money for all bad/ not good judments on last investments therefore they are tight the procedure/policy how to loan money out to consumers by review and pally such harsh regualitons:
1. Good Job
2. Income
3. Credit History
All those main categories to based on how much they can let you to borrow.
Why are you interested in the credit crisis? What interests you most ?
Is there anything that you would like to find out that is of interest to you in regards to the credit crunch/crisis?|||Well in this crises, a lot of people are looking into Adverse Remortgage (also known as refinancing). It is basically the action of paying back one mortgage loan or dept with the proceeds from a new one.
Most of the time people looking to borrow money find it hard getting the loan. Now it seems they can easily take advantage of an Adverse Remortgage loan, even though they have a poor credit rating. They can use the Remortgage loan for whatever personal demands they may have. If you visit this Site http://aboutadverseremortgage.blogspot.c鈥?/a> called About Adverse Remortgage, you can find all the information and tips so you can take advantage of these loans in this crisis.
Most of the time people looking to borrow money find it hard getting the loan. Now it seems they can easily take advantage of an Adverse Remortgage loan, even though they have a poor credit rating. They can use the Remortgage loan for whatever personal demands they may have. If you visit this Site http://aboutadverseremortgage.blogspot.c鈥?/a> called About Adverse Remortgage, you can find all the information and tips so you can take advantage of these loans in this crisis.
What Global Banks have been affected by the Credit Crisis?
What Global Banks have been affected by the Credit Crisis? Which ones and how?|||All of them have been affected in some way.
Credit crisis: What factors can be used to measure its impact on different countries?
Hi!
I'm not an economist but I need to analyse the impact of the global credit crisis on different EU countries.
Which basic factors should I consider as a starting point?
unemployment? growth? What else?
(for credibility, please back up your answer with sources if appropriate)|||Government debt
Unemployment levels
Number of businesses going into recievership
Stock market prices
GDP (gross domestic product)
There's a few anyway
I'm not an economist but I need to analyse the impact of the global credit crisis on different EU countries.
Which basic factors should I consider as a starting point?
unemployment? growth? What else?
(for credibility, please back up your answer with sources if appropriate)|||Government debt
Unemployment levels
Number of businesses going into recievership
Stock market prices
GDP (gross domestic product)
There's a few anyway
How does government response to support small business on credit crisis?
can anyone pls give me some ideas or website to answer the question below:
How does government response to support small business on credit crisis?
Please reply me back thanks...XxX|||1.Small Business should be looked on microfinance basis
2.Interest rate should be logically 6% for SMEs
3.Gov should establish a common marketing place for selling of their products on single platform in line with common vegitable markets
4.There should not be any job cut for SMEs as getting skill workers in this sectors are difficult to get .
5. Gov can grant a loan wiver of 50% of the total credit taken for one time only
How does government response to support small business on credit crisis?
Please reply me back thanks...XxX|||1.Small Business should be looked on microfinance basis
2.Interest rate should be logically 6% for SMEs
3.Gov should establish a common marketing place for selling of their products on single platform in line with common vegitable markets
4.There should not be any job cut for SMEs as getting skill workers in this sectors are difficult to get .
5. Gov can grant a loan wiver of 50% of the total credit taken for one time only
Is John McCain really interested in putting an end to partisanship for the sake of the credit crisis?
If so, why didn't he respond to Obama in private, when Obama contacted him with the request to file a joint statement? Instead he puts a press conference together and tries to gain political points with a grandstanding manuever.
I guess McCain would rather win an election than solve a credit crisis.|||He thought he was going to steal Obama's idea and beat him to the punch. But based on all of the shows that I've watched since his announcement it backfired in his face.
Sorry McCain, no one actually believes that you are doing this for the good of the country.
Obama '08|||what kind of joint statement could they make?
McCain said he was going back to washington and suspending his campaign. obama said he would wait for a call saying washington needed him and he was going to the debate.
I don't see anything they could jointly announce, do you?
and I hardly see suspending a campaign this close to election day as being more interested in winning an election than solving a credit crisis. Do you?
Seems to me Obama is all about himself and his ambitions.....not his current job of senator and what he owes the people who voted him into office.|||You have your facts wrong. McCain CONTACTED Obama first and Obama waited half the day to respond and offer a joint statement. McCain actually wants TO DO something. He wants to go back to Washington and do a job he was hired to do. Obama should be doing the same thing instead of going on TV and talking. I've heard enough talking. There needs to be some action. NOW!!! Obama is the one that won't take a stand. He'd probably just vote "present" anyway!|||And he used it as an opening to try an cancel the debate. What a coward! Forget the university that just spent $5.5 million preparing for it - I guess it's such a small money in McCain's mind (is he willing to cover the bill out of his own packet for a change?).|||You just proved the point that Obama is all talk and McCain is action! Obama wants to make statements and McCain wants to act! Thanks for clearing that up!
I guess McCain would rather win an election than solve a credit crisis.|||He thought he was going to steal Obama's idea and beat him to the punch. But based on all of the shows that I've watched since his announcement it backfired in his face.
Sorry McCain, no one actually believes that you are doing this for the good of the country.
Obama '08|||what kind of joint statement could they make?
McCain said he was going back to washington and suspending his campaign. obama said he would wait for a call saying washington needed him and he was going to the debate.
I don't see anything they could jointly announce, do you?
and I hardly see suspending a campaign this close to election day as being more interested in winning an election than solving a credit crisis. Do you?
Seems to me Obama is all about himself and his ambitions.....not his current job of senator and what he owes the people who voted him into office.|||You have your facts wrong. McCain CONTACTED Obama first and Obama waited half the day to respond and offer a joint statement. McCain actually wants TO DO something. He wants to go back to Washington and do a job he was hired to do. Obama should be doing the same thing instead of going on TV and talking. I've heard enough talking. There needs to be some action. NOW!!! Obama is the one that won't take a stand. He'd probably just vote "present" anyway!|||And he used it as an opening to try an cancel the debate. What a coward! Forget the university that just spent $5.5 million preparing for it - I guess it's such a small money in McCain's mind (is he willing to cover the bill out of his own packet for a change?).|||You just proved the point that Obama is all talk and McCain is action! Obama wants to make statements and McCain wants to act! Thanks for clearing that up!
Is the recent world credit crisis the start of the 5th stage of the mayan calender?
For any of you who know about the Mayan calender and the 7 stages (or gears if you like) do you think the current world credit crisis - rising food prices and volotile markets are the start of the 5th stage/cycle/gear? of what we believe to be the final stage of the Mayan calender?|||I doubt that it is the start or ending of anything other than the start of de-leveraging down and the end of easy credit. This is just another boom-bust cycle which is possible in an arguably free market system. We now know that rather than our system always returning to some sort of equilibrium it frequently goes to an extreme and may stay there for some time before bouncing around and settling into some other extreme. In each one of these bounces wealth in some hands is destroyed and wealth in other hands is created or magnified. Some times in these cycles more is destroyed than created and other times the opposite is true. The good thing about what is happening now is that a lot of this crappy paper going around ended up in the hands of foreign countries and they will bear some of the losses as opposed to U.S. banks and financial institutions bearing the losses exclusively and suffering financial collapse in this country. The losses are spread around the world and this is probably a good thing for us in this country. I don't think any of this had any mystical or religious significance though other than ignoring the laws of prudent finance dictated in the holy books in many religions. It'll all wash out in a few years though and we'll be back into the next bubble.|||nope. its nothing more than mythology. you can believe notradamus was right too, but doesn't mean he was. sorry... :(|||I very much doubt it. On the other hand, it might be the start of a realisation in the United States and West in general that borrowing (and lending) money to finance wasteful and self-indulgent lifestyles always ends in tears sooner or later.|||The financial crisis revealed a fundamental flaw in the essence of free world banking. When institutions who are involved in the essential servicing of the finances of our life's act in a reckless, blatantly wrong, manipulative, greedy and frankly infantile manner, we can no longer trust them and they must be replaced with a much more accountable system.
What can you tell me about the Credit Crisis?
Im doing research for a paper on the United States credit crisis. What can you tell me about it and do you know any good sources I can research?|||What credit crisis? There is just a tightening up on the loosey goosey creative financing that allowed people with poor credit to buy way more house than they could afford.
There's definitely a housing market problem with the values dropping and a glut of foreclosures. But poeple with decent credit have no problem getting mortgages, credit cards, or other loans.
There's definitely a housing market problem with the values dropping and a glut of foreclosures. But poeple with decent credit have no problem getting mortgages, credit cards, or other loans.
How could the US credit crisis pass over to the rest of the world?
Please use as many details as possible.
I really want to know how the US credit crisis was able to affect the rest of the world.
Thank you!|||The US crisis wasn't even the biggest crisis in the world. Iceland made promises to millions of people and was not able to deliver on the promises. They were the worst.
England and English banks invested way too much money in Iceland banks because they believed the promises. That money disappeared. England (and Scotland and Ireland) is 2nd worst.
The USA made loans to people who had no ability to pay back the loans. That was not smart. But it often happens in times when everything seems wonderful and there is a "euphoria" in the business world. Every investment seems to be a winner. But at some time the borrowers have to pay back the money. We are in that "stage" now and it is not pleasant.
I really want to know how the US credit crisis was able to affect the rest of the world.
Thank you!|||The US crisis wasn't even the biggest crisis in the world. Iceland made promises to millions of people and was not able to deliver on the promises. They were the worst.
England and English banks invested way too much money in Iceland banks because they believed the promises. That money disappeared. England (and Scotland and Ireland) is 2nd worst.
The USA made loans to people who had no ability to pay back the loans. That was not smart. But it often happens in times when everything seems wonderful and there is a "euphoria" in the business world. Every investment seems to be a winner. But at some time the borrowers have to pay back the money. We are in that "stage" now and it is not pleasant.
How does the current credit crisis effect me?
I am just a regular consumer with a checking/Savings account. I keep reading about the credit crisis in the news. Wachovia and Morgan Stanly, Merrill Lynch, WA MU. What does this all mean and should I be worried about the money I have in the bank? What should I be looking out for?|||only that the prices will go up -- credit will get tighter but you will come out of this ok!!!|||all banks and investments are insured up to $100,000 per account so if you have more than that in any account then move part of it to another institution|||People will bail out of the stock market-most notably into commodities such as OIL! Gas prices will go up as will food and anything else that gets shipped. We are screwed.
How are european banks tied into the credit crisis?
How are european banks tied into the credit crisis.
Please give as much info as you can and try to make it simple to understand.|||Same way as American banks..
They made %26amp; underwrote a lot of bad loans
while seeking profits...
Simple greed...
Please give as much info as you can and try to make it simple to understand.|||Same way as American banks..
They made %26amp; underwrote a lot of bad loans
while seeking profits...
Simple greed...
What are the methods of solving the credit crisis?
What are the methods of solving the credit crisis.
Please be as detailed as you can.|||Get more credit cards but only use them in emergency imo - here is a cool cc site for more info http://www.creditcardmoola.com it's written by a normal person.
Please be as detailed as you can.|||Get more credit cards but only use them in emergency imo - here is a cool cc site for more info http://www.creditcardmoola.com it's written by a normal person.
Credit Crisis!!?
I have many outstanding balances on credit cards and cell phones, and an old electric bill that are all in collections. I currently have 4 open credit cards.
I want take care of them all but I can only afford to pay the current ones so I don't get further in debt. Is there any agency that can help without giving me a huge monthly payment...I'm barely getting by with what I pay now.
Thanks!|||If you are barely getting by now, how will increasing your payments by getting another loan help? You are going to have to find away to increase your income before attempting anything else, or you will end up in even worse shape.|||Hi.
Try debt consolidation. this well recommended site will definantely help you :
http://qurl.com/ksh9f|||I think in your case, first and foremost take care of collections.
Call your collectors and try to talk to them about small monthly payments,
Then call your four credit cards and ask for a deferrementdue to economical hardship. This will give you six months to pay off the collections.
If that does not work consolidate all of your debt. That way you'll have one monthly payment.
Also consider getting a second job.
I want take care of them all but I can only afford to pay the current ones so I don't get further in debt. Is there any agency that can help without giving me a huge monthly payment...I'm barely getting by with what I pay now.
Thanks!|||If you are barely getting by now, how will increasing your payments by getting another loan help? You are going to have to find away to increase your income before attempting anything else, or you will end up in even worse shape.|||Hi.
Try debt consolidation. this well recommended site will definantely help you :
http://qurl.com/ksh9f|||I think in your case, first and foremost take care of collections.
Call your collectors and try to talk to them about small monthly payments,
Then call your four credit cards and ask for a deferrementdue to economical hardship. This will give you six months to pay off the collections.
If that does not work consolidate all of your debt. That way you'll have one monthly payment.
Also consider getting a second job.
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