Are we in the middle of a financial meltdown?

1,054 posts in this topic

UK stock market is flat on the day so far.

 

If the markets hold together, then they dont need a rescue, and then George and his buddies are gonna look like they cried wolf and tried to nick $700 Billion from the poor people to give to Wall Street.

 

It's a fascinating game. Glad I'm just watching!!!

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Great innit. So it could be a self-fulfilling drama. Congress decides they clearly now don't NEED the help, the bill gets pulled and then the markets soil their pants again.

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It's like all you gotta do in the market is exactly the opposite of whatever Bush says or does.

 

Can you say Contrarian?

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'Soiling their pants' sounds like a small accident...they'll be knee deep, you'll see the Dow down 2000 points.

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I came across this article, and it is a good, simply stated position why the US should not buy distressed securities.

 

Miron

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So this whole financial crisis is caused by greedy people that have bought homes they can’t afford – on top of that the homes are just oversized matchstick boxes that get blown away at the first hurricane or tornado.

Don’t they have the fairy tale about the three little pigs in the US.

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I came across this article, and it is a good, simply stated position why the US should not buy distressed securities.

 

Miron

the article is indeed clear and simply stated.

 

However if Congress persists in following its advice, it will not just be banks and pension funds crashing to their knees. Expect to see mass redundancies from small business foreclosure due to withdrawal of credit facilities. Expect to see loans to ordinary people and to students recalled without consideration of ability to pay. Expect to see a massive rise in reposessions and knock on rises in homelessness. Failure to bailout the US banking sector will not just punish reckless boardrooms, it will destroy the lives and livelihoods of ordinary americans.

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I think for someone like BtC to post such predictions with authority then he should post his credentials. It smells like bull shit to me.

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If only for once on an economic matter involving the US, he is much closer to being accurate than not accurate (unfortunately).

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Actually I think there's some very good value stock out there if you look closely enough...

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You will have to post your credentials again. I always thought you were some kind of medicin man. Not a smarmy economic whizz.

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I came across this article, and it is a good, simply stated position why the US should not buy distressed securities.

 

Miron

Interesting article. Clever economist. My particular worry (one of them) is that all the banks hired the cleverest of economists over the last 30 years who assured them, using mathematics with fancy names like Portfolio Theory or Value at Risk, that their credit risks were under control. They all turned out to be wrong.

 

I can't tell for sure what an egg will look like if I boil it for a few minutes. Why should I trust an economist who tells me what he knows exactly what the future of the world will be like if I follow his theories?

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I don't think anybody doesn't understand the severity of the situation.

 

The question is what do you do about it. It could be throwing good money after bad. Economics , the markets in particular, is not an exact science. Indeed a lot of it is just pure emotions and feel good.

 

We're stuffed until the fond/pension companies think it's safe to invest again and the people with the money think it's safe to lend it.

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You will have to post your credentials again. I always thought you were some kind of medicin man. Not a smarmy economic whizz.

Although I am quiet aware that you are trolling, I must say grasping the events of the current credit drunch and financial crisis is of interest to lots of people, even medicin (sic) men. And all you have to do is open your eyes and read and learn about what is going on. We are tottering on the edge of something rather interesting at the moment.

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Some talking head on CNN gave another example, how this crisis could affect many Americans. Without a bailout, banks would reduce the credit limits on credit cards, making it impossible for normal citizens to pay their everyday bills. Sounds strange to germans that use their credit card only when absolutely necessary and pay the debt at the end of the month, but I did hear before that this is american lifestyle. ;)

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