History of the current financial crash

[outlaw2001it]

The market is already loaded with default properties (people can't payback loans)...this is why we are where we are now.
The way this plan by the Fed is supposed to work is...with the Fed loaning out this money/taking these toxic loans...the mortgage banks will have enough liquidity to refinance these people having difficulty. So instead of kicking people out of their homes, and having the banks stuck with assets instead of cash...the banks now have the money to loan/refinance, and help the people in crisis. Right now the estimated amount of foreclosed homes in the U.S. is around 1.7 million.
I started another thread...but Jim Cramer (I'm not a fan) had some good ideas.

Mad Money: When Paulson Plan Passes, Who Wins? - Mad Cap Recap - CNBC.com

[aldtech]

Quote:

Originally Posted by Chuckiechan

Looking at the panic and irrationality on some of the forum posts, you can see why it's so hard to come to an agreement in Congress on such a complicated banking system. And they are closer to it than you are.

You guys are over reacting. You are acting on the news media's interpretation of events. Things are serious, indeed, and things will be done. So take a deep breath, and let congress work it out and then start bitching.

And if your paycheck clears the bank, things are working so far.

If we don't have an agreement signed by Sunday, Monday is going to hell.

One more note: Do you know why we borrow so much money? Because we have the lowest savings rate per capita in the world, that's why.

Good choice of words, I agree. Time to quit the he said/she said crap?!?

/al

[outlaw2001it]

Quote:

Originally Posted by aldtech

Good choice of words, I agree. Time to quit the he said/she said crap?!?

/al

Not all true...but we should stand back-off a little, and see what happens (at least in the U.S.). However, what's going on here is effecting worldwide...do I/we give a s***...nope!!! Worldwide stocks are crashing (along with ours), and the Dollar isn't doing too bad...we're staying steady at $1.46 - €1. So if the Dollar is doing well, other countries investing in America must have some hope more than any other country.
Watching CNBC just a little while ago...Rick Santelli (Chicago Mercantile) was very pissed off from comments from other commentators about rushing into this deal with Paulson. Rick is basically saying...f*** off, and lets see what happens...don't sign a bill that nobody knows where it's going to go. We have no idea what that bill is, and what it's ultimately going to cost tax payers. $700 billion is the initial...if they need more, or it doesn't work...then what??? We're screwed!!! If we do go into a recession (not collapse) we will recover...we've done it before, and we'll do it again.

[Chuckiechan]

A lot of the people on this board who are against Paulson's plan are Democrats. I don't know what they are going to do, since the only other plan out there is the Republican one that "loans" instead of "buys" the bad debt.



In any scenario, the notes can be renegotiated, paid off, or sold off as is at a discount. The point is, the value still exists in the paper - it's the cash flow that stalled.

Part of the problem seems to be keeping the inflow money paying down the debts, rather than going into the general fund to be spent. The devil, as we are learning is in the details.

[outlaw2001it]

I'm not going to play the political game. I'm agreeing with Rick Santelli because most of the time he is correct...compared to other analysts. I've been following the Dollar/Euro (as I always do), and what's going on with the stock-market in other countries (especially Europe), and they are all down...while the Dollar, and our 3, and 10 year bonds are going up. That's got to tell you something.

[SiliconJon]

Let us go back a little further...

Why The United States Bank Was Closed, by Andrew Jackson

[The Real Bingo]

[Disley]

No plan is better than whats being considered, why pay off the debts of the rich, who leveraged themselves in to this position.
They'll take the taxpayers money and disappear.
If you lose money from bad investments does the government give it back to you? no they don't, then why give it to the wealthy that have lost money on bad investments.
The government should only protect depositors saving, nothing else.

[RayH]

Why don't the rich step up to the plate and bail themselves out? They have the money. The American Fortune 500 are worth well in excess of $700 billion. It takes $1.3 billion to make the list. If each puts up at least $1 billion, they can raise the money.

If they put up their own money, I bet you they will make sure they don't get stuck. But wise investors such as these don't want to touch it. That ought to tell you something.

[The Real Bingo]

Quote:

Originally Posted by RayH

Why don't the rich step up to the plate and bail themselves out? They have the money. The American Fortune 500 are worth well in excess of $700 billion. It takes $1.3 billion to make the list. If each puts up at least $1 billion, they can raise the money.

If they put up their own money, I bet you they will make sure they don't get stuck. But wise investors such as these don't want to touch it. That ought to tell you something.

I think most would consider Warren Buffet a wise investor. He's just invested $5 billion in Goldman Sachs. He'll probably make a metric asston of money from that when all is said and done.