Don't worry, I'll save you.
Posted on 09/23/2008 11:54:58 PM PDT by politicket
WASHINGTON (AP) -- The Federal Reserve, in coordinated action with foreign central banks, plowed $30 billion into money markets overseas Wednesday, part of an ongoing effort to fight a global credit crisis.
The Fed's action -- taken at 1 a.m. EDT -- sets up temporary "swap" arrangements to supply dollars to the central banks of Australia, Denmark, Norway and Sweden in exchange for their currencies.
(Excerpt) Read more at biz.yahoo.com ...
It's very sad to watch. We failed our forefathers.
The EU pumped in $46 billion to shore up their money markets yesterday.
It's not just us that will be going down. The derivatives market is worldwide and the Credit Default Swaps know no borders.
Please respond quickly.
What exactly does all of this mean?
Are we looking at a total meltdown, or can our economy be saved?
I'm not going to go out on the limb and say it will be a total meltdown.
I truly believe we have some very difficult times ahead of us though, and I don't believe that it's going to wait for the upcoming election. It is here now, and people should be preparing for it with wise decisions in their finances, shelter, and food - just like you would a hurricane.
It is serious enough that it could literally bring down the economies of much of the world.
The bailout "plan" is crazy. It has no chance of success, but they're going to pass it anyways. That way they can say they did something when it all begins to unwind.
Follow the money. Commercial banks are keeping it instead of lending it. The lending institutions don't trust each other at all.
Don't worry, I'll save you.
Gas prices are currently at 3.60 here.
I can assume that prices will go up during this economic problem?
Also, I never did believe the bailout would work, and agree with your assessment.
Throwing billions of taxpayer dollars into a rathole will never work. I also believe that there are too many people living in houses that they should have never purchased in the first place. I look at some people in debt and ask myself, why in the heck did that guy buy a $250,000 house when he only makes 45,000 a year?
Ooooooooh, he got a great "initial" APR of 2%. Nevermind the fact that his "floating" APR would rocket upwards to 15-20%, right?
I had an Obama supporter tell me at dinner tonight that the U.S.A. has officially become China II this week. I was like...really? Hadn’t heard anything about that...NO SH-T SHERLOCK!
Follow the money. Commercial banks are keeping it instead of lending it. The lending institutions don’t trust each other at all.
All of that is correct, and it's what most people are focusing on right now. But it is just the fuse that lit the dynamite. Folks really need to focus on the Credit Default Swap issue or they won't understand the seriousness of where things are at.
Our government is being misleading, and our media is just their usual stupid selves.
I have about had it with all the self styled “experts” here on FR. You are good at telling us what WON’T work. How about telling us what WILL work. The way I see this the FED is fighting to keep us afloat while you all are saying we’re doomed. And don’t tell me to go smewhere else. Explain WHAT WILL WORK and WHY!
It may be bad here in the US.... but I suspect Europe will go into complete and total meltdown.
IIRC, they invested far more heavily in those now suspicious securities than Americans did (strangely) and they’re really, really worried now.
I appreciate you breaking it down for me.
I have a few CDs and a few other low-risk savings investments, but nothing heavy in stocks.
What do you think the Dow will do today?
I hope that it bounces up. My hope isn't very practical right now, though.
China is actually in a lot better shape than we are. China Investment Corporation (CIC) was looking at buying a 49% stake in Merrill Lynch.
Barclay's bought the U.S. operation of Lehman. Nomura bought the Asian operation of Lehman. Nomura might buy the European operations of Lehman. Mitsubishi bought a 20% stake in Morgan Stanley, etc., etc., etc.
Isn't everyone glad that we turned into a consumer service-based country, and sent our Treasury Bills overseas? Foreign countries are now buying our financial institutions for pennies on the dollar.
Free Markets will work
Socialism will not work
Key example: The Germans used to charge a mark or two for a pint of beer.
In January 2002, beer rocketed to 1-2 Euros a pint.
Pretty grim, if you ask me.
The Dow futures are not making any sense. They are showing a medium sized rally, but things have not gotten any better - in fact they're worse.
I'm guessing that the market might be reacting to liquidity provided to Goldman Sachs by Berkshire Hathaway.
I'd love to listen to any other ideas...
Good question. There's a reason why this drastic bailout is on the table. The Fed has been pumping hundreds of billions to no avail. There is no liquidity. The economy will deflate. Think Great Depression II. No kidding.
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