Posted on 09/15/2008 1:16:57 PM PDT by illiac
Bad day for Wall Street
(Excerpt) Read more at finance.google.com ...
Exactly.
This in turn makes the situation worse in the long run for those politically driven in government these days generally do what voters want them to do instead of doing what is appropriate to do as statesmen.
The banks decided to give out loans to anyone who showed up at their offices.
A foolish decision in pursuit of profit, certainly. But it isn't the goverment's job to "protect" private companies from their own bad mistakes.
OK, so last year the Chicoms bought up Fannie Mae and Freddy Mac at $60 per share, and now they're hoping to get 50 cents. I'm telling you Hedge, this is not bad for America.
Fun day to daytrade. Especially easy in the last hour.
When illegal aliens were labeled undocumented and lost their criminal title.
When did foreign corporations and governments start buying significant stakes in our financial system?
Decades ago.
>>Decades ago.<<
Precisely!
That is why I think this unwinding will be so painful. Good news is that once it is over we can rebuild. It has a ways to go though.
As one guy said a few months ago, pendulums do not stop at equilibrium.
Of course it isn't bad for America and is quite normal and easy to ride if just left alone and not micromanaged as it has been of late.
Likely. The other alternative is for the fed to restrict, and deal with a deep recession. Perhaps towards the end of the Bush administration, the Fed will choose to take the recession now, like at the end of the Klintoon administration when the dot-com bubble broke, and like at the end of the George HW Bush, administration when a shallow recession was parlayed by the leftist media as another end-of-the-world scenario.
I think there's more coming. Banks and brokerages, insurance companies, pension funds, public corporations, endowments at colleges and other not-for-profits have these subprime backed mortage bonds on their books to varying degrees (bonds that were rated AAA by the Wall Street/Rating Company money machine), and they are being marked way, way down or their value is unknown.
I know Greenspan gets alot of blame for the easy money. Perhaps, but I think Wall Street and the rating companies, combined with lax lending standards and enormous greed all the way from Wall St. down to the "flip this home" crowd are also at fault.
If you ask me, it comes down to greed and selfishness. And a lack of sensible regulation. We have capital standards for banks that have FDIC insurance. Its not too much to require mortgage borrowers to prove income and ability to repay the loan, since Fannie Mae and Freddie Mac were backed by the taxpayers.
I saw this coming a long time ago.
Our WW2 generation is dying OR they're getting smaller places to live in.
Americans aren't having bigger families.
We've tightened our borders.
We've over built in a flooded and hyper-inflated market.
My suspicion for the diabolic sees that this is critically timed during an election cycle. I think the market will bounce well enough to make this a nonevent OR the McCain Palin team knows the situation well enough to correctly fix the blame on the problem makers and the problem attitudes.
I know it would make me “Captain Obvious” to say this, but the MSM won't give the correct answers for this mess.
Community Reinvestment Act. Pushed through, with opponents branded as racists.
Which are the good banks and credit unions? Is there a (Internet) listing for them?
To be honest, I have nothing but contempt for the leadership our country has had for years now.
It's really disgusting.
Bless your heart of gold for finding this gem!
and there building a brand new WaMu bank right behind my house
Setting: Two bartenders working in a packed bar (it is assumed these bartenders are working in the Wall Street area).
One bartender says to the other (regarding the PACKED conditions of the bar): “Isn't this great! The DOW down 11.5 yesterday, up 17.9 today!”
500 points is nothing in today's market. 2,000 is.
But then Obama wouldn't have any campaign finances.
Yeah but it was 14000 in Oct -07.
This has nothing to so with rats or republicans. I blame the banks and greedy ceo's who made those insidious bad loans.
I found this interesting concerning speculating and hyper-inflating markets from Revelations (from the New American Bible, footnote included):
http://www.usccb.org/nab/bible/revelation/revelation6.htm
I heard what seemed to be a voice in the midst of the four living creatures. It said, “A ration of wheat costs a day’s pay, and three rations of barley cost a day’s pay. But do not damage the olive oil or the wine.”
A day’s pay: literally, “a denarius,” a Roman silver coin that constitutes a day’s wage in Matthew 20:2. Because of the famine, food was rationed and sold at an exorbitant price. A liter of flour was considered a day’s ration in the Greek historians Herodotus and Diogenes Laertius. Barley: food of the poor (John 6:9, 13; cf 2 Kings 7:1, 16, 18); it was also used to feed animals; cf 1 Kings 5:8. Do not damage: the olive and the vine are to be used more sparingly in time of famine.
What is the Chapter, verse, and footnote? Chapter 6, verse 6, footnote 6.
What Satan can’t seduce with sin, hell will spread misery.
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