Posted on 09/15/2008 1:16:57 PM PDT by illiac
Bad day for Wall Street
(Excerpt) Read more at finance.google.com ...
“I told my wife this morning that the day I have been predicting for just over two years appears to be today.”
...my sense is that you’re right...the perfect storm is all coming together now...and strangely enough, the people that racked up big debts may just walk...OTOH people that saved; might just see their investments wiped out.
In the previous few years there was a culture of indebtedness and easy money from banks, both in home loans and home equity loans. This produced a buble, especially in housing prices. When this bubble popped, people could not pay back their loans.
The debt loaned out but not repaid is now rolling uphill like a reverse avalance, tracking back to the people who have loaned money, but can't get it back.
The top of this hill, the ultimate lender, is the Fed and Treasury. Eventually, the debts will go back to them, since the money for the original loans is fiat money created by the Treasury.
So what happens tommorow? How much down?
And what about the morons who are running the Government into the ground in much the same way?
I live in a condo, but I have thyme growing in a pot.
sure wants to make you want to get involved
Fair question - my understanding is that the reasons are so complex no one but experts really understand.
Get your house in order. Know you neighbors, make a plan to bug out if needed.
This is going to be interesting.
A very bad news day for a lot of people today...hope it all comes out as best as possible in the long run....we are Amer-I-Cans!!!
This will be nothing compared to the results of four years of President Obama’s economic policies.
“I don’t think it is a doom and gloomer thing really....”
Well, let’s review a couple of your dumb@ss statements and see if you fit the bill for doom & gloom shall we:
“Yup. Maybe worse (than the great depression)”. - RobRoy Post #78
“We are looking at a perfect storm, economically and politically. This Christmas is going to be a retail disaster of epic proportions” - RobRoy Post #101
“I hope y’all got a good garden and remember how to can food.” - RobRoy Post #53
“This will not be over for quite a while. I’m betting another five years of this stuff.” - RobRoy Post #41
Based on just the idiodic crap you’ve posted here, I’d say you are as big of a doomer & gloomer as one could find and I’m sure that most here would completely agree with me.
--this is where I'm supposed to call you a child molester? Come on Hedge, we don't need that game here. Let's stick to facts, like freedom is good and nobody wants more government regulation.
McCain also said he was pleased that the Federal Reserve and the Treasury Department did not step in to rescue U.S. investment bank Lehman, which filed for bankruptcy protection as concerns grew about the fate of other financial firms.
Quite different from Obama.
That’s quite a catalog of doom posts. I was about to vote for “worse than ‘29” as my favorite but you found so many doozies that now I’m having a hard time choosing...
The problem with deregulation, IMO, is that while it does unleashes innovation and enterprise, it also unleashes crooks.
Guess how much the markets are going to go down if OBAMA wins the election in November. It will just keep falling.
Check out this graphic if you want to see just how bad it’s going to get.
http://www.wyolife.com/kerryfest/Bad%20Times.asp
That and packaging these loans in with some el primo paper and selling the whole lot as AAA.
Add to that the leveraging that was going on - 20,30,40 times for every dollar. That's going to take time to unwind to get back to being able to value and assess good loans vs. bad loans.
I do believe that the Fed may believe AIG is too big to fail, and that point can be argued. AIG has more consumer facing financial and insurance products than LEH or BSC and these products touch a much wider group of consumers. Not saying I agree with the "too big to fail" mantra for AIG, but it is a point for discussion.
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