View Full Version : economic spiral
09-17-2008, 12:27 AM
but theres hope
09-17-2008, 12:29 AM
09-17-2008, 12:41 AM
09-17-2008, 12:46 AM
Wow, did you come up with that by yourself?
09-17-2008, 01:38 AM
dont i always
09-17-2008, 01:40 AM
09-17-2008, 02:20 AM
tell me about it. I thought FRE FNM would be on the federal books already. Not going to buy them shits till they are. Them shits are trading at like 36c a piece on limit. If you bought lets say 1000 shares (that will be roughly $360 + stock Broker commission, aka almost nothing) and those shares stabilized and maybe in 10-15 years (I think) from now if the housing market reheats you could see (if we see another housing bubble of 2005-6) you would see that turn into $100,000.
But then again you could lose that $360 in the next couple weeks because Freddy Mac and Fannie Mae aren't in totally "Bailed Out" yet, just took over by the gov't.
I am so fucking glad i didn't buy a home. Wealthy people here in Orange County are getting fucked with interest only mortgages on couple million dollar homes they thought would steadily increase in value.
I don't think the democrats will be able to pull another FDR on this one.
09-17-2008, 04:43 AM
The US economy is fucked up....much like the country. The euro and sterling pound shit all over the dollar -
current rate -
1GBP = 1.75 USD
1Euro = 1.41 USD
Plus the recent housing market crisis is fucking things up more for all of ya..
For Cathy Busby, May 1 marked a personal "Mayday!" as she was sucked into the housing crisis sweeping the United States.
On Tuesday, she went into arrears on her mortgage after her monthly repayments soared by 40 per cent. The 47-year-old hospital administrator will lose the three-bedroom home in the Denver suburb of Montebello that she bought 11 years ago, unless she can reach a deal with her lender.
"I raised my sons here and I planted these aspens and landscaped this garden. It's a terrible thought that I could lose it all," she said on the first day that she failed to pay her interest-only -mortgage.
Miss Busby is far from alone: the American dream of home ownership is turning sour (http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/05/04/cngm04.xml) for many. Up to two million people with so-called subprime, or high risk, -mortgages have already had their homes repossessed, or will default on their loans in the coming months, according to industry estimates.
Such houses are generally sold at auction, for less than the full market price. Home owners' losses will total an estimated $164 billion (£82 billion), according to the Centre for Responsible Lending, an independent research group.
Borrowers and lenders are losers alike: last month a major mortgage lender, New Century Financial, went bust. In February, HSBC issued the first profit warning in its 142-year history as a result of losses incurred by its American wing on subprime loans.
The crisis will also play a role in the race for the White House as Democrats call for a federal bail-out plan while Republicans say that would be a waste of taxpayers' money.
The explosion in defaults began last autumn, but many Americans are now realising that the contagion is spreading. The slow down in the housing market - home building has fallen for 11 of the last 12 months - was the main reason for a slump in US economic growth to 1.3 per cent in the first quarter of this year, compared to 2.5 per cent in the preceding three months.
"The subprime crisis is very serious," said Brad Inman, a housing market watcher and founder of the online real estate information service, Inman News.
Repossessions are nothing new in the rustbelt communities of America's Mid-West and North East, where industrial decline has taken a heavy toll.
But the topography of the new crisis is striking, as many of the worst-affected areas are in California, Arizona, Nevada and Colorado, where Miss Busby lives.
These western states witnessed a decade-long boom in house prices, fuelled by their popularity as places to live. "Folks thought that prices would rise indefinitely," said Tom Rooney, a Denver property entrepreneur who scours official "foreclosure" notices for homes that he can buy, then "flip" for a profit.
"It seemed like a good bet, but they got it wrong."
Miss Busby knows that. Two years ago, she took out a re-finance mortgage to cover her existing car, home and student loans. She borrowed $170,000, the value of her home, at an interest rate of 7.6 per cent (or $1,076 a month).
She knew that rate would increase after two years, but planned to take out another loan at that point to avoid the extra charges.
However, when she had her house revalued a few months ago, it was worth $125,000, falling with the slowdown in the market.
Unable to refinance the original loan, she must now pay a higher rate of interest, 10.6 per cent, which means payments of $1,501 a month, a $425 increase. "With my other outgoings, I can't afford that," said Miss Busby, a divorcée who earns $4,000 a month before tax.
She has now signed up to a campaign by Acorn, a lobby group for low-income families, calling for a moratorium on foreclosures, a rescue fund and new laws to clamp down on predatory lending techniques.
But for other Montebello residents, such as the Hispanic family that walked away from their debts and left the house next to Miss Busby empty, it is already too late.
The same is probably true for Harvey Ryan, who built his home 32 years ago. "It breaks my heart," said Mr Ryan, 58, who suffers from dementia.
He took a loan of $115,000 four years ago and now his home is scheduled to be sold at auction this month as he cannot meet the monthly charges of $1,052, nearly half his disability income and pension.
But even as dreams end for some, doors open for others. On the streets of Montebello, Kelli Caswell, 44, from the nearby town of Aurora, was looking at repossessed properties with her teenage daughter, Tabatha.
"I feel for these people, but there might be a chance for us to buy a new home," she said.
It seems like the corporations in american would take your shoes off your feet if they thought they could get away with it....I think it's because the country is so large that it has a tough time controlling and manipulating the economic market.
^thats very true.
exchange rate has nothing to do with economic strength really,
if you economy was specialized in export a low exchange rate is a goal to maintain
but since it's da US, it's a sign of the times, conspiracy to overthrow the mind.
IDK enough about the stock market but what Wise said makes sense, i was honestly thinking about doing my research and investing.
I do know enough about economics in general to say the a Democrat is NEEDED at this moment. The Republican economic philosophy is gonna cause this bullshit to continue cause they don' wanna look all unrepublicany by increasing Gov. spending, but i say go with the FDR John Maynard Keys model and increase government spending. It would need to be a massive surge as well, I say a US interstate system sized project, but on what? I would appear we already have everything.
a fuckin bullet train network?
massive inland sea ways?
a recordbreaking amount of new effonal plants and refinaries with the doubling of our corn output by cultivating new land to deal with the supreme clientele demand, followed by legistlation to force cars to effonal their game up by a certain, but very reasonable date?
A massive government loan pool for small business hopefuls and large business dudeimfuck'dfuls?
or just several medium sized joints here and there so your chickens won't be in one cope
and extermination of the jews and eventual conquest of land for living space?
I also think more mergers need to be encouraged though my knowledge on microeconomic is limited so i can't tell how but those with debt or that are fucked need to be encouraged to merge with those that survived at some incentive.
09-17-2008, 01:06 PM
A "conservative" Republican president handed out 150 billion dollars of taxpayer money in two days to bail out an investment bank and an insurace company. Any conservative Republican who talks about individual responsibility or the ownership society when talking about welfare or any other program designed to help the American poor should eat a dick and then shut their fucking mouths.
09-17-2008, 01:15 PM
AIG went tits up because people could'nt pay their morgage. if they werent bought up then the outcome would have been worse.
Now their short-selling other investment interests because the public are getting itchy feet. It's even starting to affect the UK market. one of the main banks (HBOS) are beginning to see a dip in public confidence and are putting themselves up for sale (namely to Lloyds TSB) and to other main UK banks. The book value of these banks/debt owners have went out the window which is why their getting scared.
It still proves that the people have the power when it comes to deciding whether a company stays afloat or sinks under with debt which is carried by the people anyway.
09-17-2008, 01:19 PM
09-17-2008, 01:45 PM
wow skampoe, you approached the joke from a whole new different angle..you should get a job at a comedy club..........as a toilet attendant,lol
09-17-2008, 01:46 PM
09-17-2008, 01:55 PM
I'm glad you beat your condition though skampoe, i gotta respect ya for that....
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