I am just on here shortly. I don't wish to mean no disrespect but if you look at the Nytimes online, wish I just did. The Billions of dollars being placed out. Where is this going? I was too busy yesterday and this morning I woke up rather early.
I turned on the television and saw John Edwards speaking on CNN and then looked at the New York times - online. I am shaking my head. What are your thoughts - it's not politics its the economy. I thought this was bad but when there is 900 Billion to cover things and............well, it's going to impact several countries but how far does this go. For example you and I have so much money. At a certain point if we spend it all, there is nothing there. Maybe someone could shed some light on this but this is really beyond me.
Could this really effect the economy in a manner that is very severe?
It could be quite severe, but I don't foresee a total collapse.
ReplyDeleteBasically, the current fall seems to be based in a real estate correction similar to that of the late 80's/90's. Many traded up or bought and 'flipped' properties to cash in on the boom. Lending rules were relaxed, apparently on perceived market strength.
Trouble begins when appreciation flattens out or dips. Those that overextended themselves cannot turn properties. Sometimes, stuck with something worth less than owed on, they default. Adjustable rate mortgages often amplify this trend.
Surely it's more complicated than I describe, involving packaging, ratings, and insurance. Truly, I am no economist and do not understand the subtleties involved. Still, IMO it can be boiled down to one factor: Greed. Profiteering on many levels led to the current situation.
Many seem to favor government bailouts. That's fine, but one must remember where such monies come from. One thing seems certain - Those who profited most won't share equally in the losses. :(
The way I see it, simply put, is that the US gov deregulated the financial industry, which took advantage of it by using the little financial institutions (banks, etc.). The gov is bailing out the big ones at China's behest (China holds a lot of American bonds and could bring the US down all by itself but that would be very hard on China's economy) using tax money (after the big wigs fill their pockets), so they say. In the meantime, the gov now OWNS the financial industry and a whole lot of property.........and a lot of smaller investers (the ones that employ people) have lost a lot of money. Yes, it will all correct itself in due course, but the financial landscape in the US will be forever changed. Orchestrated??
ReplyDeleteHmmmmmmmmm... I live in other part of the world may be I have different view to happening there on other Continent but all we live in a mutual connections as in a global village... so...USA pays now own hungry to be first power in the world. That hungry has certain price.. unfortunately nobody knows how financial spiral could wind and where it will be interrupted.. my best wishes to all of you..
ReplyDeleteG'day Jack,
ReplyDeleteI am no expert on these matters, but even to me it reads greed from the lowest level to the highest, I honestly don't think it is political per se
I am amazed with what happened. And it will have another "trickle effect". Do we really need any more of this? It's time for a change and it is a time that two parties work together.
ReplyDeleteI hope it's true that during this interm, that Obama and McCain will drop the politics and for the possibly the first time in history not use it against each other.
And of course most people within America would not touch this. But it's within America's backyard again unfortunately, and as well it's going to impact a global economy. This is not politics, this is something much more than that that equates to what can be another Trillion dollars, and billions for others countries.
You have to ask what the heck happened.
The monies come from a continual loan from China. And this is a time where we are working out of things Terri. Not working into more.
ReplyDeleteThis is not typical - this is very atypical.
Change is good. But this is a big change that most americans now don't wish to see anymore. Nor do other countries that will be effected. Canada along with five other countries are assisting this. All that are part of the G8 - but there is only so much that they can give a country as large as United States.
ReplyDeleteWe are seeing something that we never thought we would see in 8 years.
Oh on this side of the pond we have done so much for areas oversea's and now I ponder on how this is all to be managed. From your perspective it's much different as you see it from a European stand point. But yet you can probably see the financial spiral effect that will be taking place.
ReplyDeleteNo it's not, but I am making supper and I sit here and ponder why? And when a president can not bring together everyone in crisis it's like it's a vacant White House. And this mimics the very first Katrina, just in an economic way.
ReplyDeleteI'm surprised it has taken this long to show effects. Our deficit is incredulous and has been for years. Amazingly, it seems to always get swept under the rug. Sooner or later, that pile will be larger than the rug making it impossible for the rug to hide the dirt any longer.
ReplyDeleteI believe our country needs to stop sending money from the US to other countries, at least temporarily in order to begin repair of our own economy and deficit. We can't expect this to continue forever. I'm not against helping countries in need by any means but it is high time our government saw the need that our own country is in and it is dire to me. Gas, food, stocks, etc.
My father's retirement is with AIG...so that is a scary situation for him right now. But what can you do? Realistically?
I say, we need to hold these politicians and our government accountable for the money we pay in, the money they readily take from our checks and the money that is paid to the IRS on a yearly basis. Sadly, accountability isn't on the ticket much any more.
Huh? What things? Not following at all...
ReplyDeleteThanks for the post Kim, my feel is that I look at Canada and United States as to that are similar in a variety of ways - not entirely, but I feel if I may that there needs to be trade, but that all said we do need to pull back. Accountability seems to be going back ten years ago when we do wish for the things that we had and did not have to be concerned with areas as such.
ReplyDeleteI don't know where we hold a government accountable these days, but this was much more and hopefully it's not something that takes place again. I think we are now far past the sooner and later, but one thing if I may say there is a subsidiary of AIG that is still solvent and will be alright.
What a mess
ReplyDeleteYour right so many are affected by the other. It's a globalization world and rather we want it or not--it already has began. One country will affect others in one way or another. Like you mentioned--China and the States
Local, national, and regional economies have become interlocked and interdependent. Thus, disease symptoms in one economy may quickly spread to infect others—including your country's. Economies that looked healthy one moment have become seriously ill the next—apparently not because of any new development within their own borders but because of a shock from abroad.
All over the world, we has increasingly stitched lives into a single economic quilt. Regardless of where you live, such contagion affects you in more ways than one.
Could this really effect the economy in a manner that is very severe? Someday I think it will unless we stop the greed
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