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The American Economy
apparently their economy is falling apart faster than expected. The dow fell over 500 points today and Aig and bank of america are in trouble. What do you guys think this means for us when ther economy eventually falls into recession??
http://www.nytimes.com/2008/09/16/business/worldbusiness/16markets.html?hp
http://www.nytimes.com/2008/09/16/business/worldbusiness/16markets.html?hp
Comments
Little jobs to go around, no growth in the economy, people will have to live within their means. No shopping trips on Saturday, no eating out on Fridays, and certainly no extra discretionary income to burn.
What you saw today was people's retirement funds wiped blank on their accounts. Those stocks they have been saving for became blanks. That nice retirement home they have been saving for? It's gone. It's now you're 60 years old working at Mickey D trying to survive.
It's even worse for Lehman's employees, the stock sharing program and bonuses being paid in stocks is now worthless.
If you asked me, those idiots had it coming. Refinanced 2nd mortgages, credit loans, maxed debt load, overvalued properties, big hunking SUV when your income is $40,000 a year, it's no brainer they can't pay for it all, and the banks shouldn't been giving out the money in the first place. So much for keeping up with the Joneses. If you haven't realised, bulk of BC's economy is tied to tourism. I would suspect tourism won't dive too quickly, as there are Asians and Europeans coming here instead of Americans.
Also, the US is not in a recession like many people believe, at least not yet. There's still economic growth (0.5 to 1.6% mark if I recall). But the US weapons sales have doubled!
and also the usd is strengthening vs other currencies, exchange vs cad edged up a bit more today tradin at about 1.071ish+ today
or it needs a merger to survive..
lol americas gunna fuk the world economy up....its defninitley gunna be a worldwide recession cuz big companies like aig dont just operate in America
Have money lying around, get ready to buy, because 3 years down the road after all this recovers, you will be reaping the riches. If you were looking at the stocks, many other banks had significant jumps after Fed announced they were bailing out AIG.
...looks like they just delayed the impending 2nd depression
more importantly...who will Manchester United's new sponsor be cuz im sure as hell that they dont want a near bankrupt company sponsering em
Right now, the Bush administration is stuck in a 'spending' mode. Essentially, the government encourages people to buy. The more your currency is exchanged, the better your economy. Of course, this only works if people actually have the money to pay for the things they need.
Now we have credit cards, or credits. Credits allow us to buy things first and pay them back later. Apparently, there are laws regarding credits; loan companies must look at a person's credit report and their annual income before granting a loan. You can't grant a 300k mortgage for someone working at Wal-Mart for example. However, these laws that regulate these loaning practices have been repealed. So now instead, you have loan companies giving out loans like crazy, since in the long run, (or ideally) they would have more money in return due to interest rates. Now the problem comes to people getting loans that's far beyond their mean, and ended up defaulting and declaring bankruptcy. If a few defaulted, it's okay since loan companies have a large enough profit margin that "eases" the damage. But, when a lot of people defaults, the loan companies will lose billions and declare bankruptcy as well.
The government then would have to step in and bail these companies out. If not, it would cause a rain reaction and cause the economy to collapse.
Essentially, this whole fiasco is due to three factors: the government being incompetence, loan companies getting greedy, and the lack of financial responsibility for the American citizens.
Now, the 75 billion dollar bail out. Where can they get that kind of money when the government is already in a 11 trillion dollar debt? Simple, sell off every single penthouses, private jets, luxury cars, and everything else that those Wall Street scumbags own. I'm sure that'll rack up quite a bit. :teeth:
And one of their solutions seems to be consolidating resources in fewer and fewer hands.
What about that plot with some of the larger banks pooling together some bail out safety net, so other companies can borrow money (further delegating debt) to avoid bankruptcy.
It seems like their economy is akin to walking across a wooden bridge you need to cross everyday, and taking planks as you walk across and burning them.
It looks like the American Dream is dying, all those bragging about home ownership rates being higher in the USA than Canada, I'd like to see the stats across the board now in the sub-prime crisis...they forget to mention the American Dream comes with 75% of people with mortgages
Lenin and Marx is laughing in their graves.
Which would you prefer?
Privatized gains, socialized losses.
Or.
Socialized gains, socialized losses.
Democracy gives the people the government they deserve, the American people are their own demise, and they dug their own grave.
This cartoon sums it up nicely.
and shudnt this be moved to business now...lazy mods
Obama will turn the US into a socialist country!!!!!!!
depression?
influx of americans moving to canada?
large scale warfare? (another global war)?
[youtube]qB-OhTfplYE[/youtube]
Interesting look at how the US government has probably compounded the problem by making decisions based on bad statistics.