Separate names with a comma.
Discussion in 'Politics, Religion, Social Issues' started by edesignuk, Nov 25, 2008.
That's a lot of green.
And my bank account didn't get any deposits from it yet, what gives!
I find it interesting that we keep buying these securities knowing that they will friggin fail as home owners default.
That is dumb. But maybe I misunderstood how this is supposed to work.
I don't understand how this gvt borrowing works exactly, but from the little I do I think it means they issue gvt backed bonds of some sort in to the market. Those that can afford to buy them up do, safe in the knowledge that the money will eventually be paid back, with interest, because they gvt backed, and that if the worse came to the worse, they could always just print more money to repay the debt...or so I read.
Apparently, China already holds $1tn of US debt. Wonder how much it'll be by the end of all of this.
Wonder who holds all of the spiralling UK debt....
Because of the falling stock market, even private investors are buying up these treasury bonds. At some point I believe the interest rate was almost 0% because of the high demand of people wanting a "safe" investment for their money.
A growing debt, future high inflation and taxation.
And they still haven't figured out how to fix the problem.
From what I understand, $600 BN is buying debt from Fannie/Freddie. Since the government already took them over, we (the taxpayers) were already somewhat responsible for the bad debt, anyway. So it's different from the private company bailouts. Also, contrary to what the conservatives claim, this debt is generally better than the private debt, since there were regulations in place.
But, it seems like they're jumping back and forth on what to do, and so far have made bad deals for taxpayers but good deals for big business, so I assume this will be no different -- Fannie and Freddie have a much lower percentage of subprime loans, and a much lower percentage of those going bad than private funders. But probably we're taking just those bad loans, if recent events are any indication. They're not using the bailout funds, which at least on paper had more oversight, so that's the part that worries me.
But we seem to just keep piling debt. I bought a town home in August, although the rate was OK (6ish), with our good credit score we had no problems financing it.
When they keep saying lenders are not lending to consumers (I am not talking businesses here, that is another totally different area), are they simply tightening their standards? or are they really not lending?
Isn't that amount almost the size of the UK's entire debt?!
It seems like everyone is trying to out do each other in terms of bringing out the highest figure possible to fix things...
I pledge $900,000,000,000.00 from my own personal imaginary wealth to save the economy.
We'll, after yesterdays announcement we're [UK] apparently on track to be £1tn total in debt.
At current exchange rates that's just a little under £1tn.
So yes, just these two [US] rescue packages are almost equal to our [UK] new total debt, but for the US this is in addition to the trillions already owed.
I'll check the couch.
Laughed pretty hard.
And I'll check the vacuum cleaner. You never know.
I guess students aren't the only people taking advantage of apple's bundled printer deals.
Can't wait til they start printing money to pay for all this and inflation goes through the roof.
I also find it...frustrating...that I pay my bills and live within my means and my reward is higher taxes (in future) to pay for all this while greedy millionares in suits get bailed out using my money. The asshats should be jailed and their corporations should be sold off for pennies on the dollar to people who can actually run them.
At $1.5T that's five grand for every man, woman and child in the US. Why not write checks to people instead of corporations? Oh yeah, we don't have enough cash to buy our bailouts.
Print it up, go ahead.
It's worth about the same as the stuff from the Government.
In hard times it pays to be a pressman at the Mint.
Obama's new Director of the Office of Management and Budget.
Why don't they just put it on the card.
I assume the Smart Folks are talking about money already designated or spent in all this bailout stuff, but the latest word is that the US Govt will guarantee up to $7.4 trillion to cover all the shorts and losses. I recall $1.4 trillion for FDIC if necessary.
7.4? That's half of a year's GDP! Over twice the current federal budget! We're slated for a deficit in this budget of around a trillion or more, with an anticipated deficit next fiscal year of two trillion greenies.
And the lenders still are really, really tight with money. A current worry is for operating-capital loans for farmers--which is necessary for many for seed and fertilizer. That problem, at a time when world grain stocks are hellaciously low...
Hey, print that paper...
so they're injecting more money to loosen credit...
wasn't loose credit what got us into this mess in the first place? none of this makers a lick of sense anymore.
inject more dollars into fannie and freddie so interest rates can potentially drop from 6% to 5.5%? i'm pretty sure that the majority of people who could buy a home, you know-those not currently in default or those not freshly unemployed and spiraling into foreclosure, already own a home( that there's a 40-50% chance they're upside down on anyway). if they don't own a home, why on earth would they buy now when home prices are still falling and there's a 10 month supply of houses to pretty much guarantee a continued price decline?
so who is this helping?
and they want to loosen money for auto loans. that's brilliant! everyone knows that when the economy is tanking, job security is nil, people's 401k's have lost 30-50% and consumer debt is at an all-time high, what people want is a new car.
credit isn't the problem. it's the lack of expendable income. all the loans in the world are worthless if they can't be repaid.
If that 7.4 trillion was divided up and and distributed to every American (approx. 300 million) that's about $24,000 per person. If the government gave that rescue package to us, I think that would do a lot of good. We'd either spend it on things and boost the economy, or we'd help out the banks by paying off debt. I know if I got a check for 24 grand, the first thing I'd do is pay off my car, then use the rest towards my student loans. If a majority of the people did that, the banks wouldn't be in so much trouble.
i was actually thinking about something similar last nite.
basically, distribute 50k to each adult ( approx 117 million people) of which 25k is required to be put into savings for a length of time determined by the adult's age.( older people have to hold it in savings less time than younger peeps). and presto! banks and other financial institutions now have the liquidity they need ( approx 2.4 trillion dollars injected).
adults are left with 25k to spend on mortgages, loans and, sadly for many, food and health care.
i'm much more in favor of saving the consumer so the companies can prosper than vice versa.
I read a couple of weeks ago that even people with credit scores of 700+ were having trouble getting approved for car loans, and if they were approved, it was at some insane rate.
If that is the case, then sounds like we are in trouble.
I need to spend a couple of days reading through all the info again. I know I am not getting a new car any time soon.
It wouldn't do any good to dole out the $7.4 trillion or whatever amount. After it's spent, then what? "Grow the economy"? What, re-open restaurants? Build more houses,when we have more, now, than we can move folks into?
The only way a nation can remain economically viable is to make things for export sales, with income equal to or exceeding outgo. Balance of payments level or positive. We've been running uber-negative for way too long.
Same for federal deficits. Even with the Mafia-style bookkeeping of the Clinton era, we've been going in the hole for decades.
An interesting sig line: "I've always wondered what the 1920s and 1930s were like, but I didn't want to see them from the German perspective."
We've been making the same mistakes in recent years that were made in the 1920s, and since then we've been repeating the mistakes of the 1930s.
"May you live in interesting times". Yeah, well, okay, but I didn't really want it to get THIS interesting.
Werent they supposedly going to buy up bad debt and everything with the first package?
Is it bad that I dont trust my own government?