Can we still get out 700 B back?
Completely disgusted with the congress.
This was expected.
Although there have been those who have thought the economy was not a global issue, it is.
That bad paper was sold in markets world-wide. ow those banks are in trouble. Their buy-outs and mergers have hit snags, and they appear to be gearing up for their own bail out.
And we have been told all along that it would take a LONG time for any benefit to be seen from the action taken. After all, no action has yet come about. They don't even know yet what value to place on that paper.
We heard last night something that was new to me. An insurance that was sold to cover those risks that was not really an insurance.
I don't know about anybody else, but all of this sounds to me like CRIMINAL ACTIVITY was afoot, rather than just the old fashioned make a quick buck.
Some time ago, I remember they were happy when it reached 3,000. It seemed pretty quick to rise and in all that the USA just wasn't getting any better across the board, IMHO. I really didn't see where our exports ever exceeded our imports and jobs being lost, nothing really new in products of substance and costs everywhere going up. So, how in the heck did the DOW get to 10,000 and now to have this recent crisis befuddle the wiz boys&girls. Tell me, what input from Joe Streetguy did to deserve this and if any real fault of their own. -----Willy
the answer may be that stock prices became "inflated" even while the economy didn't. Why? I'd say because big money got big loans from Big govt (Greenspan) at very low prices. What did they do with that big money? Keep buying stocks, or lending and convincing others to use on stocks. The price of some stocks still are over the percentage of return they should be giving. For instance when a stock offers little chance of stock price improvement (as in current conditions) and the dividend is less than 1%, where will the smart money go? To higher interest yields. What is money is made so cheap by the Fed there is no higher interest yields? Then it goes into "growth" stocks, expected to give gains ONLY on the price of the stock increasing. What happens when those stocks no longer are growing, or even falling backward? Stock market crash. Greenspan drove seniors and other savings out of banks by driving the return on CD's down and then supplied Fed money to the banks even cheaper. Laws were changed allowing banks to invest in stock market and there's where much of the money went. Greenspan looked for inflation and couldn't see it in the stock market prices. Now that same markets are down 30% from their high this year. Where's the money now? Much was "pretend money" from credit creation and is just gone, the rest is being hoarded and soon people may start demanding it back.
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