WHOMP....recession? - Page 2

killercane · 15-09-2008, 20:17

So are we gonna have to bail out these bankers again or what there Bernie? How many more ways can these fucktards figure out to squander money and then lead people to believe they can make it through the crunch?

BCLG100 · 15-09-2008, 21:25

Doesn't bernie work for Merril Lynch? weren't they just bailed out....

Matrix · 15-09-2008, 22:23

I have a related question:
Banks have made a emergency pot of 70 billion dollar, right? Of course not all banks are in financial problems, and the ones that granted the mortgages and sold them to other banks are responsible for this mess.

How about all the people with prohibitive mortgages get a cut for the part they can't affort and the responsible banks pay it to them?

That's just a thought. Now an informative question: what triggered this recession? We know now what went wrong in the past and why it's such a problem, but where did it all go wrong?

mauer · 15-09-2008, 23:43

Just a footnote, we're "technically" not in a recession.

socralynnek · 16-09-2008, 09:08

Everything goes round in circles, especially considering economics. That's what housebuyers and banks forgot. They relied on houses constantly gaining value. So, after a high the normal low came, but even a small low in houseprices had a devastating effect.

So, it seems the banks are responsible for making a much worse low out of a normal low. (And maybe politicians for not setting up rules for banks to avoid such moves...not only in USA, here in Germany it's pretty much the same, although it seems there are not that many people around here taking such credits)

I guess, someone might explain this better than me.

Why I think politicians are responsible as well? Normally, one can say, if a company takes too much risk and dies then let it be, there will be someone else taking the place. But banks are not normal companies. Our whole economic system is built on the role of banks, especially as we have pure paper money, only a part of the money has an equal weight in gold somewhere. Therefore one can't let banks die (only small ones). And tehrefore the state needs to set rules for banks not taking too much risk as in the end, the taxpayer pays the loss, unlike with normal companies.

BCLG100 · 16-09-2008, 10:02

I think we have it worse as by the end of the year apparantly we will be the only western country to technically be in a recession! go UK!

killercane · 16-09-2008, 12:05

As the US gets worse, everything else globally will. Every one of these places is tied into international banking in a big way one way or the other. Its gonna continue to get worse for at least through Christmas. Imagine, retailers pretty much bet the bank on Xmas; with gas prices at $5.29 a gallon(which I paid this weekend), how many middle classers are going to be jaunting down to the mall? At least you can see an increase in internet shopping!

Energy price is going to continue to fuck everyone. I cant see why Big Banking/Industry/Travel doesnt take on the oil industry; they are really the only ones that can. Oil is down 35% the last few months; gas prices are down 7%. Sigh...

Matrix · 16-09-2008, 12:05

That makes sense, socralynnek. Thanks.

I agree 100% with your last paragraph, by the way.

romeothemonk · 16-09-2008, 13:02

One of the problems is that the largest industry in America on Jan 1st 2008 was banking. (by market cap). I really think that for America to be strong/maintain a global leadership position, manufacturing should be #1. (Disclosure: I manufacture stuff). The ability to move money around and to "sell" wealth always seems like a shell game, where as by making something, you have a hard good or service to help propogate more wealth and to actually increase the standard of living.
With 100,000 job cuts announced Yesterday, and more to come this week, the US, and more specifically Wall street and any banks are going to be suffering for a few months.

Robboo · 16-09-2008, 13:07

Quote:

quote:Originally posted by killercane

Oil is down 35% the last few months; gas prices are down 7%. Sigh...

Gas prices are pretty easy to explain...almost 20 % of the refining capacity down due to Ike and Gustav. Depending on where you live almost 100% of your areas gas could come from Houston area. (Georgia, Tenn, SC, NC, KEn...big time Houston importers.) Check out gas buddies temperature map to see what I mean. Couple that with increase use in the Gulf of Mexico region and you have a shortage. Supposedly there is a 3 day storage supply...we just went past 3 days since shut down.

15-09-2008, 21:25	#12
BCLG100 Deity Join Date: Apr 2006 Location: Lahndan Posts: 6,220	Doesn't bernie work for Merril Lynch? weren't they just bailed out.... __________________ the sooner you fall behind, the more time you\'ll have to catch up! CDZ Cup Champion!!!

15-09-2008, 22:23	#13
Matrix Administrator Join Date: Mar 2003 Location: Tampere, Finland Posts: 4,828	I have a related question: Banks have made a emergency pot of 70 billion dollar, right? Of course not all banks are in financial problems, and the ones that granted the mortgages and sold them to other banks are responsible for this mess. How about all the people with prohibitive mortgages get a cut for the part they can't affort and the responsible banks pay it to them? That's just a thought. Now an informative question: what triggered this recession? We know now what went wrong in the past and why it's such a problem, but where did it all go wrong? __________________

16-09-2008, 09:08	#15
socralynnek Moderator Join Date: Nov 2004 Location: USS Defiant Posts: 3,827	Everything goes round in circles, especially considering economics. That's what housebuyers and banks forgot. They relied on houses constantly gaining value. So, after a high the normal low came, but even a small low in houseprices had a devastating effect. So, it seems the banks are responsible for making a much worse low out of a normal low. (And maybe politicians for not setting up rules for banks to avoid such moves...not only in USA, here in Germany it's pretty much the same, although it seems there are not that many people around here taking such credits) I guess, someone might explain this better than me. Why I think politicians are responsible as well? Normally, one can say, if a company takes too much risk and dies then let it be, there will be someone else taking the place. But banks are not normal companies. Our whole economic system is built on the role of banks, especially as we have pure paper money, only a part of the money has an equal weight in gold somewhere. Therefore one can't let banks die (only small ones). And tehrefore the state needs to set rules for banks not taking too much risk as in the end, the taxpayer pays the loss, unlike with normal companies. __________________ Being without a signature since November 2004.

16-09-2008, 10:02	#16
BCLG100 Deity Join Date: Apr 2006 Location: Lahndan Posts: 6,220	I think we have it worse as by the end of the year apparantly we will be the only western country to technically be in a recession! go UK! __________________ the sooner you fall behind, the more time you\'ll have to catch up! CDZ Cup Champion!!!

16-09-2008, 12:05	#18
Matrix Administrator Join Date: Mar 2003 Location: Tampere, Finland Posts: 4,828	That makes sense, socralynnek. Thanks. I agree 100% with your last paragraph, by the way. __________________

15-09-2008, 20:17	#11
killercane Prince Join Date: Sep 2005 Posts: 959	So are we gonna have to bail out these bankers again or what there Bernie? How many more ways can these fucktards figure out to squander money and then lead people to believe they can make it through the crunch?

15-09-2008, 23:43	#14
mauer King Join Date: Sep 2006 Posts: 2,033	Just a footnote, we're "technically" not in a recession.

16-09-2008, 13:02	#19
romeothemonk King Join Date: Aug 2004 Location: Yankton, SD. Posts: 1,310	One of the problems is that the largest industry in America on Jan 1st 2008 was banking. (by market cap). I really think that for America to be strong/maintain a global leadership position, manufacturing should be #1. (Disclosure: I manufacture stuff). The ability to move money around and to "sell" wealth always seems like a shell game, where as by making something, you have a hard good or service to help propogate more wealth and to actually increase the standard of living. With 100,000 job cuts announced Yesterday, and more to come this week, the US, and more specifically Wall street and any banks are going to be suffering for a few months. __________________ I am not crazy cause I take the right pills..................................... Everyday