Dave at the Movies
Bill S. Preston, Esq.
VINTAGE D-DAY DAVE! Always cranking dat thing.
Posts: 18,224
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Post by Dave at the Movies on Sept 29, 2008 17:15:32 GMT -5
This whole thing is bad but you have to remember that people in power are not going to let everything financial fall. We are no where near in bad shape like everyone is thinking. If a great depression were to happen again it would not happen for at least five to ten years and by then I'm sure they will have most of all this fixed even if they have to cheat to do it.........not like they haven't done that before.
I mean we are already out of the gold standard.
Seriously I think everything will be okay but if they royally screw up this we are not just talking about the U.S. here guys. We are talking abotu the entire world. The whole world's economics evolves around the survival of the U.S. Economy. It has since after World War 2.
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Deleted
Deleted Member
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Post by Deleted on Sept 29, 2008 17:18:58 GMT -5
I mean we are already out of the gold standard. But I thought there was no stopping him
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Post by Jason Todd Grisham on Sept 29, 2008 17:19:25 GMT -5
Just as a bit of perspective. Today: Dow drops 777, a 7.0% drop. Black Monday 1987: Dow drops 22.6%. Black Thursday - Black Tuesday 1929: Dow drops a total of more then 28%. And in other good news, crude dropped 10 bucks.
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erisi236
Fry's dog Seymour
... enjoys the rich, smooth taste of Camels.
Not good! Not good! Not good!
Posts: 21,904
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Post by erisi236 on Sept 29, 2008 17:22:08 GMT -5
And in other good news, crude dropped 10 bucks. Heh, yeah remember when oil at $150 was the doom of us all, now its back to $97 and no one cares.
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Dave at the Movies
Bill S. Preston, Esq.
VINTAGE D-DAY DAVE! Always cranking dat thing.
Posts: 18,224
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Post by Dave at the Movies on Sept 29, 2008 17:22:28 GMT -5
I am one of those American's who are neither rich enough, nor poor enough for anything to affect me. That may be true right now but if they keep heading towards where we are heading now it is going to affect everyone. Crime in the U.S. which is already very very high will go up to unimaginable levels. People will be getting laid off left and right. People will be lucky to have an hourly job. I don't mean to scare anyone but this is how it is. Its not something to take lightly. I hate economics and think we depend way too much on money and material things but thats just what our society has sadly become. Again though I don't think anything will happen. Another depression is very very unlikely. With all that we take for granted such as junk food and other things like that there is no way it will become anything like the great depression. Some would probably say the "apocalypse" in 2012 which isn't going to happen has a better chance of happening. lol
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Bo Rida
Fry's dog Seymour
Pulled one over on everyone. Got away with it, this time.
Posts: 23,664
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Post by Bo Rida on Sept 29, 2008 17:26:13 GMT -5
iono, I just love the fear mongering that's going on, they really are trying to make it seem like the world is going to get destroyed. The worse thing is the more they scaremonger the more damage they do to the economy, I really hate lazy journalists.
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Post by thwak is T.hawk on Sept 29, 2008 17:27:53 GMT -5
I mean we are already out of the gold standard. But I thought there was no stopping him gold actually went up in the stock market today because people are stupid.
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MrBRulzOK
Wade Wilson
Mr No-Pants Heathen
Something Witty Here.
Posts: 26,719
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Post by MrBRulzOK on Sept 29, 2008 17:36:14 GMT -5
Well folks, I say it's time we regress back to the bartering system. Whose with me?!
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Post by 'Foretold' Joker on Sept 29, 2008 17:39:26 GMT -5
Well folks, I say it's time we regress back to the bartering system. Whose with me?! I'll buy your idea for two tomato plants and a jar of dirt!
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Deleted
Deleted Member
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Post by Deleted on Sept 29, 2008 17:40:34 GMT -5
Well folks, I say it's time we regress back to the bartering system. Whose with me?! I'll give you twelve camels and my finest Arabian mustang for seventeen rams and fourty dams, my good Emir.
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Rube
Hank Scorpio
Sammich Bogart
It's always the same and it's always different.
Posts: 5,619
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Post by Rube on Sept 29, 2008 17:42:13 GMT -5
So many motherf***ers should be in jail over this, but it'll never happen.
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Post by thwak is T.hawk on Sept 29, 2008 17:43:49 GMT -5
Well folks, I say it's time we regress back to the bartering system. Whose with me?! I'll buy your idea for two tomato plants and a jar of dirt! you can actually barter in some pubs in the UK from what I hear, like you give them some fish and they'll give you a pint.
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Bo Rida
Fry's dog Seymour
Pulled one over on everyone. Got away with it, this time.
Posts: 23,664
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Post by Bo Rida on Sept 29, 2008 17:49:21 GMT -5
I'll buy your idea for two tomato plants and a jar of dirt! you can actually barter in some pubs in the UK from what I hear, like you give them some fish and they'll give you a pint. I thinks it's illegal to haggle over the price of alcohol. The only source I can find other than a hazy memory of pleading with a barman is here: "Haggling is thirsty work and so I head to The Prince pub and order a glass of wine, a pint of beer and a lemonade, which comes to £8. "When I ask for two quid off I get both barrels. Barman Anthony Wren, 28, says: "Haggling in bars is totally illegal. Alcohol has to be served at a certain price and to take it down from the marked price is against the law." www.mirror.co.uk/news/top-stories/2008/08/20/as-the-credit-crunch-bites-ever-deeper-into-our-pockets-we-ask-is-it-a-hassle-to-haggle-115875-20704621/
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Post by Vice honcho room temperature on Sept 29, 2008 17:52:45 GMT -5
But I thought there was no stopping him gold actually went up in the stock market today because people are stupid. Didn't the dollar go up or did I read the ticker wrong
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Post by thwak is T.hawk on Sept 29, 2008 17:56:08 GMT -5
you can actually barter in some pubs in the UK from what I hear, like you give them some fish and they'll give you a pint. I thinks it's illegal to haggle over the price of alcohol. The only source I can find other than a hazy memory of pleading with a barman is here: "Haggling is thirsty work and so I head to The Prince pub and order a glass of wine, a pint of beer and a lemonade, which comes to £8. "When I ask for two quid off I get both barrels. Barman Anthony Wren, 28, says: "Haggling in bars is totally illegal. Alcohol has to be served at a certain price and to take it down from the marked price is against the law." www.mirror.co.uk/news/top-stories/2008/08/20/as-the-credit-crunch-bites-ever-deeper-into-our-pockets-we-ask-is-it-a-hassle-to-haggle-115875-20704621/bartering isn't the same as haggling though. haggling, from what I understand is trying to negotiate on the price of something in order to get a better deal. bartering is when you trade an item to get another item. like if I were to trade fish to a pub, who will then use that fish and cook it, they can then give me a pint because I just saved them money.
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Tim
Dennis Stamp
myers.timothyTheTimMyers
Posts: 4,358
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Post by Tim on Sept 29, 2008 17:56:16 GMT -5
I heard this afternoon, Wachovia got bought out by Citi. Shit is crumbling to the ground left and right.
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Post by Jason Todd Grisham on Sept 29, 2008 17:58:46 GMT -5
Didn't the dollar go up or did I read the ticker wrong I don't know if the dollar went up, or if it's just that the pound sterling went down.
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Ace Diamond
Patti Mayonnaise
Believes in Adrian Veidt, as Should We All.
mmm...flavor text
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Post by Ace Diamond on Sept 29, 2008 18:02:33 GMT -5
As a poor college student who is doomed no matter what really, I'll only worry when financial aid tells me I'm not getting any anymore.
Erisi nicely put this in perspective although when one considers it, I think 7.0% now is worth a lot more than 7.0% in the 80s or the 20s, but...what do I know I never took a macroeconomics class, only micro.
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erisi236
Fry's dog Seymour
... enjoys the rich, smooth taste of Camels.
Not good! Not good! Not good!
Posts: 21,904
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Post by erisi236 on Sept 29, 2008 18:48:40 GMT -5
If you haven't already now would be a good time to cut up all your credit cards and live on good old fashioned cash or your debit card, and save your money in a just a plain old vanilla savings account. All of us living off credit and buying crap we don't need for the past 10 or so years is a good chunk of the reason what caused this. Japan went through a 10 year recession but they weren't running around like chickens with there heads cut off, they just lived within their means and saved their money. I know it's not really a much known concept in America but it's time to live like a normal human being.
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Mac
Bill S. Preston, Esq.
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Post by Mac on Sept 29, 2008 18:57:17 GMT -5
Markets have a way of correcting themselves. During the housing BOOM of the mid 90s to the early 2000's the housing prices were artifically high. Loans were being dished out left and right because the thought was that if someone borrowed so much money they could always refinance and their house would be worth tens of thousands more and thus they'd have the capital to continue paying their mortgages, a few years ater they could repeat the same process. Basically the way it was set up was that with all the refinancing the equity in your home you'd practically be living for free. You wouldnt really earn anything, but you'd be set up should you hold onto your house for the duration of the loan.
But the housing bubble burst. New homeowners coming into the market couldnt afford the high prices of the houses. However, mortage companies, banks and other lenders were still giving out the loans, they saw the market slowing down, but they would sell the same mortgages as if housing prices would continue to climb. This all started a downward trend in about 2003. And people knew it, the banks knew it, the government knew it. But we kept the status quo. So what happened was the loans were given out to people who had crap for money under the guise that as the value of the home increased these "high risk loans" would pay off. But these homes values either didn't increase at all, or didnt increase enough for the people to continue to pay off their loans. So they went into default. The banks would lose hundreds of thousands in interest over the life of the loan and have the swallow the cost of the house and eat the remainder of the price of the house which is now worth less than what they paid for.
So just imagine, on a $350k loan, if the person they gave the money to defaulted in the first six months, the bank loses out on over 200K in interest and now owns a house thats worth considerably less. Now imagine if tens of thousands of people default on their loans whether it be from an Adjustable rate mortgage or the fact they shouldnt have been given a house to begin with. Then you need to factor in the housing bubble bursting and the housing prices dropping in conjunction with the lowered mortgage rates.
Lenders who werent cautious got destroyed and they own homes they cant sell minus the interest they would have acrued over the life of the loan.
Whats going to happen is housing prices will drop, people will be able to afford them again. They'll buy them, they'll pay interest, and more banks will open up over the nexr 20 years. Its the beauty of capitilism, the quick and the dead. I think these lenders should be allowed to fail, because thats life.
Meanwhile unemployment is 6%, when we were in a depression it was almost 50%, we can be sustainable at 25%, and the unemployment is lower here than in a lot of industrialized nations.
I think the media trains us all to be scared little puppies, theres debate whether or not we're even in a recession. Beleive it or not the economy grew every quarter 07-08. If its debatable whether or not we're in a recession we're certainly nowhere near a depression.
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