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09-17-2008, 08:35 AM
| | Registered User | | Join Date: May 2004 Location: Northern Virginia | | | Are we on the verge of another great depression?
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I don't know how many of you guys have been keeping up with the financial news, but some of the biggest financial companies in the US are dropping like flies! What the heck is going on?!?!? They keep talking about waiting out the "housing correction" but in the mean time, bankruptcies, government intervention, massive layoffs are going on! Just think about it, Lehman Bros just filed for bankruptcy a couple of days ago, that's over 26,000 employees! Merryl Lynch is up for grabs, AIG just got Fed help because they were almost bankrupt as well. Need not say much about the mortgage backed securities big 2 and all the small banks and mortgage companies that are just closing up shop.
__________________ don't ask me what wood produces XYZ tone ...I JUST DON'T KNOW! http://www.ramirezbass.com got mid-hump®? WENGE FOR QUEBEC, DANG IT! |
09-17-2008, 08:45 AM
| | Registered User | | Join Date: Apr 2005 Location: 97465 | | | I wish the I could get bailed out every time I was fiscally irresponsible.
Oh well - it's only money.
Glad I don't owe anyone.
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09-17-2008, 09:00 AM
|  | Now With More Metal! Moderator | | Join Date: Apr 2002 Location: Harte fjord, CT | | | It's not that the companies didn't have enough cash flow to keep paying the bills, it's the people they owed money to all demanded to be repaid at the same time (aka run on the bank). Due to the circumstances, the companies have to repay this money or declare bankruptcy.
AIG's problem was investing heavily into mortgage-backed collateralized debt obligations. Basically, AIG insured the mortgagors against mortgage defaults. As we all probably know by now, there has been a large amount of mortgage defaults in the last year and the cumulative effect of this on the economy (almost $1Trillion in mortgage defaults). Due to improper rating of the CDOs (should've been rated as more risky than they were) is now coming back to bite them on the butt. |
09-17-2008, 09:03 AM
|  | ... you talkin' to me ?? | | Join Date: Dec 2003 Location: DEEP in the Heart of Texas | | | excellent !!
Quote:
Originally Posted by WillPlay4Food  It's not that the companies didn't have enough cash flow to keep paying the bills, it's the people they owed money to all demanded to be repaid at the same time (aka run on the bank). Due to the circumstances, the companies have to repay this money or declare bankruptcy.
AIG's problem was investing heavily into mortgage-backed collateralized debt obligations. Basically, AIG insured the mortgagors against mortgage defaults. As we all probably know by now, there has been a large amount of mortgage defaults in the last year and the cumulative effect of this on the economy (almost $1Trillion in mortgage defaults). Due to improper rating of the CDOs (should've been rated as more risky than they were) is now coming back to bite them on the butt. | whoa ... the voice of reason !!
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09-17-2008, 09:13 AM
| | Registered User | | Join Date: Oct 2006 Location: Ventura County | | | If you dont think we are. read guardian
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Originally Posted by beyondhairy next chick who asks me to take her to starbucks is unzipping her pants first | |
09-17-2008, 09:15 AM
| | Registered User | | Join Date: Jan 2005 Location: Chicago | | Quote:
Originally Posted by AlphaMale If you dont think we are. read guardian | Whats guardian? |
09-17-2008, 09:22 AM
|  | Analyzer Records
Endorsing Artist: Mesa/Boogie - Shop Manager/Tech, SF Guitarworks | | Join Date: Dec 2002 Location: San Francisco, CA | | | Pfft. America is too big to fail. |
09-17-2008, 09:44 AM
| | Registered User | | Join Date: Aug 2006 Location: Palm Bay, Florida | | Quote:
Originally Posted by Benjamin Strange Pfft. America is too big to fail. | Amer-kuh! Amer-kuh! Amer-kuh! Amer-kuh!
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09-17-2008, 10:31 AM
|  | The Lowdown Diggler | | Join Date: Apr 2006 Location: Huntington Beach, CA | | | On the way to work this morning I saw a blotch on the road that was roadkill. I ran over it again just for good measure. |
09-17-2008, 10:34 AM
| | Registered User | | Join Date: Mar 2003 Location: Orlando | | | I just think Bank Of America is going to buy out America before too long. Hopefully I can work for them before that happens!
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09-17-2008, 01:07 PM
| | Registered User | | Join Date: Apr 2006 Location: Lakeland, FL | | Quote:
Originally Posted by david meissner whoa ... the voice of reason !! | +1
Depression, NO. Some of us look forward to times like this to buy  Someone elses foolishness can end up being your gain  I don't know of anyone that signed a mortgage with a gun to their head.
Who is more STUPID?? That banks that offered "NINJA" loans or the people that signed on the dotted line for one??
Last edited by FL Knifemaker : 09-17-2008 at 01:12 PM.
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09-17-2008, 01:12 PM
| | Registered User | | Join Date: Feb 2006 Location: Kent UK | | | |
09-17-2008, 01:23 PM
| | Registered User | | Join Date: Jun 2005 Location: atlanta, georgia [satellites] | | | i was talking to my dad about this last night. he said "no" to the depression thing. in fact he has to remove about 15k out of his I.R.A and he is going to buy more stock with it. smart man. i think that within a week, as most of america did with 4.00 a gallon gas, we will just move on and resume our daily lives. aig and merrill lynch are still liguid so relax................my dad is HEAVILY HEAVILY HEAVILY invested through ML so if he aint worried, neither am i. of course i have abot 70.00 to my name but........ |
09-17-2008, 01:23 PM
| | Registered User | | Join Date: Jun 2005 Location: atlanta, georgia [satellites] | | Quote:
Originally Posted by FL Knifemaker +1
Depression, NO. Some of us look forward to times like this to buy Someone elses foolishness can end up being your gain I don't know of anyone that signed a mortgage with a gun to their head.
Who is more STUPID?? That banks that offered "NINJA" loans or the people that signed on the dotted line for one?? | i would think the banks. i mean they are the ones that are out the money.....i may be wrong.
btw, i love the bl henchman on the lower right of page one on your website. beautiful
Last edited by davetakis : 09-17-2008 at 01:26 PM.
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09-17-2008, 01:32 PM
|  | Registered User | | Join Date: Aug 2006 Location: Rochelle, Illinois | | | It depends if enough Americans are going to change their attitude about spending money on credit that they can't afford to pay back. Too many Americans are willing to take on lots of debt, not just as individuals, but also expecting it of the businesses we patronize and of our own government. Eventually the debt has to be paid.
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09-17-2008, 01:35 PM
| | Registered User | | Join Date: Aug 2007 Location: sin city baby... | | Quote:
Originally Posted by Benjamin Strange Pfft. America is too big to fail. | ha! ha! as i laugh hysterically...
"the bigger they are the harder they fall"
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09-17-2008, 01:38 PM
| | Registered User | | Join Date: Mar 2006 Location: Brussels | | Quote:
Originally Posted by hbarcat It depends if enough Americans are going to change their attitude about spending money on credit that they can't afford to pay back. Too many Americans are willing to take on lots of debt, not just as individuals, but also expecting it of the businesses we patronize and of our own government. Eventually the debt has to be paid. | good post.
i don't think that we are on the verge of a depression like we had in the 1920's. let's not forget that the money that is missing on one side is accumulating on the other. if you have debt you owe it to someone. the recent events on the financial markets don't worry me, this business was getting too big and it' time to shrink it back to what is needed.
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09-17-2008, 01:42 PM
|  | I fling carrots | | Join Date: Jun 2002 Location: Make a left at the Taco Bell | | I think the economic and financial path this country takes will be decided upon in the next few months... 
__________________ Quote:
Originally Posted by MatticusMania Strange to say it... but Perry is a man who understands. | Quote:
Originally Posted by macaroni tony Back in the day, I thought I was hard. I think we all know I was pretty much lying to myself  | |
09-17-2008, 01:49 PM
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Originally Posted by Benjamin Strange Pfft. America is too big to fail. | Yeah, and the ancient Roman empire once ruled pretty much the entire known western world of it's day for over five centuries. Quite an accomplishment really when you think about it, but they ended up on the ash heap of history.
As for America being immune from another depression, I'm not one to give into hysterics, but I've learned to never say never when it comes to people acting stupidly every few generations or so and the bad consequences come cycling back, especially when it comes to economics. |
09-17-2008, 01:49 PM
| | Pat's the best! | | Join Date: Dec 2000 Location: Northern Virginia, USA | | | We are not on the "Verge" of one, we are in the next great depression. It's happening right now.
Last edited by Philbiker : 09-17-2008 at 01:53 PM.
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