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Are we on the verge of another great depression?

Discussion in 'Off Topic [BG]' started by wilser, Sep 17, 2008.

  1. 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.
  2. ryco


    Apr 24, 2005
    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.
  3. WillPlay4Food

    WillPlay4Food Now With More Metal! Supporting Member

    Apr 9, 2002
    Orbiting HQ
    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.
  4. DaveDeVille

    DaveDeVille ... you talkin' to me ?? Supporting Member

    whoa ... the voice of reason !!
  5. AlphaMale


    Oct 30, 2006
    Ventura County
    If you dont think we are. read guardian
  6. Linas


    Jan 6, 2005
    Whats guardian?
  7. Benjamin Strange

    Benjamin Strange Commercial User

    Dec 25, 2002
    New Orleans, LA
    Owner / Tech: Strange Guitarworks
    Pfft. America is too big to fail.
  8. jazzy grille

    jazzy grille - Arrogant Bastard

    Aug 15, 2006
    Sarasota, Florida
    Amer-kuh! Amer-kuh! Amer-kuh! Amer-kuh!
  9. MakiSupaStar

    MakiSupaStar The Lowdown Diggler

    Apr 12, 2006
    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.
  10. Visirale


    Mar 23, 2003
    I just think Bank Of America is going to buy out America before too long. Hopefully I can work for them before that happens!
  11. +1

    Depression, NO. Some of us look forward to times like this to buy :cool: 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??
  12. thefruitfarmer


    Feb 25, 2006
    Kent UK
  13. plexibass


    Jun 30, 2005
    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........
  14. plexibass


    Jun 30, 2005
    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
  15. hbarcat

    hbarcat Supporting Member

    Aug 24, 2006
    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.
  16. ha! ha! as i laugh hysterically...

    "the bigger they are the harder they fall"
  17. mvw356


    Mar 2, 2006
    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.
  18. I think the economic and financial path this country takes will be decided upon in the next few months... ;)
  19. thumpbass1


    Jul 4, 2004
    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.
  20. Philbiker

    Philbiker Pat's the best!

    Dec 28, 2000
    Northern Virginia, USA
    We are not on the "Verge" of one, we are in the next great depression. It's happening right now.

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