Financial Collapse
- Thread starter Krunkeh
- Start date
BlackWolf
Landscape Designer
Re: Financial Collapse
Well actually that 700B is to pay those poor peoples loans, who were given a bucketload of loan and cant pay their loan, or its interests.
Well actually that 700B is to pay those poor peoples loans, who were given a bucketload of loan and cant pay their loan, or its interests.
Garrett
Landscape Designer
- Joined
- Dec 14, 2007
- Messages
- 1,872
Re: Financial Collapse
wrong
the money is to buy the debt. the debt is still owed
basically the government is buying the bad debt and owning the bad debt letting the financial firms carrying the burden of this debt off the hook.
the poor people with these defaulted loans? they will still lose their houses. the loans will not be repaid. All the bailout does is restore the credit markets so americans who are used to living on credit instead of saving and paying what they can afford, can continue to get credit and live beyond their means.
thanks, class dismissed.
wrong
the money is to buy the debt. the debt is still owed
basically the government is buying the bad debt and owning the bad debt letting the financial firms carrying the burden of this debt off the hook.
the poor people with these defaulted loans? they will still lose their houses. the loans will not be repaid. All the bailout does is restore the credit markets so americans who are used to living on credit instead of saving and paying what they can afford, can continue to get credit and live beyond their means.
thanks, class dismissed.
BlackWolf
Landscape Designer
Re: Financial Collapse
I didnt mean those poor peoples loans are paid to those poor people but that those loans are bought/moved to that new trash bank. It is exactly what happend in Finland on 90s and it is exactly what Finland did when it happend.
Only reason behind this is to restore confidence of people to the system and get stocks to clime again. There is no real reason behind this moving loans stuff, banks actually are not in that big trouble and could actually even make profit, yet people lost their confidence and started to withdraw their funds and as such ended to situation where even profitable bank couldnt find such amounts of money is such short time.
This is suxh a copy of what happend in Finland that it is almost hilarious, yet so sad. Banks are giving loans to left and right without caring who walks to their office to ask one, ending up to collapse their own economy. Then they just dont have money anymore and they go to goverment saying "Oops we gave few bad loans, our vault is now empty we will close this bank, unless you give us shitload of funds."
You know that those people running those banks and working in em have not missed even one payment of their salary. So only ones actually hurt are stock owners and customers of those banks and ofc those who took those loans.
I didnt mean those poor peoples loans are paid to those poor people but that those loans are bought/moved to that new trash bank. It is exactly what happend in Finland on 90s and it is exactly what Finland did when it happend.
Only reason behind this is to restore confidence of people to the system and get stocks to clime again. There is no real reason behind this moving loans stuff, banks actually are not in that big trouble and could actually even make profit, yet people lost their confidence and started to withdraw their funds and as such ended to situation where even profitable bank couldnt find such amounts of money is such short time.
This is suxh a copy of what happend in Finland that it is almost hilarious, yet so sad. Banks are giving loans to left and right without caring who walks to their office to ask one, ending up to collapse their own economy. Then they just dont have money anymore and they go to goverment saying "Oops we gave few bad loans, our vault is now empty we will close this bank, unless you give us shitload of funds."
You know that those people running those banks and working in em have not missed even one payment of their salary. So only ones actually hurt are stock owners and customers of those banks and ofc those who took those loans.
Welshie
Harvester
BlackWolf
Landscape Designer
Re: Financial Collapse
Ohh crap, and we were pushing our goverment to buy those underpriced stocks with few billion and watch how our small country would have got rich... Smegging senate... bring it down!
Ohh crap, and we were pushing our goverment to buy those underpriced stocks with few billion and watch how our small country would have got rich... Smegging senate... bring it down!
Hippie
Harvester
Re: Financial Collapse
Following the problems in the financial sector in the UK, uncertainty has now hit Japan.
In the last 7 days Origami Bank has folded, Sumo Bank has gone belly up and Bonsai Bank announced plans to cut some of its branches.
Yesterday, it was announced that Karaoke Bank is up for sale and will likely go for a song, while today shares in Kamikaze Bank were suspended after they nose-dived.
While Samurai Bank is soldiering on following sharp cutbacks, Ninja Bank is reported to have taken a hit, but they remain in the black.
Furthermore, 500 staff at Karate Bank got the chop and analysts report that there is something fishy going on at Sushi Bank where it is feared that staff may get a raw deal.
And to top it off, the Saki Bank has been totally drained !!
Following the problems in the financial sector in the UK, uncertainty has now hit Japan.
In the last 7 days Origami Bank has folded, Sumo Bank has gone belly up and Bonsai Bank announced plans to cut some of its branches.
Yesterday, it was announced that Karaoke Bank is up for sale and will likely go for a song, while today shares in Kamikaze Bank were suspended after they nose-dived.
While Samurai Bank is soldiering on following sharp cutbacks, Ninja Bank is reported to have taken a hit, but they remain in the black.
Furthermore, 500 staff at Karate Bank got the chop and analysts report that there is something fishy going on at Sushi Bank where it is feared that staff may get a raw deal.
And to top it off, the Saki Bank has been totally drained !!
Hobbezak
Garden Designer
Re: Financial Collapse
Rofl :'D
A financial crisis is always great fun! \o/
Hippie said:
Rofl :'D
A financial crisis is always great fun! \o/
Garrett
Landscape Designer
- Joined
- Dec 14, 2007
- Messages
- 1,872
Re: Financial Collapse
wheeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee
we passed the bailout bill that i thought everyone wanted and said had to happen
oh noes it didn't fix? oh noes financial collapse still in full swing?
:O
I'm shocked.... or not :roll:
and now i still have to help make up that 700B since it was signed into law. if any of you have econ degrees, burn them. turn them in. you be wrong.
wheeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee
we passed the bailout bill that i thought everyone wanted and said had to happen
oh noes it didn't fix? oh noes financial collapse still in full swing?
:O
I'm shocked.... or not :roll:
and now i still have to help make up that 700B since it was signed into law. if any of you have econ degrees, burn them. turn them in. you be wrong.
BlackWolf
Landscape Designer
Re: Financial Collapse
Not yet.
You realy shouldnt buy. We have not seen the rocky bottom of this yet.
Give it a couple more weeks and the real collapse has happend.
Then it is time to buy stocks at bargain prices and make some money!
Not yet.
You realy shouldnt buy. We have not seen the rocky bottom of this yet.
Give it a couple more weeks and the real collapse has happend.
Then it is time to buy stocks at bargain prices and make some money!
brainiac132
Head Gardener
- Joined
- Dec 19, 2007
- Messages
- 257
Re: Financial Collapse
correct me if im wrong but. why didnt the governemnt just protect everyones savings hyptohetically then people wouldnt be withdrawing their cash leaving it for companies to carry on trading and hopefully turning this crisis around?
its worry whats sending this the wrong way, people who are talking negative about this situation, the media and god else who knows caused the worst of this
correct me if im wrong but. why didnt the governemnt just protect everyones savings hyptohetically then people wouldnt be withdrawing their cash leaving it for companies to carry on trading and hopefully turning this crisis around?
its worry whats sending this the wrong way, people who are talking negative about this situation, the media and god else who knows caused the worst of this
BlackWolf
Landscape Designer
Re: Financial Collapse
Because US simply cant do such thing. It would end up in bankcrupting whole country.
Why? Cause US people are so freaking stupid.
Because US simply cant do such thing. It would end up in bankcrupting whole country.
Why? Cause US people are so freaking stupid.
Re: Financial Collapse
how would it have bakrupted the country? money would still be being borrowed if the money so so called 'covered', banks arent lending because they dont have the funds to do so, and this is because people are withdrawing cash because they fear their savings are gonna go down the swanny.
although lets carry on blaming america and their ridiculous spending and credit they get themselves into.
its all your fault you yanks!
how would it have bakrupted the country? money would still be being borrowed if the money so so called 'covered', banks arent lending because they dont have the funds to do so, and this is because people are withdrawing cash because they fear their savings are gonna go down the swanny.
although lets carry on blaming america and their ridiculous spending and credit they get themselves into.
its all your fault you yanks!
Garrett
Landscape Designer
- Joined
- Dec 14, 2007
- Messages
- 1,872
Re: Financial Collapse
each deposit is only secured up to a certain dollar amount.
banks only have so much capital on hand.
the money you store in the banks? it gets used and spent on the banks to lend money to other people. so when people default in repaying their loans... the banks have to float money off their bottom line to repay those who saved/did business/otherwise 'banked' with them.
so if everyone pulls there money outta the bank... pretty much all they have left is operating capital (utilities, wages, liabilities, etc etc) and very little revenue in order to conduct business.
this is the short short version and probably the only nice reply you will get from me.
each deposit is only secured up to a certain dollar amount.
banks only have so much capital on hand.
the money you store in the banks? it gets used and spent on the banks to lend money to other people. so when people default in repaying their loans... the banks have to float money off their bottom line to repay those who saved/did business/otherwise 'banked' with them.
so if everyone pulls there money outta the bank... pretty much all they have left is operating capital (utilities, wages, liabilities, etc etc) and very little revenue in order to conduct business.
this is the short short version and probably the only nice reply you will get from me.
BlackWolf
Landscape Designer
Re: Financial Collapse
Why would it bankcrupt US?
Because yanks dont understand what is difference of Cow and Elk. How they would understand that goverment is backing up their moneys and they dont need to whitdraw those from banks? No way!
There is simply no way that enought people would be reached in time and all those people would stop whitdrawing their funds. They would keep draining the funds of US and eventually lead to that whole country wouldnt simply have enought money to pay to people withdrawing that money. This would lead to goverment printing more and more money which would lead to worldwide collapse of currency of US dollar. Bye bye US.
If you people have not yet figured out that every country in the world has more money in the banks of their country as "computer numbers" than whole country even has finance of their own then you are pretty far from knowing anything. It is exactly like Garrett said. Banks dont have insane amount os money, instead they loan from people who have made deposits. So actual numbers are much higher than Banks can ever have on their accounts. So how can some goverment have such moneys on some account or vault somwhere that all what 100M? people have on their accounts?
Why would it bankcrupt US?
Because yanks dont understand what is difference of Cow and Elk. How they would understand that goverment is backing up their moneys and they dont need to whitdraw those from banks? No way!
There is simply no way that enought people would be reached in time and all those people would stop whitdrawing their funds. They would keep draining the funds of US and eventually lead to that whole country wouldnt simply have enought money to pay to people withdrawing that money. This would lead to goverment printing more and more money which would lead to worldwide collapse of currency of US dollar. Bye bye US.
If you people have not yet figured out that every country in the world has more money in the banks of their country as "computer numbers" than whole country even has finance of their own then you are pretty far from knowing anything. It is exactly like Garrett said. Banks dont have insane amount os money, instead they loan from people who have made deposits. So actual numbers are much higher than Banks can ever have on their accounts. So how can some goverment have such moneys on some account or vault somwhere that all what 100M? people have on their accounts?
Re: Financial Collapse
like i said hypothetically they could have garanteed those disposits, i didnt say actually cover them, if everyone was told their money was safe they wouldnt be withdrawing, leaving the banks to lend out the savings etc.
that 700bln bail out could have covered the majority of peoples savings afaik.
like i said hypothetically they could have garanteed those disposits, i didnt say actually cover them, if everyone was told their money was safe they wouldnt be withdrawing, leaving the banks to lend out the savings etc.
that 700bln bail out could have covered the majority of peoples savings afaik.
harriergirl
Landscape Designer
Re: Financial Collapse
:roll:
Cyrus said:
:roll: