WOOOOWWWW!!!!!
- Thread starter crmarti
- Start date
Let's just hope whoever is in charge can guide us out of this recession without sacrificing too much.
gonna pipe in here. flame and or bash if you like i am tuff
that 700 should go to the people. all of us to pay the behind morgatges or what ever bills you have. hense giving money to the big companys and saving familys homes. it would work.
that 700 should go to the people. all of us to pay the behind morgatges or what ever bills you have. hense giving money to the big companys and saving familys homes. it would work.What I don't understand is how it got this far anyway. My G/Fs mom is the VP of a small bank in our town and she was telling us this past weekend that there is people calling EVERY day to make sure the bank is ok and their money is safe. And her mom doesn't get why it got this far b/c her bank is like under constant audit and review with some one who likes to watch the banks (idk who) so if they do something stupid like these big banks have done they can step in and not allow it. So she doesn't know whos plams the big banks have gressed but they deffinitly hid some BIG things from there auditors.
Long story short she said that if your money is in a small bank/ credit union your more then likly safe.
Long story short she said that if your money is in a small bank/ credit union your more then likly safe.
koop171;2257318; said:
Lack of oversight. It's really that simple. The regulators did not enforce the rules.
How do banks make money? They lend out money. The agencies (there are several federal and state agencies such as the Federal Deposit Insurance Corporation, the Federal Reserve Board, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision) that oversee these lending practices snoozed off and they relaxed, and the banks lowered lending qualifications for borrowers. Why? Because the more the banks lend out, the more interest money they earn. So they went crazy lending out money to any monkey that walks in, thinking they'll earn lots and lots of interest money.
People without any proven income can walk in, take out a mortgage on a million dollar house that they can't afford and walk out. What happens? These people can't pay back, so the banks take their houses. But the banks have lent out all their cash, what's left are a bunch of houses and other real estate whose values are plummeting (the million dollar house is now worth 800K, so the bank just lost 200K, that's where they accumulated BILLIONS of write downs). So without the cash, the banks can't lend out money, they can't earn interest money, they're insolvent. No bank will lend to other banks, because they're out of cash. Imagine if you want to borrow money for a car, you'll need cash from the bank right? Well, the bank has no cash, because they lent it all out to home buyers who have now foreclosed. So the bank has no cash but plenty of houses. Surely, the bank can't lend you a house when you want cash for a car.
The rest is history.
unstopable4700;2256977; said:gonna pipe in here. flame and or bash if you like i am tuff
That sounds great. But am I to be punished for living within my means and have to keep paying my bills? Or do I get a free pass also, therefore not making any difference as to accountability.
dragonfish;2257946; said:
I like this point if I'm understanding you correctly, and it is a major point of mine that I mentioned earlier. The "free pass" and the posibility of the bail-out, and how that effects the market. I wonder how different things would be if our gov. took a hard stand and vowed not to offer any bail-outs.
Also, it's a matter of ideology on your second point, while the "little guy" struggles, they have no opportunity of a bail-out, so what do they do? They work harder to pay the bills, but, for the big business, the opportunity of the bail-out, offers them a way-out.
Liam can I rent a room?
All I have is American money is that even good In Aus? I'm not sure its worth anything here...
All I have is American money is that even good In Aus? I'm not sure its worth anything here...
