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View Full Version : The New Crisis!



metalmania
09-19-2008, 05:51 PM
yeah our world's living a new crisis now(usa and europe for the present) what do you know about it? why usa's economy is bad now or is it the decline of capitalism for present?

metalmania
09-19-2008, 06:11 PM
some of economy writers say it:usa is playing a game only; cause their new rival is:china and china has a terrible dolar reserve and china's reserve can melt with this global crisis" i dont believe this view.

wheelchairman
09-19-2008, 06:16 PM
I think it's being grossly exaggerated. Which is quite funny because the media has a tradition of under-exaggerating financial situations (this underexageration is actually also good for the economy.) I mean we've created this fiction in the past 15 years that economies always go up. Naturally that defies any rule of logic (whether it's physical or economic), property prices couldn't always go up and that's the fundamental rule of this economic shakedown. I believe that was the fiction that created the sub-prime loans in the first place.

What happens now is that many financial institutions will go bankrupt. Specifically the weak ones. However even the ones that are nationalized are only nationalized to prevent total destruction of the economy. Investors will still lose their money (so the theory that Fannie Mae was only bought by the government because the chinese were the major investors makes no sense as the Chinese won't recieve any return on investment.) It's solely done to save the market.

This financial horror also has a lot of plus sides that everyone seems to ignore. For example, the decrease in property prices means people liike me, or poorer families will have an easier time buying property. Sure property owners might get fucked, but realy what did they expect when they took a loan and lied on the application (this was another common process in at least American loaning. The real estate agents had an easy time selling to people by convincing them to fudge some numbers on their applications. Apparently it's easy to sell people houses they can't afford if you can convince them that they actually can afford it by lying.) What one could hope is that the most unethical of businesses go out first.

I refuse to buy into the myth that this is the new black tuesday, or that this is the worst thing ever. As an unpropertied student, this isn't that bad. This is just a combination of record high oil prices (fun fact, I've heard that it's believed that the world oil reserves are about twice as high as are claimed) and a property "re-alignment."

I would probably panic more if I had an enormous loan of some kind. I'm eternally grateful that I never bothered to fall into that trap.

metalmania
09-19-2008, 06:33 PM
I think it's being grossly exaggerated. Which is quite funny because the media has a tradition of under-exaggerating financial situations (this underexageration is actually also good for the economy.) I mean we've created this fiction in the past 15 years that economies always go up. Naturally that defies any rule of logic (whether it's physical or economic), property prices couldn't always go up and that's the fundamental rule of this economic shakedown. I believe that was the fiction that created the sub-prime loans in the first place.

What happens now is that many financial institutions will go bankrupt. Specifically the weak ones. However even the ones that are nationalized are only nationalized to prevent total destruction of the economy. Investors will still lose their money (so the theory that Fannie Mae was only bought by the government because the chinese were the major investors makes no sense as the Chinese won't recieve any return on investment.) It's solely done to save the market.

This financial horror also has a lot of plus sides that everyone seems to ignore. For example, the decrease in property prices means people liike me, or poorer families will have an easier time buying property. Sure property owners might get fucked, but realy what did they expect when they took a loan and lied on the application (this was another common process in at least American loaning. The real estate agents had an easy time selling to people by convincing them to fudge some numbers on their applications. Apparently it's easy to sell people houses they can't afford if you can convince them that they actually can afford it by lying.) What one could hope is that the most unethical of businesses go out first.

I refuse to buy into the myth that this is the new black tuesday, or that this is the worst thing ever. As an unpropertied student, this isn't that bad. This is just a combination of record high oil prices (fun fact, I've heard that it's believed that the world oil reserves are about twice as high as are claimed) and a property "re-alignment."

I would probably panic more if I had an enormous loan of some kind. I'm eternally grateful that I never bothered to fall into that trap.

hm maybe u re right,your analysis was good really and i guess russia and china re going to a new alternative financial constution(shangay unity) and its no good for usa,i think balancies can change in world.wait and see(england policy rule)
i know its just an utopia but i hope people can be equal,free one day and borders take off for humanity

metalmania
09-19-2008, 06:49 PM
and i forgot that mortgage credits! banks gave these mortgage credits and it did incite this crisis in same time (usa and uk) but you know that its just a reason of other reasons.

F@ BANKZ
09-20-2008, 04:25 AM
I not sure how exaggerated it has been when the USA has pledged $800 billion on raising its own stocks. If that goes as wrong as it could do then America's economy would be delt a devastating blow, although I also believe that there are worse things, it seems like the more scared people get, the more engrossed they get and the media feeds them duly.

metalmania
09-21-2008, 08:19 AM
hm bush's government did want 700 million dollars.wow its terible.hey bush,did you see the end of your terrible policies?

metalmania
09-23-2008, 02:03 PM
im sorry all,it was not the 700 million,it was 700 billion dollars,just 700 billion :p and its still shaking the world,it came to east europe ,middleeast