Global Meltdown

[hypnodoc]

BUY BUY BUY!!!!

It'll be over before we know it....

Oh OK then, but whos got any moolahs left

[Ford_Power]

Hypnodoc has hit the nail right on the head.

USA is going down first... Aus will fair better, but not by too much, for too long.

This is a result of using a fiat currency system and allowing those nasty things called "investment banks" to exist.

Paulson and Bernanke's bailout plan is utter BS - it is simply a scam to ensure that the banks that they are directly involved with stay afloat. Did you know that Paulson was an ex boss of Goldman Sachs? Also he holds between 4-5million dollars in shares in GS as well as an option to buy 600,000 more!

The derivatives market is quoted by some as $500 trillion, and by some as $1000 trillion - this is the nonsense that is the derivatives market! It is so intertwined and wrangled that NOBODY can put a value on the market as nobody has any idea what is where!

Just to make it clear, $700bn is not even a drop in the ocean.. it is simply a bail-out of Wall Street fat-cats and some other people's personal interests... re: Paulson. Take a look at the list of banks that are proposed to be bailed out... hmm lo-and-behold, all the banks that owe GS are getting bailed out... funny that hey? The Fed Reserve is already pumping in $188bn/day over the last week to the everyday mum and dad banks just to keep them afloat!! It's just that they are not announcing it!! what is $700bn going to do?? Sweet F All!

USA IS GOING DOWN - NO IFs, NO BUTs! The bailout is simply going to put every single American taxpayer about $30,000 in debt, and god knows how many generations after that will be paying for it!

Edited 01/10/08 08:39 AM by Ford_Power

[Dillz]

But where cool...

[Ford_Power]

No we're not cool... we too will feel the slowdown of the global ecomony! We trade goods and services with the rest of the world and vice/versa remember?

As I said, we are in a better position than the USA for sure, but it will still affect us too...

Edited 01/10/08 08:42 AM by Ford_Power

[Dillz]

Like Y2K??

Bah, why worry about sh*t you have no control over? Let's just all suck it in, man up and f*cking deal with it!

[tab]

As stupid as it sounds, you do have a point!

[CJ_AK]

I think it will settle in the next two years or so.

Im in the finance/insurance industry and we have been following another financail group closley as well, AIG. They are in some major turnoil as well. As usual, the risk exposure, particularly within the mortgage market was ridiculously high.

Thanks to over zealous mortgage brokers.

life goes on..... Senna put it well, keep on rentin'

[senna_T]

Call it ignorant or whatever, but I'm with Dillz. I don't own a home and have no dependants (apart from tab and grudgee of course ) So I don't really feel as if there is a great deal that I can do to change, and there isn't going to be a major impact on my life (that I can control).

I say get on with your life, job whatever, you'll work it out if you aren't too stupid.

[TUFXRT6]

Hey TUFXR6T.

If reality inspires fear then so be it. You can try to justify it with all the acronyms you want.

Just to clarify RMBS stands for Residential Mortgage Backed Securities. AAA rated is a rating from Standard & Poor's & is the highest that can be given. The Australian Government has a AAA rating also.

You are obviously in the financial system which you should know is global. Australia's position is minescule when compared with the US and European economies and they are all so far up the creek they can never find a way back and by the very fact that the economy is global we have to follow the general trend. I used cash in the equation to show a comparison of position.

You need to look at the whole picture here two quick points:

1) think of it as a home loan, the bank has assets & cash as a deposit to leverage off to offer loans.

2) Australian banks are regulated by APRA which sets limits on liquidity requirements.

You can call a derivitive whatever you want it still equals exposure.

As I stated earlier Derivitives can often be used as a defensive tools.

I suppose you are one of the ones that thinks the taxpayers should bail out wall street.

Never said that I agree with government bailout but citizens need to have confidence in the banking system. Its unfortunate but has to happen

There maybe a truckload of differences between global markets but with the global de-regulation and chicanery of Investment banks, which aren't even real banks anyway, they have burned it to the ground and the trickle down effect will be more of a raging torrent.

This is partially correct which is why there are no investment banks left in the US

If you can bring your head out of the fog for a moment can you answer this question for me. How is an obviously ruined and bankrupted global economy with a total value of 70 trillion dollars ever going to repay the total global debt of 680 trillion dollars?

Whatever way you want to look at it and wish it wasn't real the facts are globally as far as economics are concerned WE ARE STUFFED MATEY.

Stuffed is a big statement but we are in trouble, If you ask people in the Middle East or parts of Asia they will will tell you different

In my opinion, like many of the general public in the US, the greedy buggers that told all the lies and blew out the bubble should be hung. Still as they say "The Bankers Own The Earth". If you think this is going to just go away and Aus will breeze through it perhaps you should go back to economic school.

Again never said that but think it will be far better managed in Australia than in the US & Europe, you can see this in credit spreads and other key credit market indicators. We should have far greater concern for the Asian markets.

The piper has called to be paid and there ain't no money to pay him. The result will be worse in a direct economy of scale than the so called Great Depression and by calculation that means about 500 times. For the average punter, who got sucked in by the banks to borrow against their assets to invest in the global lottery shop which the stock market became, stock markets work mostly on emotion and the emotional lean isn't exactly calm and favourable at the moment.

Im not saying that lenders are not sneaky but surely the late 80's, early 90's early 00's have taught mums & dads that leverage against assets has risk.

The average mortgage valley family is stuffed. It is a mathematical certainty. If financial advisors, experts, and bankers really knew what they were on about these things would never happen, but they do, 1930s, 1987, and now this. Each event worse than the other by many times. There will be multi millions of people in Aus and around the planet who now wish they had never listened.

[TUFXRT6]

Hypnodoc has hit the nail right on the head.

USA is going down first... Aus will fair better, but not by too much, for too long.

This is a result of using a fiat currency system and allowing those nasty things called "investment banks" to exist.

Paulson and Bernanke's bailout plan is utter BS - it is simply a scam to ensure that the banks that they are directly involved with stay afloat. Did you know that Paulson was an ex boss of Goldman Sachs? Also he holds between 4-5million dollars in shares in GS as well as an option to buy 600,000 more!

The derivatives market is quoted by some as $500 trillion, and by some as $1000 trillion - this is the nonsense that is the derivatives market! It is so intertwined and wrangled that NOBODY can put a value on the market as nobody has any idea what is where!

Just to make it clear, $700bn is not even a drop in the ocean.. it is simply a bail-out of Wall Street fat-cats and some other people's personal interests... re: Paulson. Take a look at the list of banks that are proposed to be bailed out... hmm lo-and-behold, all the banks that owe GS are getting bailed out... funny that hey? The Fed Reserve is already pumping in $188bn/day over the last week to the everyday mum and dad banks just to keep them afloat!! It's just that they are not announcing it!! what is $700bn going to do?? Sweet F All!

USA IS GOING DOWN - NO IFs, NO BUTs! The bailout is simply going to put every single American taxpayer about $30,000 in debt, and god knows how many generations after that will be paying for it!

Do you want someone who is in charge of the banking system not to have experience in the banking system?

The point is that Paulson had to gain experience somewhere, it just happen to be GS. It could have been Lehmans, Bank of America, Bear Sterns ect..

Personally I would have more of a problem if he worked at Bear Sterns or JP Morgan.

The $188bn is a big number & I would check that figure. I have never seen that figure before & I would definetly see something like that.

Edited 01/10/08 10:01 AM by TUFXRT6