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View Full Version : Want to understand what caused this?


mdskier
10-11-2008, 10:05 AM
This is an surprisingly clear description of what caused what happened with the financial markets recently. What's amazing is it is a comedy routine and it was done long before the most recent crash. These guys could see what no U.S congressman or senator could (or would admit to seeing).

You have to listen to the last 30 seconds where they describe how a total collapse can be avoided. Amazing, these guys are good.

http://www.youtube.com/watch?v=SwRFoxgEcHc

bigmac
10-11-2008, 10:24 AM
This is an surprisingly clear description of what caused what happened with the financial markets recently. What's amazing is it is a comedy routine and it was done long before the most recent crash. These guys could see what no U.S congressman or senator could (or would admit to seeing).

You have to listen to the last 30 seconds where they describe how a total collapse can be avoided. Amazing, these guys are good.

http://www.youtube.com/watch?v=SwRFoxgEcHcYes, the current market "correction" isn't caused by an unsound economy, it was caused by one Wall Street sheep yelling "FIRE" in a crowded theater of sheep. The more overvalued the market, the more easily panicked the sheep are.

As to the supposed "credit crunch", the panic isn't because financial institutions aren't making loans, it's because they're not making loans to unqualified borrowers.

This major-league slap-in-the-face to the economy is long overdue. Too bad we had to take Europe and Japan down with us.

kjohnson
10-14-2008, 09:02 AM
It's funny but it's not, if you know what I mean.

TMCNo1
10-14-2008, 09:06 AM
It's all because Algore invented the internet and Global Warming!:rolleyes::D

JimN
10-14-2008, 09:16 AM
Yes, the current market "correction" isn't caused by an unsound economy, it was caused by one Wall Street sheep yelling "FIRE" in a crowded theater of sheep. The more overvalued the market, the more easily panicked the sheep are.

As to the supposed "credit crunch", the panic isn't because financial institutions aren't making loans, it's because they're not making loans to unqualified borrowers.

This major-league slap-in-the-face to the economy is long overdue. Too bad we had to take Europe and Japan down with us.

They still loaned to qualified people but when they loan to people who wouldn't normally have a snowball's chance in He!! of getting one, the wheels are bound to fall off. Financial types are always referring to applicants as a "credit risk" of one kind, or another. They could have just gone on as usual and only loaned to people who were low risk and would pay the loans back on schedule but Noooooooo! Franklin Delano Rains had to come up with some bullshnit plan to put minorities in homes they couldn't/wouldn't pay for on a regular basis because not loaning to them was "racist". Why anyone listened to him, I don't know. They should have just told him to F-off.

Part of the problem is that when some sheep bleat, others listen and believe it. This is a major problem when the sheep whose bleating has the most clout know that they can actually affect the stocks they talk about in a way that benefits them directly. I used to own Harley Davidson stock and after years of great management, earnings, sales, investments, profits and just about everything else you could want a company to do that will keep it healthy and the stock price rising, some knob says that he doesn't think they can continue in that way for much longer. This had the immediate effect of dropping the stock price by over 10% in one day even though all of the other "experts" had just upgraded or reiterated that it was a strong buy. It's almost like it was a stock they loved to hate, or they knew they could drop the price in order to buy a large amount when others were selling low.

bigmac
10-14-2008, 09:50 AM
They still loaned to qualified people but when they loan to people who wouldn't normally have a snowball's chance in He!! of getting one, the wheels are bound to fall off. Financial types are always referring to applicants as a "credit risk" of one kind, or another. They could have just gone on as usual and only loaned to people who were low risk and would pay the loans back on schedule but Noooooooo! Franklin Delano Rains had to come up with some bullshnit plan to put minorities in homes they couldn't/wouldn't pay for on a regular basis because not loaning to them was "racist". Why anyone listened to him, I don't know. They should have just told him to F-off.

Part of the problem is that when some sheep bleat, others listen and believe it. This is a major problem when the sheep whose bleating has the most clout know that they can actually affect the stocks they talk about in a way that benefits them directly. I used to own Harley Davidson stock and after years of great management, earnings, sales, investments, profits and just about everything else you could want a company to do that will keep it healthy and the stock price rising, some knob says that he doesn't think they can continue in that way for much longer. This had the immediate effect of dropping the stock price by over 10% in one day even though all of the other "experts" had just upgraded or reiterated that it was a strong buy. It's almost like it was a stock they loved to hate, or they knew they could drop the price in order to buy a large amount when others were selling low.

Exactly. And if anyone needs more proof of the sheep analogy, look at the market yesterday (936 pt gain) and today. Any time you have that kind of one-week fluctuation, you can be CERTAIN that it's based on emotion, not intellect.

As to stock fluctuations, Apple Inc. is maybe even a better example of Harley Davidson.

TX.X-30 fan
10-14-2008, 12:11 PM
That is hilarious. So very true, they will buy all this crap and make them whole again. Washington is overrun with idiots.

6ballsisall
10-14-2008, 12:19 PM
That is hilarious. So very true, they will buy all this crap and make them whole again. Washington is overrun with idiots.

Werd......

flipper
10-14-2008, 12:19 PM
That is hilarious. So very true, they will buy all this crap and make them whole again. Washington is overrun with idiots.

So is the rest of the world. People just seem to keep their hopes up for Washington thinking it will be idiot free.......good luck.

TX.X-30 fan
10-14-2008, 12:32 PM
Need more info on the homeowner bailout, I would like to let my home loan become delinquent enough to qualify for the 10 year interest abatement. Any help would be greatly appreciated.

TMCNo1
10-14-2008, 12:33 PM
They still loaned to qualified people but when they loan to people who wouldn't normally have a snowball's chance in He!! of getting one, the wheels are bound to fall off. Financial types are always referring to applicants as a "credit risk" of one kind, or another. They could have just gone on as usual and only loaned to people who were low risk and would pay the loans back on schedule but Noooooooo! Franklin Delano Rains had to come up with some bullshnit plan to put minorities in homes they couldn't/wouldn't pay for on a regular basis because not loaning to them was "racist". Why anyone listened to him, I don't know. They should have just told him to F-off.

Part of the problem is that when some sheep bleat, others listen and believe it. This is a major problem when the sheep whose bleating has the most clout know that they can actually affect the stocks they talk about in a way that benefits them directly. I used to own Harley Davidson stock and after years of great management, earnings, sales, investments, profits and just about everything else you could want a company to do that will keep it healthy and the stock price rising, some knob says that he doesn't think they can continue in that way for much longer. This had the immediate effect of dropping the stock price by over 10% in one day even though all of the other "experts" had just upgraded or reiterated that it was a strong buy. It's almost like it was a stock they loved to hate, or they knew they could drop the price in order to buy a large amount when others were selling low.

The credit/loan industry has been loaning money to unqualified/qualified car buyers for decades, and the buyers have been upside down since day one on a $20K car, so why not $300K homes, just repossess and sell the property again just like cars, but it didn't work!

TX.X-30 fan
10-14-2008, 12:40 PM
The credit/loan industry has been loaning money to unqualified/qualified car buyers for decades, and the buyers have been upside down since day one on a $20K car, so why not $300K homes, just repossess and sell the property again just like cars, but it didn't work!





It was not tried.

JimN
10-14-2008, 03:06 PM
Also, banks aren't in the business of owning homes. Some now have real estate departments, but this is out of necessity, rather than by design. Normally, I think that would look like a conflict of interests (no pun intended) but this basically amounts to throwing buckets of money on a fire in an attempt to put it out. First of all, Frank Rains needs to be beaten, buried up to his neck next to an ant pile and covered with honey. Barney Franks can be buried with him, slightly below and in front, facing him. Chris Dodd is a POS and needs to be dealt with.

The real problems are:

Rains wanted to look like a hero to minorites.

Rains, Franks and Dodd are lying POS's.

Congress sucks and couldn't do the right thing when money is concerned if their lives depended on it, which is pretty stupid, really.

Re: the previous reason, THE VOTERS don't hold Congress' feet to the fire, mainly because they don't want to learn how it's supposed to work, why it's not working and what it will take to fix it.

Congress is full of people who were in college during the '60s and many were involved in protests, civil disobedience and thought they knew everything about the system. They wanted to do exactly the opposite of what "The Establishment" told them to and are now trying to implement their ideas from that time. Trouble is, it's 40 years later and what we need now isn't what we needed then. The views of some in Congress have changed, but they are far from what they thought they would be when they were in school.

bbymgr
10-14-2008, 06:48 PM
Congress is full of people who were in college during the '60s and many were involved in protests, civil disobedience and thought they knew everything about the system. They wanted to do exactly the opposite of what "The Establishment" told them to and are now trying to implement their ideas from that time. Trouble is, it's 40 years later and what we need now isn't what we needed then. The views of some in Congress have changed, but they are far from what they thought they would be when they were in school.


Can we have an AMEN!!!!!