Originally posted by passenger
One of the things that I find most fascinating about the most recent hiccup in the world financial markets is the terminology used to describe it's causes.
Almost every report or analysis (as the one provided by the OP) uses the words fear, worries, hope, belief, etc., etc.
Now, we are all familiar with the various institutions that are supposedly safe-gaurding against a panic, ( e.g. FDIC and Federal Reserve), that assuage investors fears that "Black Monday" can never happen again. But it seems to me that the dirty little secret here is that the world markets are still held together by wishes and dreams. Given how fragile and unpredictable the human psyche is...
Can it be very long before something does tip the scale to a full scale panic?
Originally posted by fiveangelsfrank
This is the end result of giving loans to people that
1. Don't have the ability to pay.
2. Don't want to pay.
It's bad enough to give people with bad credit auto loans and credit cards. It is fact that stiffs will always be stiffs. The rest of us will have to pay the difference in the form of higher intrest rates and taxes from gov bail outs.
Originally posted by Regenmacher
Question of the day is based on the Evo Morales' dilemma:
So what do Americans do when a gang of thieves sells their country to foreigners, guts the production industry, pockets the proceeds, flees, and leaves them with no assets and crushing debt?
Originally posted by psyopswatcher
That's easy. Form a team of special prosecutors, what else?
MOSCOW (Reuters) - Commodities investment guru Jim Rogers stepped into the U.S. subprime fray on Wednesday, predicting a real estate crash that would trigger defaults and spread contagion to emerging markets.
"You can't believe how bad it's going to get before it gets any better," the prominent U.S. fund manager told Reuters by telephone from New York.
"It's going to be a disaster for many people who don't have a clue about what happens when a real estate bubble pops.
"It is going to be a huge mess," said Rogers, who has put his $15 million belle epoque mansion on Manhattan's Upper West Side on the market and is planning to move to Asia.
Worries about losses in the U.S. mortgage market have sent stock prices falling in Asia and Europe, with shares in financial services companies falling the most.
Some investors fear the problems of lenders who make subprime loans to people with weak credit histories are spreading to mainstream financial firms and will worsen the U.S. housing slowdown.
Full story - Reuters
Originally posted by Justin Oldham
Can somebody in Europe tell us what the local mood is on this topic? I'm googling, but I don't see a lot. What's on local newspapers and t.v.?