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Stocks Wipe Out As Fears Grow

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posted on Sep, 19 2008 @ 12:52 AM
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I think this is scare tatics against the American people. I'm tired of it! I'm not saying there isn't a stock market crisis, but I think it's a distraction to consume our time. So what.




posted on Sep, 19 2008 @ 03:22 AM
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reply to post by elderban
 



Talk of plan energizes markets

Speculation that the Bush administration was developing a comprehensive plan jolted Wall Street on Thursday and sent stocks higher. The Dow ended 410 points higher.

The Treasury has been talking about the concept of an agency to take on bad debts of financial institutions "for several months," a source with knowledge of discussions on the issue told CNN.

There's precedent for the federal government taking on troubled assets from the private sector. In the 1930s, the Home Owners Loan Corp. was set up to issue bonds to refinance borrowers. Then during the S&L crisis Congress set up the Resolution Trust Corp. to sell assets of failed banks.

One way the agency under discussion could work is by setting up bulk auctions to buy mortgage assets from financial institutions. The auctions would be for set dollar amount purchases. Companies that want to offload the hard-to-sell assets from their balance sheets bid to sell to the government at a huge discount. The company willing to sell at the lowest price wins.

The government would then be able to sell the assets back into the market when it wanted.

According to policy research firm the Stanford Group, such a setup would allow the government to refinance borrowers in the loans owned by the government, thereby lowering the risk of their defaulting and eventually boosting the price of the mortgage security in which those loans are packaged.

The agency and auction facility is one that House Financial Services Chairman Barney Frank, D-Mass., and Senate Banking Committee Chairman Christopher Dodd have supported.

Jaret Seiberg, a financial services analyst at the Stanford Group, said he believes there is bipartisan support for allowing the Bush administration to take short-term action to "get us through the immediate crisis."

The expectation is that whatever program is decided on would only last through the presidential inauguration. "You don't want a program that will last for several years because that would limit what the next administration could do," Seiberg said.
money.cnn.com...

What that means is that after acquiring the loans, the government will then sell the assets, that is the debt, to collection agencies. The government is not in the business of collecting on defaulted loans.

The collection agencies will purchase that debt from the government for pennies on the dollar. Subsequent to that, court judgments against the defaulted homeowners will be entered, the homes eventually seized, and then finally auctioned to real estate agencies to put back on the market.


"According to policy research firm the Stanford Group, such a setup would allow the government to refinance borrowers in the loans owned by the government, thereby lowering the risk of their defaulting and eventually boosting the price of the mortgage security in which those loans are packaged."

If this does happen ("allow" doesn't mean "will"), only a relatively few borrowers will be able to take advantage of it. Assuming most borrowers know a good deal when they see one, they would already have tried to negotiate lower terms with the original lenders. Unless the loans are refinanced at between 2%-5% fixed rate for the remaining duration of the loan, I can't see the program being wildly successful for cash strapped homeowners. Especially those who are recently unemployed or have been unemployed for awhile. And anyway, the government plans to dump the program sometime before next year's inauguration.

This is just a game of hot potato that the Bush Administration and financial officials are concocting. Only instead of the banks and original lending institutions undertaking the actions of repossessing homes, collection agencies will undertake the effort. And as everybody knows, collection agencies are sharks, and will use whatever method at their disposal of aggressively pursuing the FULL amount of the debt regardless of the bargain basement price that they paid for it.

The media will report on the stunning and miraculous turnaround of the financial sector. Bush will look good going out. And the new President will get dump trucks dumping tons of crap onto his head at his inauguration.

Nothing more than the Bush Administration and financial officers unloading the results of corporate greed and mismanagement onto taxpayers. Trying to forestall a collapse until after the November elections. A triple whammy in the rear for U.S. taxpayers and embattled homeowners.



posted on Sep, 19 2008 @ 09:01 AM
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Maybe next week will be the week. It doesn't appear that the market will crash today either, up over 400 in the first 15 minutes.

I went to the store this morning to stock up on survival gear, canned goods and such; the shelves were stocked so full of merchandise I couldn't decide what to get. I came back home to regroup and prepare a list of needs in case of collapse. My wife cooked up some breakfast and coffee and I'm so full I don't feel like doing anything right now.

Maybe tommorrow, I sure hope they still accept my worthless dollars.



posted on Sep, 19 2008 @ 09:58 AM
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Yep-the market is climbing again like a mofo. So where are the threads on how well the market is doing today? Oh thats right, this is doom and gloom board-positive news need not be reported!!



posted on Sep, 19 2008 @ 10:05 AM
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reply to post by princeofpeace
 


Deny Ignorance, the only reason the markets are doing well for the fat rats not the average joe is at the expenses of tax payer in this nation that while the big rats get to dump their debt we are stuck with more debt.

Wake up and smell the final take over of the shadow government in our nation.

We are nothing that the slaves to keep the fat rats getting fatter.



posted on Sep, 19 2008 @ 10:06 AM
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reply to post by princeofpeace
 


I wouldn't start cheering just yet. Should the government say "we decided against making an entity that will buy some of the banks debt" you can expect the exact opposite of what happened today.

Either way, this situation really sucks, since the stocks are only booming because the government just basically said "we are going to take a HUGE amount of taxpayer money, buy a crap load of debt, then dissolve the company over the course of X years." That is a sucky deal for us and our government.



posted on Sep, 19 2008 @ 10:09 AM
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reply to post by grimreaper797
 


Thanks grimreaper you understand the real deal here and as usual is not us the tax payer the winners.

But be sure that congress will pass the necessary laws and bill to do this deal as this is election year and the candidates and parties wants to look good for their master, like many said you don't bite the hand that feeds you.

Still the ones that created this mess walk free without any charges, indictments or jail time.


[edit on 19-9-2008 by marg6043]



posted on Sep, 19 2008 @ 10:16 AM
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yeah its a crappy deal for Americans. Your government is about to buy a bunch of illiquid assets for pennies on the dollar, they spend hundreds of billions of dollars to get trillions of dollars of assets, and will resell them at cost to some newly created entity which will rehabilitate them. This is major bs.

This won't work, noone knows what they are doing. These newly created companies will have to hire people to work for them and this could take years, so these newly hired employees will have to make quite a commitment to work to fix this.

In the mean time the people who made these assets worthless will lose their homes and their credit ratings will be destroyed. They'll being living in tents out in the Nevada desert.



posted on Sep, 19 2008 @ 10:33 AM
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Originally posted by bruxfain
yeah its a crappy deal for Americans. Your government is about to buy a In the mean time the people who made these assets worthless will lose their homes and their credit ratings will be destroyed. They'll being living in tents out in the Nevada desert.


What? You mean the lenders and their extremely questionable lending practices and manipulation with refi after refi and the good ole "get this rate for now and in 2 years just refi" line of bs are going to be living in tents in the Nevada desert? Sweet! Finally some justice! Oh wait, you are probably one of those that believes it is solely the fault of the people who BELIEVED that line of crap and did the refi's.

Sorry. My bad.

And if you honestly believe that this tiny little band aid on this huge wound will fix the problem then I'm afraid you are going to be in for a pretty sad shock.

I'm just hoping that no more major banks fold. Because we have been told for the past half year that things are looking better and that 2009 is looking bright and then 'bang!', another major collapse. Yup, just like with WMDs (the 'proof') I will believe the government from now on.



posted on Sep, 19 2008 @ 10:46 AM
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reply to post by dariousg
 



The people who made the assets worthless are the deadbeats who took out mortgages for which they had no income to pay. Those people are already staking out the best spots near the railroad tracks. I know why they took out the mortgages...shhhh, its a secret, but they'll wish they hadn't soon enough. Right now they only have to concern themselves with keeping the coyotes off their butts.

The bankers who sold the mortgages and are carrying them on their books, they'll just be driven out of business. Or don't you watch mainstream news. They already lost a grip over the last year, the ones who know the secret will use the money the banker have lost to buy up the rest of their busted operation at a discount. Thank you for all of this money. Just remember this, when you gain money it comes from somewhere and when you lose money it goes somewhere. Where is all the money being lost going?

I am sure they have a small stack of benjamins hidden somewhere, but I don't think Dickhead Fuld will be attending any important parties from about now until the day he dies. He'd probably be willing to trade lives with you right about now.

But don't worry about the Government, we've got plenty of ink and paper and our printers are prepared to print off as much cash as we need and none of you will be able to do anything about it.



posted on Sep, 19 2008 @ 11:04 AM
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reply to post by bruxfain
 


That is the problem and why the fed is looking for another approach to the bail out, the treasury can not print anymore money because of the devaluation of the dollar.

So that is why they now want to dump the debt.



posted on Sep, 19 2008 @ 12:40 PM
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You guys do realize that this more than just an American problem correct? the whole worldwide financial system is on verge of collapse. The US economy is not the only one in shambles because all of the world economies are tied together. If the US collapses the domino effect WILL happen-there is no question about that. You guys (or folks in other countries rather) better be glad the US is putting a bandaid fix on this even at the expense of the American citizens to bail out the rest of the world. Once again its the American people that will suffer to keep the rest of the world on track.



posted on Sep, 19 2008 @ 12:50 PM
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reply to post by princeofpeace
 


Exactly!!!!! see when this week the markets had a turn around was because the world banks work very hard to find the liquidity to pump with infusions, I guess they probably gave the US an ultimatum, "fix it or we will let go down the drain" so that is why now we have the fed taking a drastic approach at the expenses of tax payer to bail out the trouble financial companies.

Because even with the bail out previously done it was nothing but temporary so now is a "promise" of a longer term solution and that is why the markets are doing well now.



posted on Sep, 19 2008 @ 02:14 PM
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reply to post by marg6043
 


The markets aren't doing well, they are stabilizing. Next year the growth will resume.

A nuclear time bomb just went off in the American financial sector. Don't be so surprised its been there for a few years now, ticking away. It was supposed to produce a meltdown of the system. People should be jumping out of windows on Wall Street right now. Yet they are not.

Face it, the attacks against this system are not having the desired affect. Talking to you doom and gloom types is becoming a lot like talking to christians who are waiting for the second return of Jesus, only you're hoping for the collapse of the western capitalist system, which aint gonna happen and Jesus is already here.


Get ready to piss yourselves.



posted on Sep, 19 2008 @ 02:22 PM
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reply to post by bruxfain
 


No you are wrong the markets are doing well now and will last until next year, by then either the new bastard child of the Federal reserve will be in place and the vicious cycle that put us were we are now will be now in full gear but with a bonus, this time the big fat rats will be able to dump their trash and stay afloat thanks to the American hard working class and tax payer.

What a future for we have build for Americas unborn, still the real problems that are the national debt and spending will still be without any approach, America still will be outsourced and sold to the highest bidder like China but no to worry we will have credit and loans to keep financing our personal debts.



posted on Sep, 19 2008 @ 02:56 PM
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Originally posted by marg6043
reply to post by bruxfain
 


No you are wrong the markets are doing well now and will last until next year, by then either the new bastard child of the Federal reserve will be in place and the vicious cycle that put us were we are now will be now in full gear but with a bonus, this time the big fat rats will be able to dump their trash and stay afloat thanks to the American hard working class and tax payer.

What a future for we have build for Americas unborn, still the real problems that are the national debt and spending will still be without any approach, America still will be outsourced and sold to the highest bidder like China but no to worry we will have credit and loans to keep financing our personal debts.



Sorry to here about the situation you've built for your children.

I suppose then I need to make a decision do I trust my judgement or an anonymous poster on a pro-anarchist conspiracy website.

Its obvious that your perception of reality may be somewhat biased. What is the new "bastard child of the Fed" you refering to? Anywho, the Soviets also thought they'd outlast us, you like them will also find yourself to be quite incorrect concerning the nature of this world.

and as far as threats to this system, they can count their time left on this earth in days. they won't even exist next year.


since they won't be needing any of their wealth, we'll just pay our outstanding debts with their money.


[edit on 19-9-2008 by bruxfain]



posted on Sep, 19 2008 @ 03:04 PM
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What we need is:

More Bush tax cuts.

More stimulus checks.

Another war, preferably with IRAN and RUSSIA, that would be ideal.

And, last but not least, more outrage and less sarcasm!

plucky is mad!



posted on Sep, 25 2008 @ 10:36 AM
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Stocks are NOT wiped out.

The Dow Jones average is still way above what it was in 2000, way above where it was in 2002, and so far above what it was during the great stock market crash that there is no comparison.

It is idiots like you that spread panic though. You see a couple of days of losses and freak out because you have the investment sophistication of a rock.

"Oh my God, I'm not making a profit, this is the end of the world".



posted on Sep, 25 2008 @ 11:10 AM
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reply to post by OldMedic
 


With a Month over Month loss, a WIPE out is not tantamount to BEING WIPED out.

It's true stocks did WIPE out (pending the context used), but I think we all know they have not WIPED OUT entirely.

Not everyone is a marketing and financial wizard, so a little patience would not be out of line. Not to mention were they, ecnonomically, we wouldn't be in this situation to begin with.


Relax bud,


AB1



posted on Sep, 25 2008 @ 11:13 AM
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reply to post by Night Watchman
 



Investors should really not be panicking.


Shouldn't but when you got politicians running around mentioning the great depression, one really has to wonder if he or she should be panicking.



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