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CHARLOTTE, N.C. - Wall Street wants consumers to do their part to heal the economy. Traders know it's going to take some time.
Investors will get some insight this week into how much consumers are spending from a government report on August retail sales. They'll also get an indicator of how willing consumers are to borrow money to make those purchases when credit card lender Discover Financial Services reports earnings.
"I think everybody is focusing so heavily on if people are releasing some of those dollars they have been clinging so tightly to over the past year," said Jamie Cox, managing partner at Harris Financial Group in Colonial Heights, Va.
Originally posted by Rockpuck
That being said, they obviously cannot "collapse" all at once..
Do you now understand, banks have not put those derivatives on their books - but come Sept. 30th 2009 - due to new banking standards - derivatives need to be put on the books and when that happens - the banking industry will most likely come crashing down.
Originally posted by marg6043
reply to post by D.E.M.
I don't think that our nation will be allowed to go bankrupt, the same way that the Fed and government has been working behind the scene to create an environment of financial security for many years they are going to keep do it for many years to come.
[edit on 13-9-2009 by marg6043]
Originally posted by 30_seconds
The derivatives is much larger. The investment and finance machine thinks they're owed so much money that it would take a billion millionaires to pay it off.
Simply put, this isn't possible.
How could there be so much debt in this country? Because those who "loaned" the money created it out of nothing - think air (or got it from those who did). In short, bankers and finance companies lent counterfeit non-existant money to the world, but then demanded they be paid back with the real stuff.
They print their riches, but we have to work for it. You decide if this is fair, justified, or even possible at this point.
Originally posted by marrasca
One thing I don't see explained yet, is all this money that is borrowed by foreign banks through bond sales, are they secured against anything? I know that a bank holds a house as collateral when you apply for a mortgage. Are foreign nations that stupid that they would continue to buy all these bonds or debt for that matter without any collateral attached to them? There have to be some hooks that other countries have to guarantee their monies. Is there a possibility that our infrastructures could be pieced out and sold to these bond holding countries? I see more and more highways, toll roads, and bridges being "leased" to foreign companies. Has America been sold???