Banking Collaspe Begins?

reply to post by Wirral Bagpuss


There is a thread discussing this already.
www.abovetopsecret.com...

reply to post by antar


There can be two threads in different areas of the board. As this is not in the breaking alternative news section.

What makes you so sure that your paper money will be worth anything?

It won’t be worth zero for a while to come. I did buy some silver with a portion of the little that I had, but mostly, it’s still cash because I don’t have a lot of money.

The bigger issues?

How difficult will it be for corporation to be able to finance their regular operations in the near future? Many companies like Walgreen’s will borrow money in the form of short term debt in order to purchase inventory for the holiday shopping season. Other companies borrow short term debt in order to finance payroll obligations until a customers pays off a large contract or bill. With banks failing all over the place, how can normal business operations continue?

This is why the banks were demanding that the federal government save them. This is also why many people will sell off the stocks of many companies that use large amounts of finances in their normal business operations, let alone almost any banking stocks and finance related stocks.

But what other things might happen this week related to a major stock market crash and perhaps the beginning of a modern global depression? I have taken economics one and two and I have even day traded for a few months, but I have not studied the great depression. However, what is happening now isn’t anything like the great depression anyway. In fact, I think that what is happening right now is basically the exact opposite of what happened during the Great Depression.

The Great Depression was an overabundance of goods and services and the global decline of prices across the board. Now, what we have is a scarcity of global resources and massive inflation of prices.

What are the chain of events that happens in this kind of inflationary depression?

reply to post by jhill76

So, if they don't get a chance to sell all of the loans of before they write it off. What happens to the loans that they wrote off? Do those people still pay?

Yes, paying off a loan is not the same as writing off assets. Someone who borrows money in the form of a loan has a legal obligation to pay back the loan plus whatever other legal obligations that they agree too, such as interest.

It’s like this. Let’s say that you borrow twenty dollars from a guy named Bill, but then let another guy named Mike borrow ten of those dollars from you. If you tell Bill that you can’t pay him back the twenty dollars, that doesn’t mean that Mike now doesn’t have to pay you back your ten dollars.

Sorry my friend, if you owe people money, it will actually be harder now to get out of the debt. Standards will get tougher for claiming bankruptcy, not easier.

From what I read is that the reason why the Market had an emergency session was to work the derivitaves and find out what happens to all of the other banks enraveled with Lehman, it is like blowing on a house of cards.

Also the big problem now is the trust factor between banks and also after seeing people get screwed that owned Freddy Mac like myself, investors are very reluctant to buy especially if the bank folds and the stock instantly drops over the weekend before you can do anything about it until Monday morning, this does not look good at all, I think this sort of think couple with panic is the perfect storm for disaster tomorrow...this could be the beginning of nothing but pain.

Oh man, this mean my British pounds will be worth more when I convert them on tuesday??


NO .... LOL .... After massive artificial tampering, the dollar is getting STRONG against the pound !!!


....That, or GB is going down with us?

This really sucks.

But come on, these were the same scenarios people talked about when Freddie and Fannie fell. I really believe there is gunna keep being people who manipulate the market, to avoid failure. From what I have been getting from my pounds, the dollar has been looking incredibly strong against the pound !!! But rampant inflation at the same time? This makes no sense to me.
That is all I know. Tampering, or everyone else really is going down with us.

What happens in the US affects the world. the economic market is interwined. The Depression that is comming will affect ALL of us. No matter what country you live in. Stock up on the baked beans folks. you will need them.

Apparently HBOS has lost almost a third of its value which goes to show that European banks and Europe in general are vulnerable to this American banking collapse.

Might be the time to invest in gold, silver and other stable stocks.

And of course baked beans.

Just in case you missed it.......

Here's a link to your FSME's Weekly report (posted this morning before the markets opened) where it is all explained in detail.....if you really want to know.


www.abovetopsecret.com...

[edit on 9/15/2008 by Relentless]

if you have read this far, you should realize our situation

and start looking into the 'survival' forum.

good luck people

I think they're trying to distract us with a economical crisis instead of making issues about the real problems we're going to face in the upcoming years.

But what about the north american union, would that mean that canada and mexico will take on americas debt?

reply to post by eyeoftiger


nice try, i too strive for optimism as that's all that may be left.

middle class from the uppers? nope. sorry.

remember daddy warbucks? the mega rich won't be hurting,

but they will try to hurt you and me to stay comfy.

just a matter of time now, really. how has been predetermined.

As someone who works in the banking and investment industry we keep a close eye on these situations. Now I am not personally a "doomsdayer" or overly optimistic to the point where I am oblivious but let me point out a few key facts about these situations:

These companies which are failing are mostly as a result of two things: 1) investing too much of their portfolios in sub-prime real estate marketing and 2) other risky investments in order to generate capital. These organizations, in an attempt to compete, invested different amounts of monies in investments they thought would play out. Unfortunately for them, their analysts were wrong in their assessment of the economy and whether it would be "bullish" or "bearish." These risky investments are a DIRECT result of the banking crises experienced and will continue to happy. For instance, AIG is scrambling as we speak to gain capital for their investments. Our company competes directly with their annuities and as a matter of fact in recent weeks we have been unable to compete with their interest rate guarantees (they offered a percentage higher than our current rate which is a lot considering the market risk involved). They did this in order to gain STRAIGHT AND IMMEDIATE income, also known as a "short-fix." As well all know, short fixes do not address the problem in the long-term, but instead deepen the crisis looming. On deck for chapter 11 protection is Washington Mutual or WAMU. Check out their stock price and where it has gone in the past couple weeks. Because of Lehman Brothers, Merrill Lynch, and AIG media coverage WAMU has not been covered.

If you look at the historical perspective of the stock market, nothing drastic is happening. It is a market correction and is not unordinary. As these banks fail, oil dips, the dollar rises, and companies restructure. As for Lehman, they got bad financial advise, because when it comes to stock market, you can either be conservative or risky and the companies who choose the latter are ultimately the ones who fail if these corrections happen.

I hope this helps with the understanding a little bit, the market will recover and this is not the economic end of the world. That's what 2012 is for, right?

Indeed. i am haveing a personally difficult time right now. Was in tears last night. My Fatyher and i are not talking. Why? Money that's why. This peice of paper has cause dmore pain and more evil in the world than anything else. And now with the economic GLOBAL collaspe beginning to manifest itself things will get worse. Welcome to the Great Depression Mk2. Maybe this Crash is just what the world needs. Cool down the hot heads of everytone struggling to survive. Kill of a few millions through starvation etc. I hope them up there are happy. I hope if there is a heaven or hell that they will be made to pay for the sufferign that you and i will now have to suffer. My world has ended, For me my life is over. I did not want to go to war in Iraq. i certaintly dont want to bomb Iran. But they will do anyway. And of course they will use my money to do it. Enough is enough. We , all of us all over the world must stan up united and say NO, ENOUGH IS ENOUGH.