PDA

View Full Version : Wall Street



savior2006
09-21-2008, 07:05 AM
What the blue hell happened????
I'm looking at the latest Time magazine and cover story is about how Wall Street suddenly went belly up. Given I had no idea what Wall Street ever was, I knew it was important.
What happened? Overspending? Debt?

savior2006
09-21-2008, 07:05 AM
What the blue hell happened????
I'm looking at the latest Time magazine and cover story is about how Wall Street suddenly went belly up. Given I had no idea what Wall Street ever was, I knew it was important.
What happened? Overspending? Debt?

halo_99
09-21-2008, 10:04 AM
People being greedy and ignorant.

savior2006
09-21-2008, 11:10 AM
Great.... http://forums.ubi.com/images/smilies/51.gif
Seriously I hope whoever becomes president reverses all or most of the damage from the past 8 years.

Jackie Fiest
09-21-2008, 11:34 AM
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by savior2006:
What happened? Overspending? Debt? </div></BLOCKQUOTE>

More like overlending and bad buying as far as Fannie and Freddie were concerned.

And in some cases, it is literally based on the kind of day the investors are having.

People who were making like $30k or $40k a year were getting loans or mortgages that should have been reserved for those making oh...$200k a year and naturally, they didn't do too well as far as paying them back. Also, imagine giving out a $100k loan and people only having to pay it back in increments of like $200 a month. It's kind of hard to keep these banks open under those circumstances. Banks run out of money, have to tighten up the requirements for a loan and boom...there goes the housing market. http://forums.ubi.com/groupee_common/emoticons/icon_frown.gif

In general, a lot of bad and irresponsible decision making.

Then, add to that, Fannie May and Freddie Mac would buy those loans and mortgages from banks like Leahman Brothers and now the government is bailing them out. But since they are GSE's (government-sponsored enterprises), that was kind of expected.

So, add to that the fact that the housing market (not to mention the economy in general) was already bad and investors are very shaky during these times. It's surprising the kind of things that will effect the stock market.

For example, a guy in Dallas Texas hears about a company in New York that is starting. So he buys stock in that company and it does well. So he tells his buddies and they buy stock... and lets say that 60% of that companies stock is owned by the people in Texas. Then the hurricanes hit Texas and everything the stock holders own is ruined so they have to pull their money out of the stock market...and as a result that New York company will likely end up going out of business unless somone else snaps that stock up.

That's just an example, but it is literally the moods of the investors that control the stock market. If something, anything, bad happens and investors start feeling bad about their financial future and they pull their money out of the market, this is what happens. That's why you hear people saying now is actually a good time to buy stock as so much has been unloaded that you may get something valuable for a good price.

WhiteKnight77
09-22-2008, 12:23 AM
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by savior2006:
Great.... http://forums.ubi.com/images/smilies/51.gif
Seriously I hope whoever becomes president reverses all or most of the damage from the past 8 years. </div></BLOCKQUOTE>

The President has no power over what the idiots on Wall Street does. Case in point. Prior to 2000, Wall Street and the markets were doing well, up until the dot com bust (greed). The some idiots on Wall Street stated we would go into a recession if Bush was elected. Well, the markets were already on the way down, a year before the election.

9-11 did a number on companies due to idiots reacting stupidly. Of course, people were afraid to fly and again, the government was asked to help out (funny that the government always has to help) and even then, some companies went bankrupt (Delta and others).

Now as far as banks, they didn't learn anything from the Savings and Loan scandal which started in the late 70's/early 80's (Carter was in office) through the 90's due to the lasting effects of inflation due to 747 Savings and Loan associations failing.

As Jackie said, greed is the major player. Lenders wrote loans that they shouldn't have and now again, the taxpayers have to bail everyone out. Those on the Street want money any way they can get it as long as it is legal (insider trading can get you put in jail, ask Martha Stewart). Still the SEC should have stepped in long before now (the short selling garbage that has been going on that artifically inflates stock prices).

crespo1
09-22-2008, 06:55 AM
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by savior2006:
What the blue hell happened????
I'm looking at the latest Time magazine and cover story is about how Wall Street suddenly went belly up. Given I had no idea what Wall Street ever was, I knew it was important.
What happened? Overspending? Debt? </div></BLOCKQUOTE>

ahh you mean the big credit crunch of 2008 , well it all started with irresponsible and unethical lenders dishing out risky mortgages to first time buyers from whom they knew full would begin to falter with the repayments because greedy banks decided to put the interest rates up , even though many first time buyers was signing into fixed rate mortgages. however the very people who brought in these fixed rate mortgages decided to blame the fall in economic polices and the rise in the cost of living for their shady u turn in putting up the interest rates ( when infact it was their own bank accounts they was more concerned with ) which subsequently led to the share prices on the ftse and the nasdaq and the dow jones plummeting.

then we have the problem of short selling shares

this is when a trader borrows a share of another trader and then he will put it on the market and hope and prey the value of that company drops from which 9 times out of 10 it did , he will then sell that share for a price for which is more than its currently worth , buy it back for even less than he bought it then , give it back to the guy he borrowed it from with a small transaction fee on top , everyones a winner except the consumer and housing market.

lehman brothers could of been saved as barclays and the bank of korea was interested in buying a percentage of the business but the greed ****ing tosser who was the chairman at the time shrugged off two bids just he could earn a profit.

Jackie Fiest
09-22-2008, 09:34 AM
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by WhiteKnight77:
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by savior2006:
Great.... http://forums.ubi.com/images/smilies/51.gif
Seriously I hope whoever becomes president reverses all or most of the damage from the past 8 years. </div></BLOCKQUOTE>

The President has no power over what the idiots on Wall Street does. </div></BLOCKQUOTE>

LOL Wait, WK, you didn't know GWB is responsible for EVERYTHING? He is the one who really kidnapped Kayle Anthony AND is the one who framed OJ.

WhiteKnight77
09-22-2008, 11:01 AM
Yeah, GWB is responsible for everything. http://forums.ubi.com/groupee_common/emoticons/icon_rolleyes.gif

savior2006
09-22-2008, 01:24 PM
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by WhiteKnight77:
Yeah, GWB is responsible for everything. http://forums.ubi.com/groupee_common/emoticons/icon_rolleyes.gif </div></BLOCKQUOTE>
I like to think so. http://forums.ubi.com/images/smilies/inlove.gif

LaurenIsSoMosh
09-22-2008, 01:50 PM
Well don't tell him that or he'll get the crazy idea that he's all-powerful and he'll try to take over the world...

crespo1
09-22-2008, 02:09 PM
gordon brown and george bush cannot dictate to what goes on in the stock markets , they can however push for new guidelines and legislation that ensure financial instutions become more responsible lenders..

fannie mae are not the only bank to blame in all this , if you cast your memorys back to 2007 , we had the fiasco with northern rock who almost went under because of irresponsible lending and the rising mountain of debt , customers just could not keep with their mortgage repayments because the interest rates kept going up just so the greedy mother ****ing city bankers or ****ers shall i say could pocket the one million pound bonuses all through fleecing peoples savings , through their arrogance and pure greed it almost cost northern rock so savers all over the uk rushed to their local branches to withdraw all their savings, you see banks provide mortgages through investing mine and yours hard earned money into the stock markets and comodoties market , so due to the banks neglegence thousands were nearly left pennyless.

the similar sort of thing has happend here with the credit crunch , the government is using tax payers money ( $380 billion last time i read in the paper)to bail out these greedy banks , so you see its us who are the losers in all this not them .