[skamed]

WHAT IS GOING ON WITH THE ECONOMY????

I SAW ON THE INTERNET TODAY THAT ITS THE WORST FINANCIAL CRISIS SINCE
THE GREAT DEPRESSION OF THE 1930s

SOMEONE WHO UNDERSTANDS ECONOMICS, PLEASE EXPLAIN IN EASY TO UNDERSTAND TERMS


DISCUSS/EXPLAIN

[wheelworks]

Originally Posted by skamed

WHAT IS GOING ON WITH THE ECONOMY????

I SAW ON THE INTERNET TODAY THAT ITS THE WORST FINANCIAL CRISIS SINCE
THE GREAT DEPRESSION OF THE 1930s

SOMEONE WHO UNDERSTANDS ECONOMICS, PLEASE EXPLAIN IN EASY TO UNDERSTAND TERMS


DISCUSS/EXPLAIN

Simple Explanation: Bush got elected into the White House...

[Whatyosayin]

Originally Posted by skamed

WHAT IS GOING ON WITH THE ECONOMY????

I SAW ON THE INTERNET TODAY THAT ITS THE WORST FINANCIAL CRISIS SINCE
THE GREAT DEPRESSION OF THE 1930s

SOMEONE WHO UNDERSTANDS ECONOMICS, PLEASE EXPLAIN IN EASY TO UNDERSTAND TERMS


DISCUSS/EXPLAIN

I will try my best to explain from what I know:

-People were spending less, so the Bush Administration lowered interest rates to increase spending.
-At the same time, to increase home buying, the Federal Reseve allowed banks to allow home buyers to buy homes they could not afford for the amount of their downpayment.
-These people in turn could not pay their mortgages, causing the banks to buy the homes from them.
- The banks ended up in major debt, so the government had to buy out the companies, to save them from bankruptcy. Thus you see the demise of 150 yr old companies like Lehman Brothers.
-Now, due to this, and all the money they wasted on the Iraq war, the US government is in debt of trillions of dollars.

[jinnzaman]

I don't think the war on iraq/afghanistan had anything to do with the current economic downturn. the immediate trigger was the interest rates being lowered due to the economic decline that occurred after 9/11. when the interest rates went low, there was a spree of giving out loans in a questionable manner that caused the sub-prime mortgage crisis which has lead to the crippling of credit in this country and abroad.

basically, the government cut some slack in order to allow the country's economic to recuperate and since the market was so deregulated, these lenders went wild.

so basically, it was a combination of terrorism and republican policies that lead to this crisis. its entirely man-made, although i've seen arguments that the economic was already declining before 9/11 and that market forces were spiraling into a dip that all capitalist economies eventually fall into.

[skamed]

What is the deal behind this $700 billion economic bailout plan?

[Wolfn]

I wonder if now is the best time to buy a car.

Btw, I'm thinking of moving to Toronto. They don't have this economic problem, do they?

[Islamic_Women]

You know what the real problem is?
What's been screwing with everyone?
Why all hell broke loose







neither do i.

[IbnMardhiyah]

Originally Posted by Wolfn

I wonder if now is the best time to buy a car.

Btw, I'm thinking of moving to Toronto. They don't have this economic problem, do they?

Canada has been indirectly affected by America's subprime meltdown because our economies are so intertwined but its nowhere as near as bad as what's happening in America. For starters, that mess could never happen here because the federal regulatory regime is one of the strictest in the world.

[Islamic_Women]

Originally Posted by IbnMardhiyah

For starters, that mess could never happen here because the federal regulatory regime is one of the strictest in the world.

How so?....

[IbnMardhiyah]

Originally Posted by Islamic_Women

How so?....

What do you mean how so?

Canada's government regulatory body [OSFI] is known for having some of the toughest rules in the Western world when it comes to regulating banks and insurance companies. Its the reason why many of the American insurance companies [and some banks] packed up and left in the early 90s.

[Islamic_Women]

Originally Posted by IbnMardhiyah

What do you mean how so?

Canada's government regulatory body [OSFI] is known for having some of the toughest rules in the Western world when it comes to regulating banks and insurance companies. Its the reason why many of the American insurance companies [and some banks] packed up and left in the early 90s.

I mean "how so?" as in how could it never happen to Canada? Forget it, I've looked it up.
Speaking of Canada, I've got quite a few relatives packing up and leaving. For me, I think I'll go live in China or some thing....

[Glasgow]

You can only print money out of thin air for so long.

YouTube - IT'S LIKE A FIX FOR A JUNKIE! Ron Paul on Economy Meltdown

[IbnMardhiyah]

Originally Posted by Islamic_Women

I mean "how so?" as in how could it never happen to Canada? Forget it, I've looked it up.
Speaking of Canada, I've got quite a few relatives packing up and leaving. For me, I think I'll go live in China or some thing....

For several different reasons bu the the top two are:

a) Canada's lending industry when it comes to mortgages is much more highly controlled than in the States. The vast majority of mortgages here require at least a 20% downpayment.

b) Most mortgages are insured through govt. agencies such as CHMC, and that's not the case in the States.

[Revert]

Originally Posted by Wolfn

I wonder if now is the best time to buy a car.

Btw, I'm thinking of moving to Toronto. They don't have this economic problem, do they?

Do you have relatives in Canada? The immigration process is just as difficult as the USA.

You either need a blood relative or need a skill they can use to get residence. Unless you're going as a student.

Immigrating to Canada


Yes..i've looked into it

[Whatyosayin]

Originally Posted by skamed

What is the deal behind this $700 billion economic bailout plan?

That is how much Lehman Brothers needed to be bailed out for. So all the banks in Wall Street are trying to figure out how to help them out, by buying out bits and pieces.