[tck90k]

ok ..so i am probably am going to regret starting this and bringing politics to crackberry ... but i am sure i am not the only person that thinks this republican administration has destroyed this economy and financial markets.

my question is whats your take on the economy and what should be done to fix it .

i for one am sick of all the congressional hearings about the 700 billion dollar bailout .i attempted to watch it but fell alseep twice. i think they need to shut up and stop all the political BS and just get it done before more banks go under and more people lose there houses and jobs.

[pltaylor]

Here's what you can buy for less than $700 billion, according to the New York Times.

For $100 Billion you can Universal Health Care for all people in the U.S. without it.

For $35 Billion you can get universal preschool. Half-days for 3-year-olds and full days for 4-year-olds.

For $10 Billion you can carry out all the security recommendations issued by the 9/11 commission.

[tck90k]

my main issue i have is the government bailed out bear stearns, Fannie , Freddie and AIG but nooooo they dont give a dime to Lehman brothers . now you have 10,000 people about to be jobless and not to mention all the people that lost there life savings ....


for the record i was a share holder that got wiped out in the Lehman bky .

[doc 7]

Can the economy be saved? Sure take the
700 billion pay off the mortgages of all current homeowners that is current on their mortgage --- imagine how stimulated
The economy would become if people actualy
Owned their homes instead of the mortgage companys ----

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[LGL]

speaking as a banker in the middle of this roller-coaster ride, I echo the words of Terrell Owens... "Getcha Popcorn ready."

wamu, wachovia, and a handful f community banks near you are most likely next...

[impy5]

The $700 billion bailout is crap, we shouldn't be in this position in the first place and while it is partly the administrations fault, you have to pin most of the blame on greedy banks and investment companies. Most of this all resulted from bad loans written by just about everyone in the banking/ investment industry, and has many different parts to the causes. One of the causes is that banks and brokers used the "stated income, stated asset" type of mortgage application that allowed people to "fudge" their asset and income numbers to suit what type of home they were eligible to purchase as long as their credit score was good even though they could not technically afford the mortgage. These same people are mostly the ones who got themselves in to adjustable rate mortgages that had very low rates at first and after the teaser period, their interest rate sky rocketed so now instead of just barely affording to pay the mortgage they cannot at all because rate drove their monthly payment up. They also cannot refinance because their owing balance on the mortgage is more than what the home is now actually worth. Secondly banks who approved these loans never actually kept them in their possession long enough to know what type of borrower is attached to the mortgage, instead of letting the loan "season" for a year or so and then selling it to investors on the secondary market. This type of trading went back and forth between investors and banks, and once one party realized they had a bad loan on their hands they packaged it with good performing loans masking the under performers and sold them to another investor. This went back and forth and these loans were so broken up and spread out that a lot of these bad loans ended up back in the hands of the original note holder without their knowledge. I know this is very long winded and I can go in to much more depth on this but in short everyone is to blame and not just the current administration. The mortgage brokers are to blame for promising homeowners everything they wanted and putting them to loans that they couldnt afford, the borrowers are to blame for all of the fudging of applications and being so naive to think that housing values would never retreat and the banks/ investors are to blame for being so greedy that they didnt care whether they were buying/ selling bad investments as long as they were padding their bottom line

[tck90k]

speaking as a banker in the middle of this roller-coaster ride, I echo the words of Terrell Owens... "Getcha Popcorn ready."

wamu, wachovia, and a handful f community banks near you are most likely next...

i got my money on Wamu to be bought by Citi next ... come Friday morning they better have something in mind ...or we will see the stock market dive to crash levels

[tck90k]

The $700 billion bailout is crap, we shouldn't be in this position in the first place and while it is partly the administrations fault, you have to pin most of the blame on greedy banks and investment companies. Most of this all resulted from bad loans written by just about everyone in the banking/ investment industry, and has many different parts to the causes. One of the causes is that banks and brokers used the "stated income, stated asset" type of mortgage application that allowed people to "fudge" their asset and income numbers to suit what type of home they were eligible to purchase as long as their credit score was good even though they could not technically afford the mortgage. These same people are mostly the ones who got themselves in to adjustable rate mortgages that had very low rates at first and after the teaser period, their interest rate sky rocketed so now instead of just barely affording to pay the mortgage they cannot at all because rate drove their monthly payment up. They also cannot refinance because their owing balance on the mortgage is more than what the home is now actually worth. Secondly banks who approved these loans never actually kept them in their possession long enough to know what type of borrower is attached to the mortgage, instead of letting the loan "season" for a year or so and then selling it to investors on the secondary market. This type of trading went back and forth between investors and banks, and once one party realized they had a bad loan on their hands they packaged it with good performing loans masking the under performers and sold them to another investor. This went back and forth and these loans were so broken up and spread out that a lot of these bad loans ended up back in the hands of the original note holder without their knowledge. I know this is very long winded and I can go in to much more depth on this but in short everyone is to blame and not just the current administration. The mortgage brokers are to blame for promising homeowners everything they wanted and putting them to loans that they couldnt afford, the borrowers are to blame for all of the fudging of applications and being so naive to think that housing values would never retreat and the banks/ investors are to blame for being so greedy that they didnt care whether they were buying/ selling bad investments as long as they were padding their bottom line

i agree with you 100% but regardless of who's to blame ....the government needs to find a way to keep people in there homes . i live in Florida and i can say the economy here is horrible..then again i also worked in the real estate and finance.

[impy5]

i got my money on Wamu to be bought by Citi next ... come Friday morning they better have something in mind ...or we will see the stock market dive to crash levels

Citi's got their own problems to deal with, granted theyve raised some capital by selling off assets I cant see how they could purchase another bank, however theres some speculation that they may put in a bid for WaMu. JP Morgan Chase, Wells Fargo and TD Bank are good candidates to gobble up one of these big banks.

[impy5]

i agree with you 100% but regardless of who's to blame ....the government needs to find a way to keep people in there homes . i live in Florida and i can say the economy here is horrible..then again i also worked in the real estate and finance.

They absolutely need to do something, I'm just not sure this bailout is the right thing to do, it may not discourage banks and investors to change their practices if they know the government will help them out when everything goes south. Are you still in finance down in Florida ? I worked on some construction loans down there for a bank I used to work at and I believe every one of those loans is either now in foreclosure or in their legal department, its definitely rough down there.

[jenaywins]

I am fortunate enough to work for a company in a field where the economy seems untouched - or perhaps its just my company that is seeing no negative affects due to the economy. A lot of our business comes from out of the country, but even our domestic client base hasn't dropped off. That being said, my lifestyle and income hasn't changed a bit, so it is hard for me to grasp what is really happening here. It makes me feel rather out of touch with "everyone else." Not sure if this is good or bad......

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[mike54]

700 billion dollar band aid to keep the blood from running until the election is over. The fundamentals of the economy are not strong John.

[tck90k]

Citi's got their own problems to deal with, granted theyve raised some capital by selling off assets I cant see how they could purchase another bank, however theres some speculation that they may put in a bid for WaMu. JP Morgan Chase, Wells Fargo and TD Bank are good candidates to gobble up one of these big banks.

im sort of hoping Citi buys them ..i am a share holder ... then again i was a moron and added to my Lehamn stake a day before they went under hoping for a buyout ...and we all know how that ended ...bky = shareholders wiped out

[tck90k]

They absolutely need to do something, I'm just not sure this bailout is the right thing to do, it may not discourage banks and investors to change their practices if they know the government will help them out when everything goes south. Are you still in finance down in Florida ? I worked on some construction loans down there for a bank I used to work at and I believe every one of those loans is either now in foreclosure or in their legal department, its definitely rough down there.

i got laid off 2 weeks ago ..but i am in the process of setting up a interview at Chase to be a REO Asset Manager

[tck90k]

if you are against the housing bailout go to this site Stop The Housing Bailout!

[Hi-Definition]

I am fortunate enough to work for a company in a field where the economy seems untouched - or perhaps its just my company that is seeing no negative affects due to the economy. A lot of our business comes from out of the country, but even our domestic client base hasn't dropped off. That being said, my lifestyle and income hasn't changed a bit, so it is hard for me to grasp what is really happening here. It makes me feel rather out of touch with "everyone else." Not sure if this is good or bad......

A lot of your 'business' comes from out of the country huh? A lot of your domestic clientel is stable huh? Does your boss' name have the Noreaga surname by an chance; and is your product shipped as a raw, white-colored, pre-packaged, powder granule substance?

Ah yes, supply and demand and keyenesian economics at its finest...when times are good, people like to be narcotized; when times are bad...they want to feel like angels. No wonder business is good for you! :-)

I'm just joking. Maybe. :-)

But in a way I can relate to that; good times or bad...everyone still sues :-).

Oh and the rest of you sound like a really bad broken record when it comes to these what-ifs, drawing up scenarios and sharing knowledge that any of us who give more than $0.02 about the circumstances...ALREADY KNOW. It's simple...yes; our economy can spring back; and no..not on the wings of just a $700 billion bail.

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[cain0013]

Wow! Nobody blames the Bush administration. I will not be herded like a sheep to the slaughter house because my government tells me to. I love America and everything we stand for as a nation, but I hate what we have become.... Greedy, Lazy, Superficial, and Subserviant. I don't know what the answer is, but I know we are going in the wrong direction.

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[impy5]

Jenay- Youre lucky to be in that type of field, I'm jealous. I wouldnt say you are out of touch with everyone else as you seem to know what is going on with the economy.

TCK- Sorry to hear about the layoff, good to hear your getting interviews so quickly.


HiDef- How does this thread sound like a broken record ? I dont recall ever seeing a thread in this forum related to this topic. Am I missing something? You make assumptions that everyone already knows why we are in this mess and while its true that everyone knows its because of bad banking decisions, maybe not everyone knows the details.

[Hi-Definition]

Impy; you missed my focus/point. It wasn't about the 'lack' of a economic thread in the forum. Although, the bigger parachute election '08 thread covers umbrella topics such as the economy and a plethora of other subjects. My focus was the posts within this thread...which amounts to repetitive back and forth bantering that comes down to moot discussion. A lot of you have brought up the same points put on repeat. That was my point...geared towards the ones 'that already know'.

Then again, if you're being such a proponet of the need for a thread about the state of the economy...I'd say there's already fruitful discussion going on in the elections '08 thread. In fact that's the focus of a lot of us in there (save a few)...the issues at hand (not just one), the implications and importance of those issues, the objective approach to them...and how it all ties into the importance of this year's election.

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[MadCatUSA]

if you are against the housing bailout go to this site Stop The Housing Bailout!

There's an ePetition there on the site. Highly recommend signing it.

[impy5]

Impy; you missed my focus/point. It wasn't about the 'lack' of a economic thread in the forum. Although, the bigger parachute election '08 thread covers umbrella topics such as the economy and a plethora of other subjects. My focus was the posts within this thread...which amounts to repetitive back and forth bantering that comes down to moot discussion. A lot of you have brought up the same points put on repeat. That was my point...geared towards the ones 'that already know'.

Then again, if you're being such a proponet of the need for a thread about the state of the economy...I'd say there's already fruitful discussion going on in the elections '08 thread. In fact that's the focus of a lot of us in there (save a few)...the issues at hand (not just one), the implications and importance of those issues, the objective approach to them...and how it all ties into the importance of this year's election.

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Point taken- Thank you for the clarification

[vinnie_dugan]

The economy will turn around, it is cyclical. Every twenty years or so the economy does this. Once the people who invested in mortgages they couldn't afford are weeded out, the market will begin to turn around.

[Madapaka]

I don't really think it's about can it be saved, because I think it will if not now later.

I think the better question is do you like the $700 Billion bailout plan that is being proposed, or is this just a motion creates motion kind of deal. Do you think there is a better way in handling this?

Asking because, I've been reading and I understand a little of this stuff, but would like to learn more, and I don't have any ideas of solution.

[vinnie_dugan]

Honestly, there are ups and downs associated with it. Yes its good, it will save a ton of American jobs and keep the economy from dipping any lower, but on the other side of that coin, now the us gov has a 70% stake in those companies...

[cboogie666]

No we shouldn't bail out these companies. But help them get back on track why should the hard working american pay for the mistakes of those running the failed corporations. Becasue of this people loosing jobs and hope a lot people lost their homes due to these loans what I see coming in the future a rise in crime of all sorts people are gonna need to feed their families and the money is going to have to come from somewhere other then going back in the hands of the rich. The republicans are to blame for this mess vote democrat. Mccain putting his campaign on hold isn't going to fix the problem. The debate is an oppurtunity to say what you as a president would do to remedy the situation backing out shows that he is not ready to be leader of the US. He can put in his vote and still make the debates why postpone. That shows to me the lack of leadership and the lack of concern for the great state of Mississippi and the people that worked hard to ensure that that everything was all set up

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