'This is what a credit crisis looks like.'

re: 'This is what a credit crisis looks like.'

Red — Mon, 06 Oct 2008 16:28:02 GMT

Hey Tom G - try to remember that most of the people who qualified for mortgages under the easing of restrictions at Clinton’s request were able to afford their payments when they first got them. It was when payments started skyrocketing out of control due to the variable interest rates on those loans that buried them. For many, when the payments went form affordable to ridiculous, the housing market had already begun its free-fall, and the falsely inflated value of their property had dropped below the mortgaged amount, making refinancing to lock in a lower (affordable) rate out of the question. Not to say that people don’t dig their own financial graves – they do – because our society has been conditioned to believe that plastic is the answer for everything – why waste time saving for something when you can have it NOW? But the mortgage lenders are not without blame in this – my best friend was a mortgage broker who was advised to tout wary customers on what a “great deal” the variable rate was by assuring them rates would continue to stay steady (as they had been doing) or go down, but not warning of the astronomical increases they would fall victim to if the rates started to climb. It’s just another case of the big lenders preying on those they knew could least afford it.

re: 'This is what a credit crisis looks like.'

Jimbo — Mon, 06 Oct 2008 14:38:17 GMT

If we tinker with this broken system, yes, it will definitely enrich Financial and Congressional types.

We "the grest unwashed," are at a crossroads. Either "we" as a collective whole

decide we have "no representation" and are being taxed out of existence and take the Country back from these money grubbin', beady-eyed, freaks. Or continue down this road to oblivion. For exampple, where do you think USD850billion is going to come from? Are you ready for our 2nd bailout plan "to save Main Street?" HooHah.

A studied approach to this Financail "Crisis" would be:

1. Look at our Founding Fathers desires, thoughts, and wishes.

2. Go back to 1913, study why our Government began to take us down this path.

3. See what can be salvaged from the Founding Fathers Tenets , tweaking them and bring them into 21st Century reality.

4. Study the issues, problems and solutions implemented that didn't work ultimately getting us into this present day "crisis."

5. Elaborate a Five Year Plan that gets us away from our current situation to our next level...a Ten Year Plan.

Some ideas. Continuing the way we're going, knee jerk reaction to knee jerk reaction will destroy our Country.

Goin' to take some huge "cojones" to steer this huge ship around, but we have to start with a Plan Of Action. Revolution isn't the answer, a citizen revolt is an idea...piecemeal, but no long term solution. Hunker down, another good idea, has short term results, too.

Only way to solve this mess is to sit down and start with a TAXPAYER CONVENTION. Roberts Rule of Order, please.

re: 'This is what a credit crisis looks like.'

Louis — Mon, 06 Oct 2008 08:47:30 GMT

There is no systemic problem that can't be traced back to other causes, indefinitely. So we can trace our financial and economic problems all the way back to the beginning of the last century if we wanted to. It would be a useful exercise to help us avoid repeating the same mistakes, but as far as blame is concerned, we can only blame the hand on the wheel for not correcting the present no matter who did the wrong thing in the past. The need for new policies change faster than new politics arise, so the electorate has to change the party whose policies are most appropritate for the times and that's why the Democratic party will be running the new government next year in all three executive brances.

re: 'This is what a credit crisis looks like.'

Mickey — Mon, 06 Oct 2008 07:08:40 GMT

WHOOPS! That second to last sentence on my last post should say" without the support of the American peolple." Oh well, I'm not a writer.

re: 'This is what a credit crisis looks like.'

Moderate Party — Mon, 06 Oct 2008 05:26:18 GMT

I do hope this bailout will help improve our economy. I'm no money genius, just a casual observer who live an ordinary lifestyle. But while we are divided on this crisis in Wall Street, here are some things I see that proves the saying, "Too much of everything can and could be disastrous." So why start trimming the fat and see how much meat we can come up with.

1. First off, do we really need that many politicians to run this country?? That, and take all the office crew and aides and all the bootlickers with them, all have to paid for their services. Oh, and don't forget their annual fiscal budgets. So, there goes our taxes.

2. Too many illegal workers/immigrants. Why?? Because average American Joe or Jane Blow thinks he or she is too damn good to wash dishes or clean toilets or dig ditches. So who takes up the work?? No need to answer. Which brings to our next issue.

3. Too much outsourcing of services. Why?? Because of too much greed and cheapness between Corporate America and, yes, Joe Blow. Joe or Jane demands more than what is necessary, Big Boss said NO, we'll get some cheap labor elsewhere. Welcome to the streets and bread lines, Joe.

4. Too much entertainment, unnecessary and useless commodities and pamper services. Again, do we really need that many channels on TV?? Do we have to succumb to unhealthy and expensive habits like smoking, drinking, gambling or just plain big time spending. Why not cut-off some of that and save for the future. And please don't give that excuse you only live so long, so enjoy life to the max. What if you run out of funds and still alive?? Don't come asking for handouts because you don't deserve any. Again, moderation is the key.

5. Too much hypocrisy and dishonesty that destroy our values as responsible citizens. Let's keep that to a minimum, folks, because we are not is some silly soap opera. This is reality. If you cannot afford it, don't try to "keep up wth the Jones'es". Buy what you can pay enough, and resist that credit spending. That way, nothing will pile up in the backburner. And be honest. Stick to your limits and do something about it to expand your finances.

6. Too much foreign involvement. Do we really need to fight other nations?? Do we have to sacrifice our citizens so these aliens can drag us down with their problems?? And so the businesses that profit from these wars get fat and return nothing to our country except their own selfishness and greed?? And who's gonna aid us in case we sink in this economic quagmire we're in right now?? China? Korea? Saudi Arabia? EU?? Japan?? Who?? Hello, I don't hear anyone!!! They have their own issues, so in the end, it's just us. US.

So, in the end, we'll have to minimize the excesses of our society to bolster our economy. There is no easy way out but if we stick together and stick to moderation, maybe this crisis will gradually be resolved.

re: 'This is what a credit crisis looks like.'

Mickey — Mon, 06 Oct 2008 05:12:17 GMT

I think the banks will prosper just fine. They got alot of money at .02% The ones that have too much sub prime loans will go down. The others will be fine. Wall Street is fine also, sort of....They insured the sub prime loans(not really what wall does) and now can't pay off the holder. They call the insurance swaps. The bank has one problem and wall street has another. The Government has got $700,000,000,000 bail out money. Its not the businesses that wall street represents its the illegal swaps some of them sold. Business is down some but companies are good.(not all financials). The Bail Out is a Bad Idea because when the American people dot not support an idea its a 90% chance of failure. Wars,Prohibition,Etc. are known to fail with the support of the people. Rum & Arrows with bail out money? My wife is a Canadian and they think were nuts.

re: 'This is what a credit crisis looks like.'

Enn Car — Mon, 06 Oct 2008 03:28:13 GMT

What goes up must com down. Look at the greed governmrnt controled by the big greedy corporationas. Plitical parties should not be permited accept contributions from any boddie, the govenment should asaing iqual amount of of money to the political parties for theire publicity at the time for elections to prevent compromises, so the government can have better control on the greedy corporations, insurance companies, GREEDY HOSPITALS, GREEDY DOCTORS that they do not care if you have to sell your house to pay theire astronomical bills for a simple surgery of couple hours and many times wrong performence, (they are now worse than loyers). The greed of DRUG corpotations, Etc, Etc.

It is time to do somthing about it soon before it is too late. Lets get organise and lets make a big protest like the iligal immigrants did couple years ago.

Let's leave the TV and the computer for a momente and lets go Washington DC.

Please excuse my spelling!

Enn. Car.

re: 'This is what a credit crisis looks like.'

Kevin — Mon, 06 Oct 2008 01:28:39 GMT

Want to create more jobs in America ? Close down Chinese WallMart. Stop buying junk that falls apart the first time you use it. And kick out those companies that are American in name only.

Want to know who cares about the American people? Not your president and politicians. You told them 10 to 1 not to borrow a further $700 billion to bale out their buddies in Wall Street. When Mr. Maverick and Mr. Change were given the chance to say, hey wait a minute, we need that $700 billion to get the economy jump started when I am elected, What did they tell you? Go to Hell ! And what happened in the stock market and money markets once the $700 billion written into law ? Nothing ! Your money is gone and everything fizzled.

And I am so happy to hear Exxon is developing a lithium battery. If they develop one, will they help to put themselves out of the oil business ? Geez, I wonder...

It has been said that behing every great fortune is a great crime. Behind the story of the many billionaires in America, is the crime of the destruction of the American way of life and the American Middle class. You need a revolution.

Still rooting for ya

Kevin

re: 'This is what a credit crisis looks like.'

Bubba Gumb — Sun, 05 Oct 2008 22:23:45 GMT

If you look at a Five Year trend of the Market ( Dow Jones Industrial Average, NASDAQ COMPOSITE, S&P500 INDEX) we have a solid growth from Oct 2003 to Oct2007. AFTER OCT2007 to now the market is taking a dive. WHY?? WHAT CHANGE AT THIS POINT??? If we could answer this question, then we can begin to decide a fix! Its as if someone at a train station pull a track switch to move a train to a different track??

re: 'This is what a credit crisis looks like.'

David — Sun, 05 Oct 2008 20:32:38 GMT

If the banks dont trust one another, why should we?

For all of you that put money into 401k's, 15 years ago unitl now, did you earn anything? I didnt, I would have better off with the money in a simple interest account. Now they keep telling you to "leave it in there" why? They used "our" money on those foolish mortgages, whats next! I'm taking all of my money out, they can find some other suckers money to play with.