Finance Crisis - Page 5

Skybird · 09-15-08, 04:20 AM

Fannie Mae and Freddie Mac, the two greatest mortgage financers (Baufinanzierer) covering 50% of the mortgage market, very uncapitalistically ended under state control and were put on a drip of estimated 200-300 billion dollars of tax funding. Capitalistic economy isn't any longer what it used to be.

Now Lehmann Brothers have come to an end, and why they were not nationlised as well, is hard to recognize even when looking closely!?. Three of the former five biggest players at wall street, are now out of the race. Merrill Lynch, third biggest investment bank in business, is struggling for survival, it seems it will be taken over by the Bank of America. biggest insurance company AIG also is in a stall and need to sell important parts of its business - after having received several aid packages. the biggest US savings bank Washington Mutual is considered to be a candidate for a taking-over by whomever dares to show up.

According to insiders, 100-140 more american banks are facing the risk to become bancrupt in within the next 3-12 months. The Fed'S chairman, Bernanke, announced that one would try to organize more liquidity on the market - which only means even MORE inflation. the Fed now learns the bitter lesson that it lived by old rules for too long and meanwhile has lost any efficiency to influence the market, what has already been shown by it's past emergency operations which resulted in effects that for the most did not survive the first 72 hours. It costed hundreds of billions.

It all now has the potential to cause a very major global economy crisis for sure, one even can say that it already has started to do so. european economies due to to the high dollar and the trouble in the finacial sectors, already have been pushed from booms in several nations, including Germany, into recessions, according to statements and calculationbs by the World Bank. The mess on the american finance market will cost europe jobs, and taxes. And plenty of both.

It seems the finance system in Amerika learns that changes are leading that far that it no longer is the same world that it used to be. While american surely also are affected, the majority of financial losses and compensations are coming from the rest of the world, which also has to face the greater quantity of economical damage and job losses.

Things now start to slowly become interesting. Those who said half a year ago that we are already over the peak of the crisis, illustrated a fascinating lack of insight by that. back then it just had begun. I assume it will carry on for another 18-24 months - at least. Yesterday night, on radio a group of bank experts had a discussion and agreed that the losses so far since the crisis broke out, have been calculated with the openly available numbers and informations only. the real losses and hidden costs to the nations' wealth and economies probbaly must be calculated three times as high as the official numbers. That would make the sum of money that got annihilated so far ranging deep into the trillions.

Get drunk. Plenty of fun ahead. Those wondering why foreigners have such a high interest in the presidential elections, now may have gotten a clue.

09-15-08, 04:20 AM	#1
Skybird Soaring Join Date: Sep 2001 Location: the mental asylum named Germany Posts: 42,615 Downloads: 10 Uploads: 0	Finance Crisis Fannie Mae and Freddie Mac, the two greatest mortgage financers (Baufinanzierer) covering 50% of the mortgage market, very uncapitalistically ended under state control and were put on a drip of estimated 200-300 billion dollars of tax funding. Capitalistic economy isn't any longer what it used to be. Now Lehmann Brothers have come to an end, and why they were not nationlised as well, is hard to recognize even when looking closely!?. Three of the former five biggest players at wall street, are now out of the race. Merrill Lynch, third biggest investment bank in business, is struggling for survival, it seems it will be taken over by the Bank of America. biggest insurance company AIG also is in a stall and need to sell important parts of its business - after having received several aid packages. the biggest US savings bank Washington Mutual is considered to be a candidate for a taking-over by whomever dares to show up. According to insiders, 100-140 more american banks are facing the risk to become bancrupt in within the next 3-12 months. The Fed'S chairman, Bernanke, announced that one would try to organize more liquidity on the market - which only means even MORE inflation. the Fed now learns the bitter lesson that it lived by old rules for too long and meanwhile has lost any efficiency to influence the market, what has already been shown by it's past emergency operations which resulted in effects that for the most did not survive the first 72 hours. It costed hundreds of billions. It all now has the potential to cause a very major global economy crisis for sure, one even can say that it already has started to do so. european economies due to to the high dollar and the trouble in the finacial sectors, already have been pushed from booms in several nations, including Germany, into recessions, according to statements and calculationbs by the World Bank. The mess on the american finance market will cost europe jobs, and taxes. And plenty of both. It seems the finance system in Amerika learns that changes are leading that far that it no longer is the same world that it used to be. While american surely also are affected, the majority of financial losses and compensations are coming from the rest of the world, which also has to face the greater quantity of economical damage and job losses. Things now start to slowly become interesting. Those who said half a year ago that we are already over the peak of the crisis, illustrated a fascinating lack of insight by that. back then it just had begun. I assume it will carry on for another 18-24 months - at least. Yesterday night, on radio a group of bank experts had a discussion and agreed that the losses so far since the crisis broke out, have been calculated with the openly available numbers and informations only. the real losses and hidden costs to the nations' wealth and economies probbaly must be calculated three times as high as the official numbers. That would make the sum of money that got annihilated so far ranging deep into the trillions. Get drunk. Plenty of fun ahead. Those wondering why foreigners have such a high interest in the presidential elections, now may have gotten a clue. __________________ If you feel nuts, consult an expert. Last edited by Skybird; 09-15-08 at 04:34 AM.