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Re: The Money/Business Thread - Bail Out Rejected!
Posted: Mon Sep 29, 2008 8:06 pm
by Peter Crisp
All I want to know is are we all screwed or are we all just going to be a tad less well-off(sp?)? Have the US just committed financial suicide as that seems a little silly of them.
Re: The Money/Business Thread - Bail Out Rejected!
Posted: Mon Sep 29, 2008 8:07 pm
by Hexx
Jango wrote:After I eat then yes. Although if you're desperate for some paragraphs...
It hurts my eyes
Re: The Money/Business Thread - Bail Out Rejected!
Posted: Mon Sep 29, 2008 8:08 pm
by Jango
There. I clicked my mouse a few times and hit enter. That should do you for now.
Re: The Money/Business Thread - Bail Out Rejected!
Posted: Mon Sep 29, 2008 8:08 pm
by Hexx
Peter Crisp wrote:All I want to know is are we all screwed or are we all just going to be a tad less well-off(sp?)? Have the US just committed financial suicide as that seems a little silly of them.
It all depends.
If your indebted up to your eyes and constantly add to it - screwed.
Anything else you'll most likely have to accept a reduced standard of living, but how reduced will depend on your specific circumstances.
Edit - Thanks Jango...I think it makes sense.
Re: The Money/Business Thread - Bail Out Rejected!
Posted: Mon Sep 29, 2008 9:31 pm
by Ecno
You know how Andy XL hasn't posted for a while. Does anyone think baliffs have taken his computer?
Re: The Money/Business Thread - Bail Out Rejected!
Posted: Mon Sep 29, 2008 9:32 pm
by Hexx
Ecno wrote:You know how Andy XL hasn't posted for a while. Does anyone think baliffs have taken his computer?
He proberby busy with running the Treasuary atm.
Re: The Money/Business Thread - Bail Out Rejected!
Posted: Mon Sep 29, 2008 9:33 pm
by Alvin Flummux
Hexx wrote:Ecno wrote:You know how Andy XL hasn't posted for a while. Does anyone think baliffs have taken his computer?
He proberby busy with running the Treasuary atm.
WAT
Re: The Money/Business Thread - Bail Out Rejected!
Posted: Mon Sep 29, 2008 9:35 pm
by Hexx
Alvin Flummux wrote:Hexx wrote:Ecno wrote:You know how Andy XL hasn't posted for a while. Does anyone think baliffs have taken his computer?
He proberby busy with running the Treasuary atm.
WAT
I'm making my spelling/grammar worse. I'm getting too good scores in the Top Trumps thread
And I was trying to joke that given how both him/the Treas love to pay for things on the never never, he must be running it.
Re: The Money/Business Thread - Bail Out Rejected!
Posted: Mon Sep 29, 2008 9:44 pm
by Rightey
I've been away for a week, what's happened in the world, someone fill me in please. Last I heard something was going on with $700 Billion dollars.
Re: The Money/Business Thread - Bail Out Rejected!
Posted: Mon Sep 29, 2008 9:46 pm
by Igor
Rightey wrote:$700 Billion dollars.
That is all.
Re: The Money/Business Thread - Bail Out Rejected!
Posted: Mon Sep 29, 2008 9:51 pm
by Mr Thropwimp
It may have saved a few banks, but it would've lined the pockets of those in charge too. The cynic would say the banks were careless because they expected the government to bail them out in a tough time. It's lose-lose for the tax paying consumer either way. If the government gave such a huge amount of cash out, the tax paying consumer would be footing the bill. If the government didn't, the tax paying consumer may suffer if they dealt with the failing bank.
It's quite shocking though that even the most basically trained individual could have more financial sense than some of these bank execs. My uni lecturers can't get enough of it, I've heard so much piss takes about the Lehman brothers it's untrue.
Re: The Money/Business Thread - Bail Out Rejected!
Posted: Mon Sep 29, 2008 10:18 pm
by Rightey
So the government isn't giving them the money?
Re: The Money/Business Thread - Bail Out Rejected!
Posted: Mon Sep 29, 2008 10:20 pm
by Jango
Rightey wrote:So the government isn't giving them the money?
The Government is giving money via the taxpayer in return for a stake in the bank, although in the case of the US, it appears not to be anymore, after the US House of Representatives decided not to pass the $700bn bail out plan.
Re: The Money/Business Thread - Bail Out Rejected!
Posted: Mon Sep 29, 2008 10:21 pm
by Ecno
How was this going to work? The American Goverment buys up subprime debt at below makert value and then what? Does it act as a bank and try and get as much of it back from the borrowers as possible including repossesions?
Re: The Money/Business Thread - Bail Out Rejected!
Posted: Mon Sep 29, 2008 10:23 pm
by Jango
Ecno wrote:How was this going to work? The American Goverment buys up subprime debt at below makert value and then what? Does it act as a bank and try and get as much of it back from the borrowers as possible including repossesions?
That's a really good image in summing up what exactly would happen in the bail out plan, if it had been accepted.
Re: The Money/Business Thread - Bail Out Rejected!
Posted: Mon Sep 29, 2008 10:25 pm
by Ecno
Jango wrote:Ecno wrote:How was this going to work? The American Goverment buys up subprime debt at below makert value and then what? Does it act as a bank and try and get as much of it back from the borrowers as possible including repossesions?
That's a really good image in summing up what exactly would happen in the bail out plan, if it had been accepted.
What happens with the toxic assests though?
Re: The Money/Business Thread - Bail Out Rejected!
Posted: Mon Sep 29, 2008 10:26 pm
by Rightey
So basically the government would be giving the Banks money for "Toxic assets" which to me, does not sound good.
Re: The Money/Business Thread - Bail Out Rejected!
Posted: Mon Sep 29, 2008 10:27 pm
by Hexx
Jango wrote:Ecno wrote:How was this going to work? The American Goverment buys up subprime debt at below makert value and then what? Does it act as a bank and try and get as much of it back from the borrowers as possible including repossesions?
That's a really good image in summing up what exactly would happen in the bail out plan, if it had been accepted.
If you ignore the top two boxes it also gives a really simple idea of the basics of the problems atm. Repayments stop and then interbank lending stops.
Re: The Money/Business Thread - Bail Out Rejected!
Posted: Mon Sep 29, 2008 10:28 pm
by Hexx
Rightey wrote:So basically the government would be giving the Banks money for "Toxic assets" which to me, does not sound good.
Potentially bad yes. But potentially the government could get back what it paid for them over time, but it massively increases the banks liquid assets at this point.
Re: The Money/Business Thread - Bail Out Rejected!
Posted: Mon Sep 29, 2008 10:31 pm
by Jango
The government takes them to take the bad debt away from the banks, making it easier for them to lend to each other.
It seems a really bad idea but it allows the bank to get back to their normal business, which is good and the bad debt could, in time with the return of the banking sector, prove to be valuable to the government, or at the very least, worth enough for them not to lose everything.