OK, can someone please explain this logic if there is any logic to it?

Discussion in 'Economy' started by Care4all, Oct 13, 2008.

  1. Care4all
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    Care4all Warrior Princess Supporting Member

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    In simple talk...

    Just using rough figures, our economy is comprised of about 80% small business and 20% large....

    20% of our businesses is traded on the stock market, I am presuming this is what that means...

    if the Credit market is 20% of the total market or even 20-30% of the volume of the stock markets...

    and only 20-25% of the subprime loans are failing while only 6% of the conventional loans are failing making it maybe 12% of all loans failing...

    out of 20% sector of the market, the Credit market they've been calling it...

    Then HOW IN THE WORLD could this wee bit of defaulting loans, when looking at the whole big picture, caused the whole stock market to crash in the manner that it did here and around the whole world, last week and why is everyone talking about our entire economy being in the tank?

    The only thing that this means to me is that it seems that people defaulting on home mortgages might be the Fall guy for something much more complicated and sinister than we think, like it is all just crap shooting or really monopoly money handed out by the dealer when you pass go...

    Again, this is all in just simple think....not discussing the devilish details but just the logic of how 12% defaulting loans in a 20% sector of the stock market, could really make humpty dumpty fall?

    care
     
  2. dilloduck
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    dilloduck Diamond Member

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    It's not logical because the problem wasn't only mortgage defaults.
     
  3. Ravi
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    Ravi Diamond Member

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    Oh, Care...where have you been? It's not the fault of a handful of people defaulting on mortgages. They are just a convenient scapegoat.
     
  4. Care4all
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    Care4all Warrior Princess Supporting Member

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    it logically and mathematically can't be....

    gawd, we got alot of stupid congressmen!
     
  5. editec
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    editec Mr. Forgot-it-All

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    NAKED DERIVATIVES.

    Some banks were flat out gambling and lost.

    We'd outlawed that kind of banking routlette but the the neo-con deregulator squads eroded the laws that would have prevented this meltdown.

    Those would be the same voices now trying to convince us that the whole problem is caused by the Community reinvestment Act or by stupid consumers buying homes they cannot afford.

    These party faithful notwits will look everywhere to find scapegoats but to the actual facts, I guess.
     
  6. dilloduck
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    dilloduck Diamond Member

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    Only the Republicans----the dems will handle this and you will be rich--just you watch !
     
  7. Andrew2382
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    Andrew2382 Gold Member

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    yup, the CRA was great. Not like in 1999 when Clinton add provisions to it, that the housing market skyrocketd past inflation when prior it went up at a dead even pace.

    Nah CRA was wonderful
     
  8. Ravi
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    Ravi Diamond Member

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    To be fair, I don't think most congresscritters put forth the stupid idea that defaulting poor people brought down the economy.
     
  9. dilloduck
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    dilloduck Diamond Member

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    A whole lot of things contributed to it and it wasn't any big surprise either. It was a total Republican plot to ruin America.
     
  10. Care4all
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    Care4all Warrior Princess Supporting Member

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    i heard alot of republican congresscritters say it...still am... :( and just alot of every day folk, calling in to c-span's washington journal...
     

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