Who has all the Money?

Discussion in 'Current Events' started by Care4all, Sep 29, 2008.

  1. Care4all
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    Care4all Warrior Princess Supporting Member

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    Okay, so all the guys reporting on the Stock Market say that the Credit market is frozen, and has been frozen since Paulson came forward with his Bailout plan...(why should those with money bail out those that need it if the government is going to come in with all this free money?)

    So, those corporations with the money are holding back and freezing the market until they get the bailout with our tax dollars.

    Someone has "the money" in hand....to buy off the bad debt at a cheap price and to "make money off of it" other than the usa government...don't you think?

    It doesn't just disappear... yes, homeowners that made money off the sale of their homes made a bunch, but they reinvested this money and SOMEONE, some financial institution is holding it....no?


    When congress passes some kind of bill for a bailout, don't you think the market will just shoot up in the manner that it shot down today?
     
  2. dilloduck
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    dilloduck Diamond Member

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    Do you mean "who has the REAL money ?"
     
  3. Care4all
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    Care4all Warrior Princess Supporting Member

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    no, who has all the play money, in this game? Where is it? In whose individual accounts or what institutions?
     
  4. AllieBaba
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    AllieBaba BANNED

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    Rent-A-Center, the Money Tree and all the other predatory lenders who popped up under Clinton.
     
  5. dilloduck
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    dilloduck Diamond Member

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    Let me try this again---do you mean CASH ?
     
  6. AllieBaba
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    AllieBaba BANNED

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    I have decided to set myself up as the protector of all money from now on.

    Pay pal is your friend. Please remove all your savings and paypal it to me immediately. In 20 years, you may enjoy viewing the huge house I will be living in, and rest easy knowing your money was well spent.
     
  7. Care4all
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    Care4all Warrior Princess Supporting Member

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    who has the cash...?

    and

    who has the money on paper, on their financial ledger....?
     
  8. HoleInTheVoid
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    HoleInTheVoid Active Member

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    Basically, we have a crapload of mortgages that nobody knows how much they are worth.

    As they were written they created demand which in turn drove up prices. No problem if you're in an ARM so long as value outpaces the interest rate. Once the market peaked and interest rates remained high the ARMs left the owners upside down.

    When the defaults came through the bst course was to get a fixed or sell.

    You can't get a fixed because you only qualify subprime. You can't sell because as previousluy noted the market peaked.

    When mortgage payments don't come in the banks lose capital to loan elsewhere. But to cover their current ops the law says they have to have X% liquidity and the law also says they cannot hold on to defaulted mortgages.

    But the wants to buy a mortgage that was inflated by all the other bad mortgages just like it? You can't even offer pennies on the dollar for the paper because nobody knows how many dollars it is worth.

    They're caled toxic assets.

    Just how much ephemeral money are we talking?

    Bad News For The Bailout - Forbes.com

    You see: the assets are so unpriceable Treasury doesn't even know if $700B would have been enough, too much or too little.
    Be afraid. Be very afraid.
     
  9. AllieBaba
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    AllieBaba BANNED

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    Let them crash and burn.
     
  10. Baruch Menachem
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    Baruch Menachem '

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    House prices are way over any rational concept of where they should be. The banks made way too many loans based on way over valuations.

    The hard reality is prices will have to come down to about 20% of where they are in some places.
     

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