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     kate
Member
Username: kate
Post Number: 716
Registered: 04-2005Rating: N/A
Votes: 0
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| | Saturday, August 11, 2007 - 11:55 am: |  
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There is so much information being bandied around I thought it may be helpful to post a couple of links from the BBC website. In their business analysis section they often provide background information to current market problems. It is in a Q&A format and easy to follow.
1. Sub prime mortgages
http://news.bbc.co.uk/2/hi/business/5144662.stm
2. This link isn't in Q&A format but is still easy to follow and explains the reasons behind "credit crunches"
http://news.bbc.co.uk/2/hi/business/6939899.stm
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captain_chaza
Member
Username: captain_chaza
Post Number: 2614
Registered: 02-2003Rating: N/A
Votes: 0
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| | Saturday, August 11, 2007 - 02:52 pm: |
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Ahoy Brave and Loyal Sea-Cadet-Officer Katie 
In times of Credit Crunches and Credit Squeezes many tacks have been tried over the years but alas
All Have Failed
The Latest Concept in ECO-POL 101 nowadays in solving this mess is to throw money out of helicopters
I believe it to be a Great Tack and have no doubt
"It Will work!"
God bless Our Sweet Fundamentalists and Academics who always seem to Tack LATE!
Crikey! Unemployed Landlubbers can't pay taxes!
Without taxes you can't even make WARS
"How Silly is That?"
Salute and Gods' Speed
(Message edited by Captain_Chaza on August 11, 2007)
"While we stop and think, we often miss our opportunity." Publilius Syrus, 1st century B.C.
"I believe the future is only the past again, entered through another gate."
Sir Arthur Wing Pinero 1893
"There are two times in a man's life when he should not speculate: When he can't afford it, and when he can." Mark Twain, 1897
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colin_twiggs
Member
Username: colin_twiggs
Post Number: 3005
Registered: 09-2002Rating: N/A
Votes: 0
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| | Saturday, August 11, 2007 - 03:15 pm: |
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Charles,
If wars were funded by taxes, they would be over in a few months - taxpayers would revolt.
Unfortunately the Bank of England came up with a novel idea in Napoleon's time - just print more money and the public will be none the wiser. Then blame the runaway inflation on those greedy shopkeepers and black marketeers.
Regards,
Colin
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kate
Member
Username: kate
Post Number: 717
Registered: 04-2005Rating: N/A
Votes: 0
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| | Saturday, August 11, 2007 - 03:29 pm: |
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Captain C
How long will the first batch of money solve the problem for do you think, one day or two?
It was a bit scary when Trichet asked the banks how much they wanted, Bernanke didn't even do that!
Europe is obviously in a lot more trouble than first realised. What I find really intriguing is that nobody, including the ECB, know how many and to what extent the large financial institutions are exposed.
Regards
Kate
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hilarius
Member
Username: hilarius
Post Number: 2646
Registered: 04-2004
Rating: N/A
Votes: 0
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| | Saturday, August 11, 2007 - 03:50 pm: |
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Kate
That is why all the experts are paid squillions of dollars in salaries in order not to know what is going on
You and I could classify debts into A, B and C grade and add them up
I would be quite willing to do it for the salary the experts are paid
I come in peace to share my thoughts and to shine my candle light on possible long term opportunities
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captain_chaza
Member
Username: captain_chaza
Post Number: 2615
Registered: 02-2003Rating: N/A
Votes: 0
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| | Saturday, August 11, 2007 - 03:52 pm: |
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Ahoy SCO Katie
The Magnitude of the "Problem" is insignificant
However, IMHO The Number of Helicopters Is Paramount!
Salute and Gods' speed
"While we stop and think, we often miss our opportunity." Publilius Syrus, 1st century B.C.
"I believe the future is only the past again, entered through another gate."
Sir Arthur Wing Pinero 1893
"There are two times in a man's life when he should not speculate: When he can't afford it, and when he can." Mark Twain, 1897
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captain_chaza
Member
Username: captain_chaza
Post Number: 2616
Registered: 02-2003Rating: N/A
Votes: 0
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| | Saturday, August 11, 2007 - 04:07 pm: |
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Ahoy Dear Friar
I have seen your Accounting /Handywork in your Useless Learning Exercise in Long Term/Real time
You seem to rely heavily on "Trust" in lieu of doing the hard yards
Maybe it is just One of Those "Christian Things" I do not understand?
Salute and Gods' speed
"While we stop and think, we often miss our opportunity." Publilius Syrus, 1st century B.C.
"I believe the future is only the past again, entered through another gate."
Sir Arthur Wing Pinero 1893
"There are two times in a man's life when he should not speculate: When he can't afford it, and when he can." Mark Twain, 1897
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hilarius
Member
Username: hilarius
Post Number: 2648
Registered: 04-2004
Rating: N/A
Votes: 0
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| | Saturday, August 11, 2007 - 08:20 pm: |
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Dear Courageous Captain
We Christians learned trust from our Jewish forebears and their descendants in the Jewish faith carry on the fine tradition of trust which your ancestors taught us all
No self respecting Christian or Jew would ever require a written contract when an honest hand-shake is all that is required. Surely that is your experience?
With Best Wishes
Friar Hilarius
I hope it won't be long before all follow our example 
I come in peace to share my thoughts and to shine my candle light on possible long term opportunities
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kate
Member
Username: kate
Post Number: 728
Registered: 04-2005Rating: N/A
Votes: 0
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| | Friday, August 17, 2007 - 08:57 am: |
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Thought it would be interesting to show a time line of the sub prime story.
http://news.bbc.co.uk/2/hi/business/6945672.stm
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easymoney
Member
Username: easymoney
Post Number: 35
Registered: 03-2005Rating: N/A
Votes: 0
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| | Saturday, August 18, 2007 - 09:03 am: |
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Pardon the naivety of the question, but who has done what to whom to trigger all of this? Have the "sub-prime" lenders been living hand to mouth to the extent that their businesses have fallen over because they can't borrow more funds?
...or is it the usual process of businesses going backwards taking bigger and bigger risks until failure is inevitable?
We are told that P/E ratios are "normal" unlike the tech bubble of the 90s. How much of the growth in company profits (which keep the P/E ratio "normal") is based on performance and how much is by leverage?
(Message edited by easymoney on August 18, 2007)
Two of them say they're Jesus.
One of them must be wrong.
Industrial Disease
Dire Straits
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kate
Member
Username: kate
Post Number: 734
Registered: 04-2005Rating: N/A
Votes: 0
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| | Saturday, August 18, 2007 - 10:06 am: |
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Easymoney,
Have a read of this and see if it helps answer your question
http://www.ft.com/cms/s/88863e9e-4ce9-11dc-a51d-0000779fd2ac.html
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easymoney
Member
Username: easymoney
Post Number: 36
Registered: 03-2005Rating: N/A
Votes: 0
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| | Saturday, August 18, 2007 - 11:06 am: |
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Thanks Kate.
So is it just the usual story of people being vulnerable to an unexpected change of circumstances?
Two of them say they're Jesus.
One of them must be wrong.
Industrial Disease
Dire Straits
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kate
Member
Username: kate
Post Number: 735
Registered: 04-2005Rating: N/A
Votes: 0
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| | Saturday, August 18, 2007 - 02:10 pm: |
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Easymoney,
Apparently there was quite a bit of fraud as well - on both sides of the mortgage equation.
But mostly it the usual story of taking advantage of people who aren't financially savvy and who have "eyes bigger than their stomach". Don't forget it is consumerism that makes the US go round.
Kate
(Message edited by kate on August 18, 2007)
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captain_chaza
Member
Username: captain_chaza
Post Number: 2635
Registered: 02-2003Rating: N/A
Votes: 0
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