my teacher explained it to me!
idk if this has been posted yet (the easy to understand version of it)

ok so basically, about 8 years ago, banks lent a bunch of people (with bad credit) loans. Those people could not pay them bank back with interest, so the bank had to repossess(?) the people's stuff(mainly homes). Since the banks couldnt sell the foreclosed homes, they are losing money. Since people were afraid the bank companies would fail, they pulled their stocks out, which caused the stock market to crash.

Yes

As stated in my other thread, something similar happened in the Great Depression.

Bottom line: America is ****ed

my teacher explained it to me!
idk if this has been posted yet (the easy to understand version of it)

ok so basically, about 8 years ago, banks lent a bunch of people (with bad credit) loans. Those people could not pay them bank back with interest, so the bank had to repossess(?) the people's stuff(mainly homes). Since the banks couldnt sell the foreclosed homes, they are losing money. Since people were afraid the bank companies would fail, they pulled their stocks out, which caused the stock market to crash.

Nice win.


I liek how u think

So Hamilton's national bank plan backfired? Lulz that's wut u get for robbing poor people with bonds.

So what will happen to America?

So what will happen to America?

Everybody will be poor, and prices will be high.
It'll be another depression.

Yes

As stated in my other thread, something similar happened in the Great Depression.

Bottom line: America is ****ed

Also, America won't be ****ed if we pull out troops as soon as possible and try saving some money to get us out of this shit hole we're in.

Those are known as bad debts, and "repossess" is actually the necessary collaterals, property or goods used as security against a loan and forfeited if the loan is not repaid.
Inflation and stuffs are gonna happen, and you're gonna look into people with fixed income, who will be badly hit by the effects, which will lead to lower GDP and stuffs, it's all inter-linked.

idk bout the rest of america, but i personally wont be "****ed"
the worst thing that will happen (for me) is that itll be harder to get a loan for college, car, house, etc.... because a higher credit score will be needed most likely

which wont happen because 1. i have enough money for 4 years at a state university (or 1-2 years at a private university, which i can work to pay the rest) 2. i already have a car, and 3. by the time ill actually need a loan for a house, my credit score would probably be high enough to get one anyway

my teacher explained it to me!
idk if this has been posted yet (the easy to understand version of it)

ok so basically, about 8 years ago, banks lent a bunch of people (with bad credit) loans. Those people could not pay them bank back with interest, so the bank had to repossess(?) the people's stuff(mainly homes). Since the banks couldnt sell the foreclosed homes, they are losing money. Since people were afraid the bank companies would fail, they pulled their stocks out, which caused the stock market to crash.

Well explain, he's a smart teacher.

This is what we could've kept, (http://www.nationalpriorities.org/costofwar_home) along with many men who died for an unjust cause, if any at all given the bullshit everyone in America is fed by spoon. 8 years of hard work by a great man, literally destroyed and then some by a dunce with one too many puppet strings. /sheds tear

Some economists are thinking of restarting the whole economy in america...but are not sure how this will ultimately affect the world.

Some economists are thinking of restarting the whole economy in america...but are not sure how this will ultimately affect the world.

Maybe if we restarted 10 years ago. But not today. Europe is the main economical force today, not us.

Well Dow Jones just rose 485 points NASDAQ, 98 points and S&P 500, 59 points so i guess it looks like it is stabilizing

I've got an AK-47, and ten six packs of beer.

I'll just wait it out until society reestablishes itself.

The stock market crashed? I suppose they didn't keep extra money in stock. :3

Maybe if we restarted 10 years ago. But not today. Europe is the main economical force today, not us.

Maybe...

What I find interesting though is, what people draw as conclusions of the whole issue; We see now what happened, so the people must have been unable to see what was coming back than must be blamed.

That is far from true.
The only reason why almost anyone invested is, not that people were getting greedy on all the money they suposedly would make;
No one threw comon sense out if the window.

They had buissneses to sustain, which made joining the subprime unavoidable.
Would they have kept the money out of it, the total market loss wouln't be so diffrent, because they would have lost the ability to compet before thecrisis hit and run into severe troubles.
Some say there is an error in the way the market creates and preferes risks, but it doesn't just prefre but enforce it.
We live in a capitalist world, people need wars to learn that guns actually are devices that shoot bullets and seemingly a financial crisis to get that a currency is not a mirracle of god but the value of all that is part of the financial environment.
Kapitalism obviousely gets weird as soon as people loose sight that everyone works for his own good, because they don't even know what their own is.
They should start to care a little more about it and not what is "right".

http://money.cnn.com/data/world_markets/index.html
In 29th of last month
Only Norway BRIX was green, at +0.02%, sure was epic moment.

Well, I did study the Black Thursday. It was pretty funny and sad some people were actually selling themself.