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JohninCebu

I'm looking at my screen: the UK stocks down 8%, (30% this year) US NY down 500+ below 10,000 (40% this year)and only just opened. Most banks in the West on verge of failure, governments guaranteeing deposits to stop the run on banks, Iceland suspended (oner of the biggest banking systems in Europe would you beleive) And what do I read, seat belts, mountain bikes and where to have a steak!

 

Are we all out of touch with reality or is it just me. IMO this is the most fundamental event since WWII and no one is talking about it.

 

We should be giving each other advise or at least have an opinion unless you don't care that your pension fund has "gone", you need a gang to get rice and if you have any wealth you need guards to preserve it, and that's the UK.

 

I know I'm into this as a "job" even though I pulled out of the markets months ago. But you guys better start thinking about it before it is too late.

 

Ok, it may not be as bad as ALL the markets and commenators are saying, hell, I wish. But just in case they are right, don't you think a minute of two should be devoted to this?

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JohninCebu

http://www.ft.com/cms/s/0/339dd2c2-9304-11...00779fd18c.html

 

Unwinding and settling these derivatives will be the biggest test yet for the thus-far unregulated $54,000bn credit derivatives market, which is likely to be brought under stricter supervision amid concerns from regulators that its exponential growth helped fuel the credit bubble.

 

That is 54 thousand billion dollars. Is that the size of the rope trick that the bailout

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JohninCebu

Oh, to really cheers us all up the total derviatives market is "$596 trillion". That's $596,000,000,000,000 or $75,000 for every man woman and child on the planet.

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Alan S

The vast majority of people can do nothing about the present situation, so the only practical thing for most is to get on with everyday life and hope that things turn out all right in the end.

 

Heck, even those that are supposed to know all about the financial world, cant do much, apart from hope!

 

Personally, I have plans and ideas, but whether they are good ones or not, only time will tell.

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I'm looking at my screen: the UK stocks down 8%, (30% this year) US NY down 500+ below 10,000 (40% this year)and only just opened. Most banks in the West on verge of failure, governments guaranteeing deposits to stop the run on banks, Iceland suspended (oner of the biggest banking systems in Europe would you beleive) And what do I read, seat belts, mountain bikes and where to have a steak!

 

Are we all out of touch with reality or is it just me. IMO this is the most fundamental event since WWII and no one is talking about it.

 

We should be giving each other advise or at least have an opinion unless you don't care that your pension fund has "gone", you need a gang to get rice and if you have any wealth you need guards to preserve it, and that's the UK.

 

I know I'm into this as a "job" even though I pulled out of the markets months ago. But you guys better start thinking about it before it is too late.

 

Ok, it may not be as bad as ALL the markets and commenators are saying, hell, I wish. But just in case they are right, don't you think a minute of two should be devoted to this?

One of the reasons for moving to the province in the Philippines was not to be bothered with things like this.

Since I'm here, I'm mostly interested in local happenings - international problems are far away, and that's good. Because it's always the same: Some people want to get richer than they are already, and everybody has to pay for it.

I'm not reading any newspaper here, not watching news on tv.

If there happens something to my investments now, I might have to go back to Germany and start again from zero, as I did not finish building income and self supply here in the Phils.

However, my money seems to be safe up to now, and if it's not, what could I do?

 

But your wakeup call arrived, and as you seem to have experience, could you please tell me if and how this crisis will or might affect income from:

- Renting appartments

- Container investments

- British life insurances

- The Dollar exchange rate compared to the Euro

 

These are some of my investments. My money on bank accounts, however, should be 100% covered by law.

I have very few experience in the investment market, but I tend to say I was lucky not to invest any money in the stock market ...

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Alan S
Right. May be you have to wait about 40-50- years from now to see if you were right or not.

 

At my age, the chances of my lasting 40 years are as close to zero as makes no difference.

Heck, even another 10 years will be nice!

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Well I guess its the banks own fault that they are collapsing now. None of my business really, I still work for my money and don't try to "let the money work".

And if it really all gets bad I'm sure we could find out where the money has gone and try to get it back...

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Isn't it "US Taxpayers" who are at the bottom of this crisis?

I mean they spent the money the banks wrongfully gave them for raising mortgages on houses that were not really worth that much.

I'm quite surprised you could take a mortgage on a house you already bought, just because its price had supposedly risen. I don't think any European Bank would do such a thing, certainly not a Swiss bank.

So the money should be with the people who produced whatever the US-People bought with there so called "mortgages", which is probably just a load of junk and nothing of lasting value.

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Alan S

The European banks did do exactly the same.

In fact, there is nothing basically wrong with borrowing the equity in property when its value has risen.

With one proviso, and that is, that the amount of borrowings (or lending to look at it from the other side) should be such that in the event of a default, AND a drop in value, the lender can still sell it and get his money back.

 

Some of the loans that were being given broke all the accepted prudence of tradional banking, and now, the lenders have come unstuck.

As one example, a loan of 120% of the value of the property, such that repayments would equal over 40% of a persons income (thus needing both husband and wife to have full-time jobs), and with only their statement that they could afford it.

 

Perhaps they could at the outset when interest rates were low.

A rise in rates, or one of them falling ill or losing their job, and you have a disaster.

 

An even bigger problem is the securitisation of mortgages, and subsequent trading of those securities. Indeed, they arent "secure" as we have seen.

 

Many of the other "sophisticated" investments are about as risky as putting money on the 2.30 at Aintree!

And yet, bankers and investors did exactly this, with large sums of money. Other peoples money.

 

The problem now is that, unless the present rescue plans work, it will affect all of us, not just those with investments, or pensions, or in the finance industry.

Already it is starting to hit industry and commerce, and cause job losses.

(As one example, Ebay is cutting staff by 10%.)

 

 

I agree with John: It dont look good!

However, in practice, I still dont think that the majority can do much, if anything.

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MattFromGA

Dont get all excited about this, running around screaming "the sky is falling, the sky is falling". Markets go up and go down; company's get created every day and go under everyday.

 

I took the big hit in 2001 during the "dot com bubble" blowout. I got screwed, lost my house and it ultimately tore my life apart because I was living as though tomorrow was guaranteed to be better than today. Thats when I started to learn my lesson - but I'm still learning it.

 

Dont expect the world is "getting better every day".

 

My guess is that people in western countries will cry about the loss of their daily capachino and skiing strips and act like the world is about to blow up over it. Things here wont be impacted as much because people dont do stuff like that as much here. My guess is that the average person here isnt as tied to the system as the white collar workers of the western world, and thus wont feel the pinch as much.

 

Anyone living in the Province and more integrated into the local markets wont be affected much at all short of a Nuke hitting the Philippines.

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Sympathy for those getting squeezed now. The financial crises won't affect me too much. I have no job or business. I have no investments and no debt. I have a house and lot here in Cebu but I don't view that as an investment because it will stay in the family and never be sold. My income is a federal pension that is indexed to inflation. As long as the US Treasury keeps printing money I will get my pension. My only concern is the peso to dollar exchange rate but the dollar seems to be getting stronger here lately. It's like 47.40 to 1 and it almost reached 48 yesterday. The US won't raise my taxes much because my income is in a low tax bracket. In 2006 I only paid $14 total federal tax and last year I paid $216 federal income tax. This year my federal tax bill might be around $100. I pay no state tax because I am no longer a resident of any US state.

 

So basically, all I have to worry about is the cost of food and the peso:dollar exchange rate. Though I do have concern for the financial crises for the sake of my two adult sons in states.

 

P.S. I don't necessarily recommend that people buy a house here (in your wife's name of course) because then you are pretty much stuck here. If you have a history of moving around or you don't want to tie up your money it is better to just rent.

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Isn't it "US Taxpayers" who are at the bottom of this crisis?

I mean they spent the money the banks wrongfully gave them for raising mortgages on houses that were not really worth that much.

I'm quite surprised you could take a mortgage on a house you already bought, just because its price had supposedly risen. I don't think any European Bank would do such a thing, certainly not a Swiss bank.

So the money should be with the people who produced whatever the US-People bought with there so called "mortgages", which is probably just a load of junk and nothing of lasting value.

 

It is not a mortgage problem and certainly not a credit problem created by the small mortgage holder on the street. They always have to pay the highest interest rate and if they cannot pay anymore, the banks will rather raise the interest rate charged to them and not giving them a break.

 

Logically, the system has to collapse as it is against all financial sense to charge the highest interest rates to the ones who can afford it the least and the lowest interest rates to the ones who can afford to pay more.

 

This illogical system has been up and running and praised for many years an nobody ever questioned it.

 

The way they tackle it now will delay the collapse for another year and they will try to let the printing presses as fast as they can.

 

European Banks, Swiss Banks (Switzerland is in Europe too I believe), US Banks, Canadian Banks, UK etc. all of the big boys are playing the same game.

 

Just wait and see until the first Swiss Bank is in the media.

 

.

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Ladies and Gentlemen ,

I'm against the $85,000,000,000.00 bailout AIG.

Instead, I'm in favor of giving $85,000,000, 000 to America in

a 'We Deserve It Dividend' program.

To make the math simple, let's assume there are 200,000,000 bonafide

U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman

and child. So 200,000,000 might be a fair stab at adults 18 and up..

So divide 200 million adults 18+ into $85 billon that equals

$425,000.00.

My plan is to give $425,000 to every person 18+ as a

'We Deserve It Dividend'.

Of course, it would NOT be tax-free.

So let's assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes.

That sends $25,500,000, 000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their pocket.

A husband and wife has $595,000 .00.

What would you do with $297,500.00 to $595,000.00 in your family?

Pay off your mortgage - housing crisis solved.

Repay college loans - what a great boost to new grads

Put away money for college - it'll be there

Save in a bank - create money to loan to entrepreneurs.

 

Buy a new car - create jobs

 

Invest in the market - capital drives growth

 

Pay for your parent's medical insurance - health care improves

 

Enable Deadbeat Dads to come clean - or else

 

Remember this is for every adult U S Citizen 18+ including the folks

 

who lost their jobs at Lehman Brothers and every other company

 

that is cutting back. And of course, for those serving in our Armed

Forces.

If we're going to re-distribute wealth let's really do it...instead

of trickling out

a puny $1000.00 ( 'vote buy' ) economic incentive that is being

> proposed by one of our candidates for President.

 

If we're going to do an $85 billion bailout, let's bail out every

adult U S Citizen 18+!

 

As for AIG - liquidate it.

 

Sell off its parts.

 

Let American General go back to being American General.

 

Sell off the real estate.

Let the private sector bargain hunters cut it up and clean it up.

 

Here's my rationale. We deserve it and AIG doesn't.

 

 

Sure it's a crazy idea that can 'never work.'

 

But can you imagine the Coast-To-Coast Block Party!

How do you spell Economic Boom?

 

I trust my fellow adult Americans to know how to use the

$85 Billion

 

'We Deserve It Dividend' more than do the geniuses at AIG or in

Washington DC.

 

And remember, The Family plan only really costs $59.5 Billion

because

$25.5 Billion is returned instantly in taxes to Uncle Sam.

 

Ahhh...I feel so much better getting that off my chest.

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So many people are getting their heads handed to them in this market. This will go down as the worst financial crisis ever. I still live here in the Boston area and over the years I'd be talking to my neighbors and they would be boastful about their home values (I rent), I would always say that this can't go on forever and that there is going to be a major decline. I don't mean to thump my chest or anything, but the point is that the bubble has burst and there is going to be a lot more pain. Just taking a look around my area, nobody actually owns anything, everything is mortgaged or financed by a bank. I've seen people blowing there money on expensive cars, running up their credit cards while I am content driving a compact car with no balance on my cc. America runs on credit and now that credit is going to be difficult to get, we will have to get back to money basics. Expect more of the same in the finacial markets, even if we get a bounce from here. This will take many years to recover, sorry for the doom and gloom.

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