I admit to not always being the sharpest tool in the shed but as much as I know there is a "credit crunch" especially in the sub prime loan market is it just me or does no one else see similarities between the run on banks that led to banks crashing in the mid or late 20s helping to lead to the crash in part or the saving & loans bomb of the 80s & then the supposed burst of the tech bubble all of which while there was foundations for trouble & as the saying goes what goes up must go down or at least what's at the top has only down to go. How much of the panic in opinions obviously is feeding the flames of doom? It's just so annoying how every where you turn something is being tied to the credit crunch & on & on. Maybe its just me & even though I may not have a lot of luxery material things I can say that I'm debt free & always pay off debt asap even if it means putting off that new ipod or jetski but still it just seems like lot of this is being helped even if not on purpose.
2007-08-24 17:19:54 · 7 answers · asked by mas8baller 3 in News & Events ➔ Current Events
I've started to see things linked that have nothing to do with credit let alone indivual credit being linked to the so called spreading credit crunch. It's so mind numbing.
2007-08-24 17:21:14 · update #1
no, you are exactly right, it is a modern day form of a run on the banks.
2007-08-25 15:45:39 · answer #1 · answered by Anonymous · 0⤊ 0⤋
A lot of the economy was linked to a very large increase in home-building. This came to a sudden halt for several reasons, one of which was the instability of funds that were built of sub-prime mortgages. Suffice it to say that many wealthy investors have been ruined, so the luxury yacht business is probably going to be off a bit, and some of the tourism business, etc.
In short, there is a business cycle. Activity goes up and down, and we never know what's going to trigger the next phase. The people talking about it on, say, network TV aren't causing the trouble: information is spread much more quickly than that on financial wire services and the markets react within minutes.
Times get good, and then they get bad. Try to protect yourself as best you can.
2007-08-24 17:33:58 · answer #2 · answered by 2n2222 6 · 0⤊ 0⤋
You are not the only one to recognize this is not the first recession when it comes to the mortgage/real estate industry. It has happened before and will most likely happen again sometime down the line after we are fully recovered from this.
I can say that it was inevitable this was to happen as mortgage companies got greedy and were loaning to people with no income, no money to put down and with no income eventually defaulted.
Life goes on...it just takes some time...
2007-08-24 17:28:29 · answer #3 · answered by justme 1 · 0⤊ 0⤋
It's why! you should rile on Tangible Assets , such as gold , silver , and stock up on common used items (and that offsets inflation) T.P. ,Soap, Dried foods etc. , these fiat currency's deflate , I still enjoy the Luxury items , stay out of credit market , it's for losers , "literally" , use a debit card ,
2007-08-25 18:56:33
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answer #4
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answered by Anonymous
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It's manageable and with state intervention,it shall not be as devastating as earlier similar events were.Mercifully,people and markets have short memories.
2007-08-24 19:29:48 · answer #5 · answered by brkshandilya 7 · 0⤊ 0⤋
Scape-goats allow a convenient method of pleading innocent to crimes of stupidity.
2007-08-24 17:26:05 · answer #6 · answered by Old Stray 2 · 0⤊ 0⤋
Feels like robbery, doesn't it?
2007-08-24 17:39:39 · answer #7 · answered by Anonymous · 0⤊ 0⤋