Shades of 1930 - a run on a bank? Are things really that bad?

Question

http://www.todayonline.com/articles/211475.asp

Sorry, I did NOT mean to post this here.

I agree, so I was surprised to see this.

Answer 1

As for the mistake, that's OK. It's related to immigration indirectly. I got a call from a Democratic PAC. I don't subscribe to their theory, I only associated with them to get Bush removed, which I think is too late now. They wanted to stop foreclosure. I listen to them, but I told them I want the foreclosure to happen. These were irresponsible people. I should not have to pay higher cost for a house, because they jack up the prices because they bought it before they can afford it. I shouldn't pay extra taxes to help bail them out. I could of bought a house earlier, but I knew I did not have enough savings. I should not be penalized for beign responsible. Most of those who are losing their homes were greedy and gambled their homes, and lost. If they gambled and won, they get to keep all of the money. If they gambled and lost, they should not be able to keep the money they lost and make me pay for their lost. The PAC told me waht about their children, we are kicking them out of their home. Most people don't have homes, and they rent. They should not have a home in the first place. what about all the people who don't have a house and their CHildren, and how the irresponsible prevented them from owning a house. I was farther away from owning a home now than 10 years ago, because these people jacked up the housing prices. Yes I agree the banks are guilty. THey had better knowledge than the average person. WHy I said it's related to the immigration issue is that there is a similar mentality. SOme would use the Children as a way to emotional black mail us to allow an inappropriate behavior to occur. They want illegal immigrants to stay because they have kids, homeowners who are irresponsible gets to keep their houses because they had kids. Both acted out of selfishness and expected the government to bend over for them. Corporate greed expect the public to forgive indiscretion. Most of all a belief to reward bad behavior while those who are responsible are being punished. I listen to them and yes, stopping the foreclosure, might prevent a further decay of our economy. I'm not sure, but I don't care. I don't argue with those who believe that illegal immigrants enlarge our economy. My thoughts is the priority should go to encouraging people to behave responsibly. What kind of society where people act rashly gets more in life while those who act responsibly and follow the rules. I believe getting people to act in an appropriate manner, would have a greater reward in the future. SO as to a possible recession, It has to happen, but I hope for a soft landing. I feel both the Bush and Clinton administration mismanage the whole ordeal. Greenspan told us we need to regulate this, and Bush did nothing, although I also believe Greenspan was late on his advice as well. We need a recession to get the housing price to become reasonable. Real Estate experts knew this was going to happen, because the housing market was always cyclic. What is causing all the stir is how international the banking industry and investment has become. I have a feeling the raids is occuring now, to get rid of excess labor, because the construction industry is slowing down. I doubt there will be a depression, but who knows. There is alot more going on then housing. There is a major change that China is undergoing, and Oil prices is sky rocketting.

Answer 2

The last quarter had a record number of foreclosures. Remember, this quarter was not in the dead slow winter, #1

Through all the recessions and the foreclosures of those times, we have worse foreclosures now. So, there is your answer.

Now the bad part is that middle America, the middle class, the ones that have to grind for a living, not the rich are the ones foreclosing.

This group makes up the people just reaching "The American Dream" This is the mass of the country, mainstream.

Now, get this, WE ARE NOT EVEN IN A RECESSION and we have record foreclosures. Yes, subprime mortgages...but there is a much bigger problem. This class of people have an EXTREME problem finding a second job....something menial...to help pay for the tough times. Illegal aliens have taken all those "second job" types of jobs.

If a homeowner has a tough time...so they go pump gas or something for a while. Those type of jobs are all taken by illegal labor and an upswing of the economic cycle will not bail out middle America.

Yes it is that bad....and the damage from this economic turndown may be permanent. When this turns into a recession...it's gonna be nasty.

Answer 3

I read that some huge investor stop investing in the American market and is buying hundreds of thousands of stock options in the English market. This is happening all over the world. That should tell you something about the US right now.

Answer 4

England, doesn't have FDIC to insure patients of the bank, as USA..

US bank offers have up to 100 K protection.

Answer 5

I don't understand alot of this when I'm dealing with just personal finances let alone the "global" economy. It just seems to me that they can't break 1st worlds middle class to poverty fast enough. Just a gut feeling.....but something isn't right.

Answer 6

They are not that bad, and safeguards have been built into the system to see that they do not get that bad.

Answer 7

no