Stock Market crash 777 points
09-29-2008, 03:08 PM
#32
Richard Fuld, CEO of Lehman Brothers, since the decline of his company, aside from his usual team of bodyguards, hired more of them when he drove the company into bankruptcy. There were some real angry employees who had their whole retirement funds wiped out by him.
09-29-2008, 03:22 PM
#34
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Time to apply the good ol' mentality of...Ignorance Is Bliss!!!
Unfortunately, the thought has crossed my mind because of how everything messed up has been lately...I just cannot deal with all the stupidity that seems to be prevalent right now.
Friends of my family are going through a foreclosure (and possible bankruptcy) right now back in Chicago because they made bad financial decisions...biggest one buying a $1 Mil house on 0%, 100 year mortgage, with pretty much no money down...and now finding themselves unable to refinance or pay for any of their stuff. The kicker is that they REFUSE to admit personal responsibility!!! They are acting like the are VICTIMS and getting SCREWED by the system and/or market!!! I tried sorting them out on a phone because they called me for financial advice (I am a CPA and do financial consulting), but instead of listening to me they yelled about me to my family saying I was rude and inconsiderate (because I did not agree with their choices). The economy is the way it is partly because of morons like that!
End Rant
EDIT: Fixed some poor language choices
Unfortunately, the thought has crossed my mind because of how everything messed up has been lately...I just cannot deal with all the stupidity that seems to be prevalent right now.
Friends of my family are going through a foreclosure (and possible bankruptcy) right now back in Chicago because they made bad financial decisions...biggest one buying a $1 Mil house on 0%, 100 year mortgage, with pretty much no money down...and now finding themselves unable to refinance or pay for any of their stuff. The kicker is that they REFUSE to admit personal responsibility!!! They are acting like the are VICTIMS and getting SCREWED by the system and/or market!!! I tried sorting them out on a phone because they called me for financial advice (I am a CPA and do financial consulting), but instead of listening to me they yelled about me to my family saying I was rude and inconsiderate (because I did not agree with their choices). The economy is the way it is partly because of morons like that!
End Rant
EDIT: Fixed some poor language choices
That's awesome, too bad stupid people don't listen... cause they are stupid.
09-29-2008, 04:16 PM
#37
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i am against the bail out. washington mutual new CEO that was only on the job for 3 weeks gets a signing bonus of $17.6m and additional money for something else with the bailout money. all others get screwed out of their jobs and stock holders as well. this has to hit rock bottom for things to get settled.
09-29-2008, 04:55 PM
#38
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i am against the bail out. washington mutual new CEO that was only on the job for 3 weeks gets a signing bonus of $17.6m and additional money for something else with the bailout money. all others get screwed out of their jobs and stock holders as well. this has to hit rock bottom for things to get settled.
We are simple not able to hang on to theories and principles learned 50 years ago and be stubborn know-it-alls who refuse to adjust with the times by choosing to ignore or care less to understand many of the uber-complicated debt arrangements and securitazations and general operations of the firm that were based on way over-leveraged by inflated assets. I mean, if you are getting gazillion $$$ bonuses it must all be going well. We also cannot comprehend ignoring all ethics and morals and up-selling the "American Dream" of owning a home to people who could never afford even half of one in the first place. Than of course, there is the most important aspect of having your name printed in Wall Street Journal as the brave captain who is commanding a sinking ship and must be well compensated for public scrutiny and exposure. Lastly, it is impossible to imagine putting away behind bars great financial leaders in fear of not having anyone to turn to to lead companies in the future and collect even bigger bonuses during the good times.
09-29-2008, 04:59 PM
#39
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Originally Posted by Henry Paulson, Senate Testimony, July 15, 2008
Senator, I can tell you what you can believe. You can believe I believe everything I say.
credit is a commodity like any other. there was a surplus of credit in the system. americans were encouraged to borrow (mortgages) which created demand for the kind of credit banks wanted to sell. half the time the credit itself wasn’t even real, merely leveraged off some other hyper-inflated commodity that the bank/investment bank owned.
banks didn’t care about lending money to people who couldn't afford to borrow because that isn't how banks make their money. banks provided the money for mortgage companies to lend in return for the right to package and sell the bad debt to investors.
so now we've got nuclear winter and australia is still like "wtf m8?" oh wait. no now we have a situation where most of the sources for capital have dried up due to writedowns. this causes failures of investing and lending institutions that are overexposed in either subprime securities or got shorted into the ground in the wake of their writedowns.
who do we blame for this? as much as i hate to say it this a natural market reaction to previous deregulation. the booms experienced in recent years are a direct result of the Gramm-Leach Financial Services Modernization Act and accordingly this painful *****slap is the result of it as well.
now that's not to say that deregulation is a bad thing, but for any complex system (see: the environment, financial market) sudden , sweeping changes (good bad, or ones that seem to have no short term effect) cause serious ripples down the road.
09-29-2008, 05:00 PM
#40
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Being CEO is a VERY tough job! They deserve EVERY penny they get because the position requires qualifications and skills that are unfathomable to a regular person like you and me.
We are simple not able to hang on to theories and principles learned 50 years ago and be stubborn know-it-alls who refuse to adjust with the times by choosing to ignore or care less to understand many of the uber-complicated debt arrangements and securitazations and general operations of the firm that were based on way over-leveraged by inflated assets. I mean, if you are getting gazillion $$$ bonuses it must all be going well. We also cannot comprehend ignoring all ethics and morals and up-selling the "American Dream" of owning a home to people who could never afford even half of one in the first place. Than of course, there is the most important aspect of having your name printed in Wall Street Journal as the brave captain who is commanding a sinking ship and must be well compensated for public scrutiny and exposure. Lastly, it is impossible to imagine putting away behind bars great financial leaders in fear of not having anyone to turn to to lead companies in the future and collect even bigger bonuses during the good times.
We are simple not able to hang on to theories and principles learned 50 years ago and be stubborn know-it-alls who refuse to adjust with the times by choosing to ignore or care less to understand many of the uber-complicated debt arrangements and securitazations and general operations of the firm that were based on way over-leveraged by inflated assets. I mean, if you are getting gazillion $$$ bonuses it must all be going well. We also cannot comprehend ignoring all ethics and morals and up-selling the "American Dream" of owning a home to people who could never afford even half of one in the first place. Than of course, there is the most important aspect of having your name printed in Wall Street Journal as the brave captain who is commanding a sinking ship and must be well compensated for public scrutiny and exposure. Lastly, it is impossible to imagine putting away behind bars great financial leaders in fear of not having anyone to turn to to lead companies in the future and collect even bigger bonuses during the good times.
Can't make money doing what you are doing? stop borrowing.
A lot of this stuff is the way it is cause these business play the interested rate trade game, they are just moving around money, thinking they are making money... at least that's what investors think. Instead of providing a product or service, they bank on the value of their stock, and everything else is just fluff. When the stock crashes, they can't cash out enough to pay the bills, game over.
What ever happened to labor and people who created tangible goods? Making a profit, what a ****ing concept.
09-29-2008, 05:07 PM
#44
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I can fix all that for you... don't spend beyond your means.
Can't make money doing what you are doing? stop borrowing.
A lot of this stuff is the way it is cause these business play the interested rate trade game, they are just moving around money, thinking they are making money... at least that's what investors think. Instead of providing a product or service, they bank on the value of their stock, and everything else is just fluff. When the stock crashes, they can't cash out enough to pay the bills, game over.
What ever happened to labor and people who created tangible goods? Making a profit, what a ****ing concept.
Can't make money doing what you are doing? stop borrowing.
A lot of this stuff is the way it is cause these business play the interested rate trade game, they are just moving around money, thinking they are making money... at least that's what investors think. Instead of providing a product or service, they bank on the value of their stock, and everything else is just fluff. When the stock crashes, they can't cash out enough to pay the bills, game over.
What ever happened to labor and people who created tangible goods? Making a profit, what a ****ing concept.
09-29-2008, 06:36 PM
#45
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We still have a ways to go folks.
It's mean, but I'm looking to buy a home/invest in a home sometime next year... no bail out means much tighter credit and that means people with fair or worse credit and no money to put down will not be getting homes.
If the bail out happens, that means the mortgage rate will drop even more and companies will hand out more and more credit to undeserving people... harder for me to find a home I can afford.
It's selfish of me, but I'm looking forward to rock bottom home prices around here and jumping on the mistakes of others.
It's mean, but I'm looking to buy a home/invest in a home sometime next year... no bail out means much tighter credit and that means people with fair or worse credit and no money to put down will not be getting homes.
If the bail out happens, that means the mortgage rate will drop even more and companies will hand out more and more credit to undeserving people... harder for me to find a home I can afford.
It's selfish of me, but I'm looking forward to rock bottom home prices around here and jumping on the mistakes of others.