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Santanfara
3460 Posts |
 Posted - 08 Sep 2008 : 17:11:04
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kay, what is going in u.s man? your federal state departments bail out the poor performing companies, frede mai and fannie mac. isn't this against the spirit of competition? i will delebarate later but this time u.s sneezes britian catch cold but the cold went back hunting the u.s big business.
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Surah- Ar-Rum 30-22
"And among His signs is the creation of heavens and the earth, and the difference of your languages and colours. verily, in that are indeed signs for men of sound knowledge." Qu'ran
www.suntoumana.blogspot.com |
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toubab1020
12309 Posts |
Posted - 08 Sep 2008 : 19:05:05
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Probably right but with the value of the dollar shrinking that means that the Arabs get less money as Oil is priced in US Dollars they don't like that either as their revenue is worth less.
These two companies that you mention are real giants in the financial world I look forward to your piece explaining all. |
"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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kaanibaa
United Kingdom
1169 Posts |
Posted - 08 Sep 2008 : 21:50:47
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| Suspect that there is a mighty plot to lessen the value of the Dollar thus its weight as the currency of trade would be less effective in balancing the inflationary cost/effect of oil on the US economy. Stupid me thinking thats all but I just cannot understand why the green buck keeps plummeting especially at this material time . |
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kayjatta
2978 Posts |
Posted - 08 Sep 2008 : 23:05:20
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quote:
Originally posted by Santanfara
kay, what is going in u.s man? your federal state departments bail out the poor performing companies, frede mai and fannie mac. isn't this against the spirit of competition? i will delebarate later but this time u.s sneezes britian catch cold but the cold went back hunting the u.s big business.
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Santafara, America's problems right now are caused by Saudi Arabia and its oil. Just wait unitl we stop buying oil. Okay I 'm just kidding on that one.
The taking over of Fannie Mae and Freddie Mac by the FED is perhaps,one of the biggest intervention moves in American history. In theory this mortgage companies should not be rescued for many reasons including the one you have just mentioned, competition. However, I agree with Paulson's position that not taking action now will be more catastrophic in the long run than doing so now. These giant mortgage companies are the support behind most home owners here, and allowing them to melt down with billions of dollars of losses will further damage the U.S. economy.This is kind of a semblance to Keynesian economics.
Fannie and Freddie are at the forefront of the housing market here,making home ownership (an important American dream)a reality for millions of people; and you would recall that the housing market has been on a catastrophic free fall for some time as a result of a combination of factors including predatory lending practices and the subsequent credit crunch.
But I suspect this problem needs to be solved in the long run by a broader strategy that includes ending our dependence on fossil fuel (Saudi oil  ) and repositioning our economy with regards to China... |
Edited by - kayjatta on 08 Sep 2008 23:08:28 |
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Santanfara
3460 Posts |
Posted - 09 Sep 2008 : 01:30:48
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don't start on the Saudis kay. you know very well saudi investment in the u.s top over 3 trillion dollars, do you want us to withdraw that as well?
black gold dependecy is a win win situation for all investors especailly the adicts in republican america. coming to the mortgage lenders, you have hit the nail on the head, the main cause of this whole financial market trouble is predatory lending, an irresponsible policy by this institutions. for toubab here in the u.k, he may be aware of the government recue of Northern rock, the rock has melted. they have lend to very vulnerable folks whose wish is just to fulfil having a house at a high cost. the banks should have place safety net to avoid these situations. every body wants a house, it is a status symbol. i have seen people inviting friend to their mortgage houses telling people that "i have bought a house". this makes me laugh. men you are living in a borrowed property, a property that you can be booted out of if you miss repayment, yet you are telling people, i have bought a house.
kay, what is the financial markets watch dogs saying over there? i was invited by a keiter kunda fellow for breaking the fast today, i am tank-up. so do the talking.
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Surah- Ar-Rum 30-22
"And among His signs is the creation of heavens and the earth, and the difference of your languages and colours. verily, in that are indeed signs for men of sound knowledge." Qu'ran
www.suntoumana.blogspot.com |
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Janko
Gambia
1267 Posts |
Posted - 09 Sep 2008 : 01:35:22
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The circle is complete; good or bad?
Interestingly the above mentioned firms/companies started as FED-own, then privatised and now back to FED. ownership. What are the lessons learnt from privatisation and state/public ownership.
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Clean your house before pointing a finger ... Never be moved by delirious Well-wishers in their ecstasy |
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Hiz Princess
United Kingdom
464 Posts |
Posted - 15 Sep 2008 : 09:45:49
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quote:
Originally posted by Santanfara
kay, what is going in u.s man? your federal state departments bail out the poor performing companies, frede mai and fannie mac. isn't this against the spirit of competition? i will delebarate later but this time u.s sneezes britian catch cold but the cold went back hunting the u.s big business.
I wonder what the collapse of Lehman is going to have on us all, its certainly having an impact globally .
http://business.timesonline.co.uk/tol/business |
Edited by - Hiz Princess on 15 Sep 2008 09:47:00 |
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kayjatta
2978 Posts |
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Hiz Princess
United Kingdom
464 Posts |
Posted - 15 Sep 2008 : 10:21:01
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I also have an account Worrying times indeed.
Out of curiosity has anyone any views as to why hasnt the government intervened not that I think this is the right way but didn't the US government help out Freddie Mac and Fannie Mae? |
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kayjatta
2978 Posts |
Posted - 15 Sep 2008 : 10:38:04
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If the Fed. intervened in the Lehman's problem, it might have to intervene in Merrill Lynch and later maybe Bank of America, and AIG. It will kind of be a domino effect. I tnink one of the reasons the Lehman buyout failed is because the parties that were in negotiation pullout because they could not get a Fed-backed buyout. They had anticipated Fed backing because of Fed's earlier intervention in Fannie and Freddie.
In theory the best way to resolve this is a private buyout. The Fed should stay out of it as much as possible; a lot of these problems we are facing now are a result of the irresponsible and predatory lending practices of these financial institutions over the past several years.... |
Edited by - kayjatta on 15 Sep 2008 10:40:25 |
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Santanfara
3460 Posts |
Posted - 15 Sep 2008 : 16:04:41
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indeed kay, lehman is different from fannie and fredie, those banks are into property and this affects more people than lehman an investment bank. lehman's directors failed their shareholders. why couldn't they anticipate all this problems aheads? well they are human. or yeah. i forgot.
but Bank of america will not be allow to go down, that is iconic american bank, if it fail, bush should be arrested.
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Surah- Ar-Rum 30-22
"And among His signs is the creation of heavens and the earth, and the difference of your languages and colours. verily, in that are indeed signs for men of sound knowledge." Qu'ran
www.suntoumana.blogspot.com |
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kayjatta
2978 Posts |
Posted - 15 Sep 2008 : 16:09:27
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| You think Bush should be arrested ? But I hope Bank of America does not go down, it will be dissastrous ... |
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Santanfara
3460 Posts |
Posted - 15 Sep 2008 : 17:36:08
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yeah it will be. please just wire me your savings, i will keep it safe bro.
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Surah- Ar-Rum 30-22
"And among His signs is the creation of heavens and the earth, and the difference of your languages and colours. verily, in that are indeed signs for men of sound knowledge." Qu'ran
www.suntoumana.blogspot.com |
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Hiz Princess
United Kingdom
464 Posts |
Posted - 15 Sep 2008 : 22:55:55
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Thank you for your replies I suppose the next question is why the hell has the bank of the Bank of England and the European Central Bank decided to get involved do they really believe that pumping money into the markets will stop the panic?
Santanfara lets hope your right about Bank of America I suppose some faith has been restored with the buyout of Merrill Lynch.
Looks like more potential casualties now.AIG (American International Group). AIG are indicating a need to liquidize assets to raise cash ($40Bn).If this is the case ILFC (International Lease Finance Corporation ) could be earmarked.They lease an estimated 900 aircraft. |
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Santanfara
3460 Posts |
Posted - 16 Sep 2008 : 02:10:28
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| HP, this is all a bit confusing for every one. i was listening today to the comments by the administrators, price waterhouse cooper's accountant, he said "i am totally shocked by the paste it takes for lehman to tumble". now this is the man who will be heading the administration, that is doing all it takes to make sure every interest party is compensated adequately and if necessary, restore the company to itself formerself. i don't trust this cow boy directors. there is some thing going on. i don't know what it is but this whole colapsing companies are too strong to let go this easy. there financail statements are very sound, like the northern rock, it was paying out high dividends few months before getting into trouble. the u,k governemnet and the EU most protect failing companies if not the repercussion will be far reaching. many job losses and full blown recessions, which mean, the third world will start starving big time. no food aid, if your helper is scraping it, what will you do? heey. |
Surah- Ar-Rum 30-22
"And among His signs is the creation of heavens and the earth, and the difference of your languages and colours. verily, in that are indeed signs for men of sound knowledge." Qu'ran
www.suntoumana.blogspot.com |
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Hiz Princess
United Kingdom
464 Posts |
Posted - 16 Sep 2008 : 21:20:22
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Totally agree with you Santanara, I do not trust anything these people say, do etc.
Yes you make a valid point about those in the third world
I'm going out on a limb here but i think AIG will get fed funds (ive not caught up on todays news yet) there's talk of some of the bigger insurance firms getting up a rescue package they will not go under the results will be catosgraphic
Theres going to be a lot of merging with the banks in the US
Though I have been told that the price of oils come down hmmmmmmmmmm |
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