Economy question

[littlesteppers]

I am not a economy "person" I have a question...I understand that all the world markets are connected..maybe this is a good thing..therefor if One does good all do good..if One looses ground they all do..would this not simply only lower the bar..soo instead of One dow is 16 000 and one is 9 000 we just fall ALL and go from there..??

Also Futures are UP..???? and not by little..but by 150 !! rest of the world more confident than our country??

 

[Greystone]

Were to start...there is sooo much to comment on regarding your questions. This is my take.

The "connection" or the global market was not a decision that countries made one day so it is not something they can undo. Much like the other economic evolutions, i.e., Industrial Revolution, it happens and people realize it after they are hip deep in it.

Even though we now have a global market, the Asia or European or even our market don't always all go up or down. Europe and Asia were holding their own last year (I did rather well in their markets). We are intertwined though. Many foriegn investors have heavily invested in our financial sector; it was a good buy before the housing bust. Because the situation is so dire, the credit crunch is now effecting foreign banks. The banks were all lending to each other or should I say they aren't lending to each other now.

Markets start in Europe and Asia first. I have noticed more in the last several years so much of the markets volatility is on investors sentiment as opposed to true stock value (that's a story onto itself). So we sometimes feed off of them and they in kind do the same as the week progresses. As of 10:10 EST we are almost half way back from what we lost yesterday. Europe and Asia are relatively flat except for the Nikkei.

 

[littlesteppers]

Thanks..I amsure you are right..lol..soo why are we talking about a global crisis?? Sorry if I ask dumb questions..trying to understand the whole thing.

I also understand the 700 billions are based on the wayyy inflated worth..why not appraise these houses ..that would cut it in half in my humbled opinion

 

[Carriage]

Can't speak to "futures" being up. Can tell you that "world markets" are all controlled, manipulated and managed by central bankers. World central banks are all integrated and have tracks back to the same bad players in our backyard AND to a little place in London called (oddly enough) "The City". It is from the city that banking orders are given for the world. It is also from here that precious metals prices are set and manipulated. There is NO logical reason that both gold and silver should be anywhere near as low as they are (Comex) in the midst of this "financial crisis"! That is why the monster is sometimes refered to as the octopus, because its tentacles reach into everything, everywhere. Think our intel sources work for us? Not quite, spanky! Their "work" for us is only of a secondary concern. Primarily they work for the banker, as the banker has to have the best and most complete intel of any entity on the planet. Has to be in order for the banker to "ply his trade". The banker knows that he is SEVERELY outnumbered and must have the best intel along with vast armies just to survive.

While not published anymore (thank you mr. bush) we ALL know that "money" is being printed (M-3) darn near faster than they can make the paper and ink or 1's and 0's on a computer keyboard. The IMF and world bank are two enforcement houses (among others) that see to it that the bankers can go into and rape a country for profit.

I have also found it interesting over the years that the countries that refuse the courting advances of these wolves always seem to be the countries that suddenly (like overnight) become the most dispiccable creatins bent on destroying the world and to trot out a recent reasoning, "hate our freedom"......... Yes most Americans ARE gullible enough to buy this hogwash! Whether they are promised a "carpet of gold or a carpet of bombs, your choice" their fate is sealed! Those countries not wanting to play "new world order" with the banker wolves end up on an "axis of evil" list and their rape becomes much worse in order to teach the world a lesson. In true borg or mafia fashion, resistance is futile.

We still have a chance to stop them fairly easy (albeit somewhat painfully) if we as Americans can find it within ourselves to unite under the only banner we should have been united under all the time, the Constitution of these states UNITED.

Sadly while I try to remain optimistic, I'm not at all certain that enough of a majority of the programmed Kool-aid drinkers can wean themselves off of their various addictions like party affiliation, union affiliation recreational affiliations and the like to restore the Constitution as the SUPREME law of the land. Sad because it is the ONLY way out. We are a country divided both spiritually and secularly. While in the end I don't believe you can truly have one without the other in seeking complete Freedom and Liberty (not to mention eternity), much can still be done regarding secular division. It does take some serious fortitude to break free from the addictions peddled by the banker wolves however IT CAN BE DONE and must be done our our fate is sealed.

BUT, on the bright side, IF we can unite for the reason stated, can ALL stand up together and say NO!!!!!, the wolves are outta bidness and having to run an irate gauntlet for the exits. Might be better for the world if the exit turns out to be a very sparce and small prison cell alla "Keep your enemy close". Yucca Mountain might have multiple uses, hmmmm...........

 

[littlesteppers]

Carriage..gotto ask..its killing me..are you Canadian..?? just being nosey

 

[Greystone]

Thanks..I amsure you are right..lol..soo why are we talking about a global crisis?? Sorry if I ask dumb questions..trying to understand the whole thing.I also understand the 700 billions are based on the wayyy inflated worth..why not appraise these houses ..that would cut it in half in my humbled opinion

The problem with trying to appraise the defaulted mortgages is that and this is what caused the problem we can not value them. They have been sliced and diced, no thanks to the creator Secretary Paulson. These mortgages are actually owned in fractional percentages by many many banks. The banks don't even know what they are worth.

 

[littlesteppers]

Why can't they look at the actual houses..like you would appraise your own home and give a hoop on what the papers say

 

[Carriage]

K' now I'm curious as to why you ask,

Nope "ahm a reel merican" albeit a pure decendant of Montrose and true to the family creed I indeed "never forget". The same monsters enslaved my people for hundreds of years (Africa has nuthin on the Scots as to durational slavery) with many of the same techniques used today. Perhaps thats why I find them so easy to see, its a genetic thing?

Am hoping that folks don't think this bail-out thing is over cause it ain't. Constant, ever increasing and UNBEARABLE pressure is a must!!!!

Time for me to go ply my beloved trade..........

 

[Charley]

Appraisers were part of the problem. They can and did make an appraisal not based on the value of the property but on the amount of the loan that they were helping get through. They have become as a group disreputable and untrustworthy.

 

[littlesteppers]

Carriage..I don't know..just sounded canadian to me..see what I know..

Charley..than why not a sealed auction..there has to be something to figure out the price..they only worth on what people pay for them...I know..right now nothing..lol..tax card? what are they insured for?

I have this feeling somebody gonna make a killing..

 

[Bess Kelly]

Appraisals are based of various things -- cost to rebuild, comparative properties, current & best use, etc.

So, insurance companies want you to increase coverge based on the increased cost of "national average" per sq ft of building, etc. While tax offices are to use comparable sales figs, they, too, can manipulate "how" they choose to define use, comparable, ets. A farm may be 20 acres, 1 or 2 acres is rated @ 20K per acre (house/improvements), balance at agri rate or business rate, or whatever.

House at "XXX" per sq ft and so on.

Heck, if one of my buildings burned down I'd be able to rebuild a GREATLY improved and oversized unit for what they state I must insure. Ya gotta get the premiums UP. This is one way. Same with taxes, value/ratio for loans and so on.

Compare to this:

Halter horse........first place under 3 judges...only one in class

OR same win but, 25 in class. From just an ad, how would you know?

 

[minimule]

Appraisers were part of the problem. They can and did make an appraisal not based on the value of the property but on the amount of the loan that they were helping get through. They have become as a group disreputable and untrustworthy.

We fell into this trap a few years back. We were approached by a lender for a 2nd mortgage. You know, extra money sounded good, why not. They never even saw our house but approved us for an additional amount of money. When we realized that something was funky and started doing some research. We were paying 12.6% interest when the going rate was only 6%. We were thinking of moving so had our house appraised. It came back as $180K. We thought it was odd and looked at the "appraisal" that the 2nd lender had given us. They had appraised our place at $250K just so they could approve the loan. It almost sank us but we found the money to pay off the 2nd just to save our house. This was just one company doing this but there are hundreds out there that were doing it too. Lots of people fell into the trap.