spirit_of_town_hall Posted November 8, 2007 Report Share Posted November 8, 2007 Apparently we are going to suffer a depression worse than the 1920's. Do you think this is going to happen? The price of gold is going up very quickly. If there is hyper-inflation savings are going to be wiped out. Should people convert in to gold whilst they have the chance? STH Link to comment Share on other sites More sharing options...
samak Posted November 8, 2007 Report Share Posted November 8, 2007 change your fortuneteller! Link to comment Share on other sites More sharing options...
wonderlust Posted November 8, 2007 Report Share Posted November 8, 2007 1.8% annual inflation = hyperinflation? Link to comment Share on other sites More sharing options...
buffalo_bill Posted November 8, 2007 Report Share Posted November 8, 2007 " Should people convert in to gold whilst they have the chance? " Nok says so Link to comment Share on other sites More sharing options...
MooNoi Posted November 8, 2007 Report Share Posted November 8, 2007 I believe Nok.. Nok is different! :thumbup: Link to comment Share on other sites More sharing options...
spirit_of_town_hall Posted November 8, 2007 Author Report Share Posted November 8, 2007 Hi guys I hope you are right, I am not so sure. Some of the big banks have been hiding their losses and exposure and I think we may see an Enron style situtation in the next 6 months. STH Link to comment Share on other sites More sharing options...
Khun_Kong Posted November 8, 2007 Report Share Posted November 8, 2007 Understanding of economics eludes me. I've seen at least 40 or 50 BILLION USD being claimed as losses now on those subprime loans. They are backed by real property, yes? Where the hell is the money that is lost? Aren't these loans backed by the properties? Were the original values overinflated, combined with a decline in property values, leading to the "loss"? Is it all on paper or did real money go somewhere? Even if it's all a paper game, someone must have made some money somewhere, so now fictional losses are offsetting fictional profits? I just don't understand. 'Splain me, Lucy. Link to comment Share on other sites More sharing options...
Old Hippie Posted November 8, 2007 Report Share Posted November 8, 2007 The rumor here is the properties were hyped/over inflated, to capitalize on the lower mortgage rates...interest rates low? raise the selling price...interest rates high? lower the price...either way the customer gets screwed... The single biggest problem is/was they sold houses to people who really could not afford them. The banks probably figured "...what the fuck, we can sell it to another schmuck for more later..." That theory only worked for so long...now time to pay up. Over all, this country is plain fucked. We gave away all our jobs, raised the cost of living, over 1/2 the people have no health care, most have little or no pensions, those that do have them hanging by a thread, as the current trend is to default on them...in California alone, 1/88 homes in in foreclosure...time for another revolution maybe? Link to comment Share on other sites More sharing options...
.. Posted November 8, 2007 Report Share Posted November 8, 2007 ...Were the original values overinflated, combined with a decline in property values, leading to the "loss"?... That's the biggest culprit, combined with 100% and even up to 125% loan-to-value packages. Kinda like Thailand pre-1997*... As far as the money, I have no idea. But you can be sure that the rich got richer and the middle class got fucked on it :onfire: Cheers, SD * -- 'cept the Thais were also allowing multiple loans at 100% LtV on property Link to comment Share on other sites More sharing options...
chuckwoww Posted November 8, 2007 Report Share Posted November 8, 2007 The rumor here is the properties were hyped/over inflated, to capitalize on the lower mortgage rates...interest rates low? raise the selling price...interest rates high? lower the price...either way the customer gets screwed... The single biggest problem is/was they sold houses to people who really could not afford them. The banks probably figured "...what the fuck, we can sell it to another schmuck for more later..." That theory only worked for so long...now time to pay up. Over all, this country is plain fucked. We gave away all our jobs, raised the cost of living, over 1/2 the people have no health care, most have little or no pensions, those that do have them hanging by a thread, as the current trend is to default on them...in California alone, 1/88 homes in in foreclosure...time for another revolution maybe? It's hard to feel sympathy for people who got in over their heads or bought 2 or 3 houses for investment purposes. This is the way the free market corrects itself....if it's allowed to. You can bet the actual bankers won't get hurt too much. Link to comment Share on other sites More sharing options...
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