Overnight peoples (aka. Who's up?)

t-homo · 11-17-2008, 04:52 AM

The market is a very self fulfilling prophesy it seems to me. If people are confident in it, then it will thrive, but if people get scared and start pulling out, it will crash. All we need now is for the country to start re-investing, businesses will stop going under (GM is really fuckin close to losing it.), and the market will go back up. Same with the housing market, but there is way too much supply for the amount of demand, lowering the prices until qualified buyers start buying again, increasing demand and prices.

Adeptus_Minor · 11-17-2008, 05:16 AM

Wouldn't it be nice if we could just tell people to quit pulling their money out at the slightest sign of a downturn?
I mean, I've always wondered why there even HAS to be a downswing.
Sure.. free market and all that... but if so much of our prosperity as a nation rides on those seemingly arbitrary numbers on the stock ticker, why isn't there a little more control to keep it from getting into a downward spiral?

Yes... I'm 34 years old and asking a 19 year old about the economy...

t-homo · 11-17-2008, 05:28 AM

The downturn in the stock market was caused by the huge numbers of housing foreclosures. These were caused because the term "newly-approved" came about. It actually means not-approved, but the banks were willing to go out on a limb and offer mortgages to these people. They figured the foreclosure rate would go up maybe a little bit, but didn't expect it to go from 1% to 6%. With so many people defaulting, they had to pull what money they had in the market out to try to pay off their mortgages that were doomed from the day they originated. These peoples money started causing prices to drop, scaring more people and making them pull money. Also, the banks that had given all of the loans that were now defaulting were losing tons and tons of money causing their stocks to drop in price and eventually file for bankruptcy or hope for a bailout. At least that is my take on the whole thing. My major is tied very closely to the economy so its been a great learning period for me. I'm glad I am in school when it happened rather than happening a year after I graduate.

tommymac · 11-17-2008, 05:55 AM

Man this stinks, not very busy tonigh tbut more bad stuff happenin in the ER. Will def hoist a few cold ones at dinner tonight.

Tom

11-17-2008, 05:16 AM	#2
Adeptus_Minor Hopster Join Date: Nov 2008 Location: Austin, TX Moto: 2009 Buell 1125R Posts: 4,743	Wouldn't it be nice if we could just tell people to quit pulling their money out at the slightest sign of a downturn? I mean, I've always wondered why there even HAS to be a downswing. Sure.. free market and all that... but if so much of our prosperity as a nation rides on those seemingly arbitrary numbers on the stock ticker, why isn't there a little more control to keep it from getting into a downward spiral? Yes... I'm 34 years old and asking a 19 year old about the economy... __________________ “Well, obviously before; after was all gendarmes and dick stitches.”

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11-17-2008, 04:52 AM	#1
t-homo WSB Champion Join Date: Feb 2008 Location: Springfield, MO Posts: 7,146	The market is a very self fulfilling prophesy it seems to me. If people are confident in it, then it will thrive, but if people get scared and start pulling out, it will crash. All we need now is for the country to start re-investing, businesses will stop going under (GM is really fuckin close to losing it.), and the market will go back up. Same with the housing market, but there is way too much supply for the amount of demand, lowering the prices until qualified buyers start buying again, increasing demand and prices.

11-17-2008, 05:28 AM	#3
t-homo WSB Champion Join Date: Feb 2008 Location: Springfield, MO Posts: 7,146	The downturn in the stock market was caused by the huge numbers of housing foreclosures. These were caused because the term "newly-approved" came about. It actually means not-approved, but the banks were willing to go out on a limb and offer mortgages to these people. They figured the foreclosure rate would go up maybe a little bit, but didn't expect it to go from 1% to 6%. With so many people defaulting, they had to pull what money they had in the market out to try to pay off their mortgages that were doomed from the day they originated. These peoples money started causing prices to drop, scaring more people and making them pull money. Also, the banks that had given all of the loans that were now defaulting were losing tons and tons of money causing their stocks to drop in price and eventually file for bankruptcy or hope for a bailout. At least that is my take on the whole thing. My major is tied very closely to the economy so its been a great learning period for me. I'm glad I am in school when it happened rather than happening a year after I graduate.

11-17-2008, 05:55 AM	#4
tommymac Moto GP Star Join Date: Nov 2008 Posts: 11,022	Man this stinks, not very busy tonigh tbut more bad stuff happenin in the ER. Will def hoist a few cold ones at dinner tonight. Tom