When's the next Depression starting??

There are 5 replies in this Thread which has previously been viewed 2,064 times. The latest Post () was by Hondo Duke Lane.

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    Looking at the news bulletins and the way the various stockmarkets are reacting just proves to me that lemmings are not restricted to being small furry animals.

    Rumours, fear and blind panic with very little leadership. If they keep it up 1929 is just around the corner.

    Mike

    What has ignited this so called "credit crunch"?


    Obviously if the American economy is on a downward spiral, the UK's will follow suit, but what actually happened the American economy?


    :agent:

    Regards
    Robbie

    Mountains of debt and loans that realistically could never be paid. House prices that were monopoly money. Remember the 1920s when you couldnt lose in the stock market buying shares.

    The scary thing in the UK is that the sub prime mortgages that have crashed in US have been sold on big time as sizable assets to a lot of the UK banks particularly the building societies that became banks and were greedy for a bigger mortgage market share.

    Through bad business and pure fear I suspect that another big name will go the same way as Northern Rock and it is being propped up to the tune of £50 billion.

    You also have governments particularly US and UK who have amounted massive amounts of debt beyond belief.

    In the markets you have speculators playing russian roulette by pushing down geniune companies for profit.

    To be honest a monkey would give better leadership than we have at present.

    Scary times for all


    Mike

    If you have any money at all and a cool head, this is the perfect time to make A LOT OF MONEY!!


    The US stock market is ran on emotion, if you look at the real numbers the market still isn't close to being normal. There is still probably another 15-20% drop before we get to what the companies actually have in assets and income.


    The housing market, how could you let anyone talk you into a sub-prime adjustable rate loan? It's tough to say but these people got what they deserved and so did the banks, we should not be bailing any of this out. I mean look at what the banks have done to get a piece of this, interest only loans (isn't that renting?), 60-year loans, reverse mortgages... it's just crazy.


    This has nothing to do with leadership, but with people not being smart enough to stand on their own.

    You can roll a turd in powdered sugar but that doesn’t make it a doughnut.

    There are lots of reasons for this wacky economy. I think most of the problem is the media and their scare tactics due to a Republican President. Another reason is the outrageous home prices.

    My home has doubled over the past twenty years for no reason, and shacks cost an arm and a leg.

    I have a friend in Orlando, Florida who recently went through a divorce and had to surrender his house to his ex-wife. While looking for another home to buy, he couldn't find anything reasonable. He purchased a townhouse, about 2,500 square feet and paid $950,000 dollars, with a front yard that is twenty feet by six feet. That is 1,200 square ft.

    I don't see a depression happening, but who knows.

    Cheers :cool: Hondo



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