The Morningstarr*

Ck · 29-09-2008, 21:50

It was down 700 points earlier. Some people are predicting a crash. 700 points is around 6%, to be officially called a crash it has to go down by 10%

Banks are collapsing, people are losing their jobs, manufacturing is going tits up, people are losing their homes.

What the fuck is going on? And how did we get in the mess?

Alpha · 29-09-2008, 21:53

Don't know, it's strange.

Mr Morningstarr* · 29-09-2008, 23:34

Why the fuck are people refusing to help the banks, surely they know what will happen?

Looks like cutting off your nose to spite your face, from where I'm sitting. Nobs.

Alpha · 29-09-2008, 23:54

It'll be okay again in a month ot two.

FreeBBC · 30-09-2008, 23:37

im worried bout the bank accounts

FreeBBC · 30-09-2008, 23:45

Bloomberg.com

Alpha · 01-10-2008, 01:27

Looks fine to me.

playme · 01-10-2008, 05:53

Quote:

Originally Posted by Ck

It was down 700 points earlier. Some people are predicting a crash. 700 points is around 6%, to be officially called a crash it has to go down by 10%

Banks are collapsing, people are losing their jobs, manufacturing is going tits up, people are losing their homes.

What the fuck is going on? And how did we get in the mess?

banks have been giving mortgages to people who are considered high risk, or lending more than the usual 3 times peeps salary. Also to many people are living on credit etc, so whats happening now peeps cant pay the mortgages or credit and now its having an impact on the banks. It has also been said that the newer banks are the ones that have been taking to much risks, take that bank in america the other week, that was considered a newer bank

Ck · 01-10-2008, 07:47

So it's greedy people and greedy banks?

And 'cos people could get more money people were able to put their house prices up because people would pay more - because they could borrow more?

playme · 01-10-2008, 07:54

Quote:

Originally Posted by Ck

So it's greedy people and greedy banks?

And 'cos people could get more money people were able to put their house prices up because people would pay more - because they could borrow more?

yes basically, look at america they were giving mortgages to people, they ie lost there job couldnt pay the mortgage and therefore the banks foreclose on the house, and these people would more than likely be up to there eyes in credit even without there mortgage.

With regards to house prices they tend to go in a cycle ie the recession then the market stabilised then house prices gradually over the years rose. However in the past few years they rose to unbelievable prices. People were overstreching themselves just to get on the housing ladder. Then say there employer started to feel the pinch and decided to cut jobs and outsource to ie india. That person cant afford to pay the mortgage and get repossesed. The bank then would have to sell the property and a loss as it was over priced in the first place.

On another note bankruptcies in scotland are at the highest they have ever been and the accountant in bankruptcy are finding it hard to actually keep up with all the cases