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Looming Financial Crisis?

 
  

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Slim
11:37 / 02.10.08
I keep hearing this, and I keep wondering; why, exactly? This whole mess is wrapped up in so many dividends and securities that I'm not sure even the guys selling and buying them understand the whole thing entirely, and our 'flawed, but necessary' solution is to throw fake money at fake money?

There's a possibility that A) faith in the banking system will drop, and B) loans to legitimate, well-run businesses will dry up, businesses will shut down, unemployment will rise, etc.

I'm not sure people fully understand what could happen if no bailout occurs. I'm not saying that it should or shouldn't occur, I'm saying that the worst could yet to come.
 
 
Ticker
14:25 / 02.10.08
I heart this Congresswoman:

(youtube) Congresswoman Marcy Kaptur of Ohio speaks out.
 
 
grant
17:06 / 02.10.08
Brackets.

You know, for the Looming Financial Crisis pool.
 
 
trouble at bill
14:29 / 03.10.08
And on the same theme of wanting answers, one Dennis Sewell says it's all the fault of Bill Clinton! Short version of article is here, longer version appears in this week's Spectator magazine in the unlikely event that any of you want to buy a publication which claims to be "champaigne for the brain". If you can't be bothered to read either, the gist is: well-meaning anti-racist Democrats forced the banks to lend to people (mainly non-whites) who couldn't afford to pay back their loans and hence the current mess. Stunningly right-wing yes, but does anyone know enough about the situation to rip it apart properly rather than dismissing it automatically because it's written by a raving Tory/Republican-type person? I'd be interested to have some proper counterexamples/counterarguments....
 
 
Tsuga
15:16 / 03.10.08
There's some truth to it, though of course...
 
 
trouble at bill
16:19 / 03.10.08
awwwww, don't tell me there are two sides to every story and that well-meaning lefties can do as much harm as evil hypercapitalists! I need to conceptualise this in simple black and white terms...
 
 
grant
02:12 / 07.10.08
So, here's an AP story that was on the Yahoo front page an hour ago.

Guy with an MBA in finance kills self, family. He was an unemployed exec who'd worked for Sony Pictures and Price-Waterhouse-Cooper in the past, and who was in some kind of unspecified financial trouble.

So, maybe an isolated case... but dramatic enough to be slotted into the familiar Great Depression narrative.

They're starting to jump, people will be saying.
 
 
grant
01:44 / 08.10.08
The fact that this story about Brazil and Argentina no longer trading with dollars any more is being printed in the Chinese press is interesting to me.
 
 
The Idol Rich
08:10 / 08.10.08
It is interesting but I do find this explanation fairly convincing:

Brazilian and Argentine authorities said that the partial elimination of the dollar in their bilateral trade does not have to do with the U.S. financial crisis since the SML was arranged a long time ago.

If it saves (small) companies from having to pay for a third currency when changing their money from Argentine to Brazilian then it seems like a good idea regardless of the stability of the dollar - unless there is something relevant that I'm forgetting. Still, possibly a sign of the way the wind is blowing in general with regard to US influence in South America.
 
 
mashedcat
19:39 / 08.10.08
to answer `the idol rich` can people who work in banks claim "they were only following orders" or are they responsible for their actions ? , i`m unsure ,but i would like to think that they had some conscience about ethical ways of making money and how modern banking is resposible for so much poverty and starvation in the ,so called, `3rd world` (personally i dont like this term). i`m amused and amazed when that theiving rat Henry Paulson comes on the tv and lies to us, i`m also sad that we sit on asses and dont riot in objection to bankers putting future generations in debt. Gordon Brown and Blair are no better,,,,,,are we so helpless? if we were being mugged on the street by thugs wouldnt we defend our selves?
do any `Lithers` work for banks ? i`d like to hear their opinions.
 
 
mashedcat
19:50 / 08.10.08
in america ,usa, have people who lost their homes also lost their votes ? is this another way of disenfranchising the working class`s and ethnic minorities, also if a person dosn`t have photographic identification could they be prevented from voting as they could have problems proving who they are?
 
 
mashedcat
19:53 / 08.10.08
`Slim` what exactly might happen ?,i say let the chips fall.
it may be new territory, but what the hell.
 
 
My Mom Thinks I'm Cool
19:58 / 08.10.08
personally i dont like this term

well, then, don't use it.

i`m also sad that we sit on asses

is that what "we're" doing? rather a lot of people have been making their opinions known, publicly and in letters to congress, who then voted down the first version of the bill.

and dont riot

would rioting be a more responsible action to take?

if we were being mugged on the street by thugs wouldnt we defend our selves?

actually, I think a lot of "us" would probably just try not to get killed, and in general rely on the police to help out with muggings. kind of like how a lot of citizens in times of financial crisis tend to stay home, conserve funds, and count on elected representatives to fix things.

can people who work in banks claim "they were only following orders" or are they responsible for their actions ?

are you suggesting that the majority of bank workers secretly believe that banks are "resposible for so much poverty and starvation", and are only doing their jobs because they're greedy?

and since you probably missed the only response in this thread, I'll be more direct - could you please not refer to anyone, even a jerk like Condi, as a "slattern"?
 
 
mashedcat
20:03 / 08.10.08
`permanent martial law in usa` they`d do it all right,, make no mistake...americans have given away their human rights without even whimper, all in the name of "patriotism "..... which of course "...is the last refuge of a scoundrel"
 
 
mashedcat
20:05 / 08.10.08
yes,yes,yes,yes,yes
 
 
mashedcat
20:11 / 08.10.08
`my mom thinks im cool` why not turn that anger towards those that deserve it,,, the banks , the military and the fools that vote them in
 
 
mashedcat
20:23 / 08.10.08
My Mom Thinks I'm Cool ,your elected representatives are part of the problem not the solution,, your naivety is breathtaking , elections are not free and fair. democracy is a myth
 
 
mashedcat
20:28 / 08.10.08
My Mom Thinks i should stay at home and hide under the covers.
 
 
mashedcat
20:31 / 08.10.08
dont refer to `condi`as a `jerk`it isnt offensive enough.
 
 
mashedcat
20:34 / 08.10.08
since you probably missed the only response in this thread, please explain this
 
 
ONLY NICE THINGS
00:34 / 09.10.08
Out of interest, mashedcat, what set you off? I mean, what inspired you to post like this today?
 
 
Closed for Business Time
08:51 / 09.10.08
"mashed"? hello? i'd say ban for crimes against punctuation.
 
 
My Mom Thinks I'm Cool
12:48 / 09.10.08
`permanent martial law in usa` they`d do it all right,, make no mistake...

I keep hearing this rumor from various sources, some I might even consider halfway reliable. but I haven't seen anything happening. why are you so sure it will happen? do you have some previous experience of the US declaring permanent martial law?

why not turn that anger towards those that deserve it,,, the banks , the military and the fools that vote them in

1) I'm not really angry, just hoping for better dialogue. unless maybe I'm in denial I guess.

2) I am very disappointed in many of those agencies. my understanding of the financial situation is far too vague for me to feel justified doing something violent or permanent about it.

your elected representatives are part of the problem not the solution,, your naivety is breathtaking

I didn't say I personally believed they were going to fix it. I was saying that probably the average citizen is hoping they will fix it, since that's their job.

mostly I just thought your metaphor was poor. you seem to think that "we" would all go into karate mode and beat the shit out of any armed mugger who was attacking us. I think that's pretty rare. most people just want to not get hurt and hope someone else will take care of them. ...kind of like with the financial crisis. or so I believe, I'm not everyone so I guess this could be total bullshit.

since you probably missed the only response in this thread, please explain this

actually, that wasn't meant to be a complaint that you are dim so much as wondering why only one comment was made about your use of "slattern", and that kind of a sideways subtle comment. we usually try to come down on that kind of thing around here.

let me be more clear: my knowledge of Condolezza Rice is also very vague, but I have the impression that she's not used her current position to do the world any good. call her on that, complain about her being an underhanded politician or whatever, but don't attack her in a special way just because she's a woman.

My Mom Thinks i should stay at home and hide under the covers.

I think we should do more about this than we are. I'm not sure what "more" is but I personally believe that rioting and other forms of violence should be a last resort, if ever used at all. I think I appreciate a lot of your sentiment, I just want to encourage some thought about the details.

.americans have given away their human rights without even whimper

like I said, there's been rather a lot of noise made about this. every newspaper is full of angry people complaining about the white house, wall street, and congress. there's a guy outside on the street right now trying to drum up support to get big wig executives jailed for this mess rather than bailed out, though I doubt he'll have much luck. there were enough people complaining that congress at least felt compelled to pretend to care, turning down the first version of the bill.

in the end I think it didn't matter much, they just let the crisis get a little worse, reassured a few voters that they want to protect people more than they want to protect business, and then went ahead and passed a worse version of the bill that was too large for anyone to even read. but I think it's obvious that somebody was listening to a lot of people grumbling.

so what might actually change? I think it's undermining the republican party and helping Obama win at the polls, which is better than nothing. a lot of people are talking about repealing deregulation actions and giving wall street more oversight. I've read more than one news article about hard-core conservatives beginning to question the idea of the pure free market.

it's possible that a lot of things are going to change - it just might be a long, gradual process, rather than a bloody firey revolution, and it will probably end up with a lot of compromises rather than a total swing to some utopian socialist america.

that's the guess of a fairly ignorant guy, me. suggestions on how to make things better?
 
 
mashedcat
14:51 / 09.10.08
mostly I just thought your metaphor was poor. you seem to think that "we" would all go into karate mode and beat the shit out of any armed mugger who was attacking us. I think that's pretty rare. most people just want to not get hurt and hope someone else will take care of them. ...kind of like with the financial crisis. or so I believe, I'm not everyone so I guess this could be total bullshit.

no disrespect intended, but the people who will take care of them , are here to keep ordinary people in their place,the police role in modern society is to protect the wealthy,this is nothing new, how many rich people are on death row? very few if any.
fear is weapon exploited by the state. hoping someone will take care of us ,is something that i refuse to accept, i will take care of my self, we cannot nor should not allow ourselves to be victimised by anyone . the bankers caused this problem and cannot be trusted to solve it. if a sorgeon botched your medical operation would you allow him/her to try to fix it, i certainly wouldn`t.
self defence is an inaleinable human right , it is the right of all life.
the old banks have manufactured financial crashs over the past 70 years , give or take a few years. this is no accident, they then buy up their rivals at a knock down price, take Bear Sterns for example, bought by JP Morgan for $1,000,000 the cost of a few ferraris or a couple of houses, banks like these control the flow and value of all money. they will soon have a monopoly on money , which is `legal tender` which means it is worth the paper it is written on.
our childrens children will be paying off our debt for years to come,and will be born into debt , this is much more sinister than it sounds.
todays events are serious and i doubt writing a few strong letters to our elected representatives will have any impact, i doubt if they care, or can even change things . take for example presidents kennedy and garfield, they wished to change how secret alliances /societies controlled things and were duly assassinated.
bankers and the arms industry and the media giants can manipulate us to their own ends, and it is they who decide the outcome of elections ,, who ever counts the votes decides.

i`m sorry for ranting on but this too serious to ignore. this is one of the most important events in human history, and will resonate for centuries,,, the plan is world goverment controlled by bankers,,,if this succeeds we are all lost
 
 
FinderWolf
15:00 / 09.10.08
To discuss something other than Condoleeza Rice: I work a day job at a global company in NYC, and work with many financial-minded folk. They are all quite concerned, some even scared, and the general consensus seems to be:

a) No one really knows how bad this will get, for the U.S. and for the world;

and

b) If one had to guess, it won't be as bad as The Great Depression of the 1920s, but a bit worse than the recessions of 1987 and 1999. Brace yourselves.

Many lawyers I know say that most of their clients may dry up/go under or otherwise not be able to pay, and they may lose a lot of their incomes. You may say 'well, who cares about those well-off fat cat lawyers' - but if the lawyers don't have clients and the clients go out of business, that kind of thing does tend to trickle-down to the average person who is not in Big Business, economically.
 
 
Closed for Business Time
15:10 / 09.10.08
Funny how it's a trickle-down situation when in bust, but not in boom eh?
 
 
Eek! A Freek!
15:22 / 09.10.08
if a sorgeon botched your medical operation would you allow him/her to try to fix it, i certainly wouldn`t.

If I had surgery and it was botched (And didn't kill me)I most certainly would get a surgeon to try fix it. Maybe not the same one, but a surgeon nonetheless. What should I do? Go to a welder instead? A plumber?

Not all bankers are evil greedy bastards. There are some who may fix this mess yet. The economy is terribly complex, and while I'm prone to simplistic ideas and ideals, I doubt that if people who don't have a deep understanding of economics, banking and the market would have a chance in hell of solving the current problems.

Further to your writing, I agree that you cannot or should not stand idly by while you are being victimized by a criminal and that you can't always trust cops, but they are necessary for society in the current world we live in. If you are robbed, are you going to call the cops or try hunt down the robber yourself? Vigilantes are cool in Charles Bronson or Batman movies, but in real life they're dangerous. If you believe you are in danger for your life, by all means fight, but if no one is getting hurt, wait then call the cops. I have known a lot of poor or struggling people who were helped by the cops. Cops are people, mostly working class and some barely getting by: Don't be stupid and think that they are all mindless pig stormtroopers in the service of the rich.

Be prepared for the worst. Just don't count on it to happen. People have been thinking that it's the end of the world since the beginning.
 
 
grant
15:50 / 09.10.08
I find this NYT article indicating that Paulson might have the gov't take over some banks sooner rather than later encouraging. It's not reporting on anything that's actually happened yet, and many a slip and all, but still.
 
 
My Mom Thinks I'm Cool
17:14 / 09.10.08
the plan is world goverment controlled by bankers,,,if this succeeds we are all lost

does the plan involve lizards?

hoping someone will take care of us ,is something that i refuse to accept, i will take care of my self, we cannot nor should not allow ourselves to be victimised by anyone .

I was trying to say more of a "this is what I think most people, or the average people, would do/are doing" rather than "this is what I, some jerk on the internet, think you, mashedcat, ought to be doing."

I think it's very much worth talking about what useful things we can do that might serve either to protect ourselves from this crisis or to help change the system to avert further government/wall street shenanigans. and it wouldn't hurt anyone to take a self-defense class either, as long as they don't think it makes them Batman.

do you have any practical suggestions about things we can do, or just dire, unavoidable prophecies?
 
 
Neon Snake
06:10 / 10.10.08
plan is world goverment controlled by bankers

You're right, of course. And you are right to say that bankers should be, at best, jailed. The people who work in banks? Them too. Ignorance is no excuse, and as you rightly say "I was only following orders" is not, and should not ever be an excuse. It's a shame for my mate Geoff The Banker, but there you go.

But why stop there? Haven't we missed someone out?

How about all the people who are funding the banks in their nefarious ends? The people giving them money, day after day? Without that money, they'd be nowhere, obviously. So, anyone with a bank account needs to go as well.

Oh, and anyone who's borrowed money that they can't afford to pay back should be first against the wall. Ignorance is not an excuse, and I don't care that they were following orders. It'll be a pretty sparsely populated world after this, and everyone I know except for Homeless John will be in jail or dead, but fuck it. Let the chips lay where they fall, that's what I always say.

It's what King Mob would want, after all.

TEH REVOLUSHUN!!!!!221\!!!
 
 
mashedcat
08:27 / 10.10.08
does the plan involve lizards?
no , why? , do you have some information you could share with the rest of us
 
 
mashedcat
08:43 / 10.10.08
How about all the people who are funding the banks in their nefarious ends?
ordinary people are victims of the banks they do not fund them ,what choice do people have ,you cannot get a job with out a bank account , we are forced to participate in the system,
a friend of mine was arrested and fined for having no money on his person at the time of his arrest, they called it vagrancy. fined for having no money,,,
 
 
mashedcat
08:49 / 10.10.08
Not all bankers are evil greedy bastards
name one that isn`t
 
 
ghadis
09:09 / 10.10.08
Mr Benn? A Banker and a Kaos Majickian if i remember rightly. The two are not mutually exclusive i've noticed.
 
 
mashedcat
09:12 / 10.10.08
you can't always trust cops, but they are necessary for society in the current world we live in
i disagree , i grew up in belfast , and we `policed ` ourselves , outside of the war, we had a really low crime rate,, for population size one of the lowest crime rates in the world,, there was minimal class A drugs,,old people didnt get mugged , people didnt live in fear, children played on the streets,people learned respect for the community and for themselves. of course they called us terrorists and used the media to destroy the public image of our leaders,,,Jerry Adams voice was blocked out and an actor reported his words.
Woody Gutherie sang about vigilantes not as batman or broson ,but as a moral individual. this was our lives not comics or hollywood. how easy it is to be flippant, when you have not experienced political subjugation ,, civil disobedience, riots call it what you will , changed our lives for the better . we weren`t sheep
 
  

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