someone explain this economy shit

In the end you can blame the dirty, underhanded future stock forecasters and the day traders buying and selling oil on the open market to inflate the price for their own profit for pushing gas prices up until people ran out of money.
Traders make efficient markets and reduce the bid/ask spread signifcantly. Furthermore, their work lowers cost for individual investors with companies such as e-trade. Before interactive traders, people had to purchase stock in what was called "lots" or 100 shares a pop. Good luck dollar cost averaging when you have to save up enough to buy 100 shares at a time.

Traders have cohorted and made runs on particular entities since trading began. Before the great depression, there was a speculative attack on gold, the 70s, the dollar, last year we saw a runup on oil and killing of Bear Stearns. This isn't anything new...and it is supposed to happen. Without it, weak firms would stay afloat.

 
Would you have a job if your employer wasn't greedy? My employer thinks it is important the the USA has the greatest military in the world; thus I have a job.
Yes I would seeing as I am CEO and I've turned down half as many customers as we've accepted to use our services. Greed has nothing to do with running a company, unless you're talking about running it into the ground.

 
I'd like to see OLT purchase some futures. $8000 per contract margn requirements. Not ANYONE can trade futures...

Or you can pay the $5M to become a member of the CME to trade other futures...

Oil is traded on the nymex...still searching to see what it takes to become a memebr.

 
Yes I would seeing as I am CEO and I've turned down half as many customers as we've accepted to use our services. Greed has nothing to do with running a company, unless you're talking about running it into the ground.
I was using the term as you used it...I don't think most CEOs are greedy at all. They want to be successful and run the company well. Few CEOs want to run the company into the ground.

 
All of this is residual from the tech boom. It was a time when actual value did not matter. Back then companies were worth billions on paper when these companies were two bit endeavors working out of garages. They had potential, but it was inflated potential caused by speculators. With the tech boom and this sense of prosperity people made the American dream happen with new houses. Demand along with prices went up. Tech boom ended, but home prices did not drop. A lot of this was due to interest rates that were the lowest in many years. Financial engineers took advatnage by creating these clever mortgages such as ARM's, interest only, no down payment etc. Made a killing making these loans to people and made another killing selling these loans to Wall Street.

The problem mainly occured with the banks when these ARM's were called for their new interest rate. Once the rates skyrocketed which happens in a boom economy people that could barely pay their mortgage before couldn't at all. So there were a lot of foreclosures and the floor fell in. Thats the banking thing...

It just so happens coincidently gas prices were at astronomical levels. It created a somewhat artificial inflation by raising prices without the usual growth that is associated with inflation. Its called stagflation. A lot of this was due to a major increase in demand from East Asia as well as OPEC raising prices.

Then there was the automaker thing. Part union, part losing their bread and butter in trucks and SUV's with crazy gas prices.

And a lot of it was psychology. People are hearing a lot of bad news so they become a little more cautious. The thing is it had to happen. The United States has for a very long time held negative savings. We spend way out our means and the economy thrived through that inflated sense of prosperity. Now people are reevaluating their spending habits and now the reality is not as rosy a picture as the way we were living before.

The tanking of the economy is not some leftist machine. It was bound to happen. We are a nation that wants instant gratification and no one really has the foresight to look in the future and make wise decisions. People want that new car now, day traders and specualtors make money flipping constantly, executives are more concerned about their earnings for the quarter as opposed long term prosperity since their jobs and incentives can be gained and lost quarter to quarter. There were entirely too many stakeholders involved to just say the Democrats caused everything. Everyone had their hands in the cookie jar.

The fact is this recession had to happen in order for us to wisen up and reevaluate our spending habits. It will be rough for awhile, but good will come from it.

 
The fact is this recession had to happen in order for us to wisen up and reevaluate our spending habits. It will be rough for awhile, but good will come from it.
I am more cynical that most in this reguard. I believe the recession needs to be longer and deeper for behavioral change. I hope I am wrong. I hope that people come to grips with reality and start thinking long term. we won't grow like we did in the past, but that's okay.

 
I normally dont post but I will on this subject. What is wrong with the economy is that the majority of Americans are asleep. They believe whatever mainstream media tells them and dont question anything! There is a major plan for a new world order for their to be a World government and one world economy. It is a society of elitist which consist of America's politicians and the majority of foriegn bankers. Everyone says that we are going towards a socialism which isnt correct at all. If it was socialism the government would be controlling big business and Wall Street. The correct term would be facism because the bankers and Wall Street actually control America. The economy is in the shape that it is in right now because it was done on purpose by mainstream goverment. If you look at things not as republican or democratic but look as things as they are, many people would be able to see the hoax that is unfolding before your eyes. Everyone thinks there is such a difference between rep & dem but its not. The last president signed the first bailout plan and sent troops to iraq. The current president was suppose to come in and change things but what has happend so far? He signed another bailout planl as well and also is withdrawing tropps from iraq but guess what, they are just heading to Afghanastan. Doesnt sound like much of a differnce does it? Think about, the feds just created over 750 billion dollars out of thin air. This majority of this money went to bankers, big business and wall street. Ask yourself what did the people get? Oh they got tax cuts so that they will bank and extra 15.00 to 20.00 a month. Hmmm, so they get billions and we get a free pizza a month. if you really wanted to stimulat the economy you would first attack the housing market and make tax cuts immediately that we could see everytime we got paid. The funny thing is now that the rep are bashing the dems because they are spending to much money but if I recall the rep were just in control a year or two ago and they signed for the first bailout and wastn thinking about tax cuts then. now all of a sudden they arent in power, now they have gotten smart and say we should have tax cuts. Now you tell me how different are they? Thats right, there is no difference becaus, both parties are the same and the the puppet which is ahead of the real machine.The plan by foreign bankers and the elitist & gov. is to bankrupt America first (well at least the middle and poor class) which is starting to occur and other countries would follow as well. Just look at the stock market, it was over 14,000 and now its already below 8k. Everything goes in cycles, if you have periods of growth then you have to have periods of recession to balance everything out. The problem with us is that the gov doesnt want to let the markets and the economy correct itself. they keep pumping money in hoping to reinflate the bubble. once a bubble burst, pumping money into it will no reinflate it. this was the same thing that happen back in the 30's and the 1st great depression. it woudl have only last a few years but the more gov interferred the longer it prolonged and ended up being 10years or so. if the gov would leave the economy alone and let it correct itself, we would come out of this soon and in better shape. it would be bad people would loose jobs but at the same times companies would change the wasteful spending they do (private jets, etc) in order to survive and in the long run would be better for it. All the gov is downing is printing money giving it to business that have a bad business model so nothing will change. for example, the automakers have a bad business plan. im sorry alot of people will lose jobs but they are wasteful. exp why do you need a tahoe and a yukon? they are the same exact models and paying workers 50,60,70 an hour they cant compte with foreign automakers who's wages are alot less and better quality. Now isnt it funny that the automakers got billions of dollars just a few months ago and now they are needing billions again. sorry but they need to fail. they should make them and other large companies file for bankrupty, restructure and hopefully come out moer profitable in the it. The economy will continue to go down as well and once it bottoms out, the foreign bankers will come in and buy it up and basically have control of all the large banking, insurance & mortgage firms. Most people dont know right now but they are training natlguard to go in and take guns from the people. Also they are having gun buy backs and even giving away food coupons for them. This violates the 2nd amendment and also takes guns from the people so that they cant resist or fight back. Thats is just one of the many things that is occuring right now. I could go on and on about this serioulsy and it you want more information, pm me and I can get it to you. The sad thing is everyone is caught up in the YES we can and things are unfolding right before your eyes and most dont see it or dont want to believe it can happen. I would say to look up information on the new world order. I heard about it 10years or so and thought that could never be true. It sounds so crazy and far fetched but once you look into it, you can seriously see things that are starting to unfold and come into play. Unless people take their blinders off and see things for what they really are and not for what they hope to be, we are headed down a very bad path that no one wants. More gov control, less rights of freedom, basically a welfare state where the elite rule and you will basicially get only what they want you to have. If you want more info again, pm me. Its time for people to stand up and unite before its to late!

 
Prime example! my point exactly, everyone gets caught up in the little things and dont notice whats really going on! Believe what you want, thats why its a free country! (for now!)
The CEOs of banks aren't in it to do the long term work required for facism to work. They want a few million now and then walk. For any long term institutional regime change to work, the agents must be in it for the long term.

 
The CEOs of banks aren't in it to do the long term work required for facism to work. They want a few million now and then walk. For any long term institutional regime change to work, the agents must be in it for the long term.
The bankers are in on it. They get to basically get free money from the bailouts. They aren't lending any money unless you **** near have perfect credit. All the banks have done with the bailout money is write down bad debt (which the people are paying for), buy up smaller banks and keep the rest for themselves. The banks are overleveraged and they know it. Stupid people are responsible for buying homes they couldnt afford but the banks are just as responsible because of their greed they made loans they know they shouldnt have made. We can thank Clinton for thinking everyone should own a house and then thank the rep for deregulating banks so they could make the crazy loans. Laws were put into place after the 1st depression so it wouldnt happen again and for some reason America thought it was smarter (Paulson and Bernake) and it couldn't happen again.

The banks are so overleveraged right now its not funny and more will start to fall if the gov doesnt just print more money. The housing market has started to decline but will fall another 10% to 30% guranteed. The banks have a lot of houses that are already in foreclosure right now but are not in mls or on the market for sale right now. The reason is to keep their books in order and looking better than they really are because they are getting billions of dollars from the latest bailout. Once they get the money, they will finish writing off the houses that are already in foreclosure. Once those houses finally hit the mls, there will be more than enough house on the market for sale which will push real estate prices down even more! I dont know why some people think that we are at the bottom, this is just the beginning!

 
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