Source Okay, so it's not technically a bailout, it's just the "auctioning off" of money at very low rates, so loans can keep getting made. How about fixing the loan process before offering out taxpayer money to cover bad decisions and greed?
Ugh, that is not a good sign. Spreading our credit misery to the rest of the world just means if the bank failures start here they will quickly spread to the rest of the world. Keep an eye on Washington Mutual. They are teetering the brink. With how huge banks have been allowed to become all its going to take is one and the dominos(perhaps Bank of America, who's also gotten killed in the subprime meltdown) of bank failures will start to fall.
Wait wait wait... there's not enough money for loans, so instead of stopping loans or changing the way loans are given out, they're getting more money put into the system, to make more loans, to make the problem bigger? I must not be understanding this.
They've already started here, leading to Gordon's desperate attempts to keep Northern Rock going with billions of our tax pounds.
They already spread to the rest of the world long before this. Because of the way banks and the American stock market functions, many global banks are intertwined with each other with the purchasing of foreign securities. I'm going to come out in favor of this for several reasons. First off, it prevents middle eastern and asian countries from coming in and handing large amounts of cash to the American banks in exchange for some cheap stock, which dilutes the ownership of the existing stockholders. Secondly, if these banks go bankrupt, it will start causing bank runs...which are a very bad thing, and will cause other banks to start teetering on the edge of bankruptcy even though may have had no presence in the subprime market. Anyways, buy some silver in case the whole economic system comes crashing down.
I forgot to add. One of the biggest reasons this damn subprime mortgage thing won't end is because of the so called "Credit Crunch", which is the fact that because of declining bank assets due to failed mortgages, people who have subprime mortgages can't refinance their homes to escape the mortgages.
Um, I think Nick was just pointing out that if the economic system comes crashing down, one of the first programs that will get cut is werewolf control. Then it's every man for himself.
