Understanding How Bailouts Work
What is a bailout? Since the beginning of the sub-prime mortgage crisis, a lot of financial terms have been thrown around by financial experts, Media, and Uncle Sam but nobody has taken the time out to explain what all these terms mean to Joe who isn’t very good with dictionaries. Outside of a class to gain financial knowledge, this article provides most of what every Joe needs to understand what a bailout is all about.Positive and Negative Always Coexist
Positive and negative forces in the universe equilibrate each other creating balance in everything. According to Sir Isaac Newton for every action there is an equal and opposite reaction. By applying Newtons law to life, which encompasses all science and physics it is possible to see the positives among the negatives. The economy for example is filled with negatives but there are an equal number of positives in these dark times. Interest rates on mortgages are allowing lenders to extend loans at all time lows and allowing people to buy foreclosed properties that are affordable to those that may not have been able to buy houses in the past. It is true that for every negative there is a positive but people look at one side instead of embracing the whole face of reality.The Facts and the Economic Crisis
Most people think that we got into this economic crisis by a series of unfortunate random events or blunders. Not true. Here is a rough timeline which provides the reader with the events that have placed us in virtual servitude to those behind the scenes. Henry Ford said in the depression years, “It is well enough that the people of this nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” Unfortunately the American public in their ignorance have gone along with the plans of the ‘money changers’ and they now control virtually the world. As Mayer Amschel Rothschild (of the largest banking family/cartel) put it: “Let me issue and control a nation’s money and I care not who writes the laws.”Is the Recession a State of Mind?
There is an old saying that life is 10% what happens to you and 90% on how you deal with it. It isn’t that money is not being made today during this current economic situation, it is that you need to look for where the opportunities are.Unemployed? You Are at the Mercy of Our Government
It’s evident that jobs aren’t going to be created overnight and eventually unemployed Americans will be forced to face a financial catastrophe. If more help is not on the way, by September a huge wave of workers will start running out of their critical extended benefits and by the end of 2009, benefits will dry up for more than 11.5 million unemployed Americans.How Did Macroeconomics and Flawed Market Information Cause the Housing Crisis? – Part 2
Statistically the MSA’s (Metropolitan Statistical Area) with the largest populations have the largest errors. This only makes sense, since you will find a greater diversity as a larger area is included. For example, the largest MSA is the New York Metro, which has over 14,000 Census Block Groups. The macroeconomic variable have a minimum 20% error and a maximum of 78% error, when comparing the metro median to the Census Block Group median, based on last quarter’s data…How Did Macroeconomics and Flawed Market Information Cause the Housing Crisis? – Part 3
Not only did the macro data (with huge flaws at the local level), fail to foresee the crisis, but also the flawed macro data was “presumed” to be a trend line to extend into the future. A good example of this is at CNN Money, which projected the Florida MSA (Metropolitan Statistical Area) to go up in value another 72% in 2005. This represents a compounded false belief and information, all due to a lack of current local information.Repossessions on the Rise Due to Our Current Economic Recession
The current credit crisis has had an adverse affect on buy-to-let owners over the past year. There is now an estimate of 27,000 owners who are now three months or more behind on their payments. This is almost quadruple than the 7,500 owners that was counted at the 2007 year end.Free Market Capitalism Killed Our American Economy? A Ghost Story
Everywhere I turn, I see, read and hear how capitalism has destroyed the American economy. The political Left blames capitalism outright, while the political Right claims capitalism is the American ideal. The elitists in banking, government, academia and the media give lip-service to the idea of a free market, when they, in fact, have no use for it.Rebound of Global Economy Leaving Recession Behind
The recent downfall in the global economy is unforgettable. In many companies older employees were replaced by the new ones. It had to be done in order to cope with the prevailing financial market. It is quite sad to forget those older employees but the reality had to be faced with boldness. The same goes with the online companies as well.What is a Yankee?
Many people don’t know that the term “Yankee” stands not just for people who reside in New England, but to a particular conservative mind-set regarding money and against waste of any kind. The author uses personal experiences, written sources and observations to summarize the Yankee way of thinking.