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jesus christ, is it possible to actually let an institution fail in this country??? (pg. 3)
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| Q5echo |
| can you say LIQUIDATE! |
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| DJ Shibby |
| quote: | Originally posted by Capitalizt
It has less to do with psychology and more to do with rarity. Things that are rare are worth more. That's why people pay big bucks for Mickey Mantle rookie cards. There is a finite supply of precious metals in the world, but we have an unlimited supply of trees...which means an unlimited supply of paper to print for currency. Other things have intrinsic value too. Food is valuable, but it spoils. Land is rare and valuable, but it can't be moved and is subject to taxation. Oil is rare and valuable, but it is difficult to store and transport. Gold is rare and valuable..and it also happens to be easily recognizable and very easy to store, transport, and hide...It is for these reasons people have desired it since the beginning of recorded history, why people use it as a store of wealth today..rather than putting their all of their faith in paper that can be devalued on a whim. |
Good post, thanks.
So what's the story with credit? Brilliant evolution. |
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| jerZ07002 |
| quote: | Originally posted by Capitalizt
It has less to do with psychology and more to do with rarity. Things that are rare are worth more. That's why people pay big bucks for Mickey Mantle rookie cards. There is a finite supply of precious metals in the world, but we have an unlimited supply of trees...which means an unlimited supply of paper to print for currency. Other things have intrinsic value too. Food is valuable, but it spoils. Land is rare and valuable, but it can't be moved and is subject to taxation. Oil is rare and valuable, but it is difficult to store and transport. Gold is rare and valuable..and it also happens to be easily recognizable and very easy to store, transport, and hide...It is for these reasons people have desired it since the beginning of recorded history, why people use it as a store of wealth today..rather than putting their all of their faith in paper that can be devalued on a whim. |
everything you said makes sense, however, that still begs the question: why? Just because it is rare doesn't mean it should have value. Value is also derived from a desire to own it. The underlying question is why do people want to own a shiny piece of metal with little industrial value? People can hoard all the gold they want, but at the end of the day gold has almost no use besides its aethetic appeal. Platinum and silve, on the other hand, have industrial uses far exceeding that of gold. Thus, in my mind, their values are justified. |
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| malek |
Its difficult to just let Freddie mac and fannie mae fail when there's over 5,200 billions of owed or guaranteed mortgages involved!
That number is mind boggling by itself, if both just dropped the ball, the USA would be in deep with no end in sight.
What's even more depressing is that both of them were created by the government to let Americans profits from lower mortgage rates, but that hardly ever happened, ... now the tax payers are paying the note... once again.
But I agree that no one is loosing that shirt, and i'm not talking about Americans tax payers. |
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| DJ Shibby |
| quote: | Originally posted by jerZ07002
everything you said makes sense, however, that still begs the question: why? Just because it is rare doesn't mean it should have value. Value is also derived from a desire to own it. The underlying question is why do people want to own a shiny piece of metal with little industrial value? People can hoard all the gold they want, but at the end of the day gold has almost no use besides its aethetic appeal. Platinum and silve, on the other hand, have industrial uses far exceeding that of gold. Thus, in my mind, their values are justified. |
Yup, that was my point. Well illustrated, cheers. |
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| Shakka |
As of right now, it would appear that:
1) Lehman is toast.
2) Merrill just got bought by Bank of America in the surprise move of the weekend.
3) AIG is against the ropes, looking to the Fed for help.
4) Who knows what will happen with WaMu.
It's gonna be a crazy week for sure. |
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| Krypton |
| The sector is being consolidated. Exactly what happened in 1929 when the big New York powerhouse banks consolidated the financial sector for themselves, except this time, Wall Street banks are consolidating each other. |
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| MisterOpus1 |
We're ed.
And the future generations that have to foot this bill are ed.
Boy, gotta love all that deregulation, eh free marketers? Of course you don't mind that darn socialist bailout when you swim in the dung you created.
Gee, I wonder what Palin thinks about this? |
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| Fir3start3r |
Originally posted by MisterOpus1
LOL!
Somewhat sad though...
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Gee, I wonder what Palin thinks about this? |
She can see the Russians from her kitchen window |
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| MisterOpus1 |
This wouldn't have contributed to this ing mess a wee bit, would it?:
http://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Act
Weakening the provisions of the Glass-Stegall Act, this seemingly helped make it possible for these large brokerage firms to act like banks without actual regulations that banks have under Glass-Stegall.
And it seems to me that Gramm, that piece of douchebag who was once (and still likely is) McCain's chief financial advisor, helped deregulate the financial markets that has ultimately led us to the mess that we're in now.
Gosh, I wonder if Gramm will be telling these big companies that they're all a bunch of "whiners" too? |
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| DJ Shibby |
| quote: | Originally posted by Fir3start3r
Originally posted by MisterOpus1
LOL!
Somewhat sad though...
She can see the Russians from her kitchen window |
lol! |
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| DJ Shibby |
| quote: | Originally posted by MisterOpus1
This wouldn't have contributed to this ing mess a wee bit, would it?:
http://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Act
Weakening the provisions of the Glass-Stegall Act, this seemingly helped make it possible for these large brokerage firms to act like banks without actual regulations that banks have under Glass-Stegall.
And it seems to me that Gramm, that piece of douchebag who was once (and still likely is) McCain's chief financial advisor, helped deregulate the financial markets that has ultimately led us to the mess that we're in now.
Gosh, I wonder if Gramm will be telling these big companies that they're all a bunch of "whiners" too? |
Essentially these company investor panels take the easy way out through the government, electing not to salvage ethics so that they can make a record profit.
Note how the microsoft lawsuit all over the news 7 years ago just disappeared. How convenient. |
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