Global Financial Crisis (1 Viewer)

[sthcross.dude]

Ron Paul is awesome. I say don't freaking subsidise corporations because it's idiotic, but whatever.

You do realize that the corporations owners aren't receiving charity from the governments.

The shareholders and directors are still suffering for their poor governance.

The bailouts are to protect people who have deposited their savings with these failed institutions.

It would only take a few of these institutions to collapse without uncle sam stepping in to cause mass bank runs and real chaos.

 

[jb_nc]

You do realize that the corporations owners aren't receiving charity from the governments.

The shareholders and directors are still suffering for their poor governance.

The bailouts are to protect people who have deposited their savings with these failed institutions.

It would only take a few of these institutions to collapse without uncle sam stepping in to cause mass bank runs and real chaos.

Yet on the other hand, the taxpayers who don't have money in these institutions are forced to subsidise the people that do.

If they wanted to not have companies collapse after being laden with toxic debt, they should have regulated the industry more, not bail out companies with taxpayer funds after the fact after having a completely laissez-faire attitude to the industry. Not many savings-and-loans banks are being bailed out anyway. The only one I have heard of is Washington Mutual...

I mean, if you are going to bail out a bank, it's probably better to nationalise it and then break it up and sell it off if you only want to protect the people who deposited money.

 

[sthcross.dude]

Yet on the other hand, the taxpayers who don't have money in these institutions are forced to subsidise the people that do.

If they wanted to not have companies collapse after being laden with toxic debt, they should have regulated the industry more, not bail out companies with taxpayer funds after the fact.

Yes. But it only takes one financial institution to go under for mass panic to ensue.

Think about it. If ANZ went under today and the government bailed it out, most people wouldn't just go, "meh, my money is with NAB." They would be like "ORRRH SHIT! I'm goin down to the bank and getting my fucking money!"

Everyone is better off that if people don't loose their savings because the flow on effects of even one large collapse would be detrimental to the economy and would effect everyone.

 

[jb_nc]

Yes. But it only takes one financial institution to go under for mass panic to ensue.

Think about it. If ANZ went under today and the government bailed it out, most people wouldn't just go, "meh, my money is with NAB." They would be like "ORRRH SHIT! I'm goin down to the bank and getting my fucking money!"

Everyone is better off that if people don't loose their savings because the flow on effects of even one large collapse would be detrimental to the economy and would effect everyone.

AFAIK the 4 big Australian banks are all in the top 10/15 credit rating wise in the world so that situation is extremely unlikely because of the constant regulation put in place by the Australian government. Also I think the Australian government guarantees deposit accounts in Australian banks.

I guess my main point was in what I edited in: "if you are going to bail out a bank, it's probably better to nationalise it and then break it up and sell it off if you only want to protect the people who deposited money."

 

[youBROKEmyLIFE]

http://kanthoney.blogspot.com/2008/09/big-bad-bank-bailout.html

Great analysis.

 

[youBROKEmyLIFE]

Yes. But it only takes one financial institution to go under for mass panic to ensue.

Think about it. If ANZ went under today and the government bailed it out, most people wouldn't just go, "meh, my money is with NAB." They would be like "ORRRH SHIT! I'm goin down to the bank and getting my fucking money!"

Everyone is better off that if people don't loose their savings because the flow on effects of even one large collapse would be detrimental to the economy and would effect everyone.

It is a billion trillion kajillion times harder to set up an Aussie bank than an American one.

 

[HalcyonSky]

wow wtf @ people saying to me 'lOL WHy u sell ur shit on day 2 if u kept em til now ud hav made gains'

pro tip: an 80% fall needs a 500% gain to get back to where it was

 

[sthcross.dude]

wow wtf @ people saying to me 'lOL WHy u sell ur shit on day 2 if u kept em til now ud hav made gains'

pro tip: an 80% fall needs a 500% gain to get back to where it was

You mean a 400% gain.

This is the stupidest "pro tip" I've ever heard.

An 80% fall is a fall of 4 times the initial value. A 400% increase means it increases by 4 times the initial value. Same shit. The way it looks as a percentage is totally irrelevant.

 

[HalcyonSky]

You mean a 400% gain.

This is the stupidest "pro tip" I've ever heard.

An 80% fall is a fall of 4 times the initial value. A 400% increase means it increases by 4 times the initial value. Same shit. The way it looks as a percentage is totally irrelevant.

100 falls by 80%, we get 20

to get back to 100 we need 20x5 which is a 500% increase

i know this because i learnt it in primary school

 

[sthcross.dude]

100 falls by 80%, we get 20

to get back to 100 we need 20x5 which is a 500% increase

i know this because i learnt it in primary school

Ok suppose we start with $100.

Fall of 80%:

0.8*100 = 80

100 - 80 = 20.

Increase of 400%:

20*4 = 80

20 + 80 = 100.

You multiplied by the rate it increases when you should have multiplied and then added back to the initial amount. Your method results in an increase of 100% still being the initial figure, which is clearly absurd.

 

[Blazamane]

http://kanthoney.blogspot.com/2008/09/big-bad-bank-bailout.html

Great analysis.

Who gives a fuck?

Ninja away!

 

[sthcross.dude]

Try getting reservations at Dorsia now you stupid fucking bastard!

 

[HalcyonSky]

Ok suppose we start with $100.

Fall of 80%:

0.8*100 = 80

100 - 80 = 20.

Increase of 400%:

20*4 = 80

20 + 80 = 100.

You multiplied by the rate it increases when you should have multiplied and then added back to the initial amount. Your method results in an increase of 100% still being the initial figure, which is clearly absurd.

dude i learnt this in primary school i know what im talking about, its simple addition

 

[sthcross.dude]

dude i learnt this in primary school i know what im talking about, its simple addition

You learned it wrong. Did you perhaps go to a "special" primary school?

Why can't you just admit that you are wrong?

Let's do a sum using your method. $20 increases by 100%. So 20*1 (because you just multiply without adding back to the original amount) = 20.

So a 100% increase on $20 results in us still having only $20.

Slaps face.

 

[HalcyonSky]

You learned it wrong you fucking retard. I just explained it to you very clearly.

Why can't you just admit that you are wrong?

because i have my addition table on my wall in front of me, my calculations appear to be correct so it looks like u learnt ur shit wrong.

 

[sthcross.dude]

Oh noes, the sky is falling.

Hey ash, tell this HalcyonSky retard that he is a tard, and perhaps suggest a simple method of killing himself which he may be able to understand.

 

[HalcyonSky]

my troll level is reaching OVER 9000

jesus fucking christ, wake up.

 

[sthcross.dude]

hey ash, what is your serious prediction.

how likely do you reckon the deep recession/depression outcome is?

 

[HalcyonSky]

imo there will be some significant changes in the regulation of the market, doubtful that will include the permanent ban of all short-selling though, maybe just naked short-selling, and alot of companies will have to make some hardcore changes to their gearing policies if they dont want to get eaten by the bear market like ash said.

the US dollar is going to get hit hard by the bailout plan, good time to invest in AUD?

 

[zstar]

Short sellers are not responsible for this crisis.

This is just playing the blame game on honest traders who are being screwed over by this neo-marxist regime in Washington DC.