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發表於 2008-10-9 12:31 PM
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The US treasury secretary has warned some banks will still fail despite the $700bn government rescue package to shore up the financial system.
http://news.bbc.co.uk/2/hi/business/7660403.stm
so when's he's asking for the 700 billion without oversight he's like "yea, just give us the money, it's 700 billion it'll fix everything" and now after he's got the money, SPENT IT. Oh shit, it was not enough, and now the whole world will go down.
Here's how it goes, the world is one big market. The internet and phone system has made it so, we can reach anyone in the world within seconds. Common fact. However, the problem with that is, if one place crashes, so does the world. This is what's happening. Now, how do we fix this, well if you have a broken seam, you just pull everybody closer and close it. That's how the market works, if the US market fails, well the markets in UK, Japan, China, etc can come in and buy our stocks. Cheap = buy, high = sell. What the 700 billion does is, it throws in 700 billion out of the blue from thin air. It wasn't there before, it has to be created. PROBLEM. Money doesn't come from trees, Money comes from the VALUE, by making NEW money every time something comes up, makes it worth less. The more you print the less it's worth. Now it IS possible that the market value of the dollar can be less than a dollar. That's the problem going on right now. Because we've thrown in NEW MONEY into the system, there's a sudden shift of money flow, well the normal people and businesses go "oh shit i can't compete with 700 billion" so they pull out. Well the problem with that is, THEIR money is a continuous flow, it constantly replenishes itself, the 700 billion runs out. Especially since the market is supporting the whole world.
Basically, people are just holding out, they're not willing to throw in their money because their money are being depreciated, it's not worth as much as it's nominal value. So they wait til it drops more, drop so low it compensates for that 700 billion, and then their money will be worth the same or more than what it is.
The American market is a beached whale right now, it's dead and no one wants to touch it because they don't know if it'll blow up. Literally, beached whales, the dead ones, when they start to decompose, gasses build up on the inside, and sometimes it blows up because the skin can't hold that much gas. Back to my point, the only thing standing between complete market destruction and failure of the COUNTRY is literally like 4-5 banks. Those guys are so big that they can buy out those toxic firms, and still hold still. However, if no money is flowing through, they will still go broke, and when they do, the American dollar will be worthless. It will be worth less than the material it's made of.
Now the interesting is, one of the main reasons it's getting worse is panic. People are pulling out their bank accounts, their life savings, their checking, everything. The problem with that is, the banks need that money to survive. See, when we put money in banks, the bank doesn't store it as like a vault, it keeps a portion of it in cash, and use the rest in stocks, funds, trusts, and such. And when they make money with YOUR money, they cut you a percentage called the "interest", to keep you "interest"ed. Now what happens when large crowds pull out their money, well the bank DON'T have enough cash to actually give everyone their money back, so they have to sell their stocks, funds, trusts, etc to get that cash. Which then makes them poor, as they can only make money off of your money since they have no money. Those of you who play stocks know, if you dont have sufficient money, then well, too bad. You don't own anything. You don't have anything. Same with banks, once a good percentage pulls out, they don't have enough money to run, and they fail. That's why the FDIC protects up to 100,000 dollars. It's so that people DON'T pull out of these banks from fear. The FDIC has never deferred any payments, it's good.
Now what's egging this fear on is that no one in the white house, congress, federal reserve, treasury, the candidates know jack shit how to fix this. No one knows how to even look at this crisis. I don't know about you, but if the ENTIRE government and the FUTURE government don't know how to even approach a problem, you have a BIG problem. People understand that, and no one can actually come out and say, "hey, don't be afraid, this is the problem, this is how to ease it". Now realistically, no one expects anyone to be able to fix this within 30-50 years. All they want to know is, are their money safe. And it is. People need reassurance, if it's up to me, I would get the chairman of the FDIC to come out, and we'll have a speech together. We'll explain to people what is going on, and how they are protected. Because 1) you're not lying 2) you're calming people down 3) you're not making the problem bigger 4) you're making the problem smaller 5) that's how you show initiative and leadership.
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貝爾說，
