Understanding the economic crisis.

[Sports-Select.co.uk]

Ok I have to rant somewhere so you might aswell enjoy it. There are a couple of specific case points left out but it covers the concept.

The Govt. has no money.
It doesn't operate a for profit service or provide goods for proift.
It should raises it's money through taxation (and limited printing to control inflation.)
Way back the Govt. decided it would be crafty and borrow money from private banks andother finacial institutions instead of waiting for the taxes to come in, then repay the borrowing with the next years taxes.
However borrowing affords interest to the lender.
Since the Govt. have to repay more than they borrowed they can't spend as much the next year or they must raise taxes to cover the interest.
The lender essentially profits off the whole nations efforts.
The Govt. has 2 choices, raise taxes to repay the debts or cut spending and repay the debts.
Taxes can't be raised fast enough or spending cut fast to cover the debts whilst retaining the social order.
The Govt. therefore borrows more each year.
The lenders are "The finacial system"
The financial system has now decided it won't lend to the public or other businesses as it is "broke" through buying shit assetts
Somehow there is still enough money for the "financial system" to lend to the Govt. enough to then buy there shit assets.
AND then CHARGE the Govt. interest for lending them the money to buy their unwanted shit!!!!!
How will the Govt. pay back this interest, more taxes and less spending.
Bottom line, we work harder for less whilst those who lend to the Govt. get more.

[Nimmy]

We’ve all been affected by the events of the past week, here is some sound
financial advice for today's markets:



If you had purchased £1000 of Northern Rock shares one year ago it would now be worth £4.95.


With HBOS, earlier this week your £1000 would have been worth £16.50


£1000 invested in XL Leisure would now be worth less than £5


But if you bought £1000 worth of Tennents Lager one year ago, drank it all,
then took the empty cans to an aluminum re-cycling plant, you would get
£214.


So based on the above statistics the best current investment advice is to
drink heavily and re-cycle.

[Lou]

Hmmm so I might as well spend all my money (the pittance I have left over every month) on shoes at the moment then :D

[Sports-Select.co.uk]

Fuck yes, you will get way more shoes for your money today than you will tomorrow. Buy 2 pairs one for you then sell the other later.

[Lou]

Ooooh good idea! :D


Still, best hide them from the bf!

[Sports-Select.co.uk]

Your BF steals your shoes? Kinky.

[Lou]

nah I just get told off for wasting my money when we need double glazing and really dull stuff like that :D


Though I have no idea what he gets up to on a Friday afternoon when I am still at work.....

[Mattfinn]

We’ve all been affected by the events of the past week, here is some sound
financial advice for today's markets:



If you had purchased £1000 of Northern Rock shares one year ago it would now be worth £4.95.


With HBOS, earlier this week your £1000 would have been worth £16.50


£1000 invested in XL Leisure would now be worth less than £5


But if you bought £1000 worth of Tennents Lager one year ago, drank it all,
then took the empty cans to an aluminum re-cycling plant, you would get
£214.


So based on the above statistics the best current investment advice is to
drink heavily and re-cycle.

Nimmy for President! !

Im off to get some 'Super, and get trolleyed!

[DetoxGuru.com]

Ok I have to rant somewhere so you might aswell enjoy it. There are a couple of specific case points left out but it covers the concept.

The Govt. has no money.
It doesn't operate a for profit service or provide goods for proift.
It should raises it's money through taxation (and limited printing to control inflation.)
Way back the Govt. decided it would be crafty and borrow money from private banks andother finacial institutions instead of waiting for the taxes to come in, then repay the borrowing with the next years taxes.
However borrowing affords interest to the lender.
Since the Govt. have to repay more than they borrowed they can't spend as much the next year or they must raise taxes to cover the interest.
The lender essentially profits off the whole nations efforts.
The Govt. has 2 choices, raise taxes to repay the debts or cut spending and repay the debts.
Taxes can't be raised fast enough or spending cut fast to cover the debts whilst retaining the social order.
The Govt. therefore borrows more each year.
The lenders are "The finacial system"
The financial system has now decided it won't lend to the public or other businesses as it is "broke" through buying shit assetts
Somehow there is still enough money for the "financial system" to lend to the Govt. enough to then buy there shit assets.
AND then CHARGE the Govt. interest for lending them the money to buy their unwanted shit!!!!!
How will the Govt. pay back this interest, more taxes and less spending.
Bottom line, we work harder for less whilst those who lend to the Govt. get more.

good post !!!

[Lou]

Anyone think it's being slightly over reported? I know it's very important, but all the news of it is getting me down!

Petrol has gone down a bit though,so that's one thing I guess.

[Pinhead]

I've been led to believe that this is the same situation we've had three times now since the 70's - a cycle of usually around 13 years. Each time, whilst in it, it's reported to be the worst one ever, whereas truthfully, in a few years time we'll all be cool.

Good post though ! I tend not to worry at all really. My spending goes down a bit just incase but I always live in the clouds anyhow.....

[DetoxGuru.com]

Anyone think it's being slightly over reported? I know it's very important, but all the news of it is getting me down!

Petrol has gone down a bit though,so that's one thing I guess.

the oil goes down 20% and the petrol goes down 2% , brilliant , it is being over reported but as usual with the mainstream media they arent giving the international banking cartels the shit the fuckers deserve

[SDR]

Might not be the best time for me to have quit my job, got a loan and fucking off to Cali to 3 months to train... to come back to no job, no car, and debt :D

[Lou]

You'll just get to hear about it all in America instead :D

Boris was on the radio yesterday saying things like short selling shouldn't be regulated as essentially it's all good for the economy. At that point I kind of stopped listening as I didn't really understand it all.

[Sports-Select.co.uk]

Overhyped, maybe, if anything under reported. The facts are not clearly laid out.

The man behind the plan:

Paulson, a former CEO of Goldman Sachs who owns 523.5 million dollars in
that company's stock.

No wonder he wants the tax payer to underwrite his 523.5million. Heaven forbid he should loose a penny.

[Sports-Select.co.uk]

You'll just get to hear about it all in America instead :D

Boris was on the radio yesterday saying things like short selling shouldn't be regulated as essentially it's all good for the economy. At that point I kind of stopped listening as I didn't really understand it all.

Boris is right, nowt wrong with short selling. It's a free market, if you win you win if you lose you lose... oh wait if you loose the tax payer will cover you.

[stapesmk1]

You'll just get to hear about it all in America instead :D

Boris was on the radio yesterday saying things like short selling shouldn't be regulated as essentially it's all good for the economy. At that point I kind of stopped listening as I didn't really understand it all.

Short selling is when a "speculator" borrows stock, sells it for a high price, spins harmful rumours about that company to damage it and bring the share price down as people panic, then buys them back cheaply and returns them to the original owner, with the difference being the "speculator's" profit.

e.g. You borrow your dads car, polish it up and sell it to a mate for £5,000, then one dark night you proceed to throw mud over it, smash the lights in and run your key down it. Your mate can't do bugger all with it, so you kindly offer to buy it back for £1000. You hnd the car back to your dad and stick the £4000 into your pocket.

Get it? That fat albino prick has got mummy and daddy's trust fund money spilling over into god knows what hedge funds, so its in his best interests to allow it to continue!!

Theres no such thing as "acceptable market strategies on the free market" when the consequences do not just effect the short seller, they have a massive effect on the whole economy and more importantly us. They say they are risking their own money when they do it, as if they dont do a good enough job of spin doctoring, the shares may remain stable or even rise, leaving them out of pocket when they have to buy back the shares, when they are "called in" by the original owner. Big fucking deal. If it was only their money at stake then fine, but its like betting on a London bus being blown up then supplying the TNT.....its rigged and there are innocent people who get harmed.

Wankers

Stapes

[DetoxGuru.com]

Paulson, a former CEO of Goldman Sachs who owns 523.5 million dollars in
that company's stock.

No wonder he wants the tax payer to underwrite his 523.5million. Heaven forbid he should loose a penny.

god the elite are a bunch of cunts , fucking outrageous!!!!!!!!!!!!!!!!!!

[stapesmk1]

We’ve all been affected by the events of the past week, here is some sound
financial advice for today's markets:



If you had purchased £1000 of Northern Rock shares one year ago it would now be worth £4.95.


With HBOS, earlier this week your £1000 would have been worth £16.50


£1000 invested in XL Leisure would now be worth less than £5


But if you bought £1000 worth of Tennents Lager one year ago, drank it all,
then took the empty cans to an aluminum re-cycling plant, you would get
£214.


So based on the above statistics the best current investment advice is to
drink heavily and re-cycle.


Love it mate, very true.

Seriously though, they are the price per share yeah? Not the whole fund.

Sports Select, absolutely spot on.

If taxes are compulsory to the electorate (of which 90% of us own 10% of the wealth in the country-as in the majority of us dont have much), then why arent loans to the government compulsory and 0% interest? Are they more importnant than us?

Its the lenders who have the money to lend, how dare they expect interest. No one should be above the government and hold the upper hand. Our earnings are forceably taken from us in tax whether we agree or not, we dont get it back either!!!

So when the government needs to lend, it should forceably borrow the money and return it at an agreed date.

Stapes

[SDR]

All sounds very complicated to me, I'd rather kick back, let things worh themselves out and laugh at this:

http://imagechan.com/images/652d7327e6965e6d455c0235e817cdcd.gif

[Sports-Select.co.uk]

Short selling is when a "speculator" borrows stock, sells it for a high price, spins harmful rumours about that company to damage it and bring the share price down as people panic, then buys them back cheaply and returns them to the original owner, with the difference being the "speculator's" profit.

e.g. You borrow your dads car, polish it up and sell it to a mate for £5,000, then one dark night you proceed to throw mud over it, smash the lights in and run your key down it. Your mate can't do bugger all with it, so you kindly offer to buy it back for £1000. You hnd the car back to your dad and stick the £4000 into your pocket.

Get it? That fat albino prick has got mummy and daddy's trust fund money spilling over into god knows what hedge funds, so its in his best interests to allow it to continue!!

Theres no such thing as "acceptable market strategies on the free market" when the consequences do not just effect the short seller, they have a massive effect on the whole economy and more importantly us. They say they are risking their own money when they do it, as if they dont do a good enough job of spin doctoring, the shares may remain stable or even rise, leaving them out of pocket when they have to buy back the shares, when they are "called in" by the original owner. Big fucking deal. If it was only their money at stake then fine, but its like betting on a London bus being blown up then supplying the TNT.....its rigged and there are innocent people who get harmed.

Wankers

Stapes

Whilst short selling is open to abuse, so is any thing. You could short sell a bag of rice. Borrow a bag, sell it, geta mate to tell the buyer it's poisoned then buy it back on the cheap. Return the rice and pocket the difference. If they won't sell the rice, you owe 1 bag of rice, it's up to you to provide it.

Innocent people, or ignorant people? Why do you think you recieve interest on a bank deposit? Its a reward for the RISK of lending your money to them.

Banks give you the impression them borrowing is safe, then only have 10% of liabilities held, that is 90% leverage. That is one hell of a risky venture and infact an insolvent company. Why would you lend them money.

[stapesmk1]

People view it as storing or depositing their hard earned money, not lending it. Thats the thing. You earn such a pittance in interest on your current account that Id rather waive that and have my money left alone and not touched for investment or otherwise.

Stapes