Will someone please tell me what is going on with the financial market this week? I have been diligently reading the newspaper and scouring the multi-media features, but I understand NONE of it. Not even a little bit. All I can tell is that people who already have a lot of money are freaked about losing it. What about those of us who only have a very little bit of money? Or no money at all but a lot of debt? What does this all mean?
I don't know many people in the financial world, but all this is going on just a couple miles from me and as the ripples get wider and wider I suspect that pretty soon its going to be my friends and loved ones who are out of work and wondering where all their assets went.
posted by laurenj @ 7:24 AM
4 Comments:
Cross your fingers and prey for massive inflation to wipe out the value of those student loans...and a paycheck that keeps up with inflation. - Bill
OMG! My secret hope is that somehow the downturn of the economy would mean that my student loan is worthless! I know, in real life C!t!whores have a much better chance of coming out of this better than I do, but a girl can dream!
Yeah I don't really understand it myself...all I know is when a major bank like Lehman goes bankrupt it affects so many different aspects of the industry....anyone who invested with them or through them lost a lot of money.... yeah, it's mostly rich people, but I think in the end it affects us all... Unfortunately, your loans would be bought by another bank. Bummer, I know.
Plus, my company is hanging on by a thread... so you might know someone losing a job. here's hoping I'm wrong!
on our sphere: remember the housing bubble that refused to burst for years? unfortunately--it has. and it's mainly about unethical greed pushing people to convince a prospective homeowner that they can afford a loan that they really can't afford--all for the sake of more money/interest. and people, not knowing better/not doing the math themselves, let themselves get swayed and convinced themselves they can cut corners here and there and make the payments--all for that brand new home on that brand new cul-de-sac that was mass produced, cheaply--with little quality.
on a larger more nebulous sphere: not only were these banks handing out bad home loans--they were also purchasing bad loans.
those are the 2 main things--although there are a few more things to consider.
in the end--
1. if people lose jobs and can't make their payments--the banks don't get back their money.
2. if the bad loans they purchased aren't paid back--they lose money.
3. normal taxpayers lose their homes and corporate gets saved by the government via those taxpayers' dollars. that's right. our money is not going back to help us--it's going over to help the immoral heads of corporations.
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