World Recession

[Dave40]

Call me a communist

How are you Karl?

It must hit countries hard that don't have a huge export commodities to deal with

It also hits us hard when the "Demand" for our commodities drops away, just look at our "dollar" :cry: :cry: :cry:

but the fact that they may earn the same as 100 average folk out there is just f*cking crazy .

Rather than kicking their f*cking ass out of the company that they've sent broke

If someone offers you huge amount of money to run a company "you" ain't gonna say no are you? It's the people who decide how much the "ceo" gets are to blame!! IMO!!! :twisted:

Meet the new boss same as the old boss!!!

[condotown]

just got my margin call. I am down one million dollar for the year.

is 7500 possilbe for the DOW

That's about the level it must reach before I consider jumping back in.

[LakeGeneve]

Never got in directly, hate the whole concept and don't pretend to understand it a being more than a gamble if your trying to make some bucks.

Give me the security of onvesting in bricks and mortar...errr,

Ok well give me the solid money in a bank....oh ****!,

Ok the euro...going down is it, ok then

well, give me gold then...?

Maybe just a patch of dirt and a place to call home.

just got my margin call. I am down one million dollar for the year.

HK dollars I hope?

[beej]

Good time to average down I think!!!

[Cosmo]

The UK Government has announced a £50bn rescue package for the UK's embattled banks and building societies.

Chancellor Alistair Darling unveiled the proposals after emergency talks in Downing Street last night.

The plan includes a cash injection for the banks to bolster their depleted balance sheets.

In return, the taxpayer will get a stake in the financial institutions.

Mr Darling told Sky News the measures being taken were in response to "extraordinary times".

"Those are absolutely critical so far as the system is concerned and we want to make sure that we can get the system going again," he said.

"It is a process that inevitably will take time. It is not an instant change but it is a restructuring, it is stabilising the system, and that is very important."

Eight UK banks and building societies - including RBS, Barclays, HBOS, Lloyds TSB and Nationwide - have signed up to an initial £25bn scheme.

On top of this the Government said it will make least another £25bn available for other eligible institutions.

The Bank of England is also extending the existing £50bn Special Liquidity Scheme to £200bn.

A further £250bn is being pumped into to banking system under a debt guarantee scheme.

It is hoped the measures will help restore confidence to get banks lending to each other again.

In return for the cash injection, the Government is demanding banks cap executive pay and shareholder dividends.

They are also being asked to increase lending to homebuyers and small businesses.

The bail-out has been welcomed by HBOS, which is in the process of being taken over by Lloyds TSB.

"HBOS believes that this initiative is very much in the interests of its shareholders and customers," the bank said in a statement.

The rescue package comes after another day of turmoil on the stock market, with banks suffering huge losses.

Royal Bank of Scotland was worst hit - its shares plummet by almost 40%.

Today's announcement follows talks in Downing Street last night attended by the Governor of the Bank of England and the head of the Financial Services Authority.

It followed another torrid day in the markets which saw bank shares take a pounding, massively increasing the pressure on the Government to act.

Shadow chancellor George Osborne repeated his willingness to cooperate with the Government, but warned the injection of funds could not be a bail out of failed bankers.

"We must make sure that any support from the taxpayer is used to help save small businesses from closure and enable families to stay afloat, not to pay the bonuses of bankers," he said.

Sky News

IMHO, investors around the world are in panic selling mode now.

The only solution from a total financial meltdown now is for a simultaneous co-ordinated action from the major central banks around the world, on dropping interest rates of about 1%.

[Ngairo]

The UK Government has announced a £50bn rescue package for the UK's embattled banks and building societies.

Chancellor Alistair Darling unveiled the proposals after emergency talks in Downing Street last night.

The plan includes a cash injection for the banks to bolster their depleted balance sheets.

Where does that money come from? The goverments have NO money.....they just control the rules & regulations....so wher does the 'bail out' money come from?...The private sector?....I'm only guessing....

[Ngairo]

Royal Bank of Scotland was worst hit - its shares plummet by almost 40%.

And they franchise 137 other banks throughout the world....tut tut...

[Cosmo]

The UK Government has announced a £50bn rescue package for the UK's embattled banks and building societies.

Chancellor Alistair Darling unveiled the proposals after emergency talks in Downing Street last night.

The plan includes a cash injection for the banks to bolster their depleted balance sheets.

Where does that money come from? The goverments have NO money.....they just control the rules & regulations....so wher does the 'bail out' money come from?...The private sector?....I'm only guessing....

It is actually quite easy for governments to find extra money, as long as they have good credit ratings.

Most western governments issue Treasury securities (ie. treasury bonds, treasury bills, treasury notes etc).

For example; the US government issues between 30 to 40 Billion dollars every month, of Treasury bonds, bills and notes, to fund its deficit and the Iraq and Afghan Wars.

These securities are often purchased by foreign financial institutions and governments from all over the world, as well as local investors and financial institutions in the US.

Of course, if they have bad credit ratings or if they lose the ability to borrow money from oversea investors, they can always print money, which of course will be highly inflationary - a good example is Zimbabwe

[Ngairo]

The UK Government has announced a £50bn rescue package for the UK's embattled banks and building societies.

Chancellor Alistair Darling unveiled the proposals after emergency talks in Downing Street last night.

The plan includes a cash injection for the banks to bolster their depleted balance sheets.

Where does that money come from? The goverments have NO money.....they just control the rules & regulations....so wher does the 'bail out' money come from?...The private sector?....I'm only guessing....

For example; the US government issues between 30 to 40 Billion dollars every month, of Treasury bonds, bills and notes, to fund its deficit and the Iraq and Afghan Wars.

Sois it the FED or IMF (International Mnatery Fund)...they are the only private investors in the world who have any money...? yeah

Governments can't print money any longer...Zimbabwe and Nigeria are exceptions....the governments can only borrow money...leveraged against how many tax payers they have to pay it back....yeah?.....just like you and I lending from a bank........

[Cosmo]

The only solution from a total financial meltdown now is for a simultaneous co-ordinated action from the major central banks around the world, on dropping interest rates of about 1%.

OMG....they did it!!!!

Just announced: The Federal Reserve, European Central Bank, The Bank of England, The Bank of Canada and Sweden's Riksbank have co-ordinated an interest rate cut of 0.5%.

Separately, China's Central bank announced a 0.27% cut.

Again fingers crossed.

[hbkbkk]

Never got in directly, hate the whole concept and don't pretend to understand it a being more than a gamble if your trying to make some bucks.

Give me the security of onvesting in bricks and mortar...errr,

Ok well give me the solid money in a bank....oh sh*t!,

Ok the euro...going down is it, ok then

well, give me gold then...?

Maybe just a patch of dirt and a place to call home.

just got my margin call. I am down one million dollar for the year.

HK dollars I hope?

I wish it were vietnam dong

[luckyphil247]

Never got in directly, hate the whole concept and don't pretend to understand it a being more than a gamble if your trying to make some bucks.

Give me the security of onvesting in bricks and mortar...errr,

Ok well give me the solid money in a bank....oh sh*t!,

Ok the euro...going down is it, ok then

well, give me gold then...?

Maybe just a patch of dirt and a place to call home.

just got my margin call. I am down one million dollar for the year.

HK dollars I hope?

I wish it were vietnam dong

Paper loss OR Real loss ???

[GoldMember]

Never got in directly, hate the whole concept and don't pretend to understand it a being more than a gamble if your trying to make some bucks.

Give me the security of onvesting in bricks and mortar...errr,

Ok well give me the solid money in a bank....oh sh*t!,

Ok the euro...going down is it, ok then

well, give me gold then...?

Maybe just a patch of dirt and a place to call home.

just got my margin call. I am down one million dollar for the year.

HK dollars I hope?

I wish it were vietnam dong

Paper loss OR Real loss ???

Being a margin call one assumes its short/medium term trading.So paper loss/real loss is fairly immaterial-it's still a loss.The fact a margin call does occur is normally a sign to get out as the original trading decision is obviously wrong and there's no point throwing good money after bad.

[paulgh3rd]

buying on margin is nothing more then trading on credit and the same applies to a credit card as buying on margin..... never buy if when the bill comes do you can't pay! starting 15 years or so ago the mortgage industry lost common sense and then the securities based on them, the stock exchanges, the sec, the house, senate all lost common sense in regards to them because everyone was making so much money so it's not a global recession....

just a global correction on markets drying up on the bad mortgages that have been written in the 15 years. May we all survive it!

Never got in directly, hate the whole concept and don't pretend to understand it a being more than a gamble if your trying to make some bucks.

Give me the security of onvesting in bricks and mortar...errr,

Ok well give me the solid money in a bank....oh sh*t!,

Ok the euro...going down is it, ok then

well, give me gold then...?

Maybe just a patch of dirt and a place to call home.

just got my margin call. I am down one million dollar for the year.

HK dollars I hope?

I wish it were vietnam dong

Paper loss OR Real loss ???

Being a margin call one assumes its short/medium term trading.So paper loss/real loss is fairly immaterial-it's still a loss.The fact a margin call does occur is normally a sign to get out as the original trading decision is obviously wrong and there's no point throwing good money after bad.

[Stramash]

From BBC website tonight;

The symbolism couldn't be worse.

Gordon Brown commits £400bn of taxpayers' money - equivalent to about a third of our entire economic output - to rescuing the banking system.

And central banks from Asia to Europe to North America slash interest rates.

In other words, there's been a co-ordinated global attempt to prop up the financial system and save individual economies from a deep dark recession.

Yet the FTSE 100 plumbs new depths.

What on earth's going on?

Are we all doomed?

Well, the symbolism is a bit misleading, because the FTSE 100 is massively unrepresentative of the British economy.

The main reason it's fallen is because of sharp falls in the prices of giant mining companies that are listed on the London exchange.

So does that mean the FTSE 100 drop doesn't matter?

No, for two reasons.

First, one of the untold horror stories of the credit crunch is that it's wreaking havoc with the investments that underpin the value of millions of people's pensions.

Also, the reason for the fall in those mining companies is that there's been a further sharp drop in the price of commodity and energy prices.

Good news in a way, if it leads to lower household bills.

But the cause of those drops is a slowdown in economic activity throughout the world and the onset of recessions in several developed economies.

So what Gordon Brown and central banks have done today should stave off economic Armageddon - but it's probably too late to save us from months, or even years, of sluggish growth

___

But bet you, despite falls in wholesale prices of gas and oil, that none of the ba**rd power companies cut bills to customers!

[Cosmo]

For those who still think this only affects Wall Street.

Oct. 9 (Bloomberg) -- Iceland's government seized control of Kaupthing Bank hf, the nation's biggest bank, completing the takeover of a banking industry that has collapsed under the weight of its foreign debt.

Kaupthing's domestic deposits are fully guaranteed and the aim of the takeover is to provide a ``functioning domestic banking system,'' the country's Financial Supervisory Authority said in a statement on its Web site today.

The banks are saddled with about $61 billion of debt, Bloomberg data show, and the government is seeking a loan from Russia and may ask for aid from the International Monetary Fund. Regulators this week took over the second- and third-largest lenders, Glitnir Bank hf and Landsbanki Islands hf, while the central bank ditched an attempt to fix the krona as investors fled.

``This looks like a total collapse,'' said Thomas Haugaard Jensen, an economist at Svenska Handelsbanken AB in Copenhagen. ``It'll take several years before the economy can start to return to growth.''

[zeusbheld]

"There are 10^11 stars in the galaxy. That used to be a huge number. But it's only a hundred billion. It's less than the national deficit! We used to call them astronomical numbers. Now we should call them economical numbers."

-- Richard Feynman

[GAV]

There are 18 Banks world wide with S & P AA rating

4 of them are Australian banks Who are the other 14 ???

[Bruce551]

Editorial

Building a Better Bailout

9 Oct 08, NY Times

Last month, when he defended his bailout plan before Congress, Treasury Secretary Henry Paulson was reluctant to have the government take an ownership stake in the banks that taxpayers are going to rescue. It came as a relief on Wednesday when he executed an about-face and said that the Treasury was now considering doing just that.

In the weeks since the bailout was announced, the financial markets and broader economy have continued to deteriorate, with credit still in a deep freeze and the stock market plunging anew in the last two hours of trading on Thursday.

Injecting cash directly into banks in exchange for an ownership share would provide a quicker and more powerful boost to the financial system than the measures proposed in the original bailout plan. It would also be a better deal for taxpayers, because it would give them a direct claim on any postbailout profits earned by the bank.

Mr. Paulson?s original plan, which was modified by Congress to include the possibility of the government taking equity positions, envisioned a complex process in which taxpayer money would be used to buy banks? bad assets. That would enable the banks to start lending again and would drain a lot of the poison that is ruining their health. Once taxpayers graciously put the banks on the road to recovery, the original plan assumed that private equity firms and other investors would invest loads of fresh capital in them and reap, for themselves, the subsequent gains.

Workable, perhaps, but infuriating. Investing money in exchange for equity is more efficient and ? not incidentally ? more fair. (I agree)

It?s still unclear how and to what extent the Treasury would inject capital and assume ownership. But it is clear that the new approach would be more than a tactical shift, although President Bush and Mr. Paulson are unlikely to ever admit as much.

Under the original plan, the government?s role was to pave the way for private investors to regain control of the financial system as soon as possible.

In essence, that plan adhered to the prevailing Republican ideology that the government?s primary aim should be to help the markets to pursue profits, and that markets, in turn, best provide for the public interest. Clearly, if that were the case, we would not be in this mess. Taking ownership in return for taxpayer money is an admission that government is the only force that can pull us out of this crisis ? by asserting the public interest.

Even with a better bailout, it will take years, not months, to repair the damage. It is now obvious that Wall Street spent most of the Bush years trafficking in bad debt, a profitable enterprise while it lasted, but a destructive force that is now wreaking new havoc daily.

At last count, 12 million homeowners had zero or negative equity in their homes. Millions are in some stage of foreclosure. Retirement and other savings, for those Americans who have them, are being decimated, and unemployment is rising. Consumers are recoiling, an understandable reaction, but one that will reinforce the downward economic trend. There surely are more economic shocks in store, among them, corporate defaults and state-government budget emergencies.

How we will emerge from this crisis is not yet known. But we know how we got into it. The question ? which is about to be put to the voters in November ? is whether the nation will learn from its mistakes, or whether the deregulatory, anti-government ethos of the last several decades will be alllowed to reassert itself when the economy begins to recover.

***You know the idea that you get put in jail for robbing a bank seem a little ridiculous.

[CocoaBrotha]

The fall of the economy beagn When so many people began buying everything with credit. Now many people have those credit limits maxed out. Wages are so low bills are going unpaid. The economy is well beyond the beginning of colapse. The expert sollution? Lower interest rates and extend even more credit? Once again a false hope that will only contribute to the inevitable collapse.

"It's a recession when your neighbor loses his job; it's a depression when you lose yours."

President Harry Truman

[JayB]

Does anyone have any recommendations for an offshore online share broker.

I live in Thailand but my main bank account is in HK.

E-Trade etc seem to require some degree of residence or bank account in the market you want to trade.

I?m looking at US, UK and Australia.

I?m not brave enough to jump in yet but I?d like to be ready.

I?d also appreciate a suggestion on a broker here in Thailand for local stocks.

I think the market here is close to oversold and it would be worth buying a few selective shares.

Even sitting on cash at the moment is scary when you look at the wild swings in the exchange rates.

If you?re going on holiday, Australia is looking cheap at current exchange rates!

PS

My investment tip for the day:

Buy a bigger mattress :shock:

[Office_Girl]

:?

Also stock market has the bad situation like big earth quake.

All big stock trade fall down everyday including the gold price yesterday that been changed up & down 7 times !

But I quite sure that the gold market should be better even it shake like a-go-go dancing and unstable.

Should to sell gold we have for get some profit with price exchange and try to buying back when gold price fall down again soon. :wink:

Stop going out & party in a moment until pass this world bad situation.

[menospeakthai]

If you?re going on holiday, Australia is looking cheap at current exchange rates!

In 2000 it was 2.95 AUD to the GBP.

According to xe.com it is 58.5 bht to the GBP is this what theyre offering at the banks in tourist resorts? if so im no longer going to be a 2 week millionaire.

[Cosmo]

The biggest problem right now is the lack of faith in the financial system.

Banks are no longer lending to other banks.

Basically, they have no confidence that the other bank will not go bust tomorrow!!!

This problem was supposed to be fixed with the Paulson rescue package.

However, the financial market has been dropping daily (fallen nearly 20% now) since the passage of the amended Paulson package.

IMHO, this is because they do not believe many banks will take up on the US government's offer.

I mean if you were the CEO of a large bank or investment bank or financial institution, and you are on a compensation package of $5 M plus a year, would you take up the government's offer to buy up your toxic debts, and then watch your salary go down to say $500,000 a year??

Or would you try to horde cash in your bank, so that your bank does not go broke and consequently, your mega millionaire dollar salary package is protected?!?

I think the later situation is happening - of course, this would explain why the LIBOR rate has been rising instead of falling, since the passage of the amended Paulson package.

And as a consequence, the credit freeze has worsen, instead of being alleviated.

Just my humble opinion..... :roll:

[beej]

The biggest problem right now is the lack of faith in the financial system.

I think its just plain old debt, house hold/nation wide/global debt.

The world become riddled with it, and its become part of every day life, this should help kick them all into touch!