Okay I am at times a bit thick but for the life of me…. I can’t understand this world money problem.

If the world governments is piling in billions to their piggy banks…… where do they get it from?????

I’d love a laymans term to explain this if someone can help me out.

• I have visions of Old George colouring in paper out the back of the white house…….*

All jokes aside…..where does it come from??

taxes

bluegreen said:

taxes

Really!!!!! Hell is there enough people to tax to get that amount????

Don’t I feel a dill pickle asking this question….. 1 word with 4 letters……..

Thanks Bluegreen…… pffft…. life suxs

grow more of your own food is how people will survive.

Lucky1 said:

Okay I am at times a bit thick but for the life of me…. I can’t understand this world money problem.

If the world governments is piling in billions to their piggy banks…… where do they get it from?????

I’d love a laymans term to explain this if someone can help me out.

• I have visions of Old George colouring in paper out the back of the white house…….*

All jokes aside…..where does it come from??

I think it’s just numbers in a computer somewhere…however these “billions” relate to people’s homes and livelihoods which need to be preserved…

In USA the general populace is dirty about these “trillions” being used to bail out the greedy unscrupulous financiers…they they look at the damage by that last Hurricane..whatsisname…and realize the govt is not going to help (much) but by jingo suddently the money is there for the people causing havoc with the financial systems…some people are still living in trailers (caravans) – since Hurricane Katraina – the insurance did not cough up…can’t afford to rebuild – can’t afford to move on…

Lucky1 said:

bluegreen said:

taxes

Really!!!!! Hell is there enough people to tax to get that amount????

Don’t I feel a dill pickle asking this question….. 1 word with 4 letters……..

Thanks Bluegreen…… pffft…. life suxs

grow more of your own food is how people will survive.

there’s not just income tax, there is sales tax and import tax and this tax and that tax and capital sales tax and death tax. You name it, they tax it! But in the end it is the populace that pays.

i think the worst of it is how it applies to super, for those about to retire….all the money they’ve been pumping into super from own pay for retirement can almost disappear overnight. so much for all the (earlier) advice for people to put extra into super…so some shitforbrains stock market players can spend it on your behalf.

Thanks Dinetta….. I saw on TV tonight… a singer has her legs insured for 1. something billion…..the world has gone crazy:(

it’s very complicated in it’s simplicity.

In laymans terms..
The financial crisis can be partly explained by greedy banks lending out too much to people who cannot repay the loan.
And, when people can’t afford to pay their loans, shareholders worry that might ‘break the bank’ …people want to withdraw their savings , effectively ‘ breaking the bank’ anyway.
I know that if I applied for every loan and credit card junk mail application I get ,I would have a swag of loans and credit cards , I could go on a wild spending spree, I could easily borrow more than is my capacity to service the loans , unable to repay the loans, the bank would claim my house and turf me out on the street.

Very basically..
No income, no where to live, business’ go broke, people can’t buy things, then companys go broke and join the homeless..

Have you noticed new car prices dropping ?

bluegreen said:

Lucky1 said:

bluegreen said:

taxes

Really!!!!! Hell is there enough people to tax to get that amount????

Don’t I feel a dill pickle asking this question….. 1 word with 4 letters……..

Thanks Bluegreen…… pffft…. life suxs

grow more of your own food is how people will survive.

there’s not just income tax, there is sales tax and import tax and this tax and that tax and capital sales tax and death tax. You name it, they tax it! But in the end it is the populace that pays.

Life still sux…….

aquarium said:

i think the worst of it is how it applies to super, for those about to retire….all the money they’ve been pumping into super from own pay for retirement can almost disappear overnight. so much for all the (earlier) advice for people to put extra into super…so some shitforbrains stock market players can spend it on your behalf.

Yes. Elf’s gets his personal super on his birfty next year…. if there is any left by then.

Happy Potter said:

it’s very complicated in it’s simplicity.

In laymans terms..
The financial crisis can be partly explained by greedy banks lending out too much to people who cannot repay the loan.
And, when people can’t afford to pay their loans, shareholders worry that might ‘break the bank’ …people want to withdraw their savings , effectively ‘ breaking the bank’ anyway.
I know that if I applied for every loan and credit card junk mail application I get ,I would have a swag of loans and credit cards , I could go on a wild spending spree, I could easily borrow more than is my capacity to service the loans , unable to repay the loans, the bank would claim my house and turf me out on the street.

Very basically..
No income, no where to live, business’ go broke, people can’t buy things, then companys go broke and join the homeless..

Have you noticed new car prices dropping ?

Okay… here is a question…..

If a person is paying their house off..good as gold and the money institution goes bust……..that lent them the money for the house….. do they loose their house in all the mess…even though they are on time with their house payments.

Okay… here is a question…..

If a person is paying their house off..good as gold and the money institution goes bust……..that lent them the money for the house….. do they loose their house in all the mess…even though they are on time with their house payments.

——————————————————————-
Thats a hairy one Lucky, liqudators would have to come in and organise to sell your debt to another bank, and try and recover as much as they could so they don’t lose out, but you keep paying as usual.

Happy Potter said:

Okay… here is a question…..

If a person is paying their house off..good as gold and the money institution goes bust……..that lent them the money for the house….. do they loose their house in all the mess…even though they are on time with their house payments.

——————————————————————-
Thats a hairy one Lucky, liqudators would have to come in and organise to sell your debt to another bank, and try and recover as much as they could so they don’t lose out, but you keep paying as usual.

Thank goodnes for that….. I ‘d feel awful for anyone in that situation.

Lucky1 said:

Happy Potter said:

Okay… here is a question…..

If a person is paying their house off..good as gold and the money institution goes bust……..that lent them the money for the house….. do they loose their house in all the mess…even though they are on time with their house payments.

——————————————————————-
Thats a hairy one Lucky, liqudators would have to come in and organise to sell your debt to another bank, and try and recover as much as they could so they don’t lose out, but you keep paying as usual.

Thank goodnes for that….. I ‘d feel awful for anyone in that situation.

where it is hurting is self funded pensioners who have their money invested in the banks/companies that go bust. They can lose their life savings overnight.

bluegreen said:

Lucky1 said:

Happy Potter said:

Okay… here is a question…..

If a person is paying their house off..good as gold and the money institution goes bust……..that lent them the money for the house….. do they loose their house in all the mess…even though they are on time with their house payments.

——————————————————————-
Thats a hairy one Lucky, liqudators would have to come in and organise to sell your debt to another bank, and try and recover as much as they could so they don’t lose out, but you keep paying as usual.

Thank goodnes for that….. I ‘d feel awful for anyone in that situation.

where it is hurting is self funded pensioners who have their money invested in the banks/companies that go bust. They can lose their life savings overnight.

Shoot…. hadn’t thought of them:(

The reason superannuation became compulsory is that most people won’t save for their old age. There was some kind of deal brokered many years ago, where a pay rise was only so much $ (basically gross plus income tax – as it was then)…the employer was then to put the “rest” of the wages (it started off as 2 per cent of the gross) into a superannuation fund on the employee’s behalf…this was to grow, of course, with interest earned etc.

I seem to recall that earlier, super was to come directly out of the wages (kind of like salary sacrifice now), and when you left the employer you could ask for it back.

However, by the time I got into the “books” at our business, super was compulsory and it was still part of the wage structure but as described in my first paragraph. To stop people from spending their retirement funds, the guvmint made it so the super funds could not release the super to the people until they turned a particular age, or a clearly defined set of circumstances (e.g. terminal illness) intervened.

The onus is on people to provide for their retirement years, but I boil when I think of the greediness that has robbed the current elderly, (nearly all of whom spent their lives saving for their old age, and a lot of whom survived The Great Depression and World War II as well), from living in the financial security they deserve.

Before anybody corrects me: I remember I got a bit mixed up in my previous post. I don’t recall super being part of my wages during 1975, but by 1978 it was. Somebody came around asking if we wanted to “salary sacrifice” extra at 2 per cent of our gross, but “we were mad if we did”…how times have changed.

However no one has answered Lucky’s question as yet—

Don’t they just print more—or borrow it ??

Grasshopper said:

However no one has answered Lucky’s question as yet—

Don’t they just print more—or borrow it ??

I have a vague recollection from a history class that printing more actually de-values the money. The more there is of in circulation, the less value it has. Guess that’s why gold costs more than dirt.

Most of the figures being talked about aren’t real dollar notes, they’re just numbers in a computer program. Just because Joe Blow is reported to be worth 6 trillion, doesn’t mean he has 6 trillion hidden under his mattress. He’s actually only worth that if he sells all his shares. Tomorrow he may be worth 4 trillion, or 10 trillion. The amount of physical money has changed.

I don’t quite understand how the government bail out works. I heard some thing to say that the USA government would buy up bad loans. I guess that would mean the bank’s finances would be more secure, and if the loan is secured then the government ends up with a bunch of property. Handy if they were all in an area where they wanted to build something. They would have to resume any properties ;-)

http://www.abc.net.au/news/stories/2008/10/09/2386680.htm
++++++++++++++++++++++++++++++++++++

It ain’t all doom and gloom…

Dinetta said:

http://www.abc.net.au/news/stories/2008/10/09/2386680.htm
++++++++++++++++++++++++++++++++++++

It ain’t all doom and gloom…

The super thing is kinda good for me (young worker) – I am throwing extra money into my super now, and since share prices are going down, I’m getting more shares for that amount of money.. will be good news when (hopefully not if!) it goes back up…

a trillion is a thousand billion

1,000,000,000,000.

i can comprehend a million – just – the billions and trillions are beyond my comprehension.

pepe said:

a trillion is a thousand billion

1,000,000,000,000.

i can comprehend a million – just – the billions and trillions are beyond my comprehension.

Same here.

aquarium said:

i think the worst of it is how it applies to super, for those about to retire….all the money they’ve been pumping into super from own pay for retirement can almost disappear overnight. so much for all the (earlier) advice for people to put extra into super…so some shitforbrains stock market players can spend it on your behalf.

As MrP and I have recently joined these retirees we are having a bumpy ride. I have never in my life expected something for nothing and now our little bit of savings is likely to be swallowed before we get a chance to enjoy any retirement. I would like to say more but here is not the place.

Lucky1 said:

bluegreen said:

Lucky1 said:

Happy Potter said:

Okay… here is a question…..

If a person is paying their house off..good as gold and the money institution goes bust……..that lent them the money for the house….. do they loose their house in all the mess…even though they are on time with their house payments.

——————————————————————-
Thats a hairy one Lucky, liqudators would have to come in and organise to sell your debt to another bank, and try and recover as much as they could so they don’t lose out, but you keep paying as usual.

Thank goodnes for that….. I ‘d feel awful for anyone in that situation.

where it is hurting is self funded pensioners who have their money invested in the banks/companies that go bust. They can lose their life savings overnight.

Shoot…. hadn’t thought of them:(

I have.

Investment tips:

With all the turmoil in the market today and the collapse of Lehman Bros and Acquisition of Merrill Lynch by Bank of America this might be some good advice. For all of you with any money left, be aware of the next expected mergers so that you can get in on the ground floor and make some BIG bucks.

Watch for these consolidations later this year:

1.) Hale Business Systems, Mary Kay Cosmetics, Fuller Brush, and W R. Grace Co. Will merge and become: Hale, Mary, Fuller, Grace.

2.) Polygram Records, Warner Bros., and Zesta Crackers join forces and become: Poly, Warner Cracker.

3.) 3M will merge with Goodyear and become: MMMGood.

4. Zippo Manufacturing, Audi Motors, Dofasco, and Dakota Mining will merge and become: ZipAudiDoDa .

5. FedEx is expected to join its competitor, UPS, and become: FedUP.

6. Fairchild Electronics and Honeywell Computers will become: Fairwell Honeychild.

7. Grey Poupon and Docker Pants are expected to become: PouponPants.

8. Knotts Berry Farm and the National Organization of Women will become: Knott NOW!

And finally…

9. Victoria ‘s Secret and Smith &Wesson will merge under the new name: TittyTittyBangBang !

Financial crisis hits Japan…

Following the problems in the sub-prime lending market in America and the run on Northern Rock in the UK , uncertainty has now hit Japan .

In the last 7 days Origami Bank has folded, Sumo Bank has gone belly up and Bonsai Bank announced plans to cut some of its branches.

Yesterday, it was announced that Karaoke Bank is up for sale and will likely go for a song, while today shares in Kamikaze Bank were suspended after they nose-dived.

While Samurai Bank is soldiering on following sharp cutbacks, Ninja Bank is reported to have taken a hit, but they remain in the black.

Furthermore, 500 staff at Karate Bank got the chop and analysts report that there is something fishy going on at Sushi Bank where it is feared that staff may get a raw deal.

Happy Potter said:

Financial crisis hits Japan…

Following the problems in the sub-prime lending market in America and the run on Northern Rock in the UK , uncertainty has now hit Japan .

In the last 7 days Origami Bank has folded, Sumo Bank has gone belly up and Bonsai Bank announced plans to cut some of its branches.

Yesterday, it was announced that Karaoke Bank is up for sale and will likely go for a song, while today shares in Kamikaze Bank were suspended after they nose-dived.

While Samurai Bank is soldiering on following sharp cutbacks, Ninja Bank is reported to have taken a hit, but they remain in the black.

Furthermore, 500 staff at Karate Bank got the chop and analysts report that there is something fishy going on at Sushi Bank where it is feared that staff may get a raw deal.

Crikey……… :(

Lucky1 said:

Happy Potter said:

Financial crisis hits Japan…

Following the problems in the sub-prime lending market in America and the run on Northern Rock in the UK , uncertainty has now hit Japan .

In the last 7 days Origami Bank has folded, Sumo Bank has gone belly up and Bonsai Bank announced plans to cut some of its branches.

Yesterday, it was announced that Karaoke Bank is up for sale and will likely go for a song, while today shares in Kamikaze Bank were suspended after they nose-dived.

While Samurai Bank is soldiering on following sharp cutbacks, Ninja Bank is reported to have taken a hit, but they remain in the black.

Furthermore, 500 staff at Karate Bank got the chop and analysts report that there is something fishy going on at Sushi Bank where it is feared that staff may get a raw deal.

Crikey……… :(

ROFL very clever, thanks HP!

orchid40 said:

Lucky1 said:

Happy Potter said:

Financial crisis hits Japan…

Following the problems in the sub-prime lending market in America and the run on Northern Rock in the UK , uncertainty has now hit Japan .

In the last 7 days Origami Bank has folded, Sumo Bank has gone belly up and Bonsai Bank announced plans to cut some of its branches.

Yesterday, it was announced that Karaoke Bank is up for sale and will likely go for a song, while today shares in Kamikaze Bank were suspended after they nose-dived.

While Samurai Bank is soldiering on following sharp cutbacks, Ninja Bank is reported to have taken a hit, but they remain in the black.

Furthermore, 500 staff at Karate Bank got the chop and analysts report that there is something fishy going on at Sushi Bank where it is feared that staff may get a raw deal.

Crikey……… :(

ROFL very clever, thanks HP!

Was that a joke…?????? I thought it was real….. holy shit ……LOL

Lucky1 said:

Happy Potter said:

Financial crisis hits Japan…

Following the problems in the sub-prime lending market in America and the run on Northern Rock in the UK , uncertainty has now hit Japan .

In the last 7 days Origami Bank has folded, Sumo Bank has gone belly up and Bonsai Bank announced plans to cut some of its branches.

Yesterday, it was announced that Karaoke Bank is up for sale and will likely go for a song, while today shares in Kamikaze Bank were suspended after they nose-dived.

While Samurai Bank is soldiering on following sharp cutbacks, Ninja Bank is reported to have taken a hit, but they remain in the black.

Furthermore, 500 staff at Karate Bank got the chop and analysts report that there is something fishy going on at Sushi Bank where it is feared that staff may get a raw deal.

Crikey……… :(

read it again Lucky, carefully… ;)

bluegreen said:

Lucky1 said:

Happy Potter said:

Financial crisis hits Japan…

Following the problems in the sub-prime lending market in America and the run on Northern Rock in the UK , uncertainty has now hit Japan .

In the last 7 days Origami Bank has folded, Sumo Bank has gone belly up and Bonsai Bank announced plans to cut some of its branches.

Yesterday, it was announced that Karaoke Bank is up for sale and will likely go for a song, while today shares in Kamikaze Bank were suspended after they nose-dived.

While Samurai Bank is soldiering on following sharp cutbacks, Ninja Bank is reported to have taken a hit, but they remain in the black.

Furthermore, 500 staff at Karate Bank got the chop and analysts report that there is something fishy going on at Sushi Bank where it is feared that staff may get a raw deal.

Crikey……… :(

read it again Lucky, carefully… ;)

I did………. LOL

Lucky1 said:

bluegreen said:

Lucky1 said:

Happy Potter said:

Financial crisis hits Japan…

Following the problems in the sub-prime lending market in America and the run on Northern Rock in the UK , uncertainty has now hit Japan .

In the last 7 days Origami Bank has folded, Sumo Bank has gone belly up and Bonsai Bank announced plans to cut some of its branches.

Yesterday, it was announced that Karaoke Bank is up for sale and will likely go for a song, while today shares in Kamikaze Bank were suspended after they nose-dived.

While Samurai Bank is soldiering on following sharp cutbacks, Ninja Bank is reported to have taken a hit, but they remain in the black.

Furthermore, 500 staff at Karate Bank got the chop and analysts report that there is something fishy going on at Sushi Bank where it is feared that staff may get a raw deal.

Crikey……… :(

read it again Lucky, carefully… ;)

I did………. LOL

ummm also helps to read it out allowed…..

Lucky1 said:

orchid40 said:

Lucky1 said:

Happy Potter said:

Financial crisis hits Japan…

Following the problems in the sub-prime lending market in America and the run on Northern Rock in the UK , uncertainty has now hit Japan .

In the last 7 days Origami Bank has folded, Sumo Bank has gone belly up and Bonsai Bank announced plans to cut some of its branches.

Yesterday, it was announced that Karaoke Bank is up for sale and will likely go for a song, while today shares in Kamikaze Bank were suspended after they nose-dived.

While Samurai Bank is soldiering on following sharp cutbacks, Ninja Bank is reported to have taken a hit, but they remain in the black.

Furthermore, 500 staff at Karate Bank got the chop and analysts report that there is something fishy going on at Sushi Bank where it is feared that staff may get a raw deal.

Crikey……… :(

ROFL very clever, thanks HP!

Was that a joke…?????? I thought it was real….. holy shit ……LOL

ROFL @ Lucky1!!
You cracked me up girly lolol

Lucky1 said:

ummm also helps to read it out allowed…..

aloud

Was that a joke…?????? I thought it was real….. holy shit……LOL

ROFL @ Lucky1!!
You cracked me up girly lolol
—————————————————————————
Oh all I am hearing is about the world evens and the Bimbo came home tired from work saying how its affecting her line of work and then I read that……..LOL

Oh I so need to chill out.

bluegreen said:

Lucky1 said:

ummm also helps to read it out allowed…..

aloud

Yeah saw that after I had posted and thought…. stuff it ewe no wat eye meen………

Got this quote today, which I thought was rather timely, even though it was said at least 20 years ago.

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, physicist, Nobel laureate (1918-1988)

Likewise this quote.

‘I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.’
Thomas Jefferson 1802

………………………..as a footnote to this whole unhappy saga,and maybe an all time first.America is trotting off to China for a little loan (lets say a couple of trill, give or take a couple of bucks) ………communism supporting capitalism?………….now that IS different……………….al

al said:

………………………..as a footnote to this whole unhappy saga,and maybe an all time first.America is trotting off to China for a little loan (lets say a couple of trill, give or take a couple of bucks) ………communism supporting capitalism?………….now that IS different……………….al

apparently Bushie borrowed from china to wage war on terrorism (iraq ?) as well – difficult to know what’s going on.

If you have difficulty understanding the current world financial situation, the following should help…

Once upon a time in a village in India, a man announced to the villagers that he would buy monkeys for $10.

The villagers seeing there were many monkeys around, went out to the forest and started catching them.
The man bought thousands at $10, but, as the supply started to diminish, the villagers stopped their efforts. The man further announced that he would now buy at $20. This renewed the efforts of the villagers and they started catching monkeys again.

Soon the supply diminished even further and people started going back to their farms. The offer rate increased to $25 and the supply of monkeys became so little that it was an effort to even see a monkey, let alone catch it!

The man now announced that he would buy monkeys at $50! However, since he had to go to the city on some business, his assistant would now act as buyer, on his behalf.

In the absence of the man, the assistant told the villagers: ‘ Look at all these monkeys in the big cage that the man has collected. I will sell them to you at $35 and when he returns from the city, you can sell them back to him for $50. ‘

The villagers squeezed together their savings and bought all the monkeys.

Then they never saw the man or his assistant again, only monkeys everywhere! Welcome to WALL STREET.