Reply to: Boomed! More proof Credit Crunch is nonsense

[ace00]

...Credit Crunch ™
....
Boomed!

Coming soon, the Credit Card Crunch ™

[Liability]

I think it is market manipulation on a massive scale.

Talk the economy up and asset prices boom, the rich make a killing and sell out at huge profit. Then talk the market into the ground and pickup the bargains and repeat. The media are completely controlled now.

This time, I'm on the gravy train with them.

I never know if you are being serious -

[Central-Scrutiniser]

Observation - Social Economics - Deception and Fraud


To state the credit-crunch is non-sense then implies in turn the Billion Dollar Bail Out is fraudulent.

[DimPrawn]

Agreed, always question who benefits from telling us bad times are ahead. The more the mantra is repeated the more people start to believe it. In my experience nobody does their own research, we just trust so called 'experts'

I think it is market manipulation on a massive scale.

Talk the economy up and asset prices boom, the rich make a killing and sell out at huge profit. Then talk the market into the ground and pickup the bargains and repeat. The media are completely controlled now.

This time, I'm on the gravy train with them.

[Signo_cypher]

As I said a couple of weeks ago, we are always being TOLD that there are factories/businesses closing, but I haven't personally seen any yet. It's difficult to work out if busienss churn is being painted as closures, or what.

From a personal perspective, I don't personally know anybody out of work because of the CC, I haven't seen any business close because of it. I don't personally know of any contractors on the bench and don't want to be.

The town centres are still mobbed with people shopping, go try buying a Wii Fit in your high street. Supermarket checkouts seem busier these days. I've been to nice restaurants a couple of times in the last month, and I've had to book, we almost didn't get into the 2nd one last week due to demand.

I don't doubt something is on the way, because I don't believe so many clever people can be mistaken. but I haven't seen any sign of it yet.

Agreed, always question who benefits from telling us bad times are ahead. The more the mantra is repeated the more people start to believe it. In my experience nobody does their own research, we just trust so called 'experts'

[DimPrawn]

I went to our new shopping centre to have a look at other people spending their money, as none of the new shops interested me. I think they were mostly clothes shops or similar. How come there is such a big market for clothes? Surely if you buy clothes, you are set up in clothing for a few years, or decades? Why go back again next week? And where do all the old clothes go?

You are single aren't you?

My wife never has any clothes (she says), buys clothes constantly that she dumps into storage and never wears. What is it with women and clothes?

[TimberWolf]

The number of people at a shopping mall is irrelevant at this time. What they spend is relevant, and recent surveys have shown that many are just going for a day out, with no intentioning of making any purchases.

I went to our new shopping centre to have a look at other people spending their money, as none of the new shops interested me. I think they were mostly clothes shops or similar. How come there is such a big market for clothes? Surely if you buy clothes, you are set up in clothing for a few years, or decades? Why go back again next week? And where do all the old clothes go?

[Cyberman]

The number of people at a shopping mall is irrelevant at this time. What they spend is relevant, and recent surveys have shown that many are just going for a day out, with no intentioning of making any purchases.

[DimPrawn]

So the crunch started because people noticed that a fair amount of debt was 'sub-prime' and the loaners *might* default.

I wonder how much of that 1.8 trillion dollars of 'toxic' debt that was needed to be secured somehow (by we the peoples) has actually gone bad?

It seemed to me that a lot of the crunch was created by S&P and Moodys downgrading the banks ratings thereby forcing them to increase their capital base, at a time when that was nearly impossible to do so.

Yeah everyone was over-leveraged, but without the panic the banks could have taken the losses from those mortgages that *did* default (over time) as per normal losses (mortgage defaults, bankruptcies etc). It might have meant a scale-back on loans, and a hit on profits, but it seems to me the situation got completely blown out of proportion forcing an extreme de-leveraging that nearly destroyed the banking system.

Everyone seems to be decrying the days of 'cheap credit', but theres absolutely nothing wrong with cheap credit - its what made our economies expand so much over the last 20 years. As long as people can pay the interest and/or the balance on the loan theres nothing wrong with it.

Bring back the cheap credit!

That's what makes this Credit Crunch ™ such an opportunity. The boom will be back within a short period (maybe a year or two) and there's so many opportunities to buy in a near rock bottom prices.

Take oil for example. Wouldn't be surprised to see it hit $50 a barrel and within a couple of years top $150 a barrel. Easy way to triple your cash!

Property (and especially land) will look good too.

Boomed!

[oracleslave]

No need for "strictly speaking"; what follows is simply true whether one is speaking strictly or normally.

"Strictly speaking" is circumlocutory and periphrastic.

Blooming 'eck. Hope Xeno is along with the Geek points later.

[expat]

Also, it is generally accepted that numerical quantities below a certain value should be written out ("four" or "five") rather than expressed in numerals ("4" or "5"). But strictly speaking, that is a matter of style rather than an absolute prescription, as is the choice of the "certain value" aforementioned.

No need for "strictly speaking"; what follows is simply true whether one is speaking strictly or normally.

"Strictly speaking" is circumlocutory and periphrastic.

[NickFitz]

Readers may recall that 4 weeks ago I made a shrewd investment - an appartment over a Kebab shop in Rekjavik - which I paid 5 trouts for.

Now - that same appartment is worth 5 salmons.

Isnt Capitalism wonderful !!!????

trout
salmon

Both take the same form in the plural as in the singular. Like "fish".

And "sheep".

Oh, BTW:

apartment
Reykjavik
Isn't

Also, it is generally accepted that numerical quantities below a certain value should be written out ("four" or "five") rather than expressed in numerals ("4" or "5"). But strictly speaking, that is a matter of style rather than an absolute prescription, as is the choice of the "certain value" aforementioned.

Furthermore, "kebab" doesn't take an initial capital (unless it appears at the start of a sentence), as it is not a proper noun.

HTH

[Stan.goodvibes]

Oh, and over here in NZ, if I hadn't seen the credit crunch on the news I wouldn't have noticed it - apart from petrol coming down in price and my mortgage rate dropping.

So far the 'Crunch' has been just an interesting story with a beneficial knock-on effect. We should have more of them!

[Stan.goodvibes]

So the crunch started because people noticed that a fair amount of debt was 'sub-prime' and the loaners *might* default.

I wonder how much of that 1.8 trillion dollars of 'toxic' debt that was needed to be secured somehow (by we the peoples) has actually gone bad?

It seemed to me that a lot of the crunch was created by S&P and Moodys downgrading the banks ratings thereby forcing them to increase their capital base, at a time when that was nearly impossible to do so.

Yeah everyone was over-leveraged, but without the panic the banks could have taken the losses from those mortgages that *did* default (over time) as per normal losses (mortgage defaults, bankruptcies etc). It might have meant a scale-back on loans, and a hit on profits, but it seems to me the situation got completely blown out of proportion forcing an extreme de-leveraging that nearly destroyed the banking system.

Everyone seems to be decrying the days of 'cheap credit', but theres absolutely nothing wrong with cheap credit - its what made our economies expand so much over the last 20 years. As long as people can pay the interest and/or the balance on the loan theres nothing wrong with it.

Bring back the cheap credit!

[Stan.goodvibes]

The missus was offered a credit limit increase of 2.5 grand on one of her credit cards last week.

Doesn't quite match the picture being painted by the media.

I missed the picture of your missus that was painted by the media - perhaps you could post a link...