NoScream~SPARTA~ Posted December 31, 2007 Share Posted December 31, 2007 I'm off out, be back after midnight so HAPPY NEW YEARS 2008 Australia did it when GMT was 1300 (0800 EST) and the Americans will be doing it in several hours, so I will catch you all tomorrow. Or maybe I will be on in Paralytic mode like Mr & Mrs Floyd I need to spend some money before it becomes worthless...... On a lighter note: Best wishes to you all and lets hope the American sub prime market and prime don't go down the toilet and make 2008 the start of the big flush. I was tracking it all and they estimate, wait for it, 1.5 trillion dollars US is the liability. To put it another way $1500,000,000,000 mostly hidden in SIV's (Structured investment vehicle), imagine bundling alot of loans (mortgages) into a bundle and off loading it onto a third party, now make too many of these and you end up off loading them into a virtual car park for SIV's ( a place where there is no instant buyer). Banks lend around 10x what they can cover (in other words for every $10 they lend they need $1 of investment/ a backer or $1 in the vault). But SIV's were treated as sold items, even that they were parked, now with all the personal-defaults, the SIV's are worthless and the banks take the hit which means they have to cover the debt, so they have less money left, which means they have less to lend to us. It means more expensive loads for the future, if you have a load/ mortgage it means more interest charge and less value on your house (California is seeing around 30-40% less value on property). So happy 2008 ;) $1,000,000,000,000. = $1 trillion $1000,000,000 = billion Now you might say, so what? but what effects A will travel to some extent to B because bank 'B' might be your high street bank. Link to comment Share on other sites More sharing options...
Durka-Durka~SPARTA~ Posted December 31, 2007 Share Posted December 31, 2007 :blink: Link to comment Share on other sites More sharing options...
BertieG Posted December 31, 2007 Share Posted December 31, 2007 Can someone put that into laymans terms please. Link to comment Share on other sites More sharing options...
StevenADunn~SPARTA~ Posted December 31, 2007 Share Posted December 31, 2007 In laymens terms, If this falls through in USA, We better get ready to bend over and take it where the sun don't shine. We are talking major depression! Link to comment Share on other sites More sharing options...
Elvis~SPARTA~ Posted December 31, 2007 Share Posted December 31, 2007 Add that to the jillions of dollars of credit card debt that Americans have, along with their propensity to buy Chinese stuff from Wal-Mart -- to dollar becomes a rather worthless currency. You need to have higher interest rates for people to want to buy American bonds. Rather a sticky mess. Link to comment Share on other sites More sharing options...
NoScream~SPARTA~ Posted January 1, 2008 Author Share Posted January 1, 2008 In laymens terms, If this falls through in USA, We better get ready to bend over and take it where the sun don't shine. We are talking major depression! Well done. Banks have to off load $1.5 Trillion of debt to themselves which means big phoo phoo for them and then to there business customers which in turn means bad news for us all. For ever $1 the bank has to cover (in bad debt) it will have $10 less to lend to you me, a company. Meaning if less to lend out then more expensive to get money (loans) more expensive for those with them now (higher loan interest). To give you an idea of the bad debt, $1.5 trillion is the total UK spend for one year, now imagine you lent it to the uk and now writing that off. Link to comment Share on other sites More sharing options...
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