Stock Market

What are your views on why the stock market is crashing?

My view is because of the new policies of banks allowing people to take loans without a down payment.

It's because the Democrats are in control of the House and the Senete.

In my opinion the government is trying to get too much power. They should just let the banks go out of business, and teach them a lesson; that they can't take such risks with loans and then not face the consequences.

Is that really a wise move. Wouldn't that ruin the economy if all those banks go out of buisness?

Also that would make a reproduction of the Great Depression?

Statistics have shown that people who own their house are more likly to keep up with it and do routine maintenance on it than those who rent. So, as a way to increase property values and encourage better living standards in 1999 the government pushed banks to be more lenient on who they give mortgage loans to. As a resault, the banks had to give loans to people who were liabilities. In order to cover their potential risk, these loans were all high interest. Now, all these people who took out loans they could not afford in the first place, are unable to pay them back (no surprise there). So they banks now want their money, but people are crying for these poor people who are going to loose their homes that are, in reality, owned by the banks anyway. That is a big part of why the stock market is doing bad. However, the stock market does naturally move up and down, and we have been in a pretty high plato, so we are do for a drop. We are still above 5% so it hasn't crashed or anything.


-Kevin

There is also the whole deal with Freddie Mac and Fannie May... not pretty.

Hannahjiejie wrote:It's because the Democrats are in control of the House and the Senete.

Do you have to blame everything on the democrats?? Remember is Still George Bush who is a REPUBLICAN that is our President!

ha ha. Yea, it is very important to watch out for making broad statements about a political party. Though I tend to disagree with most of what key Democrats have to say (or not say), I have also been pretty disturbed with the big government ideas that a lot of Republicans have said. It is not political parties that are hurting this country, it is poor political and economic ideas that are taking freedom away from the individuals and restricting free market.

-Kevin

aiofan94 wrote:

Hannahjiejie wrote:It's because the Democrats are in control of the House and the Senete.

Do you have to blame everything on the democrats??

Please forgive me if I offended you, but I do not believe that I blame everything on the democrats, I think that this is the first time.

aiofan94 wrote:Remember is Still George Bush who is a REPUBLICAN that is our President!

To respond to your statement above, George Bush is a Rebublican, yes, but his position is one of the few that the Rebublicans hold. Our country is not run by the president alone, but by congress etc. Just because Our president is a Republican does not mean that everything that occurs in our country is because of them. Decisions are made by many different people.

[quote="Kmap']ha ha. Yea, it is very important to watch out for making broad statements about a political party. Though I tend to disagree with most of what key Democrats have to say (or not say), I have also been pretty disturbed with the big government ideas that a lot of Republicans have said. It is not political parties that are hurting this country, it is poor political and economic ideas that are taking freedom away from the individuals and restricting free market[/quote]

I hope that I have explained what I meant clearly. You are right, though, I should have supported my statement a bit more. *apologizes*

You are very right.

~Hannah

You have, very good response. I must also add on this, Let's not forget who was president in 1999 when a big part of this crises was initiated.

-Kevin

Kmap wrote:You have, very good response. I must also add on this, Let's not forget who was president in 1999 when a big part of this crises was initiated.

-Kevin

What if, perhaps, someone has forgotten, or at least was only 5 when it happened. Would you refresh us please?

~Hannah