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+--- Thread: do you understand what the problem in the stock market is? (/thread-51536.html)
do you understand what the problem in the stock market is? - bumper55706 - 12-16-2012 05:37 AM
Money needs to move. Middleclass Americans have emptied there savings, maxed the credit cards, lost there homes to the credit market. Next the government wants to use our 401 and retirements and social securities to put more money into the problem to empty those too but the answer to the problem is save! Don't use credit you should pay off in a short term... say the next payday or two. Don't over extend yourself on wants instead of needs, and don't fall for deals to good to be true.
- GG - 12-16-2012 05:45 AM
banks are not making profit because 70% of home owners can pay their mortgage, thus banks arent making money. banks are tied into the stock market and with less cash, people lose their homes and lose jobs, thus people arent spending because they dont have it and thus this recession has taken place
- Iiii I - 12-16-2012 05:45 AM
"When salt loses it's saltiness, what will you salt with?"
- Cape Horn Spirit - 12-16-2012 05:45 AM
You seem to know what you are talking about so tell me when was the last time that something like this has happened.
1992? Was that soon after the Gulf war? Uh, yeah it was.
And now... wait, we ARE in the middle of another war. Could it be that the billions spent on these wars help us mess our economy?
When was another big war, let's see... was that Vietnam? Yeah it was. Did we have a big major crisis just like this one soon after that war?
Oh yeah I seem to remember there was massive resession about 1972/73.
Sorted then, now we know what did it.
Now let's find out WHY we are being fed something else instead of the truth.
What? people are tired enough of Bush without adding any more blame.
Could that be it?
- Josh - 12-16-2012 05:45 AM
There are a number of issues which are impacting our stock markets. For the most part the stock markets respond and react to the potential for growth of businesses. Because we are entering a recession the potential for business growth is way down, and the stock markets follow. We are in a recession because the housing bubble, which for so long had grown our economy, creating housing and manufacturing jobs, has now burst. As the bubble bursts banks are holding on to their money, causing a freeze in credit (available cash). When business can't get credit to grow their business the stock markets react.
I hope that helps to explain what is really going on with the economy and the markets. I highly recommend you visit Truly Newsworthy (http://www.TrulyNewsworthy.com). It is a great source for news and information about the current financial crisis along with many other topics.