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Post by Lux on Feb 21, 2009 18:06:31 GMT 12
wheres all these Governments borrowing all these billions and trillions from  |
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Post by bingbong on Feb 21, 2009 21:30:24 GMT 12
Yes that is a spooky question but a good question. A question I want to know is why reward failure, with these amazing executives on there big big salaries that couldn't protect there own companies,?eh why were they paid a big salary for to fail?
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Post by punga on Feb 21, 2009 21:46:08 GMT 12
wheres all these Governments borrowing all these billions and trillions from they asked me for a loan,but i declined cos i got bills. |
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Post by Lux on Feb 22, 2009 13:11:06 GMT 12
You could give me a loan punga...just a few thousand..peanuts!  But so where do they borrow the money from when there isn't any and everyones in recession? |
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Post by kokonutwoman on Feb 22, 2009 14:48:29 GMT 12
Again, another interesting question Lux. Recession is an interesting dilemma for the corporates and government to try and explain. Punga I need cashews nuts got a mortgage due tomorrow I can pay you back in peanuts  |
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Post by punga on Feb 22, 2009 15:45:05 GMT 12
whats with all the nuts...you guys wanna feed the mb monkeys in the pit?  lmao i think there is still heaps of money about,people just aint spending it... i believe there are a few families in the states that have more money/assets than the US government.infact,possibly more money than the rest of the world put together |
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naki
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Post by naki on Feb 22, 2009 18:15:11 GMT 12
There's real money, and there's perceived money. Cash in the bank is real, unsecured loans and house equity is perceived.
We're down to the real money now. The people who deal in property, and the people who float their lifestyle on credit are in trouble. The people who float their lifestyle on a loan against their property are deepest in the shiz.
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Post by terauparaha on Feb 22, 2009 19:21:24 GMT 12
Naki you mean cash in the bank is more real because even the value of cash can go down the toilet. It might be $50 for a loaf of bred in a few years. The banks could go under too.
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naki
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Post by naki on Feb 22, 2009 19:49:29 GMT 12
less likely to happen than on speculative items.
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Post by terauparaha on Feb 22, 2009 20:45:12 GMT 12
Agreed
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naki
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Post by naki on Feb 22, 2009 21:01:50 GMT 12
There is a finite amount of real money. 'Perceived' money forms the basis of any boom or recession. When a house, or a loaf of bread, or a litre of gas doubles in price overnight, you can be pretty certain that the perceived value has little to do with the cost of production.
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Post by terauparaha on Feb 22, 2009 21:38:01 GMT 12
But the cost of production would go up because the workers would be on $950 an hour.
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Post by punga on Feb 22, 2009 22:00:47 GMT 12
i reckon property is as good,if not better than money in the bank...providing its freehold
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naki
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Post by naki on Feb 22, 2009 23:12:51 GMT 12
But the cost of production would go up because the workers would be on $950 an hour. That does not neccesarily follow. As I recall, when the price of petrol went through the roof about a year ago, the gas station staff complained that they were getting abused over sometthing that they had no control over, and was not benefiting them. |
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naki
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Post by naki on Feb 22, 2009 23:19:08 GMT 12
i reckon property is as good,if not better than money in the bank...providing its freehold Property is a commodity. Property values are set by market demand. Buy a cheap house inthe 'right' suburb, it should increase in value as long as the location is in demand. Buy an expensive house in a one-industry rural town, and watch what happens when that industry closes up shop. |
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Post by Lux on Feb 23, 2009 10:07:17 GMT 12
i reckon property is as good,if not better than money in the bank...providing its freehold Property is a commodity. Property values are set by market demand. Buy a cheap house inthe 'right' suburb, it should increase in value as long as the location is in demand. Buy an expensive house in a one-industry rural town, and watch what happens when that industry closes up shop. Even if you have fair equity in property, as long as you buy and sell in the same market, can't loose anything really can you. If you're lucky enough to buy on the down and sell on the up thats even better. Yep naki, my Gran always said if you're going to buy with limited funds, always buy the dingiest house on the best street not visa versa. |
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Post by sparrow on Feb 23, 2009 10:51:58 GMT 12
Some of the stories coming out of the UK and the States are scary. We have no comprehension at the moment (and hopefully won't) at what's going on there. People who had equity have lost everything with the collapse of banks and mortgage companies. Their houses etc which might have had little in the way of "debt" have had their assets taken back. I've heard of people with money in the bank that have lost all their funds as well. At this stage "physical assets" or property mean nothing.
There are always opportunities in recessions, but some of the economic principles and factors people took for granted no longer apply.
Some of my friends worked in the banking industry in the UK and they say the problem goes much deeper than anyone anticipated. Basically the skeletons of this problem have been sent so far and wide that, at this stage, no-one knows fully where they are buried.
What concerns me is the people that got us into this mess in the first place are being looked to as the people that can get us out of it.
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Post by herodotus on Feb 23, 2009 12:40:50 GMT 12
well sorry folks to destroy everyones illusions but its just a question of mind over matter
they dont mind and we dont matter
bumma
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Post by terauparaha on Feb 23, 2009 12:54:57 GMT 12
But the cost of production would go up because the workers would be on $950 an hour. That does not neccesarily follow. As I recall, when the price of petrol went through the roof about a year ago, the gas station staff complained that they were getting abused over sometthing that they had no control over, and was not benefiting them. The making and selling of bread at $50 per loaf is about as different from the recent rises in the price of petrol as you and I are on NZ's race relations. Your post is of no relevance to my post at all. I'm talking about inflation and the value of the NZ dollar if my example did come to fruition. You know? Like a million yen for a loaf of bread in China. |
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Post by Lux on Feb 23, 2009 13:07:07 GMT 12
My friend was working in Zimbabwe would have been about 8 years ago maybe might be out a bit...but it cost 27 dollarsm (NZ) for a box of cereal back then. The prices of everyday supplies were really wacky.
Sparrow that is really really scary.
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Post by sparrow on Feb 23, 2009 14:39:38 GMT 12
well sorry folks to destroy everyones illusions but its just a question of mind over matter they dont mind and we dont matter bumma Very good, H. I like that. |
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