Geithner Housing Plan Explained
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I think he's saying the unbridled avarice of a few ex Deerfield S.O.B.s @ 85 Broad St. got us in the $#@! mess we find ourselves in....
Or maybe I am just projecting here...
You didn't answer the question. Before they are packaged and resold, the money was there to pay off the home seller and their bank. Where did all of that money come from?
This one might be too tough for someone of your modest intelligence.
Also, Danbo, I recently saw a movie that had some good advice for you.
Never go full retard.
That is incorrect.
Where did the original funds come from?
I told you, NEVER GO FULL RETARD
So now you are wiping your ass. So much personal growth in one day! Good for you Danbo! :music06:
Capital is savings, which is real wealth, so capital reserves cannot be paper money. You might be talking about credit, which is paper money. Where did the credit come from Danbo?
And the Nobel Prize in economics goes to...
Are you just having a bad day? Why don't you just share your thoughts and lose the woefully ineffective sardonic one liners...
Rare that I agree with you on much, but regardless of political tilt or school of economic thought, there is no arguing this one.
No.. not credit.
Capital reserves are on paper. Assets-liabilities=capital (to simplify)
Problem is that assets were overvalued and liabilites undervalued.
It really is not that complicated.
Can someone get rid of this idiot? You just wrote in another thread that you are a man of principle and demonstrate your fantastic intellectual acuity by showing off your infinite vocabulary filled with "4 letter" words. I'm going to ignore you now because you obviously want some attention. Next time try DP or WF - enjoy your life.
Nope. The only reason to do away with mark to market, is when fraudsters buy CRAP for a lot of money, and don't want anyone to find out that the investments they made were CRAP or that their reserves are composed of pure CRAP.
Mark to market keeps firms accountable. But that's the government. Too stupid to deal with the real problem, they want to go back to secrecy, to fool the investors that everything is ok.
The result will continue to be, as it was when they banned shorting, massive drops in the market. Not because the market is necessarily worth less, but because investors will be too scared to invest in firms where they cannot be sure if the balance sheet is real or not, which drives down volumes, and less buyers, means lower prices for sellers. For too long, the market has benefited from massive continuous buying.
That's why McBama is out there telling people to buy stocks. They don't care what you buy, they are so desperate for people to buy anything, oblivious to the fact that they create most of the market uncertainty by MEDDLING in the first place!
It's not complicated if you understand it. Or you completely munge it as you just did.
Capital is savings. It is real wealth. It is not fractionally leveraged reserves, it is real wealth.
Credit (noun) is paper money. It is based on leveraging of real wealth into paper wealth, as seen on Wall Street, up to 30 times or more.
Credit (verb) is the act of loaning or investing CAPITAL.
So who of you guys pays an accountant to shuffle assets around? Just to level the playing field - have you ever done this, or if you employ an accountant, has he ever said something like - "listen, we can move these buys over to the next year if you like - we could spread the write off over the following 2 or 5 years actually; on the other hand, if you can anticipate future spendings today, we can lower the tax you have to pay right now".
This whole shuffling around and all the so-called loopholes are just hilarious. What the banks do, we do as well on a regular basis. The absolute numbers may vary here and there, but the bottom line is the same. Where we try to minimize our expenditures/taxes as much as possible (by making smart moves in our accounting), the banks do the exact same thing. The point is, both them and we are exploiting a system that has its flaws.
On the other hand, it depends on your perspective...
This whole shuffling around and all the so-called loopholes are just hilarious. What the banks do, we do as well on a regular basis. The absolute numbers may vary here and there, but the bottom line is the same. Where we try to minimize our expenditures/taxes as much as possible (by making smart moves in our accounting), the banks do the exact same thing. The point is, both them and we are exploiting a system that has its flaws.
On the other hand, it depends on your perspective...
It all flows together.
Capitol Reserve is whatever a bank's balance sheet says it is.
Is this not right?
No. It's not right. But I need to do some work. We wasted too much time tonight trying to figure out who has the bigger penis.
This stuff isn't complicated to understand, if you first grasp the fundamentals.
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