![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
![[identity profile]](https://www.dreamwidth.org/img/silk/identity/openid.png){kind=small}
As I am not an expert in finances or economics, I defer any judgment on the bailout and its failure.
But we are all experts in politics, aren't we. Do I understand it correctly that the basic driving force behind the current financial troubles is a failure of a socialist experiment in the housing market? Or is it only part of the problem?
And the politicians, as usual, will blame someone else. (And everybody else will blame politicians.)
It is interesting to note, too, that more Americans are reported to trust Obama's team on economics than McCains' team. Whereas one would think that it would be the other way.
Update. A bit heated in the comments. Chill out, the world is not going to end right now.
But we are all experts in politics, aren't we. Do I understand it correctly that the basic driving force behind the current financial troubles is a failure of a socialist experiment in the housing market? Or is it only part of the problem?
And the politicians, as usual, will blame someone else. (And everybody else will blame politicians.)
It is interesting to note, too, that more Americans are reported to trust Obama's team on economics than McCains' team. Whereas one would think that it would be the other way.
Update. A bit heated in the comments. Chill out, the world is not going to end right now.
no subject
We are playing against China which is buying our securities, including mortgage-backed securities. Their central bank has a trillion dollars, and we cater to their humongous appetite. That's all. Nothing socialist about it: the housing _prices_ would have balooned without Fannie Mae just as well.
Mike Francis: My name is Mike Francis. During the beginning of the mortgage implosion, I was an executive director at Morgan Stanley on the residential mortgage trading desk.
Mike Francis: it was unbelievable. We almost couldn’t produce enough to keep the appetite of the investors happy. More people wanted bonds than we could actually produce. That was our difficult task, was trying to produce enough. They would call and ask “Do you have any more fixed rate? What have you got? What’s coming?” From our standpoint it's like, there's a guy out there with a lot of money. We gotta find a way to be his sole provider of bonds to fill his appetite. And his appetite’s massive.
"The global pool of money. That's where our story begins.
Most people don’t think about it but there’s this huge pool of money out there, which is basically all the money the world is saving now. Insurance companies saving for a catastrophe, pension funds saving money for retirement, the central bank of England saving for whatever central banks save for. All the world’s savings.
It's a lot of money. It's about 70 trillion.
Ceyla Pazarbasioglu: This number doubled since 2000. In 2000 this was about 36 trillion dollars.
Adam Davidson: So, it took several hundred years for the world to get to 36 trillion. Then, in six years, to get another 36 trillion.
Ceyla Pazarbasioglu: Yeah. There has been a very sharp increase.
Adam Davidson: How's the world get twice as much money to invest? Lots of things happened, but the main headline is all sorts of poor countries became kind of rich making TVs and selling us oil: China, India, Abu Dhabi, Saudi Arabia. Made a lot of money and banked it."
no subject
It is a wrong impression.
Go talk to your commie friends.
no subject
no subject
People like me PROVIDE for those in the soup kitchen lines.
no subject
Not for long...
no subject
Китайский Центробанк не может покупать "mortgage-backed securities", и не покупает; он покупает только бумаги надёжности гос-облигаций США.
> the housing _prices_ would have balooned without Fannie Mae just as well.
Конечно нет, без Fannie Mae housing _prices_ бы так не balooned. инвесторы не одолжили бы свои деньги частной mortgage компании надававшей сомнительных ссуд, но одолживали свои деньги Government Sponsored Enterprise (Fannie & Freddy), веря что социалистическое государство им всё вернёт (и оказались правы).
> How's the world get twice as much money to invest? Lots of things happened, but the main.....
Он просто дурака валяет: по моему ясно откуда эти деньги взялись. США(Fed) эти 36млрд. напечатал; а жесткий валютный контроль китайского коммунистического режима (занижение курса своей валюты) позволял США много лет печатая деньги избегать инфляции потребительских цен.
no subject
Only half is Tresuries. The other half is MBS: http://www.usnews.com/usnews/biztech/articles/061204/4chinaexplainer_2.htm
инвесторы не одолжили бы свои деньги частной mortgage компании надававшей сомнительных ссуд
Однако ж одолжили. GSE гарантируют лишь половину всех ипотек; и нынешний кризис инвестбанков связан именно с той частью из них, которая не прошла через GSE.
no subject
Если б было так, то GSE бы не обанкротились и их бы не пришлось национализировать. Кроме того частный бизнес играл с рискованными ссудами в расчете что в случае спада на этом рынке гос.-во их bailout за счет налогоплательщиков.