Comments on: Welker’s daily links 09/30/2008 http://welkerswikinomics.com/blog/2008/10/01/welkers-daily-links-09302008/ for students and teachers of AP and IB Economics Wed, 07 Jan 2009 04:45:21 +0000 http://wordpress.org/?v=2.7 hourly 1 By: Helen Poxon http://welkerswikinomics.com/blog/2008/10/01/welkers-daily-links-09302008/comment-page-1/#comment-5973 Helen Poxon Tue, 30 Sep 2008 19:22:22 +0000 http://welkerswikinomics.com/blog/2008/10/01/welkers-daily-links-09302008/#comment-5973 The damages that have been caused by careless decisions, are now leading us down hill very quickly. It's sad to say that we can lend out money without asking simiple questions such as 'what is your current income?' I guess every country makes mistakes in how they handle situations. The situtation now; because of the leading of money to people who could not afford to pay off their morages has now put us in the situation of today! "HELL!" The request of the 700 billion bailout has been rejected. why? who knows... people say this has now put us in a worse position. I don't understand why this has been rejected many are arguing that it is mad to have disagreed but others say that maybe it is better because then other companies won't slack off and do the same. After all it wasn't the governments fault that the company made a mistake. It seems strange that one minute everything is going fine our economy is booming and growing rapidly and the next thing you know stock markets and banks are losing millions and billions of pounds/dollar/euros. How is this going to affect our future? ...As we well all know that America is a big and powerfull country which many countries rely on for many things one being their banks and loans. Now that the worlds largest country is failing terrible and if it continues to who knows...nobody does. If it does though where is the rest of us going to be left? What is going to happen to countries like England, they are already sending their 3rd highest bank Brandford and bingley to the government for assistance for reasurance that they will protect the bank. Not only B&B but nothern rock,and HBOS as well. Mr. Gordan Brown has promised that these people savings will be protected...will they? ...What happens next?? The damages that have been caused by careless decisions, are now leading us down hill very quickly. It’s sad to say that we can lend out money without asking simiple questions such as ‘what is your current income?’ I guess every country makes mistakes in how they handle situations. The situtation now; because of the leading of money to people who could not afford to pay off their morages has now put us in the situation of today! “HELL!” The request of the 700 billion bailout has been rejected. why? who knows… people say this has now put us in a worse position. I don’t understand why this has been rejected many are arguing that it is mad to have disagreed but others say that maybe it is better because then other companies won’t slack off and do the same. After all it wasn’t the governments fault that the company made a mistake.

It seems strange that one minute everything is going fine our economy is booming and growing rapidly and the next thing you know stock markets and banks are losing millions and billions of pounds/dollar/euros. How is this going to affect our future? …As we well all know that America is a big and powerfull country which many countries rely on for many things one being their banks and loans. Now that the worlds largest country is failing terrible and if it continues to who knows…nobody does. If it does though where is the rest of us going to be left? What is going to happen to countries like England, they are already sending their 3rd highest bank Brandford and bingley to the government for assistance for reasurance that they will protect the bank. Not only B&B but nothern rock,and HBOS as well. Mr. Gordan Brown has promised that these people savings will be protected…will they?

…What happens next??

]]> By: Younes Huber http://welkerswikinomics.com/blog/2008/10/01/welkers-daily-links-09302008/comment-page-1/#comment-5972 Younes Huber Tue, 30 Sep 2008 17:45:40 +0000 http://welkerswikinomics.com/blog/2008/10/01/welkers-daily-links-09302008/#comment-5972 All this is true and the damages can not only be seen in America, but also throughout the world. Shares at the one time leading Swiss bank UBS, went from 80CHF per share to 25.56CHF over a period of 1 year (June 1 2007 - June 1 2008). That means the share itself became worth one third of what it once was worth, that is a enourmous loss. The investment in American housing has been going on for some time, and the losses the banks have been making were spread during that time. Some people believe that it was a "crash", which we can say it was, yet the losses were being made over time, it wasnt as if one day all was going well, and the next day they were broke. It is just that some part of the public did not notice this until it was the headline of many newspapers. Still it may have seemed something far away until the ultimate blow was delivered: The Lehman Brothers Bank went bankrupt. Where is this going to lead us now? Over the past years, the world has been booming and now the economy seems to be gradually slowing down. Whether or not this will continue remains unanswered. Yet we do know that inflation will soon hit America, since they have printed 700 billion dollars to help out the banks who have made those unexcusable losses. The whole concept itself of investing in American housing is not in essence a bad one, what caused this to probably be the worst investment in the past two decades, is that the consumers were asked to pay a high amount of money over time which they could by no means afford. That defies all sense of realism, how is one to buy something he cannot afford? What is now going to happen to the world economy can only be predicted, all we can do is wait and see. All this is true and the damages can not only be seen in America, but also throughout the world. Shares at the one time leading Swiss bank UBS, went from 80CHF per share to 25.56CHF over a period of 1 year (June 1 2007 - June 1 2008). That means the share itself became worth one third of what it once was worth, that is a enourmous loss. The investment in American housing has been going on for some time, and the losses the banks have been making were spread during that time. Some people believe that it was a “crash”, which we can say it was, yet the losses were being made over time, it wasnt as if one day all was going well, and the next day they were broke. It is just that some part of the public did not notice this until it was the headline of many newspapers. Still it may have seemed something far away until the ultimate blow was delivered: The Lehman Brothers Bank went bankrupt. Where is this going to lead us now? Over the past years, the world has been booming and now the economy seems to be gradually slowing down. Whether or not this will continue remains unanswered. Yet we do know that inflation will soon hit America, since they have printed 700 billion dollars to help out the banks who have made those unexcusable losses. The whole concept itself of investing in American housing is not in essence a bad one, what caused this to probably be the worst investment in the past two decades, is that the consumers were asked to pay a high amount of money over time which they could by no means afford. That defies all sense of realism, how is one to buy something he cannot afford? What is now going to happen to the world economy can only be predicted, all we can do is wait and see.

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