World Finances - are we screwed?

Well, about 5 minutes ago it was announced that the US lawmakers rejected the 700billion bailout of the US market. Almost immediately all world markets dropped. The toronto index fell 800 point, dow is 600 points. The number 4 bank in the states was just sold for next to nothing to Citibank... anyways, it's very concerning. So many of us live on credit of the banks, what are we going to do if that credit is no longer available? For me personally, I'd have to reconsider everything I'm doing right now. I would probably have to drop school and get a full time job to make up for my credit float.

http://edition.cnn.com/2008/BUSINESS...eal/index.html

Pretty much every news website is covering this story right now.

[Victoria SiR]

I don't have any loans whatsoever. So from that angle doesn't bother me in the slightest. However many of my investments are stagnating, I haven't lost too much.... yet. Personally I'll be riding it out, as I have been in for too long to just jump ship. Most of the foreign markets I am vested in are still going strong as well so I think I am gonna be fine.

Bottom line....


Meh.

I don't have any loans either, but I do have a mortgage. I also don't have huge investments (about $20,000), but they are falling quite quickly.

[Victoria SiR]

Yeah, I took high risk investments for a better part of ten years, but about a year ago I adjusted most of then when I turned 30, and moved them to more stable markets.

They are seeing a decline, no doubt about it, but its a lot less than what the trend seems to be showing. If it was at a greater risk Id consider moving them to a GIC or Bonds. The cost of me doing that currently however, would exceed what I am seeing in losses currently though. People panic during events like these, especially when you have the President telling its citizens to not panic. The best thing to do is stay put unless you have just recently gotten into something.

As much as I have been thinking about trades, I am almost happy at the moment to be in local government. We tend to be pretty recession proof for work.

[Victoria SiR]

.... and the DOW just closed with the largest point drop in its history at almost 778 points.

The Toronto exchange closed with a new record loss of 840.26 as well. I have lots of relatives in the states, and talking to them about what is going on down there is ridiculous. They sure screwed themselves with the whole sub prime mortgage thing.

At least oil dropped to $95 a barrel. Wonder how long it will be before we see a change at the pump.

[Fastam]

Im not too worried. My investments have been hurt a bit, but it will bounce back.

Most of my money is in high interest savings. Im actually hoping our houseing market takes a decent hit, so i can pick up a nice house in the next year or 2.

[Super Dipper]

time to get my shit paid off. woopee

[projectcivic]

I am not too worried about it, if you have a 5 or 10 year plan then just ride it out. I believe the biggest hurter for this situation is everyone panicing and pulling everything out. Its only a paper loss right now so why make it a real loss?

[ostampflee]

Time to go bargain hunting

The bill will pass even if today was only emotional. Asia isn't doing nearly as bad, TOPIX is only down 2% but the Nikkei is taking a beating.

[Fleemer]

sweet, just when i was starting to look at buying a house

[92SIvic]

i'd still wait two years. its just gunna get better :P

[ness_71]

No mortgage, no loans, no investments and a job where I don't get paid nearly enough to even be significant.
Simple life ftw.

[Benny95TA]

I kept US investments out of my portfolio because I thought they were going down hill. I expect more bad things to happen down there in the future as well.

[mr.slave]

WE'RE ALL GUNNA DIE!!!!!!!!

i heard a big contributor to this mess was short selling.

i dunno i hate republicans.
so very very much. just one giant hypocrisy.

[Fastam]

Not really, short selling was banned to stop it from getting worse.

But this is pretty much all to deregulation of lending laws.

[Nightwalker]

From what I understand, shorting of certain financial sector stocks can't be done, but options are fair game

[mr.slave]

Originally Posted by Fastam

Not really, short selling was banned to stop it from getting worse.

But this is pretty much all to deregulation of lending laws.

so they stoped the short selling?
that must be fairly recent no?

[mr.slave]

i dunno i heard that washington is "desperately" trying to figure this out in a matter of utmost importance yet have taken today off for some jewish holiday..
i didnt get a day off and im not even working on anything of this importance..

[Fastam]

Originally Posted by mr.slave

so they stoped the short selling?
that must be fairly recent no?

What Coal said.


And it was after the US buy out of AIG.

http://www.sec.gov/news/press/2008/2008-211.htm

[mr.slave]

yeah i remeber i was listening to the radi like a week or 2 ago and htis guy was yelling about it.

interesting times for sure..

[MidnightMechanic]

Yes options are still fair game. I made a little on mine yesterday.

Shorting has only been prohibited on certain stocks. That's also the reason for the rebound today, brokers covering their short positions by buying low.

[m1ataman]

I have a stupid question. If your bank goes titters do you still have to make payments????

[RZ350]

You still have to pay. In the US if a bank goes down the only entity that doesn't have to cough-up is the bank itself. In Canada if a bank fails our money is insured, Canadian banks are quickly becoming some of the best in the world because of this.
Cheers,
Grant