Everyone should keep in mind that our delightful members of Congress have lots more money in the stock market than most of us. While they're taking their good sweet time coming to a decision on this mess, they're losing tons of money, too.
Something will be decided, things will get back to normal, they'll all blame and/or take credit for the outcome and somehow get richer in the process. I don't understand any of it. When people start talking to me about financial matters, all I hear is the voice of Charlie Brown's teacher.
"Wah, wah, wah-wah, wah, wah, wah..."
5 comments:
I don't get it either. I'm hearing the same thing.
Baby sis:
I'm too broke for to even phase me.
Leslie and Baby Sis - Ditto.
The market has been sinking because banks are loaded with bad debt called MBS (mortgage backed securities) and CDO (Collateral debt obligations. The banks cant unload it because other banks wont buy it -- they have the same crap! Since banks cant sell it, they have to write it down. When they write it down it reduces their capacity to borrow more money that they can then loan out. To simplify it: Say I have 1 dollar in my pocket. If i were a bank i could lend you 11 dollars for every dollar I had in my pocket.If I had a writedown -I would no longer have a dollar in my pocket, so i can no longer borrow money to loan you. Sooo - Both you and I are screwed, I dont make interest and you dont get to buy your new house.
Smooth - Thanks!!!
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