First  Prev  1  2  3  4  Next  Last
The incoming economic break.
Posted 12/17/07

Zepher wrote:


skygod333 wrote:


Zepher wrote:


skygod333 wrote:


Zepher wrote:


skygod333 wrote:


Zepher wrote:


skygod333 wrote:

Well for all you morons who say Bush taxes, taxes, and taxes, he's actually freezing interest rates for five years.


I've been checking interest rates for mortgages and they have been rising after the first 5 years. And how come he signed something that "said" that would help the elderly, but it actually double the cost the medicine for them.


On loans, he's freezing all interest rates.


I'm interested if this would actually works. If so then constipating the money will cause recession (unemployment). That might actually make the economy worse. On a side note, have you read my previous post about houses?


What he's doing is causing all interest rates to freeze where they are at and take them out of effect I believe for five years. That gives everyone a break and would give the economy a boost.


I'll give you my observation. Economy will only boost when the flow of money is going a moderate pace, and obviously on how it moves is by earning, then spending it so the other person gets that money. If the mortgages are frozen including well intention ones bankers and owners wouldn't get paid. Bankers wouldn't mind as much, but owners will get a cut from their budget. If all of them decided to hold on their money on this act then the flow of money will stop on this part causing less people buying goods, causing recession (unemployment). But this is just my observation. I wonder what will really happen from what Bush did.


Not true. Interest goes directly to the loaner. It is the incentive for loaning. If you loan your money for ten years, the borrower promises to pay your money back over 10 years plus interest every year (say 7%). Interest never goes to the bank unless if the bank loaned it's own money, not someone else's. Bank's get money from early-withdrawal fees, stocks, loans etc...By freezing interest rates, everyone has a break. They have more money annually for 5 years: They can save, improve life or spend. Usually, interest is some major big shit. It depends on the loan size and loans are fairly large usually. Say someone borrowed $100000 with a 10% interest rate: For five years, they pay regular payments only. Say they agreed to pay back over ten years: They save about $5000 in interest I believe. Perhaps my calculations are wrong. I think it's that number. Anyway, that five thousand goes back to the economy, as the person uses it for something they want (Of course they'll use it. It's human nature. They like the extra boost in cash usually). That money goes to the economy. Now imagine that widespread with Middle class and down. That's a lot of money back into the economy.

My dad's a banker. I've got a slight notion about these things.


I've already know about that I was stating on what the loaners will do. If by chance the person receiving is a regular person for example a person putting the house for rent. I'm just seeing on what they do depending their reaction/situation , etc. I'm just inferring.


Well my guess is the loaner can either eat the loss of profit or not care. Typically the loaners have other means of gaining profit so I think they'll be fine. When the majority of people have more cash to spend and do spend or save, the economy generally goes up.
1821 cr points
Send Message: Send PM GB Post
35 / M / Utah
Offline
Posted 12/17/07

skygod333 wrote:


Zepher wrote:


skygod333 wrote:


Zepher wrote:


skygod333 wrote:


Zepher wrote:


skygod333 wrote:


Zepher wrote:


skygod333 wrote:

Well for all you morons who say Bush taxes, taxes, and taxes, he's actually freezing interest rates for five years.


I've been checking interest rates for mortgages and they have been rising after the first 5 years. And how come he signed something that "said" that would help the elderly, but it actually double the cost the medicine for them.


On loans, he's freezing all interest rates.


I'm interested if this would actually works. If so then constipating the money will cause recession (unemployment). That might actually make the economy worse. On a side note, have you read my previous post about houses?


What he's doing is causing all interest rates to freeze where they are at and take them out of effect I believe for five years. That gives everyone a break and would give the economy a boost.


I'll give you my observation. Economy will only boost when the flow of money is going a moderate pace, and obviously on how it moves is by earning, then spending it so the other person gets that money. If the mortgages are frozen including well intention ones bankers and owners wouldn't get paid. Bankers wouldn't mind as much, but owners will get a cut from their budget. If all of them decided to hold on their money on this act then the flow of money will stop on this part causing less people buying goods, causing recession (unemployment). But this is just my observation. I wonder what will really happen from what Bush did.


Not true. Interest goes directly to the loaner. It is the incentive for loaning. If you loan your money for ten years, the borrower promises to pay your money back over 10 years plus interest every year (say 7%). Interest never goes to the bank unless if the bank loaned it's own money, not someone else's. Bank's get money from early-withdrawal fees, stocks, loans etc...By freezing interest rates, everyone has a break. They have more money annually for 5 years: They can save, improve life or spend. Usually, interest is some major big shit. It depends on the loan size and loans are fairly large usually. Say someone borrowed $100000 with a 10% interest rate: For five years, they pay regular payments only. Say they agreed to pay back over ten years: They save about $5000 in interest I believe. Perhaps my calculations are wrong. I think it's that number. Anyway, that five thousand goes back to the economy, as the person uses it for something they want (Of course they'll use it. It's human nature. They like the extra boost in cash usually). That money goes to the economy. Now imagine that widespread with Middle class and down. That's a lot of money back into the economy.

My dad's a banker. I've got a slight notion about these things.


I've already know about that I was stating on what the loaners will do. If by chance the person receiving is a regular person for example a person putting the house for rent. I'm just seeing on what they do depending their reaction/situation , etc. I'm just inferring.


Well my guess is the loaner can either eat the loss of profit or not care. Typically the loaners have other means of gaining profit so I think they'll be fine. When the majority of people have more cash to spend and do spend or save, the economy generally goes up.


When people spend the economy goes up. If they save the economy goes down, but it's good if that money goes somewhere good.
2455 cr points
Send Message: Send PM GB Post
27 / M / currently residin...
Offline
Posted 12/17/07

lazypower wrote:


uchi23 wrote:
How can they go invade Iraq after it was proven that they had no weapons of max destruction.
For oil of course.
http://www.timesonline.co.uk/tol/news/world/article2461214.ece


uchi23 wrote:
But my biggest suspicion is that it had to be an inside job. I mean if it was really that easy for people to attack us why wouldnt other countries like Russia or Germany attack us instead. 9/11 was the first attack on United States soil and it was pulled off by a terrorist group from Afghanistan?
Why would Russia and Germany attack us?
They must be retarded to do so.

There are many reasons behind this.
One of the reasons? We were caught off guard.


i think so too about the oil and i was merely giving an example of countries that wouldnt surprise people if they had been the ones to attack us. I was also reffering to attacking us in the past when he were at World Wars and the Cold War. They never dared attack when they had a chance at beating us in a war. Yet Al Quaida who would have no chance at all, would attacks us? that seems unlikely..


Anseris wrote:


uchi23 wrote:
I also agree that it could have very well been another terrorist group. But my biggest suspicion is that it had to be an inside job. I mean if it was really that easy for people to attack us why wouldnt other countries like Russia or Germany attack us instead. 9/11 was the first attack on United States soil and it was pulled off by a terrorist group from Afghanistan? Are you kidding me, and if they really did pull it off then we should be afraid that such a small group like that was able to pull it off.

Well Russia wasn't doing well at the time ( I believe they still aren't doing so well)
Germany we actually have a pretty solid relationship with. So I seriously doubt that Germany would attempt to attack us.


Again i meant attack us in the past. They no longer have the power to nowadays and I know that.
Posted 12/17/07

Zepher wrote:


skygod333 wrote:


Zepher wrote:


skygod333 wrote:


Zepher wrote:


skygod333 wrote:


Zepher wrote:


skygod333 wrote:


Zepher wrote:


skygod333 wrote:

Well for all you morons who say Bush taxes, taxes, and taxes, he's actually freezing interest rates for five years.


I've been checking interest rates for mortgages and they have been rising after the first 5 years. And how come he signed something that "said" that would help the elderly, but it actually double the cost the medicine for them.


On loans, he's freezing all interest rates.


I'm interested if this would actually works. If so then constipating the money will cause recession (unemployment). That might actually make the economy worse. On a side note, have you read my previous post about houses?


What he's doing is causing all interest rates to freeze where they are at and take them out of effect I believe for five years. That gives everyone a break and would give the economy a boost.


I'll give you my observation. Economy will only boost when the flow of money is going a moderate pace, and obviously on how it moves is by earning, then spending it so the other person gets that money. If the mortgages are frozen including well intention ones bankers and owners wouldn't get paid. Bankers wouldn't mind as much, but owners will get a cut from their budget. If all of them decided to hold on their money on this act then the flow of money will stop on this part causing less people buying goods, causing recession (unemployment). But this is just my observation. I wonder what will really happen from what Bush did.


Not true. Interest goes directly to the loaner. It is the incentive for loaning. If you loan your money for ten years, the borrower promises to pay your money back over 10 years plus interest every year (say 7%). Interest never goes to the bank unless if the bank loaned it's own money, not someone else's. Bank's get money from early-withdrawal fees, stocks, loans etc...By freezing interest rates, everyone has a break. They have more money annually for 5 years: They can save, improve life or spend. Usually, interest is some major big shit. It depends on the loan size and loans are fairly large usually. Say someone borrowed $100000 with a 10% interest rate: For five years, they pay regular payments only. Say they agreed to pay back over ten years: They save about $5000 in interest I believe. Perhaps my calculations are wrong. I think it's that number. Anyway, that five thousand goes back to the economy, as the person uses it for something they want (Of course they'll use it. It's human nature. They like the extra boost in cash usually). That money goes to the economy. Now imagine that widespread with Middle class and down. That's a lot of money back into the economy.

My dad's a banker. I've got a slight notion about these things.


I've already know about that I was stating on what the loaners will do. If by chance the person receiving is a regular person for example a person putting the house for rent. I'm just seeing on what they do depending their reaction/situation , etc. I'm just inferring.


Well my guess is the loaner can either eat the loss of profit or not care. Typically the loaners have other means of gaining profit so I think they'll be fine. When the majority of people have more cash to spend and do spend or save, the economy generally goes up.


When people spend the economy goes up. If they save the economy goes down, but it's good if that money goes somewhere good.


So do we have an understanding or an agreement?

Oh and when all people spend, the economy goes up, but when we all sell, it crashes. Just a general rule of thumb for those who don't know.
Posted 12/18/07


Nah the ecomomy slumps when people SAVE money, not sell stuff. If people can sell then people are buying, its plain common sense.

Oh and the Uk is just starting to show signs of an economic slowdown itself, they cut interest rates for the first time in a few years last month to try and encourage some investment.
6728 cr points
Send Message: Send PM GB Post
28 / F / Happy Valley
Offline
Posted 12/18/07

Zepher wrote:


Ariisa wrote:

recession can fix the inflation if it does occur. The economy was doomed from the start at least i think. The 30 year morgage rates are higher than they have been in the previous year and the fed is screwed. it's the mad dash and building in suburban lands instead of rebuilding on once used lots they are building on new land and are having a hard time selling the houses. may our GDP isn't what it used to be.

also i probably dont know what i'm talkin seeing as i hate economics and i just bombed my final.


Recession is basically unemployment when I'm using it in this topic. So how does unemployment help decrease the prices? If the flow of money is too fast (which is everyone is buying products in a faster pace) then price rises to fix that problem.

For the mortgages, there's a group of people that are buying ruin/poor houses for cheap, refurbish, then sell them for a higher price and they set up a low mortgages rate. In 5 years that disappear and the rates slowly rises until that person can't pay it anymore. In other words people are gambling with houses so it's like the great depression when people gamble on the stock market.


I have know idea but aren't people who are claiming unemployment getting checks, i think it runs out in 6 months. yeah because they use expansionary monetary policy right to fix the problem to make the prices rise. idk maybe with the Fed buying gov securities it increases the money supply or am i wrong?

1821 cr points
Send Message: Send PM GB Post
35 / M / Utah
Offline
Posted 12/18/07

skygod333 wrote:


Zepher wrote:


skygod333 wrote:


Zepher wrote:


skygod333 wrote:


Zepher wrote:


skygod333 wrote:


Zepher wrote:


skygod333 wrote:


Zepher wrote:


skygod333 wrote:

Well for all you morons who say Bush taxes, taxes, and taxes, he's actually freezing interest rates for five years.


I've been checking interest rates for mortgages and they have been rising after the first 5 years. And how come he signed something that "said" that would help the elderly, but it actually double the cost the medicine for them.


On loans, he's freezing all interest rates.


I'm interested if this would actually works. If so then constipating the money will cause recession (unemployment). That might actually make the economy worse. On a side note, have you read my previous post about houses?


What he's doing is causing all interest rates to freeze where they are at and take them out of effect I believe for five years. That gives everyone a break and would give the economy a boost.


I'll give you my observation. Economy will only boost when the flow of money is going a moderate pace, and obviously on how it moves is by earning, then spending it so the other person gets that money. If the mortgages are frozen including well intention ones bankers and owners wouldn't get paid. Bankers wouldn't mind as much, but owners will get a cut from their budget. If all of them decided to hold on their money on this act then the flow of money will stop on this part causing less people buying goods, causing recession (unemployment). But this is just my observation. I wonder what will really happen from what Bush did.


Not true. Interest goes directly to the loaner. It is the incentive for loaning. If you loan your money for ten years, the borrower promises to pay your money back over 10 years plus interest every year (say 7%). Interest never goes to the bank unless if the bank loaned it's own money, not someone else's. Bank's get money from early-withdrawal fees, stocks, loans etc...By freezing interest rates, everyone has a break. They have more money annually for 5 years: They can save, improve life or spend. Usually, interest is some major big shit. It depends on the loan size and loans are fairly large usually. Say someone borrowed $100000 with a 10% interest rate: For five years, they pay regular payments only. Say they agreed to pay back over ten years: They save about $5000 in interest I believe. Perhaps my calculations are wrong. I think it's that number. Anyway, that five thousand goes back to the economy, as the person uses it for something they want (Of course they'll use it. It's human nature. They like the extra boost in cash usually). That money goes to the economy. Now imagine that widespread with Middle class and down. That's a lot of money back into the economy.

My dad's a banker. I've got a slight notion about these things.


I've already know about that I was stating on what the loaners will do. If by chance the person receiving is a regular person for example a person putting the house for rent. I'm just seeing on what they do depending their reaction/situation , etc. I'm just inferring.


Well my guess is the loaner can either eat the loss of profit or not care. Typically the loaners have other means of gaining profit so I think they'll be fine. When the majority of people have more cash to spend and do spend or save, the economy generally goes up.


When people spend the economy goes up. If they save the economy goes down, but it's good if that money goes somewhere good.


So do we have an understanding or an agreement?

Oh and when all people spend, the economy goes up, but when we all sell, it crashes. Just a general rule of thumb for those who don't know.


We have a good understanding. It's good if we spend, but if it goes to fast then there's inflation to slow it down.


Ariisa wrote:


Zepher wrote:


Ariisa wrote:

recession can fix the inflation if it does occur. The economy was doomed from the start at least i think. The 30 year morgage rates are higher than they have been in the previous year and the fed is screwed. it's the mad dash and building in suburban lands instead of rebuilding on once used lots they are building on new land and are having a hard time selling the houses. may our GDP isn't what it used to be.

also i probably dont know what i'm talkin seeing as i hate economics and i just bombed my final.


Recession is basically unemployment when I'm using it in this topic. So how does unemployment help decrease the prices? If the flow of money is too fast (which is everyone is buying products in a faster pace) then price rises to fix that problem.

For the mortgages, there's a group of people that are buying ruin/poor houses for cheap, refurbish, then sell them for a higher price and they set up a low mortgages rate. In 5 years that disappear and the rates slowly rises until that person can't pay it anymore. In other words people are gambling with houses so it's like the great depression when people gamble on the stock market.


I have know idea but aren't people who are claiming unemployment getting checks, i think it runs out in 6 months. yeah because they use expansionary monetary policy right to fix the problem to make the prices rise. idk maybe with the Fed buying gov securities it increases the money supply or am i wrong?



That actually helps more, but it's our tax money going back to the unemployed people though. I wonder what our tax will change from that or I haven't noticed yet.
First  Prev  1  2  3  4  Next  Last
You must be logged in to post.