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09-16-2008, 01:55 PM
  #34
eco's bones
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Join Date: Jul 2005
Location: Elmira NY
Country: United States
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Quote:
Originally Posted by Devonator View Post
You know, my post secondary education was in business...Accounting and I took a few economic courses of course but I really have absolutely no clue what is going on and how serious this is with the Lehman brothers?

Without going into partisan politics, how bad is it and could all of this turmoil have a dasterdly effect on the economies of the world?

Could we really see another depression perhaps?

I figured some of you New Yorker's might know more what is going on versus this Albertan way out in Western Canada.

Take care
Well don't feel bad. I have no degree in anything. Just a Postal worker. I do read a lot.

I have my preferences but I'd rather keep partisanship out of it (so I kept names to a minimum in the above post). Even so I think there are some real human villians behind this meltdown. People buying homes that they had no chance of paying off over the lifetime of the loan--thinking in grandiose terms of their house as an investment with an ever rising trajectory in value and not necessarily as a place to live in is what the subprime mortgage crisis is all about. They were fed these ideas by banks (lenders) and the financial houses started buying up these loans (whether good or bad) in vast numbers and bundling them together into CDO's--trying to pass them off around the globe and they've earned a bad reputation over time and so they found out they would have to eat them. I don't know where the bottom is so I cannot tell you what effect in the end it will have here or elsewhere in the world. I'm not sure anyone really has an idea. It's big enough anyway to topple these financial houses that have been around for a long time.

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