The Economy

[Fish2006]

BB:

I understand what you are saying.... from a moral standard point of view... but regarding the banks... they are heavily dependant upon each other (all these Credit-Default-Swaps and other financial mechanisms would break down if one bank fell)... they hedge their risks with each other... if one falls, then many other banks have billions of un-protected assets out there because their hedges are now bankrupt.... the net effect would be the banking industry would start selling off these newly unhedged assets to get their risk profile in line.... that sell off would most likely destroy our economy.

Sadly, this is right on the money.

The deleveraging process (i.e. gracefully bailing out the 100-1 risks 5 billion at a time) is going to be very painful. The issue is a little like being forced to sell your house fast vs having time to sell your house well - bad pun in know. When you do a forced sale, you dont get what you can do when you can stage and prepare.

What is going on with CDOs and the Credit Default Swaps which alledgedly hedge against CDOs is a little like that. The process is actually starting to work - CDOs are actually trading again, albiet at vastly reduced levels. The smart money I hear is actually buying the damn things at highly distressed prices.

Money (for the house) is almost always made when fear is at it's height. A site full of gamblers probably realizes this :)

[Rothko]

Wow, this thread really took off! Great points all around! :thumbs:

I guess my question now is this...

What do we do now??

My business is all but dead! It's a fact people are spending money on food and gas and nothing else! Where does that leave us in retail??

I advertise! I have lowered prices to better accomodate a declining economy! I offer gas cards, pay the sales tax and deliver free and all these strategies still come up short! (for those who don't know I own a furniture store)

...and I hear the worst is yet to come! I have owned my store for 20 years and now I'm faced with losing it all together! I just can't see working through the summer!

[dananderson32]

Wow, this thread really took off! Great points all around! :thumbs:

I guess my question now is this...

What do we do now??

My business is all but dead! It's a fact people are spending money on food and gas and nothing else! Where does that leave us in retail??

I advertise! I have lowered prices to better accomodate a declining economy! I offer gas cards, pay the sales tax and deliver free and all these strategies still come up short! (for those who don't know I own a furniture store)

...and I hear the worst is yet to come! I have owned my store for 20 years and now I'm faced with losing it all together! I just can't see working through the summer!

your not the only story out there like this in this country......keep your head up tho rothko....

[Skinsfan]

i hate to hear that rothko, and i wish you all the best.... hopefully you were able to pocket away a nice chunk of change during the boom years to help get you through.... i think if you can make it until this time next year you will be alright.... maybe these $1200 checks will bring out some customers as well....

[Rothko]

i hate to hear that rothko, and i wish you all the best.... hopefully you were able to pocket away a nice chunk of change during the boom years to help get you through.... i think if you can make it until this time next year you will be alright.... maybe these $1200 checks will bring out some customers as well....

Definitely hope so! I am fortunate that I have saved over the years! I know there are some out there less fortunate than myself! I want everyone to prosper!

Thanks for the well wishes and support! This place is a hell of a lot cheaper than a shrink! LOL! I think you're right Skins...this time next year will be better! It's a weird trend how retail suffers in an election year!