Comments on: The Credit Market Freeze — How It Works And How It Affects You

By: miranda

miranda — Tue, 14 Oct 2008 00:33:21 +0000

I agree completely. It’s nice that Dow had such a nice day, but who knows how it will be tomorrow. You cannot tell. And debt is still a big problem, especially since none of our leaders feel that addressing debt is a priority.

By: Edward

Edward — Tue, 14 Oct 2008 00:21:44 +0000

Today I’m hearing cheers about the 1,000 point rally. I think people are still missing the point. All this indicates is the market is volatile place right now. Suppose we have a six or seven hundred drop tomorrow? Which is not only possible; but likely considering that no one in this market seems to understand what the “Fair Market” price stocks is. Only that millionaires can be made from trading on the right day. Even if we get full liquidity on the part of the banks; we still don’t know how much bad paper is out there. Plus the morgage crisis is still not going away. How many Americans are going to be spending on Christmas like they used to? The fragility of this economy (particulary when we have SO MUCH debt) is still very much in question.

By: miranda

miranda — Fri, 10 Oct 2008 12:39:53 +0000

Thank you for your insight, Edward. They’ve already manipulated the markets so much, that there’s no reason not to. At any rate, Bush Jr. has done little in terms of following Bush Sr.’s (often) wiser courses of action. I’m not sure that this is any different.

By: Edward

Edward — Fri, 10 Oct 2008 08:37:54 +0000

With the 700 point plunge in the market, I think the credit freeze is going to be remembered as the straw that broke the camel’s back. What remains to be seen now is whether the younger Bush will emulate his senior and freeze trading on the market to give a ‘cooling off’ period to the economy; or just let it slide into the abyss. I guess the old Chinese curse is true: may you live in interesting times indeed!

By: miranda

miranda — Wed, 08 Oct 2008 22:12:54 +0000

An interesting thought, Uncommomadvice. After all, we’ve already moved rather far down the socialist path…

By: Uncommonadvice

Uncommonadvice — Wed, 08 Oct 2008 22:09:05 +0000

Perhaps the government should take over all lending?? Sounds a bit commie but it might be the only way to get us out of this crisis in the short term.

By: miranda

miranda — Wed, 08 Oct 2008 02:47:07 +0000

An interesting insight, Jean. I guess the more things change, the more things stay the same.

By: Jean Murray

Jean Murray — Wed, 08 Oct 2008 02:24:48 +0000

I work at a private professional school, and I’ve heard of similar stories of student loan money “drying up.” That means fewer students in school, which means they will start looking for jobs and increase the ranks of the unemployed. We think we are more sophisticated than in the 1920s and 1930s. We’re just more complex, but no smarter.

By: miranda

miranda — Wed, 08 Oct 2008 01:08:26 +0000

You make a good point, Brian. Sometimes I wonder if the government knows what it’s doing as well. It feels like they keep focusing on a “trickle down” solution, when maybe they should start with helping the middle class and move from there.

By: Brian

Brian — Wed, 08 Oct 2008 00:28:48 +0000

With the credit freeze, there are ways right now the federal government can open up credit. Sometimes i think the whole government has no clue whats going on. Its sad kids will be denied an education due to the credit freeze.