Comments on: When the Borrowers Stop Borrowing

By: Sundance

Sundance — Wed, 11 Nov 2009 22:12:04 +0000

sharonsj, many people wish credit grew in trees and paper money or debt represented wealth. That’s just not how things work.

By: sharonsj

sharonsj — Tue, 10 Nov 2009 17:20:27 +0000

The borrowers aren’t borrowing because they don’t think they will be able to repay the loan. And they are already burdened with too much debt. That said, the banks and credit cards aren’t lending because they know most people can’t pay their existing bills, so if people take on new debt it will leave the companies holding the bag. Yet if these companies would lower their rates, the system would start up again. If my credit cards would lower the rates to a manageable amount, I would be able to buy more. Instead I now have to deal with a 30% interest rate while the banks got that money at nearly 0%. If they think people will agree to be further screwed by these greedy banks, it’s not going to happen.

By: Scooter

Scooter — Tue, 10 Nov 2009 14:15:24 +0000

To JKR

In March/April I made 30% on stocks, then I got out. I, with BB, cannot tell when this bounce will crash back to earth.

So, since April, I’ve had cash on the sidelines as well. I could’ve made another 30% more if I had left it in.

But who can predict the exact upturns/downturns of the market? So I content myself with knowing that I made more in 2 months of investing than I would’ve made in 10 years in a 0% interest yielding savings account.

The laws of economics say, There is yet a crash to come. When? Soon…. But for now I’ll just warm my hands on the sidelines a bit longer.

By: Sundance

Sundance — Tue, 10 Nov 2009 13:09:40 +0000

Goldman makes its profits mainly speculating with the feds’ money, ironically partly by lending it back to them. Public debt has never been a better deal for these (too) big (to fail haha) banks.

The feds have more cheap cash to bailout the entire economy, the banks make risk-free profits, so who’s going to complain ? Well the man of the street should denounce that fraud but unfortunately he doesn’t give a sh** about economic issues.

Also I wouldn’t be too surprised if there was a good deal of accounting handling in that “too good to be entirely true” story. Until the next bailout (see Fannie & Freddie for example )

By: ralph meyen

ralph meyen — Tue, 10 Nov 2009 01:36:11 +0000

Dear Bill

if what you claim below is true then who are Goldman lending (credit) to???

Goldman is making record profits, for example. How does Goldman make money? It is finance business. It profits by offering credit. When credit expands, the moneylenders and speculators at Goldman make money.

The private sector isn’t borrowing. Every day brings more proof.

By: countrygenious

countrygenious — Mon, 09 Nov 2009 23:06:17 +0000

“All I know is that I have had cash sitting on the sidelines for far too long, waiting for the bottom to fall out. Meanwhile I’ve given up 50-75% gains. I don’t know about all you guys, but I am going all in with my long term cash to avoid missing out on the rest of the run.”

The run will end the day you go ALL in. Why did you wait?

By: LaRRRRy

LaRRRRy — Mon, 09 Nov 2009 22:56:55 +0000

I wouldn’t want to miss out on the rest of the run, either.

Meaning…it IS going to end? And when?

By: JKR

JKR — Mon, 09 Nov 2009 22:20:27 +0000

All I know is that I have had cash sitting on the sidelines for far too long, waiting for the bottom to fall out. Meanwhile I’ve given up 50-75% gains. I don’t know about all you guys, but I am going all in with my long term cash to avoid missing out on the rest of the run.

By: JMR bayou bobby

JMR bayou bobby — Mon, 09 Nov 2009 22:06:30 +0000

“It was 20 years ago today that the Berlin Wall fell, bringing to an end a 40-year demonstration project.”
_______________________________________

We got one started last year or so between us and Mexico. Think of the possibilities! A vast construction project of walls between say the Rockies and California; Another on either bank of the Mississippi; the possibilities, O! the possibilities.