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Please read this for some basic understanding my dear non-"idiotic" friend: "The root cause for the current crisis seems to be the excessive use of leverage.
by onreact-com 17y ago
Please read this for some basic understanding my dear non-"idiotic" friend:
"The root cause for the current crisis seems to be the excessive use of leverage.
To take an example, a company with a net worth of US$ 25 billion borrowed 26 times its net worth and creates leveraged funds of US$ 650 billion to invest or lend them. When a small portion of the company's investments turns bad, as is the norm for the industry, the company's capital is under threat. To put things in perspective a 3.8 percent misjudgment in their books was enough to wipe out their shareholders' capital of $ US 25 billion."
http://economictimes.indiatimes.com/Features/Financial-Times/What-caused-the-financial-crisis-/articleshow/3561424.cms http://economictimes.indiatimes.com/Features/Financial-Times...
- jerf 17y agoYour attempt to look knowledgeable would be much more effective if your conversation had any sort of coherence to it. Does that link address how a bank going out of business forces you to lose your home if you have a mortgage with that bank? (Presumably not, since it's not true.) You may have forgotten the beginning here, but it looks like the rest of us haven't.
- onreact-com 17y agoYou, in contrast don't even "look knowledgeable". You're just rude. I've found a link for you with just one Google search, which refers to cases like that. Even worse these banks don't even need to go bust to force you out of your home. I know, it's easier to troll than to research yourself: http://www.npr.org/templates/story/story.php?storyId=112660935 http://www.npr.org/templates/story/story.php?storyId=1126609... Keep on trusting your bank if you feel like it but don't try to deny the general sentiment of large portions of the population.