Tuesday, December 18, 2007

Economy Crazy and its real effects on the common man

The economy is one tough cookie to gauge these days. The volitility is insane. I love to watch the stock market for some reason and I have watched it for many years. I have a thinig for mathmatical trends and economic headlines.

We all know that the housing bubble has completely burst, and the fact that the ECB just dumped $500 Billion Dollars worth of Euros in to the system is a huge indicator of where the market is. Many people know that Europe is in some trouble with inflation and high consumer debt. The real truth is that most of that trouble stems from the US. Let me explain. Some of the bigger corps out around the world love to invest in the American market. They dump money into hedge funds and banks, bonds and the like. Many people don't know that many of those funds are tied in housing. When the housing bubble burst, many of those funds took heavy losses, which in turn hit all those companies that invested in them. Its a never ending spiral of goop that leads to every corner of the Earth. So Europe feels every hickup that the US economy has. Billions apon billions of dollars were lost when the banks started writing off the losses. First the stock brokers paniced and started selling everything. That causes the volitility that we see everyday. Then the banks begin to loose even more money as the shares are abandoned by the hundreds of thousands.

Now the banks have to jack up interest rates to try and cover their losses which is nearly impossible without breaking the backs of the common worker so they borrow money from the Central (theiving) Banks. The money they borrow is called a bail out. The gov hands the banks money to save their booties and it turn that deflates the dollar. ACH!

All in all, the us citizen is getting reamed for the problems of the banks. Its their fault for loaning money to people that could not afford to pay it back. People have to have better common cense than to live beyond their means. With the Gov bailing those banks out, its a pat on the back to the uninformed us citizen that didn't do his homework.

It is not right that we are not tough the in's and out's of home buying. Why didn't they teach us this stuff in highschool? Why do we have to pay for college to learn how not to be reamed? Its amazing.

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