Tag Archives: financial

Geroge Bush blames the financial crisis substaintial foreign investment and a subsequent increase on bad consumer credit from greedy Wall Street bankers


 

 

President George Bush

President George Bush

A state of the afairs to squash fears amongst citizens in the United States of Amerca is sure to send ripple affects around the world; as we are all intertwined in this financial mess. President George Bush tonight spoke directly to U.S citizens, and candidly explained the situation in America. 

 

  • Housing prices that were valued more than they were actually worth
  • Banks that borrowed too much money
  • The decline in the housing market
  • Securities became unreliable leaving companies stuck with unsellable products
  • Banks began holding on to their money and dening credit to the everyday American citizen

President Bush said that the “irresponsible actions of some…bad decisions” is causing “the market is not functioning properly”. He warned that if action is held up by congress “the stock market could drop even more”. We could end up with “more expensive for credit, even with good credit history”. However he was optimistic and said that there is a spirit of cooperation betweens Democrates and Republicans. This bill will commit a large amount of tax payers money. But given the situtation, if the bill is not passed, it will cost more later for the American economy and the world. His key points to the ballout was to (1) remove risk possed by mortgage back securities, (2) protect tax payers and (3) ensure that there will be no winfall for “Wall Street” executives.

     

George Bush beleives that the plan will solve the financial problem and allow the “flow of credit” to Americans. He beleives that the vast majority of Americians will pay off their mortgages. But what does this mean for the future of America? The first part is to safeguard the financial system. He promised that every savings account will continue to be insured for up to $100, 000. In addition, he said that the laws governing the American financial system are outdated; needing change and modernization. The government should be able to observe, control and ensure that “Wall Street” will never put the system or the American people at risk again. He still beleives that the democratic financial system is the best system one available. His final quote stated that “together we will show the world what kind of country America is”. The world will definately wonder! The question you may ask, if it is the best system, than what makes the U.S different than any other socialist system now that they are essentially owning these companies? Is the problem with America greed? Did they simply learn from history and the depression and wanted to make sure to avoid a global depression?

 

American Wall Street Greed

American Wall Street Greed

One has to wonder, although America is only a portion of the worlds population, they consume the largest amount per-capita basis. Is America’s excess caused by world greed and foreign investment? Is it time for America to learn to live with less? Or is it time for America to embrace a more socialist style of financial system? Has republican or conservative styled economics failed? Or are Western societies just too credit happy, beleiving that they “deserve” to have all of the luxuries of life? Will we ever learn?

 

By Andy MJ
a.k.a. The G.T.A Patriot

Tech will suffer from financial meltdown


Sometimes you have to look around outside of your own personal sector and reflect on the world at large. If you haven’t noticed, our financial infrastructure is tumbling down around our ears. The U.S. agreed yesterday to bail out AIG at the cost of $85 billion. Just like Bear Sterns, AIG is “too big to fail.” The impact on the economy of AIG’s failure would be staggering. As my friend Steve Pizzo writes at News for Real:

If AIG failed, all those banks out there that replaced their regulatory capital with AIG IOUs would be in deep, deep, deep, deep, doo doo. If AIG failed the feds would be faced with the possibility — growing daily into a probability — of having to virtually nationalized a huge number of banks and S&Ls, replacing AIG’s IOUs with USA IOUs. (Yugo Chavez and Fidel Castro would get a good laugh out of that.)

It’s not just the financial sector. This thing will tsunami through the “real economy” – including tech. Jay Bhatti, cofounder of people search engine Spock offered some thoughts on the effect on tech. It’s not pretty:

The big players like Oracle, Sun, Microsoft and SAP … will feel an immediate impact. Financial Service firms are some of the biggest spenders of IT budgets around. I can imagine memo’s coming from the top to CIOs at banks telling them to cut costs ASAP. Naturally, they will start to push back on upgrades to new software (sorry Vista), ask for greater concessions on license pricing, and in some cases, abandon plans for new technology deployments such as new hardware or new ERP applications.

Microsoft will whether the storm, he says, since businesses still need to operate but “I would not be surprised if I heard Sun report: ‘We did not meet our numbers this quarter due to decreased spending and turmoil in the financial sector….’
Bhatti thinks the biggest impact will be on green tech, since those companies require serious capital, over a billion dollars in many case.

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