Question by Water_Resources: Did Socialism or Capitalism bring about America’s current financial demise?
Informed answers appreciated.
Demise; the end of something that used to exist, especially when it happens slowly and predictably.
Best answer:
Answer by birdie
Cute question! I will sit back and enjoy the show!
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Cedar Finance, open an account: http://is.gd/signupcedarfinance Copy a professional trader: http://tinyurl.com/copybinaryoptionstrader Cedar Finance – My Per…
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Question by amcenicola: How did Enron use SPE’s to hide large amounts of debt?
Best answer:
Answer by werner.herzog
A special purpose entity is a company that is created by a parent company, usually to carry out a specific, limited purpose, such as the securitization of a set of assets. An SPE may be set up as a corporation, partnership, LLC, or trust. Enron created lots and lots of SPEs. As long as Enron technically controlled no more than 50% of an SPE, Enron was not required by accounting rules to consolidate the SPE’s assets and liabilities, so any debts belonged to the SPE and did not show up on Enron’s books. The simplest way Enron hid debt in the SPEs was by selling assets to the SPEs, which had borrowed money in order to purchase the assets. The problem was that Enron was liable to repay the loans taken out by the SPEs. So, basically, Enron was making a sale to itself, showing a profit on its books, and hiding the corresponding loss in the SPE. These false profits (sorry) covered up Enron’s actual business losses.
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Question by dolphin314etc: Which is worse: Rand Paul’s Libertarian Views or Rand Paul’s Historical Ignorance?
Both are pretty bad, I suppose, but which is more harmful, which causes you more dismay?
Libertarian views are what caused Alan Greenspan to consider the securitization of Mortgages into very complex investment vehicles to be useful and valuable innovations in finance. Greenspan was a student of Ayn Rand, the founder of modern American Libertarian economics and philosophy.
Greenspan, like your professor in Econ 101, feels that any interference by government in the free market, always backfires by producing bad unintended consequences. This view was also held by Milton Friedman, Ronald Reagan and G.W. Bush.
So, the SEC officials were watching porn on the internet, and not Wall Street. Regulation is bad, so let’s take out all the control rods and the economy will really get going — that was the view.
We know now that the Libertarian view is bad economics and totally misguided, and just plain wrong.
What happens when you take out all the control rods is not a wonderful new day for the economy. Instead you get the implosion of the economy into a credit crisis that engulfs the whole world.
Even in small towns, people have heard about the Great Recession. What they don’t know is that it is tied very closely to exactly the kind of libertarianism that Rand Paul espouses and wants to bring back.
So his libertarian views are a basis for some dismay.
But so is his historical ignorance. He seems almost more ignorant than Sarah Palin, and she was truly the Queen of Clueless.
To not know about Heart of Atlanta Motel — which was the Supreme Court case that decided the issue of seating people at private lunch counters really reveals deep gaps in this man’s education. He must have gone to High School. Did he take US History? How did he do he that course? Or was he raised maybe in Indonesia?
There are also plenty of cases that finally put to rest the issue of non-discrimination when selling a private house. Yes, you can sell your house. But if you put your house up for sale, no you cannot pick and choose the buyer based purely on their skin color. Rand Paul is still struggling with that. He’s not retarded, but he’s clearly some kind of a throwback. Hey, Rand, join USA, it’s the country you live in! We are not coming to your planet.
He’s also not sure that BP really ought to pay for the oil spill in the Gulf.
Rand Paul is ignorant and wierd. That may not be a problem for a US Senator (see also Senator Inhoff), but surely it would dismay a rational voter if Rand Paul ran for higher office.
The Rand Paul story is a sad one for USA. It bespeaks our inability to learn the big picture factors that cause our national catastrophes, and it betokens the utter failure of our educational system at the High School and College levels.
Sarah Palin says “Now Rand Paul knows what it feels like to be me.”
And for a reason, sweetheart, for a reason.
Best answer:
Answer by Dude
for me, his libertarianism is worse, but I know this was a rhetorical question.
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A few nice Finance images I found:
car-finance-after-GFC
Image by natloans
Car finance after the GFC – Car finance
Sammy Wilson visits Fisher Engineering, Co Fermanagh. Finance Minister Sammy Wilson with Brian Keys, Production Director and two shop floor workers, Fisher Engineering, Co Fermanagh.
Image by Northern Ireland Executive
Finance Minister Sammy Wilson visits Fisher Engineering, Ballinamallard, Co Fermanagh© picture by John McVitty, Enniskillen, Co.Fermanagh, N. Ireland – 07771987378 ©
Question by Kristen S: a companies acceptance of credit cards like visa is an expample of ?
securitization
factoring with recourse
discounting
factoring without recourse
Best answer:
Answer by googie
Marketing Question ? Mid -term Exam? Security is the main reason. The amount of the clients purchase is known. It is scribed into the credit card’s approval activity,with the amount to be charged, Visa approves the amount and the customer gets the goods.So now, instead of every retailer carrying receivables, the credit card people assume the risk, and receive a percentage for their work. Visa is in effect factoring with recourse. If any problems arise Visa charges back the amount to the retailer.
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Question by ijustwannalive23: how much factual info should i include in my essay?
i’m writing a persuasive essay about whether i think there will be another great depression or not. it’s persuasive, so i’m not sure how much actual facts i should include. i know i need some to use as supporting details, but should it be really factual?
thanks
Best answer:
Answer by George
it sould be the true description of the great deparession along with the efforts to move twoard its recovery. Read this account although it a little short on the recovery but it is at the end of this essay.
The late-2000s depression was economic and it began in the United States in December 2007 (and with much greater intensity since September 2008, according to the National Bureau of Economic Research. It spread to much of the industrialized world, and has caused a pronounced deceleration of economic activity. This global depressionhas been taking place in an economic environment characterized by various imbalances and was sparked by the outbreak of the financial crisis of 2007–2010. Although the late-2000s depression has at times been referred to as “the Great Deparession,” this same phrase has been used to refer to every recession of the several preceding decades. In July 2009, it was announced that a growing number of economists believed that the recession may have ended.
The financial crisis has been linked to reckless and unsustainable lending practices compounded by government intervention and the growing trend of securitization of real estate mortgages in the United States. The US mortgage-backed securities, which had risks that were hard to assess, were marketed around the world. A more broad based credit boom fed a global speculative bubble in real estate and equities, which served to reinforce the risky lending practices. The precarious financial situation was made more difficult by a sharp increase in oil and food prices. The emergence of Sub-prime loan losses in 2007 began the crisis and exposed other risky loans and over-inflated asset prices. With loan losses mounting and the fall of Lehman Brothers on September 15, 2008, a major panic broke out on the inter-bank loan market. As share and housing prices declined, many large and well established investment and commercial banks in the United States and Europe suffered huge losses and even faced bankruptcy, resulting in massive public financial assistance.
A global depression has resulted in a sharp drop in international trade, rising unemployment and slumping commodity prices. In December 2008, the National Bureau of Economic Research (NBER) declared that the United States had been in recession since December 2007. Several economists have predicted that recovery may not appear until 2011 and that the recession will be the worst since the Great Depression of the 1930s. The conditions leading up to the crisis, characterised by an exorbitant rise in asset prices and associated boom in economic demand, are considered a result of the extended period of easily available credit, inadequate regulation and oversight, or increasing inequality.
The depression has renewed interest in Keynesian economic ideas on how to combat recessionary conditions. Fiscal and monetary policies have been significantly eased to stem the depresion and financial risks. Economists advise that the stimulus should be withdrawn as soon as the economies recover enough to “chart a path to sustainable growth”.
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Question by TJ: How do I get my finance to stop swearing?
My finance is swearing all the time, & I have a 7 year old boy, & we have a baby on the way. I don’t think it is good for my son to hear these words all the time. Often he uses cuss words in a normal conversation. He also has a short temper & simple things get him to swear & yell. I don’t want to raise kids like this, how do I get him to stop. Isn’t it bad for kids to hear?
Best answer:
Answer by David M
Why is this $ #@$ % question in the personal finance area?
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Question by Lauren L: what is the cause of lehman brother’s financial trouble?
what decisions did Lehman Brothers, Bear Stearn’s and Merrill Lynch make that led them to financial trouble?
Best answer:
Answer by HJ Bear
Somewhat applicable to the industry as a whole
1) thin capital base to start
2) investments in alt-a mortgage loans and commercial real estate soured. in better times, they made good money buying assets and reselling for a profit; but the music stopped. they were also “hung” with a lot of bad corporate bridge loans.
3) financed themselves very aggressively with repo loans from other financial institutions which could get called quickly
4) the investment banks attempted to hedge some of their sub-prime and securitization risk with third parties (such as MBIA, SCA) who lost their AAA credit rating due to sub-prime crisis
5) underwriting profits came to a halt
More specific to Lehman
6) they did not raise capital (dilutive to current shareholders) and tried to ride out storm. Even when they were close to the abyss, they were high-handed when the Korean Development Bank was considering an investment
7) they lost credibility because they were seen hiding the ball
8) short sellers may have exacerbated the perceptual issues. the ban on certain types of short selling had been lifted a week before they blew up.
9)The recent conservatorship of FNMA and Freddie may have destabilized access to funding. The form of rescue by the Treasury inadvertently chilled the potential for other financial institutions to tap the equity markets
10) The US Treasury Dept and Fed Reserve, stung by criticism about their handling of Bear Stearns, took a tough line on aiding Lehman. Their desire to administer tough love to the capital markets backfired when none of the rescuers stepped up to the plate.
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Question by commandrix: Looking for cases in Washington State…?
I am looking for any cases in Washington State that have to do with tracking ownership of notes through the securitization process, and what effects the sale of said note may have had on holder status… appellate rulings would be best. Have been looking online but this is getting FRUSTRATING. Can anybody give me links to cases and they MUST be from the Washington State court system. Whoever can give me the most useful stuff gets the 10 points.
Best answer:
Answer by Cliff
The reason no one can help you is because you aren’t making it clear what issue you are looking into…It sounds like you may be looking for “holder in due course” rules in terms of what the status gives the holder and how a holder becomes one in due course…Try searching those terms
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Some cool Finance images:
Personal Finance
Image by 401(K) 2013
Personal Finance
Finance Soldiers Redeploy
Image by heraldpost
Soldiers from the 21st Theater Sustainment Command’s 266th Finance Management Center, embraces his family during a welcome home ceremony at Kleber gym on Kleber Kaserne in Kaiserslautern, Germany Oct. 24, 2011. The finance center completed a yearlong deployment providing full-spectrum, responsive financial management support for Operation New Dawn and Operation Enduring Freedom. (Photo by Sgt. Frank Sanchez III, 21st TSC )
Question by freind2all: What are various methods of financial restructuring?
Please provide answer with details.. thanx
Best answer:
Answer by chipolte
summer because it is hot
winter because it is cold
fall because it is breezy
spring because it is warm
over and over and over until it ends
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Question by Roman: Discuss factors that have contributed to the increase in the number of foreclosures?
Best answer:
Answer by ?
The development of a pass through mortgage market. In the 70’s and 80’s banks started developing mortgage backed securities or MBSs an MBS is a big pile of mortgages wrapped up together to become a security similar to a bond but with a few differences. By packaging and selling MBSs banks do not have to hold entire mortgages on their balance sheets after they sell them to investors, the mortgage payments are passed through the bank to the investors. Because the banks don’t hold them they don’t care as much who gets a mortgage, some guy who really shouldn’t have gotten a million dollar mortgage might be more likely to get one in a pass through market. Many loans are also created by loan originators and mortgage brokers who line up deals and pass them to banks to be packaged. These guys don’t ever hold the mortgage so they care even less who gets a mortgage or not. Because the risk of writing a mortgage loan to someone has been spread out and passed along through securitization and sale a greater number of “bad” loans have been written in the recent past.
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Question by Armada: What are some useful finance classes to take if I am planning to do a minor in Finance?
I’m an accounting major planning to do a minor in Finance and need to know what are the useful classes in Finance I should take? Here are the courses I can choose from; Financing New Ventures, Managing Corporate Assets and Liabilities, Intermediate Investments, Financial Analysis and Modeling, Finance in the Global Environment, Advanced Corporate Financial Planning, Introduction to Options and Futures, and Seminar in Finance. I have already taken two Finance classes towards my minor and need to take three more.
Best answer:
Answer by icprofit6000
Hopefully they are all useful. I expect there is some duplication among these classes and class you taken or will take.
Why are you getting a minor in Finance? Do want to reinforce what your learning in accounting or broaden your knowledge base?
Seminar in Finance — cover a broad area of topics. Might be useful in deciding what other classes you might want to take. You might find most seminar boring and strictly academic exercises or you might enjoy them all.
Financing New Ventures — useful but mostly if you want to work with New Ventures.
Managing Corporate Assets and Liabilities — general applicable and might reinforce your other management accounting class work
I take both
Financial Analysis and Modeling
and
Advanced Corporate Financial Planning.
I think they will reinforce your management accounting classes and have considerable usefulness in most future careers.
I assuming you had some introductions to investment, take these if you like the class and want more otherwise skip them. Although you should have a understanding of Options and Futures, I assume get the basic material in another class.
Intermediate Investments
Introduction to Options and Futures
Finance in the Global Environment — You could get this information in other classes, Take this class if I really wanted to understand in detail how the global economic and monetary policy works.
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Question by baebeecakes: how hard is it to get a mortgage now if you have decent credit, no down payment,?
a good credit score, and 2 years job employment? is it harder now with all the foreclosures?
Best answer:
Answer by chatsplas@sbcglobal.net
Difficult. Yes, harder now than before–that’s why there are all the foreclosures. Frequently peolpe without a down payment aren’t good credit risks and shouldn’t be buying a home–that’s why the foreclosure rate is climbing. Start saving, putting money aside. You need a down payment even with the good credit and stable employment record.
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Question by Assassin: Why did the realty prices in USA slump?
Also, is the financial mess that is all around only bcoz of the housing sector??
Kindly also explain the meaning of the term “Securitisation”…Try keeping it simple…Thanx.
Samantha, u know what, had I been a terrorist the 1st thing I’d have done wud have been to blow ur fuckin brains off(that is if u have one coz certainly goin by ur answer one cannot dare to think so)….Damn u r stupid!!!!
Best answer:
Answer by Samantha C
why do i get that terrorist vibe from you?
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Intuit – Quicken Personal Finance Podcast
from Quicken Personal Finance Podcast
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Question by TheBluesman: Why and when do Government bonds fall?
Hi, I have a question and I’m not sure why a Govt. bond would fall, or what that means?
e.g. Greek bonds fell for a third day, with the yield on the two-year note rising 1.3 percentage point to 6.41 percent.
Best answer:
Answer by Len
Bonds fall when interest rates rise. These bonds have repayment obligations. When they fall or fail, the sponsoring nation is at risk of losing the opportunity to borrow due to diminished credit facilities. This cripples economies, stifles business and wrecks governmental administrations.
Failing economies drop as people lose confidence in their ability to continue as in better times. Rising rates are often perceived as a last ditch and desperate attempt to create the image of strength. At the same time, those rising rates work against bond securitization.
Len
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Question by Brittany: So who is the real blame for the housing crisis?
http://www.youtube.com/watch?v=_MGT_cSi7Rs
This video might clear up some doubts? Might not?
So – who is the real blame?
Best answer:
Answer by Made
Americans
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C’est un véritable cours d’histoire politique retraçant, depuis la crise de 1929, les différentes étapes des déréglementations qui ont conduit à la financiar…
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