The coming financial crisis

[SD_Eagle5]

His miserable attitude was refreshing

[Seabiscuit36]

I miss rjs.

me too

I sent a shout out his way, Did his liver finally die?

[Phanatic]

Bear Stearns bailed out by Fed, JPMorgan

[Butchers Bill]

Bear Stearns bailed out by Fed, JPMorgan

Bear was 10 days away from becoming insolvent which would have been devastating.  Its not over yet...don't let the press fool you.  No one is willing to trade with Bear right now, and unless the Fed wants to buy them, they are likely going under.

[Diomedes]

I'll trade with them.  They can take 100 bucks today and give me back 200 bucks tomorrow.

Seems fair, right?

[PoopyfaceMcGee]

Money lover.

[Geowhizzer]

Not nearly on the scale of these things, but apparently my school district is going to have massive budget cuts, caused by a couple of things;

1.  The bad economy means less tourists in Florida - and that is the main source of revenue for the state government.
2.  Big drops in the value of properties - less property tax.
3.  Voters passed an exemption to the homestead law, which basically doubles the amount of value that is protected from property tax.

Down here, most counties are their own school districts.  My district has something like 8 high schools, and various feeder middle and elementary schools. and employs about 5,000 teachers.

The district is going to try to take the cuts at the district office level first - see how much can be saved there.  After that, they'll go to school staffs (assistant principals, secretaries, aides, custodians, etc.  As a last resort, they'll begin to cut teaching positions.  The total amount floating around (rumor mill) is about $16 million.  My principal believes that our school will lose the equivalent of 3-5 teaching "units" (basically 3-5 times the average teaching salary - about $150K - $250K or so).

Being an academic teacher with quite a bit of seniority, my job is safe.  Unfortunately, a lot of others - and some who don't make very much money - are looking at losing either hours, benefits, or positions.

[Butchers Bill]

Bear was worth $3.5 billion on Friday.

Today?  $236 million.

JPM buys them for $2 a share.  Wow

[Father Demon]

Nearly three-quarters of all Americans think the economy is in a recession, according to a national poll released Monday.


I hate news like this.  75% of the population can't balance their checkbooks, is $20K in debt, and think cars cost $499 a month instead of $30,000 - yet they think the US is in a recession.

The press could start repeatedly running stories that the earth will reverse polarization on Friday, and people will be up in arms because they won't get afternoon sun in their kitchens anymore.

[reese125]

recession? Even after the Bush kick-back? No way, there jumping the gun

[Seabiscuit36]

Rumor is the Big banks might start consolidating.

[PoopyfaceMcGee]

75% of the population can't balance their checkbooks, is $20K in debt, and think cars cost $499 a month instead of $30,000 - yet they think the US is in a recession.

It's almost disturbing to me that I feel I could have typed those exact words.  Why is it any wonder that fiscal responsibility can't be found in government?  It's not like most people practice it at home.

[Diomedes]

And why can't they practice it at home? 

really, I'm asking.

It certainly wasn't taught in my schooling...what I know I taught myself and learned outside of school.  I'm not trying to say it's the government/school system's fault...just stating a fact

[Phanatic]

75% is an awful high number for high horses and all that.

I have an Aunt and Uncle that are very simple folk. Great people I love them to death. He worked in a factory his whole life and has a meager pension and social security to live off of. Now in their 70's without social security they'd be nowhere. They did not plan their money well it all sure. They lived day to day. It's cool to rail against the stupid folk who couldn't figure it out and all but they're real people.

[PoopyfaceMcGee]

And why can't they practice it at home? 

really, I'm asking.

School systems couldn't even compete anyway.  Advertising is always for buy now, pay later.  And whether it be via mail or TV, people are just inundated with it.  Plus, the whole "keeping up with the Joneses" mentality is very powerful, and since most people live outside their means, it's much like a spreading disease.

75% is an awful high number for high horses and all that.

I have an Aunt and Uncle that are very simple folk. Great people I love them to death. He worked in a factory his whole life and has a meager pension and social security to live off of. Now in their 70's without social security they'd be nowhere. They did not plan their money well it all sure. They lived day to day. It's cool to rail against the stupid folk who couldn't figure it out and all but they're real people.

No doubt.  And those are the types of people that should get Social Security.  But most "real people" simply do not have the knowledge and discipline to adequately save on their own and live within their means.