Colli Real Estate

What is happening to our economy?

I’m going to throw a bunch of words out there, and I want you to explain to me what is going on with them in “stupid people terms”:

Okay, so I was hoping someone else would be answering this question because I think we have all heard the cause but I need the pieces put together a little bit more.

It appears to me that the banks did not have enough GOOD loans to be liquid. They had so many BAD loans that they essentially are running out of money. They are only required to keep a certain percentage of our deposits in their bank. When they fall below that percentage because of bad loans then no more money can be loaned out to create movement in our economy. When I say “movement” I mean loans that are used to purchase other items in our economy. A business will get a loan and increase their business that creates jobs. Jobs give more money to people to spend and this helps the economy. Therefore, 1 loan can have a ripple effect to our economy, creating buying situations many times over. I know there is a number that some economist has that examines exactly how many times that loan has created “movement” in the economy or how many times that loan money is cycled through our economy. I hope this is making sense.

If our banks do not have loan money then that money is not cycled through our economy, therefore, creating a slow down to our economy that affects people’s jobs, less business for companies … do you see where I’m going with this?

That is where I’m at in this whole thing …. the government/people are afraid that our economy will come to a screeching halt and the infusion of money is what is needed to continue with the flow of money through the economy.

I think, personally, that the news has gone overboard and scared the hell out of everyone, thus making it worse because of everyone’s perception of what is going on. I think we have to really be careful what we hear on the news. They have A LOT of power and that scares me at their ability to influence our economy, elections, etc.

As far as the stock market goes: I’m still working this out myself. I think that if people think that there will be no business because our economy is slowing then the earnings of companies will bottom out and the stock price will tumble. I know that is real simple, but I’m still working it out too.

Foreclosure Profits For Dummies – 3 of 3

Foreclosure $8.92 Foreclosure

Avoid Foreclosure $20.5 Avoid Foreclosure

The Foreclosure Game $29.95 The Foreclosure Game

Foreclosure Nation $23.5 Foreclosure Nation

The Foreclosure $21.44 No Synopsis Available

Tags:   blogs · failure · foreclosure · housing · idiotsNo Comments