Formula One Racing

It is assumed that the financial world nearly collapsed. This lie has changed a lot. In the world of speculative type of real estate assets and financial instruments for a total of perhaps $ 1000000000 or just 2% of the global economy has been Armaggedon [an ancient Hebrew word has nothing to do with] disappearance of the world. Government has made problems – forcing banks to give loans to people without proof of income, financial interest rates for too long, and a flood of money – is now assigned to “markets”. How ridiculous. Governments and politicians make the problem, then you come to “fix”. It is laughable. The housing crisis “with inflated and exaggerated, there was no chance of destroying the financial system, the global trading system” or “capitalism”. It is a very minor episode in financial terms far less than a trillion dollars is the real harm of speculation and madness inspired land rush of the government. In fact, major banks and investment houses and release statements that their payment in future years, write-up, ie they have taken too many losses and the value of underlying assets worth of more than initially plotted. How is this exaggerated “crisis”? Consider: Goldman Sachs estimates the total world wide mortgage or real estate and financial instruments gains and losses: $ 1. 2000000000 The market capitalization “of the huge banks and financial institutions listed on the New York Stock Exchange: $ 16 trillion, or 15 times the amount of amortization related to the housing mess. Total cash bond market in the world: 45 billion ”The liquidity available in the derivatives in the world: 300 billion dollars Sovereign wealth funds managed state capital: 25 billion dollars -Liquid Cash in banks on Wall Street in April of investment only: $ 200 billion ”U. S. Total GDP: $ 13. 5000000000 World GDP: 45 billion the stock market in the world the total value of all trades: $ 85 billion ”The excess cash on hand of the Federal Reserve, deployed on the ground: 400 billion Revenue growth in the United States in 2007: $ 500 billion An objective observer watching this would say: “Well yes, there are some problems, but it seems not enough money, liquid assets, real estate and save financial markets. Indeed. The reality is that extreme estimate of $ 1. 2 billion of writedowns on the mortgage crisis “is really a pittance. Is 7% of the market capitalization of the Bank on Wall Street on March 31, 2008, is 2% of global GDP and the bond market is 2 years of revenue growth and 1% of total market capitalization securities. Yes $ 1. 2 billion dollars is a sum of money, but the end of the world? Of course not. The thought behind the current round of wild market despises the thought that if Bear Stearns fifth largest U.S. investment bank went bankrupt, the whole system would collapse. Garbage. Every five years, a large bank or investment house failed, and the system works very well. Bear Stearns is a poorly managed institution that does not know what was in bankruptcy. 34:1 is debt, debt to equity. Fortunately Bear Stearns has no correlation with balance sheets or the strengths of its former directors competitors: ”Liquidity of Lehman more than five times its equity. Merrill Lynch & Co., the largest broker in the world, Morgan Stanley, the second largest U.S. securities firm, the ratio is three times heritage. Goldman liquid assets are double its equity …… ”Over the past 20 years, U.S. industry securities has learned from experience how to navigate through financially stressful events that can hurt confidence,”Hintz, a former CFO Lehman said… “ In other words, markets are perfectly capable of responding to changing market conditions and asset valuations again. If the bear has gone bankrupt and the world system are not finished. It was the same as the bankruptcy of Drexel Burnham in the early 90s, the valuable parts that have been collected by competitors and life would have followed. This is not to deny the existence of problems in the financial world. But the main problem is not lack of regulation – there are thousands of laws rules in the financial world that are never used or relied on. None of these bureaucratic servants were using their powers to prevent loans to people without income verification, for example. We do not need arcane rules and fees and more expensive bureaucracy. We need transparency, less government involvement and smarter, lighter regulation. The main problem is of course the government and its constant control – political interference. Back in the excellent ancient days of Jimmy Carter in 1977, politicians in the United States has made a law called “[The Community Reinvestment Act" Orwellian sick and how do you reckon?] Who ordered that a certain percentage of loans mortgage banking needs and the ability of foreigners to borrowers who do not need to show proof of income or assets. The political thought was to force banks to make more homeownership among minorities and the poor [you know how to place an end to white racism, etc. etc.] and therefore the stabilization of the lower classes of American society and Community Energy and Economic Growth. But these decrees by the government does not work and really distort the market dramatically. What happens when the government distorts markets, which makes the reality anti-dumb? You can make asset bubbles deflate at some point. Speculation has encouraged the ARC, the buy by unqualified borrowers, and, finally, of course, the creation of loans that have small value. Combined with low interest rates from 2001 to 2004, simple money, relaxed lending terms of credit, the stage was set for a correction in prices in the wholesale market. But, market prices may be positive corrections. Now, the U.S. buyers can buy high value goods at reduced prices, with reasonable interest rates in a variety of mortgages and vehicles. The market is in other words the bid on the provision of housing at market prices rationally. So this government wants to do? After the cause of the problem, first I want to make more regulation, more fees, more distortion and in the future, more problems. There is nothing more than politics and populist unreasonable delay and circular reasoning: “We have made a crisis of government incompetence, there are problems that must be addressed, the public expects the voting ergo we do more caused the problem in the first place. “This is a definition of madness. The financial system has problems and issues, but the market can operate. The “crisis” is exaggerated and completely blown away by the wind. From any point of cancellation are lower, and the impact on the entire system, while strong, is not overwhelming. There is enough liquidity support from the central bank and financial strength to easily overcome the government made the asset bubble in real estate. Too terrible politicians and bureaucrats do not admit it.

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