Where in the blue fock has all the money gone?

IvaBigWun

There is always the same amount of water on the earth, if it isn't in one place it's in another yeah? So what the fook has happened with all the money? Is there always the same total amount in the world so that when one place is short another is gaining? If not, where has all the money gone?

The UK government are planning a 100 BILLION pound bailout of their country. Ireland is facing an Iceland like situation if we dont take similar actions. Apart from taxes how the hell can they get that kinda cash?

I believe the Sub Prime Mortgage market in the U.S. caused all this sh!te, that bit I get, it was the mother of all domino effects.

What I dont understand is where has all the fecking money gone?!

(And has anyone seen my keys?)

SV

I don't understand how a country can be in debt to it's self.

PirateShampoo

If we hadn't of been a member of the European Union we would of been royally ****ed.

Professey Chin

Its gone nowhere since the majority of it never actually existed....i think

whiskeyman

It didn't 'go' anywhere.
It simply wasn't there in the first place.

Ruu_Old

They'll take more from your back pocket, IvaBigWun. Apparently people have bottomless pockets in Ireland.

Dubh Geannain

This is probably for the Economics forum but Money is certainly not like water, it is constantly being created (by lenders and counerfeiters )

indough

money is a concept paper notes and coins dont really mean anything

funk-you

I stole it all and you're not getting any of it. In your face!

-Funk

Princess Consuela Bananahammock

Down the side of the couch. Same as usual.

waffleman

IvaBigWun wrote: »

I believe the Sub Prime Mortgage market in the U.S. caused all this sh!te, that bit I get, it was the mother of all domino effects.

(And has anyone seen my keys?)

From what I can see sub prime mortgages are already available in Ireland - http://www.homechoiceloan.ie/

Wagon

IvaBigWun wrote: »

What I dont understand is where has all the fecking money gone?!
(And has anyone seen my keys?)[/SIZE]

I don't know where it's gone and nor do i care anymore cos im sick of listening to news about what we haven't got.

And your keys are in the kitchen.

brosps

How the banks make money is say you put 100 euro into your saving account.

On average people only take out a max of 10% of their savings *this is conditional to location and whatnot* so the bank will then lend out the other 90% to people looking for loans and charge a surplus amount which is taken as profit. The borrowers pay it back and they keep going again and again.

The problem was that it was such a lucrative industry that they really didn't care who they lent out to because the majority of times they were going to be making a profit.

This made it seem like there's a lot more money in the economy than there is as all borrowed money is essiently just a number with no intrinsic value.

Long story short the savers lost confidence in the economy, they havn't exactly made a run on the banks but as you can see everything is a bit fcked up. Coupled with the fact that in the banking industry having cash lying around is just about as looked down upon as donkey riding, all the savers money was "invested" in other business and ventures which took a savage beating the last few months.

I probably missed a few points and whatnot but w/e, we were essiently running on a perpetual credit/motion economy so a lot of the money was infact never there in the first place.

Turd Ferguson

Brian Cowen used all the money on bitches and ho's and bling for his rap videos. The plan is to release the music vids on DVD and use the profits of those sales to bail us all out, hopefully with enough left to build some sort of giant robot monster

ScumLord

I think this whole world economy is too flimsy for us to be working off. It gives little to no value to peoples work the only people that profit are the buyers and sellers that operate the market.

I think it's absolutely daft that an imaginary system can undo real world physical work.

I have no doubt people will look back on it and wonder what they hell we where thinking.

ejmaztec

The Large Hadron Collider ate it all and spat it out into another dimension, so that it could destroy a few more worlds.

regi

Banks are allowed to magically create and destroy money. Its all a con

Beans, shotguns and gold!

IvaBigWun

regi wrote: »

Beans, shotguns and gold!

Dubh Geannain

Customer: I'd like to buy a house please.
Bank: Sure, how much are you looking for?
Customer: 200,000 dollars should do it.
Bank: Do you have a deposit? A sustainable job? Collateral?
Customer: No, no and no.
Bank: What the heic. Here have 220,000 (which we dont actually have) so you can do the place up real nice.
Customer: Sweet.

Bank [to securities market]: "Get your asset backed securities. Annual growth of 10% guaranteed! '"
Money floods in from investors, including other banks, governments, pension and investment funds etc

Customer: Em, I can't pay you back.
Bank: Why not?
Customer: I've no money or job. But I'm good for it.
Bank: Well we couldn't have seen this coming. Keys please...

Bank: Anyone want to buy a house? Asking price, 200,000? No?
Bank: 190,000? No?
Bank: 170,000? No?
Bank: 150,000? No?
Bank: 100,000? No?
Bank: 12,000?
Customer: *Yoink

Now multiply that scenario by a few million. Bank loan books go to sh** along with all the funds that had invested in these assest backed securities.

SV

So..how do you fix something like this?

Dubh Geannain

ClioV6 wrote: »

So..how do you fix something like this?

That use to be the million dollar question. Now it's only worth 500k

prendy

ClioV6 wrote: »

So..how do you fix something like this?

by giving the banks more money to squander of course:rolleyes:

jill_valentine

We all thought the other guy was going to pick up the bill... but it turned out he thought we were paying, so now we're all going to have to do the dishes in the kitchen for a while.

Or something.

ejmaztec

ClioV6 wrote: »

So..how do you fix something like this?

More smoke and larger mirrors.

SV

larger mirrors?


they're expensive.
Going to need a loan for that.

Turd Ferguson

ClioV6 wrote: »

So..how do you fix something like this?

Alcohol! I'm gonna stay drunk until this "recession" is over.
Anyone care to join me?

Cuddlesworth

Drinking sounds like fun.

Nolanger

Our banks lent the money to builders (most who have low IQs) and then the value of their new properties dropped hence the loss.

SV

Nolanger wrote: »

Our banks lent the money to builders (most who have low IQs) and then the value of their new properties dropped hence the loss.

wtf?

MayoForSam

Dubh Geannain wrote: »

Customer: I'd like to buy a house please.
Bank: Sure, how much are you looking for?
Customer: 200,000 dollars should do it.
Bank: Do you have a deposit? A sustainable job? Collateral?
Customer: No, no and no.
Bank: What the heic. Here have 220,000 (which we dont actually have) so you can do the place up real nice.
Customer: Sweet.

Bank [to securities market]: "Get your asset backed securities. Annual growth of 10% guaranteed! '"
Money floods in from investors, including other banks, governments, pension and investment funds etc

Customer: Em, I can't pay you back.
Bank: Why not?
Customer: I've no money or job. But I'm good for it.
Bank: Well we couldn't have seen this coming. Keys please...

Bank: Anyone want to buy a house? Asking price, 200,000? No?
Bank: 190,000? No?
Bank: 170,000? No?
Bank: 150,000? No?
Bank: 100,000? No?
Bank: 12,000?
Customer: *Yoink

Now multiply that scenario by a few million. Bank loan books go to sh** along with all the funds that had invested in these assest backed securities.

You left out the bit where the 220K went to in the first place - oh yeah, I forgot, certain property developers and builders spent it on 4 holidays per year, the apartment in Manhattan, private island in Dubai, pints of champagne, private school for little Johnnie, a few nice Beamers for the wife and au-pair and any spare change was used to buy a couple of acres in Ballsbridge so the Tower of Babel would get built (not!). Not much left over so.

abi2007

I think i'm lost.. where the F has After Hours gone?

ejmaztec

ClioV6 wrote: »

larger mirrors?


they're expensive.
Going to need a loan for that.

Sneak em out through the smoke for free.

IvaBigWun

abi2007 wrote: »

I think i'm lost.. where the F has After Hours gone?

Its now called Recession Lite OMG!1!

wylo

Op, think of it like as if you and a bunch of friends gave a load of IOUs to people on the hope that you'll make money from growing apples based on the fact that you have been selling apples for the last few years,

All of the sudden no body wants the apples but you still owe people money, now you are broke , the people you gave the IOUs to are broke also, and the people that those people promised money to are broke too!!!

Now theres other problems too, like the guy that used deliver the apples has no job, the guy that would clean the apples has no job, and the guy that used supply seeds to you for apples also has no job.

Were all screwed!!!!

So to answer your question? The money is in all those unsold houses.

Turd Ferguson

Cuddlesworth wrote: »

Drinking sounds like fun.

It has to be naked drinking though...thems be my rules

abi2007

wylo wrote: »

Op, think of it like as if you and a bunch of friends gave a load of IOUs to people on the hope that you'll make money from growing apples based on the fact that you have been selling apples for the last few years,

All of the sudden no body wants the apples but you still owe people money, now you are broke , the people you gave the IOUs to are broke also, and the people that those people promised money to are broke too!!!

Now theres other problems too, like the guy that used deliver the apples has no job, the guy that would clean the apples has no job, and the guy that used supply seeds to you for apples also has no job.

Were all screwed!!!!

So to answer your question? The money is in all those unsold houses.

Thank god I don't work with apples!

Latchy

Listening to a Financial Analyst on bbc news the other day saying that anybody with £100,000 in savings can only expect to make about £250 in intrest .

Suppose that's the foreign holiday cancelled this year so

phasers

I don't know what a tracker mortgage is

Dubh Geannain

The value of your investment may go down as well as up

Latchy

phasers wrote: »

I don't know what a tracker mortgage is

Somebody posted those exact words in another thread recently .

I dont know what a tacker mortgage is either .

IvaBigWun

latchyco wrote: »

Listening to a Financial Analyst on bbc news the other day saying that anybody with £100,000 in savings can only expect to make about £250 in intrest .

I would have thought you would be entitled for upto 7 grand on that depending on the bank you're with.

Senna

In a lot of the case the money never existed.
*very simple example*
Say you invested €1000 in anglo when the share price was €1, when the shares were worth €16 each you have €16000 on your portfolio, so the share price plummeted and you managed to sell those shares at €1 again, you'll be telling everyone you lost €15000 in anglo shares but in reality you never had the money in the first place.

In the case of business, many run their day to day cash flow on an overdraft, paying off the overdraft when the money comes in. Suddenly business gets a bit quieter (but still making money) and the overdraft falls a bit short. Before the banks would have extended credit but not any more, cheques start bouncing and before you know it the company goes into liquidation and so more people on the dole.

free-man

IvaBigWun wrote: »

There is always the same amount of water on the earth, if it isn't in one place it's in another yeah? So what the fook has happened with all the money? Is there always the same total amount in the world so that when one place is short another is gaining? If not, where has all the money gone?

The UK government are planning a 100 BILLION pound bailout of their country. Ireland is facing an Iceland like situation if we dont take similar actions. Apart from taxes how the hell can they get that kinda cash?

I believe the Sub Prime Mortgage market in the U.S. caused all this sh!te, that bit I get, it was the mother of all domino effects.

What I dont understand is where has all the fecking money gone?!

(And has anyone seen my keys?)

Two videos will explain all - one funny and one not so funny.. take your pick!

Funny vid: http://www.youtube.com/watch?v=SwRFoxgEcHc

Not so funny vid: www.tinyurl.com/whatismoney

Overflow

ClioV6 wrote: »

I don't understand how a country can be in debt to it's self.

http://en.wikipedia.org/wiki/Public_debt

I wondered the same thing, kinda makes sense know though.

RaverRo808

Apparently the mass amount of wealth we had wasnt due to us having real paper money,but massive amounts of credit,and now the banks and fiancial institutions are going belly-up,the credit we have amassed has to be paid,but that stems back to the original problem,we have no real paper money

there's billions locked up in unsold property in america and ireland..

Pal

With thanks to Dubh Geannain and sorry for plagiarising his theoryCustomer: I'd like to buy a house please.
Bank: Sure, how much are you looking for?
Customer: 200,000 dollars should do it.
Bank: Do you have a deposit? A sustainable job? Collateral?
Customer: No, no and no.
Bank:
What the heic. Here have 220,000 (which we dont actually have) so you can do the place up real nice.
Customer: Sweet.

Bank [to securities market]: "Get your asset backed securities. Annual growth of 10% guaranteed! '"
Money floods in from investors, including other banks, governments, pension and investment funds etc

Customer: Em, I can't pay you back.
Bank: Why not?
Customer: I've no money or job. But I'm good for it.
Bank: Well that's ok. We will lend you the money to pay us back.

Bank [to securities market]: "Get your asset backed securities. Annual growth of 15% guaranteed! '"
Money floods in from investors, including other banks, governments, pension and investment funds etc
Customer: *Yoink

Now multiply that scenario by a few million. Bank loan books go to sh** along with all the funds that had invested in these assest backed securities.

Pal

Deleted User wrote: »

there's billions locked up in unsold property in america and ireland..

I think you mean trillions

ScumLord

Pal wrote: »

I think you mean trillions

Only problem is nobody needs a a few trillion worth of sub standard houses so their worth zip.

Pal

Pal wrote: »

I think you mean trillions

na i mean billions of billions

Fey!

Don't forget all of the money that's been left in Dubai and New York over the last few years, because buying at home wasn't keeping up with the Jones'. And then the drop in taxes (see below) when all of this shopping is smuggled in.

And Eddie Hobbs with his "rip off Ireland" soundbyte (the most over abused soundbyte in the world), not explaining that because we have higher wages here (our basic minimum wage is, IIRC, twice that of the likes of the US and Spain), and that retailers here have to pay 21.5% VAT and 40+% tax on their profits (before they take a wage), that of course we're a bit more expensive than other countries. And then there are the extortionate rents for shops, houses, etc.

Then there are the golden handshakes, bonuses, and benchmarking (as wages drop, will benchmarking go negative and REDUCE civil servants pay???). A few months ago, the officials of Galway Corporation patted themselves on the back, because they were so in touch with the climate around them that they weren't taking bonuses. Now, in the private sector, you must hit a target to get a bonus. However, in the public sector a €4 million job can become a €15 million euro job and overrun by over a year, causing huge disruption, and those responsible still get their bonuses. In the private sector, they'd be out on their backsides!

Then you have the Golden Handshakes to those in the banking sector whose jobs were to essentially oversee our economy, but in their greed they lost sight of what they were supposed to do. Now that the sky is falling, their all grabbing the cash and scurrying away like the rats off the sinking ship, instead of being made to stay, pay back what they didn't deserve, and be made to fix it.

How the hell could we sustain it all?

Hopefully when things recover (which they will, albeit - hopefully - not to the stupid level it was at), we'll have learnt from our mistakes.

On a positive note; it the media and our elected representatives were banned from saying "downturn", recession", or "crisis" for 2 weeks, the mood in the country would shift dramatically. Unfortunately, positive news doesn't sell papers or give good soundbytes, so that will never happen!!!

Sorry about the rant.