Question by Little Bug: How do you find yourself on the stock market?
Someone told me that people can put stock on your life or something, and on your house. Is this true or is he just playing with me because I’m naive? How can I check into this???
Best answer:
Answer by Summer with Viktoriya
No, you cannot put stock on your life.
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Question by goddessinglasses: Would a tax on stock trading slow down the churning and encourage investment instead of gambling?
Should the slicing up of mortgages be banned? How could these transactions become more orderly and transparent, while making some $ $ .
Heard that on the radio. Actually, it sounds like too much investing willy nilly was going on. So, yes, maybe it needs to be slowed down.
Now, put aside your neocon stuff and give us some ideas. Stop reacting- start thinking. I asked the question to get ideas, not this recycled propaganda.
* I am also told that this is working in England.
Best answer:
Answer by curtisports2
Yeah, the answer to encourage investment is another tax. Sheesh.
Add your own answer in the comments!
After Prom Party Guide
How To Plan, Finance, Promote And Stage A Fun Substance-free After Prom Party.
After Prom Party Guide
Ambaiu / Ambai
Online Business Management Finance Investing Courses.
Ambaiu / Ambai
Question by julio_slsc: What loans should the banks have made to avoid the real estate crash?
It is not wise to provide a non-answer with little detail.
Best answer:
Answer by Wisdom
They should’ve given out loans to people that could actually afford to pay them back.
That’s actually all the answer there is.
Add your own answer in the comments!
Question by ideogenetic: Why did the Clinton and Bush deregulation regime lead to misallocation of capital ending in financial collapse?
Is it now obvious that markets do not know best how to allocate capital?
“And what I’m saying to you is, yes, I found a flaw. I don’t know how significant or permanent it is, but I’ve been very distressed by that fact.” – Alan Greenspan, finally realizing the flaws of capitalism that Marx understood in the 19th century.
Best answer:
Answer by Bo Bo
What they called deregulation wasn’t.
Give your answer to this question below!
A few nice Finance images I found:
Finance
Image by barto
Department of Finance and Administration.
Finance Minister Visiting Banbridge
Image by DUP Photos
Finance Minister pictured during his visit to Banbridge. (L-R) Adrain Farrell, President of Portadown Chamber of Commerce, Joe Quail, Vice-Chairman of Banbridge Traders, Minister, David Simpson, MP and Charlie Gardiner, Chairman of Lurgan Chamber of Trade
Finance Minister Sammy Wilson participated in a round table discussion in Banbridge, during which he highlighted the Executive’s ongoing support for town and city centres.
Picture taken by: Heather Thompson (DFP) – 26/09/2012
Finance
Image by yourdoku
This is a solvable sudoku made with the characters of Finance city in Belgium.
View financedoku or make your own design at yourdoku.com
Question by bb: What is happening at the stock exchange?
1 – what has actually caused the problem?
2 – why can’t it be solved?
3 – why is it so serious that I should worry as a little person in Sweden?
4 – Why are the investment banks so scared to continue as usual?
Best answer:
Answer by what?
1 – people who are too lazy to get off their ass and get a job that will let them pay their mortgage
2 – who says it can’t be solved?
3 – because the guy in sweeden probably has some money invested somewhere
4 – they aren’t. if not for mark to market, no investment bank would have gone under.
What do you think? Answer below!
Question by sweetnsassy: What does this mean in plain English?
“Owing to a form of financial engineering called securitization, many mortgage lenders had passed the rights to the mortgage payments and related credit/default risk to third-party investors via mortgage-backed securities (MBS) and collateralized debt obligations (CDO). Corporate, individual and institutional investors holding MBS or CDO faced significant losses, as the value of the underlying mortgage assets declined. Stock markets in many countries declined significantly.”
Best answer:
Answer by bud68
It means mortgage lenders made reckless loans to unqualified buyers, packaged the loans into complex bond-like securities and peddled them to investors as “investment-grade” securities. These securities have now tanked.
Add your own answer in the comments!
Question by Michelle S: Board of Management Titles for an LLC?
Could someone give me an list of titles for a LLC? My sister and I both own it equally, so I assume we are Co-Chairman. So what are the titles that come after that? I was told that the titles are different from Board of Directors titles.
Does anybody know where I can find info on this?
Best answer:
What do you think? Answer below!
Question by Adam G: Explain securitization and how it relates to the global financial crisis?
Best answer:
Answer by gorilla
When an organisation lends money it makes a legal charge on an asset ie the house for a mortgage. This is of value as the house could be sold and the bank receives interest payments relating to the debt. Over a period of time there could be thousands of such debts and the organisation may decide to sell a “parcel” of these to raise capital for other things or to improve the liquidity in its balance sheet. This is called securitization.
The global problems arose when some US companies lent money for houses to people without the ability to continue mortgage payments (it was called trailerpark lending) on the promise that the mortgage could be renewed at favourable interest rates (less than rent) and falsely inflated the values of the properties thus increasing the debt of the customer. They then securitized the lending but the value was much less than they claimed and when the property values fell, people defaulted as the debt was more than the value of their property and the banks who had purchased the parcels in good faith found that they were sat on useless paper( assets were much less than the expected value). This reduced the value of their balance sheets and also reduced their liquidity which led to distrust in the financial community as no-one knew which bank was sat on reduced value assets. The lending lines between banks were based on good faith but these were cancelled as no bank wanted to be pulled under due to the failure of another. This created a situation where credit disappeared from the system so the banks could not lend to their own customers.
It gets a bit more involved but I hope that answers your question.
Add your own answer in the comments!
Question by ee: Can someone explain in layman’s terms, what securitization of mortgages is/means?
From what I’ve read banks supposedly ‘pooled’ their mortgages and loans and sold them to others at a profit. I don’t understand why others would pay them at a rate where they make a profit. I don’t understand why ‘pooling’ mortgages results in a value that results in a profit being made when it is sold. Why not just keep them, why sell them in the first pladce?
Any help would be really appreciated, if not answers then even links to other websites.
Best answer:
Answer by Ju
Sorry i know little about mortgages ,nothing to help you,very sorry.
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Check out these Finance images:
Finance – Financial injection – Finance
Image by @Doug88888
Finance – Financial injection – Finance
Finance
Image by Tax Credits
Finance
Finance and Commerce – New Applications Leverage The Popularity Of Social Networks – 02/16/09
Image by DavidErickson
Read: New applications leverage the popularity of social networks – Finance and Commerce.
“A lot of the gold in social media is in the analytics in giving people insight into how people behave on these social networks and finding trends within that data,” said David Erickson, director of e-Strategy at public relations and marketing firm Tunheim Partners in Minneapolis.
Question by sid: What is securitization of sovereign debt in context of euro crisis ?
Please explain in lehmann s language 🙂
Best answer:
Answer by Calliso
Means they don’t have enough money and are trying to blind side normal people with slang, then they call it a educated, learn diferent terms so no one else knows what the —-your talking about so massive cover up operations can be initiated in tronsdental alighnment with the human race!!!! ok did you get that.
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Question by ortisthetortoise: When and how did the Clinton administration allow for the securitization of subprime mortgages?
Please cite sources (specific legislation, executive order, etc. – not just “CRA changes in 1995”)
I can’t seem to find these “CRA changes of 1995” in any law or order. Trying to figure out if they are fact or folklore
….changes specific to subprime securitization that is…
Best answer:
Answer by rhsaunders
It didn’t; securitization has been legal from the beginning. Which did not mean that it was smart, or that there were mechanisms in place to appropriately value such securities.
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Question by Mister Chartreuse: Can someone recommend a good book that thoroughly describes financial terms/concepts (for investing)?
An introductory book, which describes terms/concepts like securitization, derivatives, bond-markets etc.
I want to understand these things to the end of knowing how to interpret/read company balance sheets, market speculation/volatility, currency markets etc, so that I can have some general financial/investment wherewithal.
Any suggestions would be greatly appreciated.
Best answer:
Answer by cactusgene
‘Investing for Dummies’ is a good book for a novice and it is available on Amazon. The advanced concepts you mention above are quite complex, but try the links below:
http://www.amazon.com/Investing-For-Dummies-Eric-Tyson/dp/047090545X
http://en.wikipedia.org/wiki/Mortgage-backed_security
http://www.bis.org/publ/bppdf/bispap63e.pdf
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Question by Alex G: Can someone please explain what synthethic CDO’s are?
It’s for my project on the Great Recession. I understand the tranches & securitization process behind regular CDO’s so you don’t have to start at the beginning. Thanks so much
Best answer:
Answer by Mike
Synthetic CDOs are just side bets on mortgages. Typically they have a similar structure as regular CDO except the “senior” tranche is called the “super senior” tranche”. Typically a synthetic CDO is comprised of mortgages from other CDOs. Sometimes the synthetic CDOs are packaged with only the lower tranches of another CDO which then may be known as “CDO squared”.
Typically a synthetic CDO is protected by “credit default swaps” but seldom is the “super senior” tranche protected. It was assumed that since the “super senior” tranche was rated AAA, that tranche would not default but with all the manipulation, it was guaranteed to default.
Most of the problems during the credit crisis were caused by the synthetic CDOs and not the regular CDOs. The “super senior” tranches were the ones that were selling for 20 cents on the dollar (if they could find buyers).
http://www.tavakolistructuredfinance.com/ifr2.html
http://clickbroker.blogspot.com/2008/04/super-seniors-take-control-of-cdos.html
http://www.math.utexas.edu/users/zariphop/pdfs/ProtterTheFinancialMeltdown.pdf
http://www.portfolio.com/views/blogs/market-movers/2008/12/01/whats-a-super-senior-tranche?tid=true
http://www.nakedcapitalism.com/2008/04/merrills-reckless-mortgage-bond-binge.html
http://www.roubini.com/financemarkets-monitor/253166/is_merrill___s_cdo_transaction_with_lone_star_consistent_with_markit_abx_pricing_
What do you think? Answer below!
Question by lithium630: Incorporate to buy a multifamily property?
Is it true you should put each multifamily (4 family or less) under a different corporation?
Best answer:
Answer by teenriodoll
YES!!!! YES!!! YES!!! YES!!! YES!!!
Unless this is a quick flip for profit and even then I would put the property in the name of an LLC=Limited liability Corporation or a limited parntership. The reason is simple. Taxes and liability. Once you are in the chain of title you CAN be sued, even after you sell the property. But if the owner was a throwaway LLC then you are less likely to be sued.
Example, I was looking to purchase a property years ago. Did a title search and found the second deed of trust on the house had this long disclaimer about EPA and environmental. I did some research and found that if the property had a EPA cleanup problem, nothing prevents the U.S. Government from collecting from a former owner ever!!! Even filing bankruptcy does not wipe out an EPA claim.
Also, i bought a house with a partner who did not want to spend the money to form a LLC. I insisted or no deal. We put in LLC and two things happened. One the property had the plastic PVC piping problem that our buyer wanted us to replace all the pipes in a single family home that we were selling for $ 200,000. The cost $ 40,000. We said no. The eventual purchaser asked for and we agreed to a radon test. Well the property HAD RADON!!! Luckily we found an expert paid $ 800.00 and remidated the problem. I kept the LLC did 3 more deals in it and closed the company. I am not personally liable on this property and since the LLC has no assets there is not a likelihood of suit ever in the future. If we were in the chain of title individually, we would could be liable in the future from a future buyer. DONT BUY WITHOUT protecting yourself. You will sooner or later get sued. It is better to have in LLC or LLP then your own name. Enough said on liabilty issues.
Next, let’s talk about tax advantages. In many states you can have a one person LLC. Or be creative. another business or a family member or friend can be members in the Limited Liability Corporation. You can write off more and also maintain control by doing it this way. You do not have to report on Schedule-E instead you get a K-1 and the IRS has said that they audit K-1 less than filers with entries on Schedule-E.
So do it right. THis multi family could be lucrative for you. Set it up right.
Thanks and good luck with your investing.
Know better? Leave your own answer in the comments!
Question by Son of a B1tch: Some questions regarding basic terminology in finance?
1) Credit
2) Credit expansion
3) “Pooling” as in pooling debt.
4) Securitization
What do these mean?
Best answer:
Answer by Sean Roberts
1) Credit is providing someone with goods or services with the understanding that they will pay you in a preagreed time in the future.
2) Credit expansion is an economic term. It means the part of any increase in the money supply which is not due to a balance-of-payments surplus. The money supply can increase through a balance-of-payments surplus, on either current or capital account.
3) Debt pooling is an arrangement by which a debtor would deposit funds for the purpose of distributing such funds among his creditors. It is used in bankrupcy.
4) Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations and selling said debt as bonds, pass-through securities, or Collateralized mortgage obligation (CMOs), to various investors. This is one of the things that led to the horrible recession we’ve gone through.
Give your answer to this question below!
Question by Choupasta: Is bachelor degree in supply chain management at ashford university worth it?
Just need some suggestions and reviews..tried to look for reviews online for this, but have not find any..and also needs to know how many classes do you need to take with ashford online to be full time student with one(3 credits) on ground class.
Best answer:
Answer by Betsy
Ashford is a for-profit school and such schools should be avoided. Although it is regionally accredited, the accreditation may have come with the school when the school was purchased from the Sisters of St. Francis. The regional accrediting agencies are changing their policies allowing companies to get accreditation when they purchase campuses from other schools, skipping the accreditation process.
Below is a link to the Wikipedia article on Ashford. Be sure to read the section title “U.S. Department of Education Audit.”
http://en.wikipedia.org/wiki/Ashford_University
You might also want to google “Ashford University scam,” and read some of the material you find.
Almost every state has at least one public college offering a bachelor’s degree in this area. I’d suggest that you find one in your state. You can get a better education there. You will also end up paying less. Your tuition and living expenses combined will probably be less than tuition alone at Ashford. If you really must take online courses, then talk with the public college about courses they might be offering online.
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Question by Kuntree: Was the securitization of subprime loans the greatest scam in history?
If not what was the greatest scam?
Best answer:
Answer by wg0z
maybe. the private loans thing was many people, and the final figures
are not yet tallied.
Bernie Madoff gets my vote for now.
Add your own answer in the comments!
