the Influence of american economy on the international economy.?

Question by classic47: the Effect of american economy on the global economy.?
i want americas’ situation in these international economic issues also suggestions for options please

Greatest answer:

Answer by I , a content Bolshevik
The Paulson Program attacks as the primary problem illiquidity although the accurate core problem is insolvency. Securitization dispersed globally the risks and created bankruptcy dangers opaque, destroying thus any creditworthiness and freezing the credit lines. Lending by banks was over-extended, occasionally 60 instances far more than their assets, generating them now candidates to file for bankruptcy. The Paulson Strategy gives some short-term relief to the Wall Street magnates whilst the taxpayer ‘Main Street’ has to spend the bill. It transfers one more part of the large private debt to the public debt of an currently over-indebted America.

While, with the growth of US deficits, the require for foreign investors for financing it grows, US creditworthiness is rapidly deteriorating. The ratio of total US debt to GDP from 163 % in 1980 became 240% in 1990 and jumped to 346% in 2007.It is enormously aggravated with the dramatic developments of 2007-2008, like the addition to the public debt of $ 6 trillion liabilities of Fannie and Freddie and the $ 700 billion of the Paulson Plan. America has been transformed into a super-Argentina in a non-declared default. The issue of US more than-indebtedness is transferred to the next Administration.

The interest rates cut by the Fed, twice in October 2008, to the lowest level reached after 9/11(and comparable moves that followed by the ECB, the Bank of England, the Bank of Japan and other central banks in Asia) could have a extremely ephemeral impact in the volatile stock markets but are entirely unable to reverse the contraction of world economy. As numerous analysts pointed out, these cuts are just a sign of desperation

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Q&A: Is there any doubt the democrats trashed the US/world economy?

Question by Chase Them With The Truth: Is there any doubt the democrats trashed the US/planet economy?
Watch the following and present your answer…

Ideal answer:

Answer by Bubuh
Let me try Googling “how Republicans trashed the economy” very first.

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existing trends in the economy?

Question by Chandler C: current trends in the economy?
what are some present trends that i could do for my english class? they are not fashion trends, but more economic trends.

Ideal answer:

Answer by SJ30
It might aid you if you can read the book by Alvin Tofler (or was it Toffler) its called “The Third Wave” the author discussed considerable views about socio-economic trends and profiles.

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“PAY FOR PERFORMANCE ACT OF 2009″…is this the beginning of a nationalized economy?

Question by The Federalist: “PAY FOR PERFORMANCE ACT OF 2009″…is this the beginning of a nationalized economy?
Barney Frank has introduced a bill in congress that would give the Government authority to set the salary of EVERY SINGLE employee of companies who have utilized government capital aka bail out funds…

Since Frank’s policies are a large part of why we are in this mess doesn’t seem like this was all planned? Force low standards on lending….greenlight the securitization and selling off of government chartered debt….watch it infect the banking system….give hand outs to sick banks….impose complete control over those banks now that they owe billions of dollars.

Barney Frank is as much to blame for this economic mess as anyone on Wall Street or in Washington DC and he wants to use the crisis that he helped create to take total control of the companies that his policies put at risk…It’s like a sick little toad who wants to show all the giants of industry at the private organizations that keep this country moving in a positive direction that the dimwits in Washington are going to take over their jobs by force.

Barney Frank should be tarred and feathered on the steps of Capital Hill and sent to jail for crimes against society and abuse of power. He is the most detestable type of politician I can imagine exists…the type who causes problems with his ignorance and then uses the damage to his own benefit…all while blaming others.
The idea that the failing of these companies will set off a massive depression is a falacy….they told us the exact same thing when GM and Dodge came hat in hand two months ago…they gave them 30 billion because they couldn’t afford to fail….now GM is talking about going into Chapter 11 bankruptcy….so the 30 Billion dollars was wasted and the end result is still the same…And you who said people don’t get to demand better pay….your right…no one will be paid better for better work…so no one will work hard…and the country will slowly diminish under th guise of “fairness”…”THE ROAD TO HELL IS PAVED WITH GOOD INTENTIONS” this policy of taxing the producers to provide to the challenged will not stop until the last bone of the last taxpayer is picked clean and their is nothing left to take…the envious ones who have not suceeded will continue to elect those who will take from the producers in this country until their is nothing left…socialism is a failed principle.

Best answer:

Answer by demonhunter5110
i agree. that goes for all of Obamas cabinet. whats he thinking electing the former federal reserve. what a joke. thats how our government or better yet a combination of the bankers and government always work. they did a similar thing to create the first depression and they are doing it again. heres what ya do. April 15 come join American on the new tea day protest. ill give you a link all you do is pick your state and find one in your area. we need protesters from evry state. lets start the revolution!!

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Why is the US economy so bad?

Question by NONAME: Why is the US economy so bad?
I heard that it was because of the Jews.

Best answer:

Answer by simplicitus
Boy, those Jews must be pretty stupid. If I had that kind of power, I’d pull a Dr. Evil and demand a ransom NOT to destroy the U.S. economy. Surely the U.S. would rather pay several hundred billion dollars to avoid a recession rather than spend more than a trillion dollars to fix it once it was broken.

Actually, you have a choice of blaming Congress and the politicians or the financial services industry that bribed them. The root cause was the lack of regulation of several aspects of the financial industry, including derivatives trading and the securitization of mortgages.

Was President Bush Jewish? How about your two senators and your congress-critter (How did they vote when financial regulation came up in Congress – the Gramm-Leach-Bliley Act for one – or don’t you know?)

If you want to listen rather than read, I can suggest:
If you prefer reading:

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how debentures influence money supply in an economy?

Question by alexis: how debentures influence money supply in an economy?

can you tell me how it influences money supply. i have no clue how .

Best answer:

Answer by sajan achuthan pillai
A debenture is defined as a certificate of acceptance of loans which is given under the company’s stamp and carries an undertaking that the debenture holder will get a fixed return (fixed on the basis of interest rates) and the principal amount whenever the debenture matures.

In finance, a debenture is a long-term debt instrument used by governments and large companies to obtain funds. It is defined as “a debt secured only by the debtor’s earning power, not by a lien on any specific asset.” It is similar to a bond except the securitization conditions are different. A debenture is usually unsecured in the sense that there are no liens or pledges on specific assets. It is, however, secured by all properties not otherwise pledged. In the case of bankruptcy debenture holders are considered general creditors.

The advantage of debentures to the issuer is they leave specific assets burden free, and thereby leave them open for subsequent financing.Debentures are generally freely transferrable by the debenture holder. Debenture holders have no voting rights and the interest given to them is a charge against profit.

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Deal with the fiscal cliff and during 2013 the economy would be prudent to invest in a home?

issue by Sean : Deal With the fiscal cliff and during 2013 the economy would be prudent to invest in a house
With interest rates so low, people buy houses in the Central Valley, California, as a fou.L asset inventory current sucks and the houses are very expensive compared to the year dernière.J ‘have cash 188k and I can buy a property here in the valley, but I do not want to buy a property at this time and in 2013 they again fall down. How long are the interest rates remain low? Is the tax case related to real estate? It would be prudent to buy a home in time to invest? Excuse my punctuation. I write in haste. Thank you Best answer:

response Ursugardaddy
This will be long, but since you’re about to spend 188K, you can take a few seconds to read this. When you buy this house, somewhere in the year that you own the property will decrease the value to return. No body can predict the future, so if you can afford to buy and lock onto 3 percent something to do, but some drawbacks. Cash Advantage # 1: no worries. The process of qualifying for a mortgage is a chore, even if you show that you have important assets and incomes. You must have created a credit for a lender to be able to assess its risk to you, but with money, you are at no risk. You save time with paperwork and, in theory, the procurement process will be faster. For a seller, a buyer this species may have an advantage over those that are related to the participation of a mortgage lender. Cash Advantage # 2: low. You may be able to negotiate a better purchase price when you have cash to show, but there are many other areas you can save money. Closing costs may be less, and without a mortgage, you do not have to worry about paying points. Over time, most of the savings from the interest. On a mortgage of $ 250,000 at 7% over 30 years, you could pay almost $ 350,000 in interest. Pay $ 250,000 in advance and save your money. cash advantage 3: no payment at retirement. With mortgages thirty years is the norm, families waiting before buying a home may find they still have a balance to pay their lender when they retire. During retirement income could be significantly reduced, which makes it more difficult to pay mortgage payments. Those who have a mortgage should do what they can to eliminate the payments before retirement, but if you pay cash, you’ll never have to worry about changes in your future income affect your ability to keep your home. cash advantage # 4: You’re not a slave. I do not fully agree with the idea that debt is slavery, but when you owe money to someone else, you definitely lose some of your freedom. For example, a Philadelphia landlord has been notified by its lender, Wells Fargo, which may not even own the mortgage due to the securitization to increase its insurance covering the full replacement value of the home rather than market value of the house. The charges would have added $ 500 to their monthly bill. Although the owner might be able to correct the situation, without a mortgage, Wells Fargo was not harassment. advantage of mortgage 1: greater financial reward. It comes with a risk, but if you intend to stay in the home for several decades, and you have room, your financial gains could be greater if you finance the purchase. If after ten years, the value of the home increases $ 200,000, everything that belongs on the rise, even if you do not own the house outright. You could even increase this cash if you need money for any reason. The other dimension of this is that if the value of the home decreases, you are on the hook for the loss, and in many cases, you might find yourself under water, due to the lender more than your home is worth. Mortgage Advantage # 2: buy a bigger or better house. Even if you have the opportunity to buy a house with the money, you may still want to choose a mortgage. If you expect to have more money on the way, you can use your current assets to help pay for a bigger house, if it is something that is important to you. 188K with cash today, for example, you can either buy a house without a mortgage or use part or all of the money for closing costs and a down payment. As you would expect more income in the future to pay the mortgage, you can use the cash today to your advantage. advantage of the mortgage 3: obtaining tax relief. Yes, it is true that at least as of today, there is a tax deduction for mortgage interest. This is not such a big advantage that most people believe, however. You get only a portion of each dollar of interest you pay and the benefit is limited by income. Even with a salary of middle class, you might be prevented from taking this deduction. Of course, if you pay cash for a house, you pay no interest, which is much better than paying interest and get some of that back the government. advantage of the mortgage 4: asset diversification. Having money to spend is not the only consideration. If the home you want 178K cost you $ 188,000 in cash ready to go, you’ll be left with only $ 10,000 for all of your other savings needs, including an emergency fund. Using all your money to buy the biggest house your money can buy is to put all your eggs in one basket. If you have enough money to buy a house requires only a portion of your property, you can always consider your statement of financial security, but once you transfer all your cash savings in an illiquid asset such as a home, you may have trouble getting cash when you besoin.Prenez care

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How long until former presidents become responsible for the US economy again?

Question by Chewy Ivan 2: How long until former presidents become responsible for the US economy again?
Conservatives blamed the economic collapse of 2008 on President Clinton, seven and a half years after he left office. Yet only a year and a half out of office, they claim President Bush is no longer responsible for the economy. When will President Bush become at least partly responsible for the economy again?
For Jaker: The Republicans controlled Congress from January 1995 to January 2007, less than a year before the last recession began. Is it really a Democrat-controlled Congress that caused all the problems?

Best answer:

Answer by jaker
They cite things Clinton did as encouraging the housing bubble but he is by no means totally responsible for what the Congress did after he left office. Bush happened to be in office when that bubble burst and he is really no more responsible than Clinton. The real blame rests with the dem controlled Congress.

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What did Barney Frank have to do with wrecking our economy?

Question by Change Now: What did Barney Frank have to do with wrecking our economy?
I am reading The Big Short by Michael Lewis.

It’s about how the Wall Street geniuses were allowed by the GOP Congress under Clinton to wreck our economy thru the securitization of mortgage loans into AAA rated bonds.

The SEC under Bush was absent or was told to be absent by the Republicans (remember Bernie Madoff)

No where is Barney Frank mentioned. What role if any did he play?

Best answer:

Answer by Chris Christie
Fannie Mae

That book is liberal lying bullshit!

Carter’s Community Reinvestment Act started the ball rolling on the eventual collapse.
Threats of racism accusations by the Congressional Black Caucus kept anyone from repealing it.

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