Monday, September 29, 2008

A Faltering Economy

What has years of banks lending money to people who can't afford it, and people buying houses way out of their leagues brought us to? A faltering economy. I knew something was wrong when housing prices started to rise uncontrollably beyond what most people can afford, and still see people buying them up. Surely this isn't the only factor in what's going on, but it's a big part.

Now the US government is trying to prop up the economy by simply taking on the bad debt so many financial companies have accrued, and somehow failing to persuade lawmakers that the option is one worth voting for. The $700 Billion dollar plan was rejected today, at great expense to the stock markets, which plunged on the news.

I noted two things on my drive home today. First was how casually the 800+ point drop on the TSX was reported in the financial numbers. Actually made me laugh. Second was that the newspaper tomorrow morning will actually have something worthwhile on the front cover as compared to today's filler story. I look forward to seeing how much black ink is wasted with extremely dark newspaper covers and big bold headlines of dispair.

Are things going where you expected them to? How much will this affect you? Leave a comment and tell us what you think of the current financial crisis.

Check out these links for more information:

CNN Money: Bailout plan rejected
Fox News: House Defeats Wall Street Bailout Bill
CBC: TSX falls by 870 points; oil drops to $95 US

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2 Smart Remarks:

Anonymous Trooper said...

For those people wanting to retire next month on their mutual fund investments, they might be rethinking those plans right now. For someone like me who has another 25 years until an average retirement age, this is merely a dip in the long road ahead. In fact, consistent monthly investments will actually buy more during the downturns in the market, leading to increased growth over the long run.

Sure is interesting though, to see what's going on.

3:29 PM  
Anonymous leahb said...

A lot of this mess is created by the upcoming election...if there wasn't an election, this would not be at the forefront. Haha-the news I heard was exaggerating the stock #s...yes, it's the biggest point loss (or whatever), but not %.

Yes, for people wanting to retire in the near future, it's a blow, but as far as 'regular' people, the banks are fine and your deposits are guaranteed. As usual, the media is creating panic, making people withdraw their funds, which only exacerbates the situation. The effect on my life is that my credit is fine, so no reason to worry about getting loans and the bright side is the Euro is going down at the moment, so my $ is worth more there :)

10:19 AM  

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