VK...need help

[Guest]

We dont agree most times on politics but when it comes to gathering facts on economical issues you seem to be able to present it in a way I understand, and many of your links are informative Like I say, we dont always agree but I respect your knowledge here...

What the heck is happening today on the market. I am hearing European banks, which manifests our GLOBAL economy to me, wonder your opinion on all the vacations...both congress and the WH ! Everyone deserves a vacation, and none of them can directly alter the market, but seems to me, albeit a dumb guy, that having all of them AT WORK.....making headlines by discussing the financial issues that face us might be good. Do you think they should be called back ? President said he thinks not but his reasons ring very hollow to me because we KNOW they are not talking to anyone who does not agree with them.

[Guest]

Leave them on vacation. The more they are gone the less problems they can create.

[Guest]

Obama's press secretary defended Obama's vacation by saying that presidents don't really take vaction. So that begs the question then as to why Obama is spending taxpayers money while working in Martha's Vineyard when he has an office we are paying for in Washington

[Guest]

We dont agree most times on politics but when it comes to gathering facts on economical issues you seem to be able to present it in a way I understand, and many of your links are informative Like I say, we dont always agree but I respect your knowledge here...

What the heck is happening today on the market. I am hearing European banks, which manifests our GLOBAL economy to me, wonder your opinion on all the vacations...both congress and the WH ! Everyone deserves a vacation, and none of them can directly alter the market, but seems to me, albeit a dumb guy, that having all of them AT WORK.....making headlines by discussing the financial issues that face us might be good. Do you think they should be called back ? President said he thinks not but his reasons ring very hollow to me because we KNOW they are not talking to anyone who does not agree with them.Bucco, I wish I had the absolute and complete answer. I may not, but I'll give it a try.

To an extent, it's the reverse of what we experienced here in the US two and one-half years ago. The exception is that it's the European Union member central banks trying to fix the problem and unlike the US, with the dollar as the reserve currency of the world, they can't simply print money to use in resolving their problems.

In this case, there are only two financially strong countries in the EU--Germany and France. France can be of little help because the Franc is growing in value, making France's ability to repay their own debts more expensive. So much so that France's willingness to bail out Greece, Italy, Portugal and Spain is very limited. Germany is similarly constrained but for a different reason. The German public is becoming highly critical and resistant to the idea of their political leaders bailing out the weaker EU countries.

Now on top of all that, today Germany's equivalent of our Federal Reserve announced their projections that Germany's economic growth will be essentially flat for the next couple of years. So we have the only strong country in the EU getting financially weaker.

Like the US, the people and the politicians in Greece, Spain and Portugal have refused to bite the bullet and substantially reduce government spending and entitlements. Italy's government has said they will be putting together a "plan" in the next few months, but they too will require a substantial bailout from Germany and France.

Because the banks throughout the world are the largest holders of the sovereign debt of these countries, along with the US banks they're pulling in their horns and are withdrawing credit from both commercial borrowers as well as other banks. The result of course is that the owners of stocks are selling in an attempt to avoid taking much greater future losses, seeing an almost unavoidable slowdown in the world economy and huge write-offs by banks around the world.

This is as serious a financial problem as I've ever seen. As you know, Bucco, I've said that if our politicians didn't begin to take serious actions to put our financial house in order, that life would change for future generations of Americans. What's different now it that it appears almost certain that life is going to change for our generation as well.

From what we're seeing today, the US couldn't slow down this worldwide financial train wreck if it wanted to. And there's no chance we could anyway because we're in worse financial shape that even the weaker EU countries.

So that's my view of things. What I'll find interesting on how many people here will assign the blame for this worldwide crisis on President Obama. All I'll say is that he didn't cause this problem, and certainly can't "fix" it, even with a cooperative and committed Congress--which doesn't exist of course!

[Guest]

Bucco, I wish I had the absolute and complete answer. I may not, but I'll give it a try.

To an extent, it's the reverse of what we experienced here in the US two and one-half years ago. The exception is that it's the European Union member central banks trying to fix the problem and unlike the US, with the dollar as the reserve currency of the world, they can't simply print money to use in resolving their problems.

In this case, there are only two financially strong countries in the EU--Germany and France. France can be of little help because the Franc is growing in value, making France's ability to repay their own debts more expensive. So much so that France's willingness to bail out Greece, Italy, Portugal and Spain is very limited. Germany is similarly constrained but for a different reason. The German public is becoming highly critical and resistant to the idea of their political leaders bailing out the weaker EU countries.

Now on top of all that, today Germany's equivalent of our Federal Reserve announced their projections that Germany's economic growth will be essentially flat for the next couple of years. So we have the only strong country in the EU getting financially weaker.

Like the US, the people and the politicians in Greece, Spain and Portugal have refused to bite the bullet and substantially reduce government spending and entitlements. Italy's government has said they will be putting together a "plan" in the next few months, but they too will require a substantial bailout from Germany and France.

Because the banks throughout the world are the largest holders of the sovereign debt of these countries, along with the US banks they're pulling in their horns and are withdrawing credit from both commercial borrowers as well as other banks. The result of course is that the owners of stocks are selling in an attempt to avoid taking much greater future losses, seeing an almost unavoidable slowdown in the world economy and huge write-offs by banks around the world.

This is as serious a financial problem as I've ever seen. As you know, Bucco, I've said that if our politicians didn't begin to take serious actions to put our financial house in order, that life would change for future generations of Americans. What's different now it that it appears almost certain that life is going to change for our generation as well.

From what we're seeing today, the US couldn't slow down this worldwide financial train wreck if it wanted to. And there's no chance we could anyway because we're in worse financial shape that even the weaker EU countries.

So that's my view of things. What I'll find interesting on how many people here will assign the blame for this worldwide crisis on President Obama. All I'll say is that he didn't cause this problem, and certainly can't "fix" it, even with a cooperative and committed Congress--which doesn't exist of course!

Thanks VK....read it and will now do some research.

While I do not exonerate President Obama from any blame at all, I still cannot understand why if it is what you call "....as serious a financial problem as I've ever seen" why he is on vacation...no said that wrong..do not want to give the impression this is another anti vacation comment...just cannot understand why he did not and will not call our congress back into session. I realize that all the blame is not his, and will withold my comments on his exacerbation of a bad situation and the motives in doing that, and just ask him along with congress to do their job...LEAD !!!!

I also am perplexed about the lack of concern on spending by congress...folks are always after the tea party crowd..and me also on certain things...but they want to cut..period. YET they are considered extremist folks and mocked.

You are right in your many posts that this must stop...NOW. I get the feeling that if someone stands up to lead, he/she is made to follow the line of the party.

We seem to be playing directly into the hands of those who hate us. Who are not spoiled by "things" and just want us destroyed.

In any case VK...thank you.....good concise post. I need to learn more about the international money part of !!

We need to bite the bullet.....As you are well aware,I am and will be against this presidency but will support him toally if he actually TRIES to get it fixed without the political mumbo jumbo. There will be hurdles thrown out by both parties for sure but it is clear when the President (any of any party) is actually interested in fixing the problem and not just getting votes. I will say this, and this is my opinion......he, the President stands to lose a lot of votes if he in fact is serious about the cutting and if that happens I will be on here praising him for his guts.

[Guest]

By the way VILLAGE KAHUNA....

Thank you for allowing me to "call you out" on this subject. I am sure you know it was a postive "call out". Over the last 4 years, we have disagreed a lot but you always try to keep it civil and factual !

Thanks again..it may not have been fair but it was a compliment...trust me ~

[Guest]

Awww...it's great to see you boys playing so nice together! :22yikes:

(Sorry, couldn't help it!)

Now, I'm probably going to be deleted for going off subject...sorry Admin! :kiss:

[Guest]

Awww...it's great to see you boys playing so nice together! :22yikes:

(Sorry, couldn't help it!)

Now, I'm probably going to be deleted for going off subject...sorry Admin! :kiss:

It's all good Ceejay!

[Guest]

Awww...it's great to see you boys playing so nice together! :22yikes:

(Sorry, couldn't help it!)

Now, I'm probably going to be deleted for going off subject...sorry Admin! :kiss:

VK and I have been disagreeing for years on here but I respect his knowledge and views and his not being in anyway personal with his comments.

[Guest]

VK's explanation was almost as good as Seth Meyers' explanation of the American Financial meltdown 2-1/2 yrs ago on Saturday Night Live!

More seriously, thanks Kahuna. That was clear and concise.

[Guest]

VK and I have been disagreeing for years on here but I respect his knowledge and views and his not being in anyway personal with his comments.

I respect that too. Since he includes relevant facts (not just other partisan opinions) that inform his conclusions, his posts are enlightening. Although I generally skip Political threads because they often shed more heat than light, I do look in if I see that VK has posted.

[Guest]

VK and I have been disagreeing for years on here but I respect his knowledge and views and his not being in anyway personal with his comments.

I hope that I didn't offend either one of you. I am a lurker in Political and I have to say that I learn so much from all of you...thanks for understanding!:bowdown:

[Guest]

" In one potentially positive sign the amount of reserves
held by foreign banks at the U.S. Federal Reserve rose in the
latest week, stemming a decline that has seen about $131
billion withdrawn in the previous two weeks. Foreign banks have built up a healthy buffer of dollar
reserves at the Fed, which in addition to liquidity offered by
swap facilities instituted by central banks, has reduced some
concerns that banks face the same risk of collapse as in 2008. Investors will now closely watch the next Fed release, due
on Friday, for further signs of whether deposits have
stabilized, or are continuing to fall."

http://www.reuters.com/article/2011/08/22/markets-money-idUSN1E77L0L120110822

Looking for silver linings !!

Actually the entire article is worth a quick read