Roborovskii 4th Gear July 2, 2011 Share July 2, 2011 In all practicality that is true Yewheng, however on the banks' records, it is better for them to show that there is business, than having loads of credit sitting in their accounts doing nothing. In a sense they rather have kinetic energy than potential energy. In addition to that, they package up all their loans and resell it to investors... thereby hedging that risk to a certain degree... and making even more money at the same time. If everyone officially defaults on their payments, the banks do not bear all the losses, just a small portion of it. The investors who bought these CDOs-CLOs are the ones to take the hit. If people continue to make minimum payments and stay solvent, then this game just keeps going on, making the banks more money. http://en.wikipedia.org/wiki/Collateralized_debt_obligation http://en.wikipedia.org/wiki/Collateralized_loan_obligation http://en.wikipedia.org/wiki/Syndicated_loan ↡ Advertisement Link to post Share on other sites More sharing options...
Yewheng Twincharged July 2, 2011 Share July 2, 2011 (edited) I see.. Thanks.. Now I understand why bank keep hard selling on credit card.. So in a sense no matter what bank will always be in winning side. Edited July 2, 2011 by Yewheng Link to post Share on other sites More sharing options...
Csnewbie 1st Gear July 2, 2011 Share July 2, 2011 I see.. Thanks.. Now I understand why bank keep hard selling on credit card.. So I. A sense no matter what bank will always be in winning side. bank no guarantee winning... poor management/market will see it closing down.. Link to post Share on other sites More sharing options...
Roborovskii 4th Gear July 2, 2011 Share July 2, 2011 The real winners are the top executives at the banks whom while playing the game give themselves multi-million dollar bonuses. The game keeps going on even as most banks in the US/Europe are already insolvent; as their government continue to bail them out for fear of collapse that would lead to the upheaval of the political system. The "money" used to bail them out will weigh on the backs of the citizens... and that is why there are riots. Who would want to suffer and take austerity measures so that the bankers can continue to give themselves fat bonuses? It is a 3-party relationship between the bankers, politicians and the people... with the current setup, the people lose. Even in a financial doomsday, bankers have already sucked so much out the system, they can simply quit their "jobs" and retire at some remote location. Link to post Share on other sites More sharing options...
GoodCar 4th Gear July 2, 2011 Share July 2, 2011 The video only tell the half truth as is it was the whole truth. It is all about belief. If people continue to believe in U/S dollar in the world, they can print as much as they want. In the notes it says in god we trust, and back up by strong military might and resources and a dream. with the Internet world, information flow ran so fast that, all type of information started to influence these belief system. when belief system start to shatter, the world will go into chao. It is fear that will ruin the world. Link to post Share on other sites More sharing options...
Csnewbie 1st Gear July 2, 2011 Share July 2, 2011 The real winners are the top executives at the banks whom while playing the game give themselves multi-million dollar bonuses. The game keeps going on even as most banks in the US/Europe are already insolvent; as their government continue to bail them out for fear of collapse that would lead to the upheaval of the political system. The "money" used to bail them out will weigh on the backs of the citizens... and that is why there are riots. Who would want to suffer and take austerity measures so that the bankers can continue to give themselves fat bonuses? It is a 3-party relationship between the bankers, politicians and the people... with the current setup, the people lose. Even in a financial doomsday, bankers have already sucked so much out the system, they can simply quit their "jobs" and retire at some remote location. agree... That's why private banks are better than state ones... and shareholders are responsible for own survivor. in sg case....patrons are protected....but only $50k...by means of saving a/c guarantee/insurance.(hope i am correct) Link to post Share on other sites More sharing options...
Expertz 1st Gear July 2, 2011 Share July 2, 2011 (edited) Print more $ = more inflation.. Too long to explain.. maybe you could watch a short clip of 4mins and you will be better able to understand that why keep printing $ is no good.. on the contrary, countries like china are printing money to keep the value of their $$ low their workers go overseas to work and bring back foreign $$ which is valued at multiples of china's rmb this provides 2 advantages, firstly china workers are cheaper, secondly china benefits as a result of low $$ value go to itunes and subscribe for the podcast 'stuff they don't want you to know' there is an episode that talks about hyper inflation because china refuse to stop printing money, US exports are quickly becoming worthless and their workers overpaid thus US has to print money at an equal rate to continue to compete with china only in singapore do we have short-term goals of establishing a strong $$ while other countries are trying to devalue theirs Edited July 2, 2011 by Expertz Link to post Share on other sites More sharing options...
Mllcg 3rd Gear July 2, 2011 Share July 2, 2011 agree... That's why private banks are better than state ones... and shareholders are responsible for own survivor. in sg case....patrons are protected....but only $50k...by means of saving a/c guarantee/insurance.(hope i am correct) i thought 30k nia? lol Link to post Share on other sites More sharing options...
Mllcg 3rd Gear July 2, 2011 Share July 2, 2011 on the contrary, countries like china are printing money to keep the value of their $$ low their workers go overseas to work and bring back foreign $$ which is valued at multiples of china's rmb this provides 2 advantages, firstly china workers are cheaper, secondly china benefits as a result of low $$ value go to itunes and subscribe for the podcast 'stuff they don't want you to know' there is an episode that talks about hyper inflation because china refuse to stop printing money, US exports are quickly becoming worthless and their workers overpaid thus US has to print money at an equal rate to continue to compete with china only in singapore do we have short-term goals of establishing a strong $$ while other countries are trying to devalue theirs just hope we dont end up like zimbabwe's hyperinflation can le. 100 million banknote Link to post Share on other sites More sharing options...
Xdeatel Neutral Newbie July 2, 2011 Share July 2, 2011 just hope we dont end up like zimbabwe's hyperinflation can le. 100 million banknote I doubt they will end up like zimbabwe's hyperinflation, because they have foreign currency reserve to buy back their own currency. But anyway, printing too much money to lower your currency's value has its disadvantage. With a lower value of currency, inflation in the country will increase. As YUAN is relative weak compared to other currency, goods that are imported will be more expensive, thus the consumers will end up paying more. Inflation is good, but a 10-15% inflation is NEVER good. Link to post Share on other sites More sharing options...
Topgun Neutral Newbie July 2, 2011 Share July 2, 2011 means what? Means the computer networks and machines in the world will takeover. Humankind will be decimated. Link to post Share on other sites More sharing options...
Scion Turbocharged July 2, 2011 Share July 2, 2011 Zimbabwee's 100 trillion dollar note the highest denomination dollar note ever in human history... even bigger than our famous chinese hell notes Link to post Share on other sites More sharing options...
Maldini03 1st Gear July 2, 2011 Share July 2, 2011 I doubt they will end up like zimbabwe's hyperinflation, because they have foreign currency reserve to buy back their own currency. But anyway, printing too much money to lower your currency's value has its disadvantage. With a lower value of currency, inflation in the country will increase. As YUAN is relative weak compared to other currency, goods that are imported will be more expensive, thus the consumers will end up paying more. Inflation is good, but a 10-15% inflation is NEVER good. Erm.. in singapore context yes, weak currency will help inflation. However in China context, the importer may also be encourage to buy internal home grown brand. In Singapore where we import almost everything, a strong currency is better. China can be a self sufficient country, weak currency can be benefitting. Link to post Share on other sites More sharing options...
Csnewbie 1st Gear July 2, 2011 Share July 2, 2011 i thought 30k nia? lol they are increasing/have increased to 50k. not yet? ↡ Advertisement Link to post Share on other sites More sharing options...
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