I feel so out of the loop on this. Like, I read the papers and watch the news and hear about in work day in and day out but I just don't get it! Why do private rating agencies seem to have so much attention paid to them? Why are "the markets" so damn jittery they react to every single thing? Who needs to be paid back all this money?
I don't understand it, please someone explain it to me!
Lux I'm the same. I'm a bright girl, I read the papers, I studied economics as part of my degree. But I couldn't begin to explain or understand what's going on. I went to lunch with a customer and some colleagues this week, and we were all discussing this same thing. It's frightening.
I also wonder how many of the financiers and stockbrokers involved in this actually understand it. I think David Mitchell says it best here:
That's just it Cabbagehead, as part of my degree I did economics and I can't get my head around it! I keep up to date, I've CNN on in work a fair bit etc and I JUST DON'T UNDERSTAND IT!
Funny I got into an indepth converstion about this all the other day - seems that Ireland owe money (the bulk of it) to Germany - as do Greece and Portugal. How they lent all money out I just dont know.
Further why are now most of Europe and USA's markets sliding (as in yesterday's news)? Also now Italy and Spain are in trouble and its causing another recession!! It goes over my head most of it.
We were talking about it this morning. I dont understand it at all. Who are all these bond holders and where are the getting all the money to lend to the countries in difficulty? Where does all the money come from? Im so lost on the whole thing.
Also why does America get to hold onto its triple A credit rating when it seems its in just as much sh*t as the rest of us?
Same again I am by no means stupid and I don't live under a stone I have every imaginable news app on my iphone and they're the first thing I look at every morning. But I can not make head nor tall of any of it anymore however I feel a sense of dread everytime i read the markets dipping again that really seems to worry me but im not 100% Sure Why.
In a word No....
I would like to understand it though.
The markets confuse me the most though, I mean, why one day everythings seems ok then they next day x amount has been wiped off the FTSE (or whatever!) I mean, what determines why that would happen.
And how was it that America can raise it's own credit limit?!!
I don't get it and I actually just gave myself a headache
I think the problem is that the ordinary person is exposed to far too much of what's going on and it confuses us. Because we now have 24 hr news stations and celebrity economists that all have a different angle on the crisis we are bombarded with differing info. I think we should go back to knowing what we need to know and no more - i dont mean we should live in a bubble but we need the facts not peoples assumptions and theories. I think these have fueled the crisis we are in (not single handedly).
I am very interested in it all but yes its depressing and there are certain programmes/people that i refuse to listen too as they are scaremongering and often incorrect. gone are the days when tv stations were impartial
[quote="cuteasabutton":3rz79x1k]I think the problem is that the ordinary person is exposed to far too much of what's going on and it confuses us. Because we now have 24 hr news stations and celebrity economists that all have a different angle on the crisis we are bombarded with differing info. I think we should go back to knowing what we need to know and no more - i dont mean we should live in a bubble but we need the facts not peoples assumptions and theories. I think these have fueled the crisis we are in (not single handedly).
I am very interested in it all but yes its depressing and there are certain programmes/people that i refuse to listen too as they are scaremongering and often incorrect. gone are the days when tv stations were impartial[/quote:3rz79x1k]
My Dad completely blames the media for scaring people. He always says they were the ones encouraging people to buy property, every paper had huge property sections and now that the bubble has burst they report nothing but bad news and scare the life out of people, who dont understand whats going on, so that they are afraid to go out and spend some money in the economy and instead are saving every euro they have and paying down their mortgage. Sometimes I dont agree with him but in this case I think he is right. You cannot turn on the tv or open a paper without reading how we will be living in this doom and gloom for the foreseeable future.
I dont know too much about it either except for a few of things (I think):
1) Most of the money the Irish banks owe was lent by Germany and France, So the bailout we got was to make sure they got back money they "recklessly" lent us in the first place.
2) The Markets got very jittery yesterday because Italy and Spain are looking to be in as much trouble as We are / were. The problem is, Spain is too big an ecomony to bailout, so if it gets to a situation where Spains needs to be bailout out, there wont be the funds to do it and its goodbye to the Eurozone!.
3) Thanks to this weeks problems with Spain and Italy, it seems unlikely the ECB will raise interest rates for the next year or so - so no more mortgage hikes (hopefully) for trackers.
4) not to sure on the US, except, that what ever happens there has a big effect on the rest of the world. so if they slip back into recession, the same could happen here.