I didn´t say individuals were responsible but I did say that while we were all busy shopping, these companies were able to steel part of our future with the governments help.  When people are content and have all their nice "things" they are blind to what is really going on. 

Well I dont really believe that the kind of people you talk about were particularly interested in the economy anyway!!!

Banks were gambling with savers money in a frightening way.  They lost..... we (as tax payers) bale them out.  End of story.

I think when we start to talk in billions we forget the actual amount that a billion is.  To put it in persective, a billion hours ago it was the Stone Age

Our government gave 500 billion to the banks today.......

God Bless   I guess, theorectically we are all bank owners now

 Never thought of it that way.....I bet if I went into my bank and acted like I owned the place they wouldn´t be so uptight then, right?? 

 Worth a try

Let me know how you get on (before I try it )

From what I´ve been able to gleen, the problem started with Credit Default Swaps .

Sort of an insurance that really isn´t insurance in as much as there are no "real" funds to pay off and no regulations as to how they work.

I think the issue is no regulations and no oversite.....

I’m no expert but think I have good understanding what‘s going on with our economic crises beginning with the Carter administration and greatly advanced by the Clinton administration. The government forced banks into providing loans to people that otherwise could not afford them. They did this as a social experiment to increase home ownership by the poor. In a regular market this would have only happen with higher interest rates to offset the higher risk But since the housing market turned to government support through Fannie May & Freddie Mac investors were thrilled to make millions of loans to the poor. This is definitely not capitalism but quasi-socialism. This great social experiment has turned into a 700 trillion expense that is going to cost all of us. It appears our social engineers never thought home prices could fall, since the Great Depression.

This was clearly a trigger of why were in the situation we are. It’s not solely based on people making poor choices, but a situation of a sizable minority risking shutting down our financial system. We can do the blame game, however we need to be accountable and take personal responsibility for our own financial well being. Do we need a bigger home or a better car? Yes, we NEED them, so let’s take out a floating loan interest rate in which we can’t afford to begin with. I want a big flat screen TV..get the credit card out. There is nothing wrong with purchasing items to keep the economy going, however when you run yourself into financial ruin is another thing.

You can also contribute Wall Street thugs for overcompensating or misjudging. The finger is pointed at the over compensated executives and CEO’s. All of these things triggered to what we are facing today, but it is the behavior of the people that laid the groundwork for what we see in front us.

And yes Alamada oversought and more regulations would have helped or possbily prevented, however this was posed to Congress in 2005 and was turned down.  Politicans who gained a kickback off of this didn´t want to cut their profits short.  It´s greed on both the goverment and the public..

International “Newsweek” Magazine  criticize today:

The future of capitalism?

The end of the age of Reagan and Thatcher , and what will follow?

And the Palin problem?

"European stock markets slumped in early trading Friday following massive sell-offs on Wall Street and Asia as lending rates between banks continue to rise despite this week´s efforts by central banks to break the logjam in credit markets.

In Vienna, the stock exchange has been suspended until midday after stocks tumbled 10 percent at the opening bell, and in Russia representatives of the MICEX and RTS exchanges said they suspended regular trading until further notice under orders from financial regulators."

Curious question: Anyone here panicking that much that s/he is selling now all stock investments? Anyone trying to change their mortgage because of the crisis? Or do you think things will get better and you don´t do anything (like I do)?

 Trudy, it´s not a good idea to pull your stock now as you could face huge losses.  In fact if you have a 401k, keep adding to it and here is why.  You will be able to buy more shares than you have before and when the stock market sustaines, as it always has before at some point, you will be able to have more shares and a potential to earn more money on them.

If your investing long term try to keep your emotions out of it, the market will rebound.  It may take months or even years but it will happen.  Remember buy when the prices are low.. If you need this money in the short term CD´s are another option, instead of individual stocks.

I´m not sure what you mean about trying to change your mortgage..you will definately have a hard time trying to refinance right now.  Banks are not wanting to take on this risk.  However, people are still buying houses, getting car loans.....I don´t know anyone who has lost their job, house etc.  I´m not really seeing the affects of this yet..

I don´t have stock but my mortgage is partly based on stocks, it is on of the many types of mortgage we have here. I´ve heard of people who´ve changed their ´stock-mortgage´ in a safer (??) one, a savings-mortgage. I won´t do that, as you said it is long term investment.