My Hitachi wide screen TV is pretty swell.

Well im gonna head off early tonight, nothing on TV besides Chelsea TV with all these wankers talking about how good Chelski is.

See you all at around 1

YAY 3000!
lol

Youre first 3 grand had nearly as much spam as my first 3.

At least half of your posts are you keeping track of what your count is up too. :P

And half of that was double, tripple or quadrule posts:P

The Aussie dollar is down to 67 US cents!

Yay for economic turmoil. Thanks mr Rudd.

I've quoted Gervais once today for Blyth... I think its your turn. "Are you having a laugh?":p

You really blaming the global economic conditions that are finding their way to our shores on Rudd?

Only the bit that's his fault. The "let's take on foreign debt".

hahaha.
I cant believe its at 67 cents!! How long ago was it that low
Has it EVER been that low?

5 year low.

Few months ago everyone was dreaming...

Shit. Some economics expert said the BEST CASE scenario was extremely high unemployment rate, no jobs etc for 2 years.
Great best case scenario.
Worst case to be something akin to the great depression

Edited by imnofreak: 8/10/2008 11:15:12 PM

high employment rate, no jobs.... Your hurting my brain. Damn this shit, maybe i will have to go to Uni next year...

I dont really understand whats happening. All i know is that going from 95c to 67c within a few months something must have gone wrong. Explain for economy n00b.

Im not good with that stuff either

Lets ask the big kids.

Well we haven't had a serious economic downturn for 70+ years except for the wall st collapse in the 80's and that only took a matter of months to recover from. We're due an economic disaster, And we've got the muppets in power around the world to make it happen...
"I know, the value of money is dropping...the best way to fix this is to PRINT MORE MONEY!!" ](*,) Genius:roll:

Ok, what the stock markets are, is basically a reflection of what people think everybody thinks the shares are worth...people think people will think the share is worth more, the price goes up. Supply and demand, except the supply level is fixed so the value goes up and down instead.
What the deal with the economic downturn is, is that with all the overspending and debt around the world, the american financial institutions (their equivalents of Rams or Aussie) are trying to recall their loans and not getting their money back, which is a problem because they essentially borrow large chunks of money off the banks for a smaller interest rate, which is where they make their money (the return to the banks from that pays your interst rates in your investment accounts)...but if they don't have the money, it can't be recalled, and so these companies are forced to fold. This in turn makes investors and shareholders unhappy because they don't get a return on their investment and pull out, thus people percieve the companies to be worth less and people think people will think that the value is going to drop, so it does. This has a flow on effect to consumer products like what you find in the supermarket because companies are all taking losses because banks are putting up their interst rates to compensate for their loss of income which then means taht companies are forced to charge more etc etc etc and it's a continuous circle. If you've ever read Catch 22, it's like a high stakes financial version of that. And while the politicians sit there and come up with dumb-arse ideas and twiddle their tumbs, things jsut get worse and worse and worse. And since most economies have all their eggs in one basket in the american economy, all the rats are getting sucked down with the sinking ships. If things slip into a depression, it's going to be far, far worse than anything we saw in the great depression.
That, my friends, is why the global economy is fucked.

Alright. That helps a fair bit.

So what happens if we fall into depression? I think i know but im not going to put it out there. Yet.

Yeah that helped a bit too.
The way i saw it was that people think the company/shares are worth less so then everyone pulls out, which just makes things much much worse and the market collapses.

I can still remember when the Aussie dollar bought only US54c ~6 or 7 years ago.

Essentially, it is the most insane, overly complex and pointless idea mankind has ever had.

Depression is obviously a massive economic downturn, where spending is minimal and the economy pretty much screeches to a halt. This is usually acompanied by Hyper-Inflation, which you're seeing in Zimbabwe at the moment, where money becomes worth next to nothing. If you look at photos of the great depression, there are people walking about with wheelbarrows. That...is their wallet. Money became worth so little, that they had to carry around THAT much of it to do their shopping.
Soup Kitchens will start to do a roaring trade though.
As things are at the moment, they've had to redesign coins around the world (inclubding the 5cent piece here and the Nickle in america) because the metal used to make the coin was more valuable than the coin's face value.

I just thought people bought shares to help fund companies then when companies dont do so well the shareholders, lose their money. Shareholders put their money into a big company to fund their own company but when the big company goes down all the other ones feeding off it go down aswell. Its the sort of subject ill develop interest and knowldge in whilst i grow older.

In an ordinary situation, the investors see a share price plummet and they think "HEy, there's a bargain!!" But when companies are recalling all their debts and there's no money left in the company, no investors are intersted, the company is forced to fold and the banks with the parent loan are stuck with a worthless folded company and continue to lose investor confidence, thus their value slips and continues the slide, whereby someone else (say, the US governemnt) recalls their loan from the bank, and the domino effect continues.

I can remember when Keating first came into power when the Aussie dollar was worth more than the US dollar. But yeah...I remember back around 9/11 how we were at around 59cents and we dropped down to about 51 cents, and then everybody bailed on the US economy and all of a sudden it was 65cents to the US dollar.

I dunno nething about economics, but the stockmarket is more than just shares mk. Bonds, stocks etc.

:lol: I know I shouldn't, but that made me lol...

Obviously things aren't looking good, but this has been bound to happen eventually, it may just work out well. As Keating once said, this could be (and in a lot of peoples opinion is) "the recession we had to have".

Wow. Thats pretty fucked.

Is this sort of thing beneficial to anybody? Or fucked for everybody?


That would make me 10, which means I wouldnt really have been paying attention.

Yeah sounds like a domino effect. When one thing goes bad everyone bails so it just makes things worse
and worse
and worse

That's the very, very simple way of explaining what I just explained. It's how you'd explain it to a young kid because they don't have a sense of third party feelings (ie, they get that i'm sad, they get that they made me sad, but they don't get that that could be makign someone else sad). It's just that with that explaination, you cant elaborate on why the economy sucks right now.