What's up with the Economy?

[American Hero]

I am watching CNBC and I keep hearing words like bankruptcy being thrown around. Apparently a company called AIG is in alot of trouble. From what I have gathered AIG is a huge insurance company, and is about to file bankruptcy.

I have a few questions...

How does this affect the rest of America's economy?

How does it effect me?

What exactly happened to AIG? Did they just all the sudden run out of money?

[John Mora]

Re: What's up with the Economy?

My mom is a bigwig at AIG. :V

Basically from what I know, AIG had its hands in the home loan money pot that went bad and that's what's making it suffer.

[Shard]

Re: What's up with the Economy?

AIG is the 18th largest company in the world. So, yes it has a pretty dramatic effect on America's economy in a negative, holy **** put all my investments in safe places and kill any marginally risky behaviors sorta way.

If you have anything invested you already know how it affects you...if not, it'll probably hit you in subtler ways, unless you're living in a self-sustaining commune or something.

And Mora's spot-on about being upside down on the real estate side of things. The same thing happened to Bear Stearns, Lehman Bros. and looks to be happening to Washington Mutual as well. Long on debts and short on credits.

[highwind]

Re: What's up with the Economy?

My mom is a bigwig at AIG. :V

Basically from what I know, AIG had its hands in the home loan money pot that went bad and that's what's making it suffer.

I typically blame your mom for horrible things happening to the world.

This time, I'm right.

Thanks a lot, Mora Mom.

[Vanilla Iced Tea]

Re: What's up with the Economy?

My mom is a bigwig at AIG. :V

Basically from what I know, AIG had its hands in the home loan money pot that went bad and that's what's making it suffer.

Wait, wait, I don't understand.

Mora has a mom?

[Adrian Foley]

Re: What's up with the Economy?

Wait, wait, I don't understand.

Mora has a mom?

Everyone does, unless he was grown in a tube or something.

Or I suppose if his people reproduce asexually..

[Vanilla Iced Tea]

Re: What's up with the Economy?

I just assumed that he sprouted fully grown out of the forehead of Zeus or something.

[John Mora]

Re: What's up with the Economy?

No, it's not her fauuuuuuuuuuuult! She's one of the principled ones! And also she doesn't have anything to do with investing in loans. :V

[Red Dragon]

Re: What's up with the Economy?

You're right...

It's your fault Mora!

[Tintenfisch]

Re: What's up with the Economy?

Banks close. Just like any business. If a 20 or 40 banks close throughout America it's really no big deal. Citibank also got into a bunch of trouble and had to pay I think it was 14 million dollars back to the customers for ripping them off.

A big deal though it money owing. A while back if you were to take out a loan banks wanted to make sure you could pay it back. Now all they care about is if you can pay the fees. Also factor in school loans. I've met people in their 50's still paying them off because the debt is astronomical. Most people aren't or shouldn't go for their masters because of how much it costs.

Combine this with how people are using credit cards as a magic goodies maker and we have a pretty big rah-rah typhoon going on.


P.S: Rah rahs is another term for cah-cahs

[Magus]

Re: What's up with the Economy?

Ah! I see. Everything's so clear now.

[John Mora]

Re: What's up with the Economy?

There was a REALLY good episode of This American Life a few months ago on the mortgage crisis that explains all of this. I highly suggest going over to thislife.org and checking it out if you have an interest in the topic.

[Cutter De Blanc]

Re: What's up with the Economy?

I'm still not sure how this is going to affect me.


...I'm guessing it won't.

[Toaster]

Re: What's up with the Economy?

Nothing ever does, Cutter. Not in your little world.

[Big Rick Cook]

Re: What's up with the Economy?

I'll be immune to its detrimental effects on society. For a little while, at least.