why am i lost in the stock market talk?

In the late 1990s, congress and Clinton wanted to put as many americans in a house as possible. They even threatened banks with fines, lawsuits, and harrassment from the Federal Government if pre-deternined numbers of minorities and poor people were not given a loan.

Banks did not want to face lawsuits and being labeled as "racist" for turning down too many black people for loans.

As a result, they gave EVERYONE a loan. No job, no income, no collateral, no down payment, no assets, no problem. Come buy a house, and the bank will give you the money.

Now, years later, more and more of those foolish loans that should never have been granted are being defaulted.

But the loans (mortgages) were all lumped together and sold to other banks and investors. Yes, banks can sell mortgages. It's weird, but debt can be sold .

But this debt is full of toxic, bad loans that will never be repaid. But no one knows which debts are bad, because the original loans were all mixed together like a nasty soup.

No one knows what they are worth. They are not worth zero, because some of the debts are fine. But if you mix one rotten apple with 20 good apples, it spoils all of them.

Now, the government is offering to buy all of these bad debts - with an ESTIMATED value of 700 billion. But it's just a guess.

If the government does not buy the bad debts, the banks will eventually get their money, but it will take forever. In the mean time, many banks will fail because no one trusts the banks. The depositors are pulling their money, and no other banks will do business with them.

The weak banks are already dropping like flies.

The strong banks may be next.

The information media make a tremendous factor out of not anything. There are humans making the most of this at all times. The humans who bought while the marketplace used to be up made cash, the humans that experience coins correct now can earn money, humans that wager the marketplace will pass down earn money, humans who do not promote have not misplaced some thing. The truly obstacle is that humans do not know if it is a transitority factor or it quite simply used to be a giant bubble. a few will benefit and a few will unfastened cash but when it used to be all a bubble, then it is unhappy for many who purchased on the most sensible and when you consider that all people is relatively poorer that they idea, it's going to mainly become affecting employment, fiscal progress and daily existence probably. But correct now it is quite simply that they do not have every other information to hide.

hey bro. if u need help about market contact me via e-mail. i am broker.