Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)

2 Bumps

Ecnomic crisis: Where does all the money go?

Everybody talks about the economic crisis. Banks and firms and buisnesses go bankrupt and loosing money. The cost of living rises. I get that. But in my experience things don't just dissapear like that. So -maybe I'm a bit simple or maybe I'm thinking straight forward- but .... where does all the money go? It must be somewhere.

 
BeachMom81

Asked by BeachMom81 at 2:30 AM on Dec. 3, 2010 in Money & Work

Level 21 (11,551 Credits)
This question is closed.
Answers (5)
  • The problem is that the money wasn't there to begin with. Everybody was borrowing money that didn't exist for things they couldn't afford. A few years of doing that and it became a crisis. People (and companies) couldn't afford the debt they incurred and the banks couldn't collect their money. The banks are at fault for being so greedy that they lent money they couldn't afford to lend to people who couldn't afford to pay it back..
    slw123

    Answer by slw123 at 4:08 PM on Dec. 3, 2010

  • I agree with HotMama- up until the bush tax cuts for the wealthy...
    But anyway basically the money never existed in the firs place. The people getting the mortgages didn't have the money to pay for them. Which was fine in the beginning.. the bank would just foreclose or the owner would sell and in most cases either party would come out making a profit since housing prices were skyrocketing. Then when they started falling people found themselves upside down on homes they couldn't afford to begin with. Part of the reason they were called sub-prime mortgages is because they were made to people with bad terms, bad credit, little or no job history etc. Basically people that couldn't pay their mortgage... so yeah no money to begin with.
    Erica_Smerica

    Answer by Erica_Smerica at 1:21 PM on Dec. 3, 2010

  • Colleges get pell and free federal grants allocated each year. Banks get dividends for more people with higher mortgages and loans with interests keeping the bank healthy and alive. Money is allocated for art foundations, hospital wards, patient operations for those on medicaid, medicare; ...money for the arts and gratns to get music foundations in colleges.
    Their is money sorted through each fiscal year that is preset or awarded based upon the size of the technical use it's for, and the city it's in. Pavement projects, highways, roads, bridges, retirement homes, rental rebates funds, senior citizens buses (free rides all year)
    clinics get free money for blood pressure clinics, and for breast cancer funding,
    Anonymous

    Answer by Anonymous at 3:32 AM on Dec. 3, 2010

  • The economic crisis started with banks giving mortgages to people who didn't qualify for them and then they adjusted the interest rate and then the homeowners couldn't pay and were foreclosed on. A lot of CEOs didn't invest their companies' money wisely or misused it. That's what the whole bailout was about. Also, the Bush tax cuts for the wealthy.
    HotMama330

    Answer by HotMama330 at 11:12 AM on Dec. 3, 2010

  • To the super rich ... a "manufactured" crisis for the transfer for wealth.
    tasches

    Answer by tasches at 2:55 PM on Dec. 3, 2010

close Join now to connect to
other members!
Connect with Facebook or Sign Up Using Email

Already Joined? LOG IN