Quote from: chennan on January 08, 2016, 11:24:49 PM

Quote from: TheCloser on January 08, 2016, 01:12:46 PM

Quote from: chennan on January 08, 2016, 05:39:59 AM

Quote from: icem3lter on January 08, 2016, 01:24:03 AM

It's so annoying to see fear-mongering posts.

Stock markets are not crashing, they are sliding down. NOT crashing.
Fact is, it is a good time to buy stocks because when they drop they will most certainly go back up.
I see this as a opportunity to buy stocks. In fact I did the same thing in 09 when stocks were crashing. I then sold them for a pretty penny.

I don't necessarily see these types of posts as "fear mongering", they are just being realistic and watching what's actually occurring in our world. While I don't think the terms "crashing" suffices, it will probably rebound... but anyone who has been paying attention to how are economy works and seeing glut of oil and unreliability of the banks, plus definite knowledge of the Fed over printing money all the time; anyone can see that the world economy is going to be majorly devastated sooner or later.

Now the simplistic reasoning that bitcoin is going to go up because most nations fiat systems and stocks are currently going down? Probably not. People on here fail to realize that we (and now other investors as well) are a very small minority of the world who sees bitcoin as a safe haven from the dips that the stocks and so on are doing. Hell... we are still at the point in time where probably 95% of the remaining population of Earth doesn't even know what bitcoin is. It is not as well known as gold... and as you can see, gold is doing very well right now in the market due to this dip in stocks and fiat commodities.

Banks are sitting on record levels of cash these days and have tightened lending standards so I would not call the banks unreliable. Furthermore, they are fairly on top of things considering they are attempting to adopt blockchain technology to reduce overhead and fraud within their systems. The Fed on the other hand has created a ridiculous amount of depth in order to stimulate the economy.

I'm not trying to discredit you by any means, but I seriously doubt banks have new strict standards against lending... sure they might try to make it a tiny bit more difficult, but I have yet to read anywhere were that is the case; plus I haven't read anywhere that banks are sitting on "record levels of cash". Banks are continually ordering and dealing with the Feds.

Now, the reason that they might have records numbers of cash though, is that they have successfully made digitally usable fiat currency more appealing to the masses. So there is no need for cash anymore really... I mean the other day I saw someone pay for a $.20 water cup with a fucking debit card for crying out loud. So, I think you might be right on the cash part, but I still haven't seen anything or any CEO of a bank strictly regulate lending.

One of my family members works as a teller at a bank, and he is required to meet a quota of referring people for checking accounts, savings accounts, loans, etc. ... You really think they are going to be strict with the customer once people, or in this case, a teller refers them to the bankers to do business with them? Hell no... they are going to try to get them as much money as possible, so they can own their ass.

Leading up to the subprime mortgage crisis that caused the "great recession" in 2007-08, US commercial banks had an average of 17.5 to 20.5 billion in cash reserves. The link below shows that by 2011, U.S. commercial banks held 1.6 trillion in cash reserves or roughly 77 times typical holdings from 2001-2007. The federal reserve lists on their website (take this with a grain of salt) that as of December 30, 2015, U.S. commercial banks have cash assets in excess of 2.3 trillion dollars which is 112 times the reserves held between 2001-2007.

http://www.peri.umass.edu/fileadmin/pdf/working_papers/working_papers_251-300/WP284.pdf

Im not going to go digging up the change in lending standards but people with average FICO scores of 630 (considered sub-prime at the time) were being approved for mortgages leveraging 8-10 times spending power as their net income hence the rise in foreclosures from 2008-2011. Needless to say, your not able to leverage considerable debt without a FICO score of 700 or your paying serious points on your loan. America.......the country where you can live outside your means, declare bankruptcy and have repaired credit 7 years later with your creditors taking it like a champ.

TheCloser

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