Myths and realities of the financial crisis 22 of September of 2008, 04:00 A.M.
By Xavier Serbia
It has been one week, for some, exciting; for another horrifying one.
But, also it has been one week full of myths that are repeated with as much conviction that who says it thinks that it is so. Thus we had personages in the media shouting to us how to make money in the hypothecating market; now they are saying to us that this one is the
economic fiasco of history. Of the same form that motivated us with
the “irrational exuberance”, now they want to fill to us of “apocalyptic”
messages awaiting the “monster of thousand heads”. We go to the point. We take some myths and put them out naked, until we see the reality of each of them.
Myth #1: “We are in a recession like the one of the 29”
Reality: Nothing like that. With 6,1% in the rate of unemployment and 3,3% in the GDP (preliminary), can we say that it is depression? Certainly we are in a deep financial crisis, but to call it the "depression of 2008”? No. In the depression of 1929 there were hundreds of banks closed, the savings (not the investments) were lost, one in four people ready to work were unemployed and the cities were facing long rows of poor men looking for work and food. Do We see that now? Now what we see are long lines of people buying Ipods. Certainly this financial crisis is affecting the investments of many and can open the iron door from a financial to an economic one (so that it happens to other areas of the economy).
But, mechanisms exist that did not exist then to stop the spill. And the leaders are moving towards that direction. My people, the same “catastrophic” shouts occurred after Baring, LTCM, the Asian crisis, dot.com, and with 9/11. Still we are waiting for the depression.
Myth #2: “The greed of the rich ones of Wall street has taken us to this”
Reality: As far as I know, the didn't call that to Wall Street when individuals, families, salesmen, bankers, mass media, politicians, investors were participating in the celebration of the “hypothecating tequila”. They called it “the opportunity of the American dream”.
It is certain that many investment banks, funds of insuring capitalists of risk and insurers took extreme risks when bathing in debts with "the hypothecating tequila"
. But, many drank of the same glass of the greed, and not necessarily they are in the high floors of Manhattan, but in common streets like California, Florida, Nevada, Arizona and the list goes on. For that reason, I prefer to say that “the extreme appetite to risk in Wall street as in Main Street has taken us to this”.
Myth #3: “The banks are falling” Reality: of nearly 8.425 financial institutions assured by the FDIC, How many banks have closed in the period of 2007-2008? Fifteen (15), which have been in their majority acquired by other banks. Do You know how many banks closed during the crisis of “Savings and Loans” in the decade of the 80's? more than 1,600.
Certainly some real estate mortgage banks have undergone the effect of their excesses (IndyBanc, Countrywide, Ameriquest, etc.), investment banks of weight have been carved up (Lehman), others fell to the arms of other banks (Merrill Lynch and Bear Stearn), others
are flirting to be merged with another banks (Morgan Stanley), the GSE like Fannie and Freddie fell at the hands of the government, AIG obtained a financial rescue, “hedge funds” have closed, small banks fell at the hands of others, the FDIC increased the level of reserves and it expects that several banks will close down. But, “the banks are not falling”.
Myth #4: “My investments are assured”
Reality: The investment is not assured, which is assured is the account and its content in case of a closing or fraud on the part of the financial institution. And the protection has a limit. One thing is the loss by fraud or closing of an institution; another thing is the loss by
the fall in the value of the investment. It is the FDIC (in the case of the
banks), SIPC (in the case of the brokerage houses), NCUA (in the case of credit unions) or Funds of State Guarantee (in the case of the insurance companies) who cover in case of bankruptcy, closing or fraud. We say that if I invested $25.000 in Lehman shares, the value of the shares went through the floor, because nobody covers the loss because that is part of the risk that faces investing. If my money is in an institution that has its respective insurance and it closes or exists a fraud, now they insurance me as long as it fulfills the specifications of that certain insurance. In the case of money that we have in the accounts of retirement by contributions with our employer (for example 401k) this is separated from the employer and the
administrator of the money (company of investments that invests the money) in a separated account in our name. Now, if you lost 20% of your value of the investment (example you had $100.
As far as I am concerned, Ahmadinejad never said anything like he "wanted Israel wiped off the map". I keep looking for the source and the exact video where he said this, but I cannot find anything. What he actually said: "The Imam said this regime occupying Jerusalem must vanish from the page of time".
"The Middle East Media Research Institute (MEMRI) translates the phrase similarly, as "be eliminated from the pages of history."
"Ahmadinejad was quoting the Ayatollah Khomeini in the specific speech under discussion: what he said was that "the occupation regime over Jerusalem should vanish from the page of time." No state action is envisaged in this lament; it denotes a spiritual wish, whereas the erroneous translation—"wipe Israel off the map"—suggests a military threat. There is a huge chasm between the correct and the incorrect translations. The notion that Iran can "wipe out" U.S.-backed, nuclear-armed Israel is ludicrous." – Shiraz Dossa, a professor of Political Science at St. Francis Xavier University in Nova Scotia, Canada
"Ahmadinejad did not refer to Israel the country or Israel the land mass, but the Israeli regime. This is a vastly significant distinction, as one cannot wipe a regime off the map. Ahmadinejad does not even refer to Israel by name, he instead uses the specific phrase "rezhim-e ishghalgar-e qods" (regime occupying Jerusalem)."
Ahmadinejad has also never denied the Holocaust. He questions the number of people who died in the Holocaust (hell, half the university professors at my university question the 6 million number). He has also expressed regret that the Palestinian people have to suffer because the State of Israel was placed so inconveniently in a region when all neighbouring nations protested against it.
So I guess my question is, where is all this coming from? If Ahmadinejad harbours any antisemitism, I certainly do not agree with that but he seems to be misquoted by the Western media a lot. Why can't we question the Israeli government without being called Nazis? It's not Jews that I dislike, it is the corrupt American and Israel governments. Can anyone enlighten me?
** @Reality has a conservative bias: I just read your entire article. It does not give any proof that Ahmadinejad said that, so don't think you are so smart. Where is the video footage with a reliable Arabic translator that says those exact words? Your link only reinforced my position that the Western media corrupted what Ahmadinejad ACTUALLY said. **
Ever since birth, Mika has been known as the quiet, shy sister between her and her twin sister Mecca. Quiet Mika spends her day working as the head librarian in the public library, hides her big beautiful brown eyes behind plastic framed eyeglasses, and prefers to dress in bohemian or casual jeans attire. Mecca on the other hand, has always been the wild one of the two. She has no problem flaunting her sexy hourglass figure in the kind of tight attire Kim Kardashian is known for wearing. She’s outspoken, bold, flirtatious, outgoing, and everything Mika is not. Mecca also has an array of men for her choosing. Never one to have just one man, Mecca has a man for every night of the month. Her job as a lingerie model insures Mecca much male attention. Mika has always been envious of her twin sister, so when Mecca tells Mika that she and her friend is going on a long vacation to Italy and needs Mika to house sit, Mika jumps at the chance. The modest three bedroom Los Angeles home that the twins grew up in, and where Mika currently lives is nothing compared to the posh Malibu beach home Mecca owns. Mika intends on making the most of the three months stay at her sister’s house, she just isn’t sure exactly how yet. But when she opens the door to tall, dark and handsome pro basketball player Xavier McKnight, who mistakes Mika as Mecca, she suddenly knows exactly how she plans on spending her three months. When Xavier first arrived at Mecca’s house he had every intention of telling her how he felt. He’s grown sick of the games she’s been playing with his heart, putting him on the back burner, and not wanting to commit to only him. But when he lays eyes on Mecca, looking all innocently adorable everything he planned on saying to her flies right out of his mind. Especially when he sees how excited she is to see him.Its then that Mika decides to have a little fun and take on Mecca’s fabulous life. What harm could it do, right? So pretending to be Mecca, Mika decides to make it up to him by agreeing to escort him to the ESPN awards show. That means getting all glamed out. Luckily being a famous model has its perks, and all the top designers want Mecca Michaels to wear their newest clothes on the red carpet. Going to the award show with Xavier, Mika didn’t expect to have so much fun, or that she would gain so much media attention by walking hand in hand with the basketball player. Luckily, Mecca is on a secluded Italian vacation, or she would have been dead meat. Something strange happens while Mika is going out to fancy restaurants, chillin’ at his house, enjoying long walks in the park, sitting courtside at his basketball games, beach picnics, and trips to the amusement park. Mika finds herself falling in love with Xavier. For Xavier, the feeling is mutual. He’s never got a chance to know the sweet innocent side of Mecca before. Neither has the photographers who take Mecca’s picture on a daily basis, as Mika soon learns when Xavier surprises her with a photo shoot for one of sports top magazines.
The pictures Mecca takes wind up being a mix of sexy & innocent, nerdy & tantalizing, and all around hot. The public is quickly eating up the new shy girl act that “Mecca” is putting on these days.
So is Xavier, who decides its time to take their relationship to the next level. Mika is fully aware that the romantic dinner Xavier has laid out in his home means he’s ready to make love, but Mika isn’t sure. She knows she’d feel bad for making love to him with him thinking she’s Mecca. But after one too many glasses of champagne, Mika find’s herself giving into his advances. The next morning brings on a flood of guilty feelings. When Xavier’s morning breakfast comes with a marriage proposal attached, Mika realizes its time to end her charade. She doesn’t tell him the truth, rather she just breaks things off with him. Just in time to, because Mecca has just returned home from her trip with a tone of stories to tell Mika. Little does she know that Mika has a few of her own too. Mecca jumps right back into work, and is a little confused when the photographers don’t like her usual sexy pictures she always takes. She tells Mika about it, who just says that maybe she needs to warm up to it again. They both end up with a surprise when Xavier shows up at Mecca’s house begging for her to give him another chance. He receives the shock of his life when he spots the two of them together. He never knew Mecca was a twin. When Mecca demands an explanation for what Xavier is talking about, Mika finally decides to come clean and confess everything. Xavier is furious when he realizes he’s been used so Mika can have a little thrill in her life for once. He doesn’t even give Mika a chance to defend herself before he goes storming out. Mecca goes a little easier on her twin sister because she realizes that Mika really fell in love with Xavier. Instead she decides to help her sister get Xavier back.
(continued)
So Mecca uses her charm to convince Xavier’s best friend to find a way to get Xavier to the posh “Garden City” restaurant under the disguise of a reporter wanting to do an interview.
he’s angered when no one is there but Mika in her usual attire. He’s ready to leave, but she begs for him to hear her out. Reluctantly, he does.
Mika goes on to say that she pretended to be Mecca because he wouldn’t have noticed her before. And that although she was pretending to be someone else, everything that she shared with him, and her feeling are all real.
Mika even admits to wanting to accept his marriage proposal, but knew she couldn’t. she assures him that the girl he’s gotten to know was all her.
Xavier’s heart tells him she’s being honest, so he forgives her. He doesn’t have a ring with him, but that doesn’t stop him from proposing to Mika right then and there, or Mika accepting.
They have their wedding at the riverside amusement park right in front of the Farris whee
me and my friend emalee are debating over which guy is hotter so who do you is hotter xavier samuels (ewww) or charlie mcdonnell (yummy <3) thanks hahahah xavier: thihttp://gossipteen.com/wp-content/uploads/2009/07/xavier-samuel-as-riley-289×396.jpgnk
charlie <3: http://30.media.tumblr.com/tumblr_l114hgtZcM1qag611o1_500.png
