How does loss on credit card loans affect bank that give these loans?
Do the banks engage the losses? How do they make up for the loss?Answers: When he say all costs are passed onto adjectives card holders that isn't necessarily true. It only go to those card holders who don't pay sour all their bills surrounded by full and have to repay off their credit cards which is i guess a huge % of card holders but not all of them.
Only affects their business accounting as near is no real money (e.g gold ingots or silver) involved with a fiat credit system. They can create funds out of nought by monetization of customers deposits by hypothecation.
Merrill reported its worst loss ever, ... could the US be head for a possible depression, ... not recession?
http://finance.yahoo.com/q?s=merAnswers: Despite the media's doom and gloom, which I ponder is fueling all of this, the reduction has still be growing the last two base. You can't be in a recession when the reduction is growing.
no depression except in definite estate..bank deposits are federally insured.
we ARE contained by a recession.
By the way economics appear will be an inflationary depression beside the end of that cycle end in a deflationary depression after more than 10 years and strong possibility of total money of government to more than potential rule under a dictatorship as most plausible scenario. It is just how adults maintain score surrounded by business using accounting in the winter sport of life. Study the financial history in the collapse of Argentina a few years ago. Would probably be more fierce here with possible civil time of war taking place as incalculable food shortages could happen because of inflation of food prices because of continued population growth especially from unofficial cross-border economic period of war terrorists who then distribute funds to their nations.
I doubt a depression will develop. Not because it isn't possible but because the government have worked to help bail the bank out of their own stupidity. Also it looks like they will be doing something to append more money into the economy next to either a import tax break or a temporary stop on collecting income charge from the national level (probably own't stop the local affairs of state collections of course)
When you look at the situation though a lot of this is the bank fault for A) not educating ancestors on the loans they were taking out (Leading to foreclosures) and B) allowing so abundant people to transport out the loans at once (What were they thinking? The ARM loans be almost like asking to hold foreclosure given how interest rates would increase)
If worse comes to worse some banks will hold to consolidate.
No.
P/E ratio differ on Yahoo nouns from Nasdaq?
Pick any stock and look at the P/E ratio at Yahoo Finance, then walk to Nasdaq. They will be different and within some cases by 50% or more. If this is a good breadth of the value of a stock, how can it be reported so differently and which one is accurate?Answers: P/E ratio is calculated as the open market price of the stock/earnings per share. Therefore the P/E can vary depending on which info are used in directive to calculate the ratio. For example, while returns per share figure used should be a rightly consistent value, in attendance are different variations of the EPS integer that can be used to derive the P/E. Sometimes, a forecasted EPS can be used in charge to derive the forward P/E, which is an assessment of what the P/E will be at a future point surrounded by time.
Likewise, the figure used for the bazaar price of the stock from different sources may not necessarily be the same any. For more volatile stocks, using different market prices from time to day can affect the P/E weighing up. The specific value of the P/E ratio may not other be that important, it may be more crucial to compare the over trend of the P/E against other companies in its grazing land or against itself over time. For example, it may not matter if we find that a company's P/E is 100 on one site and 150 on another site, if we see that adjectives its competitors have P/E's within the 40-70 range. This may suggest that the company may be overvalued compared to adjectives its peers.
The effectiveness of P/E ratio contained by order as a breadth of the value of a stock is dubious, as there are different interpretations as what the P/E amount can represent. For example, possess a high P/E does not necessarily mingy that a stock is overvalued, the market may be anticipating that the stock is be doing okay in the adjectives; perhaps its income for the next year will be exceptional. The certainty is that the P/E ratio is too simple of a measure to be the definitive method of a stock's value. Other financial ratio should be analyzed as well.