New ultra roller coaster for 2008: The 'Wall Street'
Theme Park Insider readers love their roller coaster drops
, right? Well, then check out this out:
That's the U.S. stock market's Dow Industrials average for today. With a nasty 400-point drop in five minutes, followed by an immediate rebound, then another 200-point drop.
Talk about some wicked airtime! Man, I hope those lap bars were well padded. ;-)
Let's make this an open thread, to talk about the stock market, the economy, the mortgage mess, or whatever else might be affecting your love for theme parks and ability to go visit them.
Personally, I think a lot of people in Washington and on Wall Street are operating under the delusion that what we have is a liquidity crisis, a crisis of confidence. I think what we have is a solvency crisis, due to banks abandoning sound lending principles. They gave too-large mortgage loans to people who would never be able to repay them, under the assumption that housing prices would rise forever, making the borrowers' inability to earn enough money to make those payments irrelevant. (They'd just refinance against the rising home values.)
That's a great Ponzi scheme, until you run out of
borrowers suckers. When we did, prices stalled, pushing some borrowers into foreclosure, leading prices to decrease, pushing more into foreclosure, causing prices to crash. Then the value of the securities backed by those mortgages crashes, as well. Leading us to where we are today.
What does this mean? Well, home equity loans paid for a heckuva lot of Disney World trips over the past six years. With those gone, life's gonna be tough for theme parks that don't have compelling new rides and aggressive discounts or deals to offer a cash-strapped market.
Well, I wish I knew more about economics so I could fully understand your reasoning. Unfortunately, my experience lies in engineering so I'm a little lost ...
That would be a great name for a ride. Anybody remember the Family Guy episode when the went to Disney World?
this is scary for probably every theme park.
I updated the graphic with the day-end chart.
I'm glad that more people are getting involved too, particularly those who are asking questions. The recent failure of the bailout bill and passing the buck clearly demonstrates to me that it's time for something other than just Republicans and Democrats in charge of our collective fates. They are(once again) proving their incompetence and incapability of working together even on the biggest of threats. If the average worker performed like our government does, they would be fired and possibly in jail.
I'm a finance major and day in and day out, I'm constantly hearing news about our economy and this is just another chapter in it.
At the risk of sounding simplistic, callous, or ignorant...
Here here, Bruce.
While I am not a big fan of the bail out, the execs who caused the problem won't be hurt (they already have golden parachutes in place), but the average Joes and Janes that work at the companies the big execs have run into the ground are going to be out of luck. Their jobs will just evaporate.
Sorry, but this is a hot-button for me:
The term bailout is a bit of misnomer. The government is buying up the bad mortgages from these failing banks to keep them afloat. The government is getting them for a cheap price. Since home prices always, eventually, go up; this will actually make the government money in the long term. The taxpayers could double or triple their investment. Maybe you are against a socialized economy. However, as Mr. Rao stated, not doing anything could create a 2nd depression. I agree that the executives at these companies should have their golden parachutes taken away. Nevertheless, this needs to be done. We live in a global economy where foreign countries own trillions of dollars of our debt thanks to fiscal irresponsibility from the top to the bottom. The government has wasted money, companies have wasted it and so have we. The average American has $10,000 of debt and it is catching up to us. This plan needs to take effect or more Hard Rock Parks will happen. The proposed makeover to DCA will be hampered and there will be cut backs and no new attractions in WDW for years to come.
The government is not getting this property at a cheap price. Most of the bad real estate debt they are buying up was written during the boom of 2006. We are now currently at 2004 prices, which were much lower. Someone has to absorb that loss, and with the bailout, it’s the tax payers.
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