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Economy is going south

Discussion in 'General Nonsense' started by kwchang007, Sep 29, 2008.

  1. kwchang007

    kwchang007 New Member

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  2. blkhogan

    blkhogan New Member

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    If I told u.. I'd have to kill u
    Not good at all. I think things will get alot worse before they start getting any better. I moved alot of my investments already, just to be on the safe side (if there is one).
  3. SystemViper

    SystemViper

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    without that bail out, it's gonna get worse before it gets better,
    I bet some banks will fail in the next few days.,
    keep your eye on whacovia....they beez tanking unless citibank sucks them up
  4. kwchang007

    kwchang007 New Member

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    They already have. This is going to hit home to everyone...I don't think anyone is going to be able to escape. It was just such a stupid decision they didn't pass that...sure no one knew what was going to happen if they did pass it, but they damn sure knew things would suck if they didn't pass it.
  5. SystemViper

    SystemViper

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    So TRUE, now it's just going to get crazy, it would have saved a lot of trouble with a lot of banks, I don't understand why they didn't p[ass it either, they think that terrorism is in Iraq, well this will take down our country a lot faster then any war.
  6. WhiteLotus

    WhiteLotus

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    When I studied Economics at A.Level we took apart the US economy as a case study; the general consensus was that it will crash some time in the future. The amount of debt that the country is in in unsustainable, it would have to crash to make things right.

    The idea of "bail out" is a load of bull. It's paid by the taxpayer, you the tax payer are paying for the mistakes of countless companies and senate/government. Why should that happen, either way the tax payer is going to be screwed.

    Laissez-faire comes to mind - just leave it alone to correct it self, the invisible hand will make it so.

    This is true - economics is more powerful than anything else, already a guy in the UK has killed themselves because of the bank crash/take over.

    However, I agree that it shouldn't be passed.
  7. SystemViper

    SystemViper

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    look we're paying now anyway, nothing will change there, but if banks start failing left and right, then io will be washing windows on the street corner, so i felt they needed to do the bailout no matter what.
  8. WhiteLotus

    WhiteLotus

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    There should be no Government help whatsoever. It is bad that people will lose out but then a government pumping money into the economy only makes it worse. The rebate that you had a while back was only a bad idea. Why? Because instead of everyone going out spending it on goods and services, they put it in the bank or paid of bills. So that just makes Debt even worse, just can't be sustained.

    The bailout would just be this on a bigger scale. Thing HAVE to get worse to get better, it's always the case.
  9. SystemViper

    SystemViper

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    I guess living in the UK, you can opt for the let it crash and burn, then pick up the pieces, but raising a family here in the states, I don't need any worse yet, so I would rather try and stop the leak before it's a flood.
  10. WhiteLotus

    WhiteLotus

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    This is true - and no doubt in a couple of quarters time we will get the full brunt of what's going on, unfortunately though, what ever action you take now, it'll take a few month maybe even years to kick in.

    Just got to wait and see.
  11. imperialreign

    imperialreign New Member

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    I agree with Whitelotus here - it all started because of a bank and CEOs that wanted to play around with the money, and screwed up big time . . .

    I'm sure they'd blame it on the people that couldn't pay their loans, etc, but at the same time, they and every other bank have been spitting out loans to people that can't afford them - because there's more money in it if people can't pay their monthly payments and are always late . . . but, again, there have been so many signs leading up to this - but our government doesn't want to step in and tell banks/corporations that enough is enough.


    Still - even if the government does bail them out . . . we, the people, will still be paying for it; the US' money doesn't just grow from nowhere (contrary to what our politicians think).
  12. SystemViper

    SystemViper

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    But the bad thing, if the bail out took the toxic debt from the banks, it made them solvent again and allowed them to sustain their business, but now that they still have that debt vs cash, lots will have to go belly up and hurt the average joe. Long term it's a real bas situation, but not getting rid of the bad paper in most of the banks and eplacing it with cahs could have catastrophic results. I am very worried and i guess need to go buy some bread and bullets.
  13. btarunr

    btarunr Editor & Senior Moderator Staff Member

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    Doesn't this kind of encourage companies to make mistakes :laugh:

    In the future, they know what happens if they screw up in such a scale, money from people rich and poor would bail them out. At least if they were left to their own, there was a chance of them being extra-sure not to make mistakes in the future. America faced the Great Depression "like a man". It emerged strong after that. They learned a lot from their mistakes. What moral would this fed bail-out teach the average capitalist today?
  14. kwchang007

    kwchang007 New Member

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    I don't believe the bailout would solve everything, just soften the blow alot. What we're heading into is pretty close to what the problem was with the Great Depression, except for the fact that the government had a chance to try and get the ship sailing in the right direction. In this case Laiseez-faire fails, why? Because there is no self righting of the ship today, no one is willing to lend money and things just go down from there. All of the worlds economists agree something bad is going to happen, but the big question is, how much worse is it going to get? If you leave things to be, the odds are we go into another great depression because no one is willing to give credit.
  15. SystemViper

    SystemViper

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    the small person has the best repayment percentage on the books, so it's not our loans but the streatching of the rules., My main point is that your gonna pay, no matter what they decide., but without the bailout your local bank could go belly up tomorrow, It about what could happen in the next few weeks that has me worried, i hope you have some cash on hand, because it could be a disaster in the next month.
  16. SystemViper

    SystemViper

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    I don't believe the bailout would solve everything, just soften the blow alot.

    Exactly, and right now it's not about who's fault it is but ,making sure average joe doesn't get all messed up. You know the moneychangers have their stash in case of emergency.
    I just don't want to see another REAl depression... :banghead:


    I'm sorry but i don't want to teach anyone anything, i just want to survive. We got the bloated goverment to teach those lessons, but not while we are in a perilious situation. leave the lessons for the less frantic times.
    i don't even care abotu that right now, i just want to make sure i can get my money out of the atm when i have to buy food. We need all kinds of reform, but we don't need to cut off our nose to spite our face.
    Last edited: Sep 29, 2008
  17. WhiteLotus

    WhiteLotus

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    In times of depression the best thing to do is to reduce spending. Lending money is just what is trying to happen now - again, to truly recover from the shear amount of debt the USA is now in, a lot of BAD stuff has to happen.

    This in effect cuts away the dead stuff to let the alive stuff to get going again. This is Laiseez-faire.
  18. kwchang007

    kwchang007 New Member

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    Exactly, this isn't going to go down well....they gave up their shot, I really think this is going to go down as one of those really stupid mistakes in history.
  19. kwchang007

    kwchang007 New Member

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    Lasieez-faire is government's taking the most minimalist approach to economy possible. Let me give you an example of where that would've been an epic fail, take the bailout of AIG. Let's go under the assumption AIG went under and the government didn't bail them out. Then all of the insurance plans on the mortgages other banks had would've gone bad, that means other banks would be in even worse shape than they are now. On top of all that alot of American's had insurance through AIG of retirement plans.
  20. DOM

    DOM

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    shit the company i work for is going to be shuthing down a surveillance place in ireland 320 ppl are going to lose there job in 12 months

    and where i work there going to be cutting the amount employees soon also i just hope im going to keep my job cuz the market where in is low for 09 and not going to pick up :(
  21. imperialreign

    imperialreign New Member

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    I'm with a credit union (thankfully) - they're a lot stricter on their lending practices, and a lot tighter with how they operate . . . unlike a bank. Notice, of all the financial institutions that are hurting right now - they're all banks. Not a single credit union is facing the gallows . . . yet. :ohwell:
  22. SystemViper

    SystemViper

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    yea, imagine banks got no cash, that means no credit, that means no spending, that means companies close the doors for lack of product sold or they can't get parts on credit anymore.
    no more auto business, jobs and it's a snowball rolling down hill.
  23. SimFreak47

    SimFreak47 New Member

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    The American Economy is a fail. Companies lose all this money, and need to lay off people. These people can't find new jobs, and can't afford to keep up with things. So then people buy less stuff, and the prices go through the roof. (Inflation). It's kind of a revolving door syndrome.
  24. Polaris573

    Polaris573 Senior Moderator

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    Passing it would have been one of the stupidest mistakes in history. Does anybody know what runaway inflation is? The United States dollar is not backed by hard commodities like gold or silver. It is backed by confidence of the people who invest in it (yes you can invest in dollars). What happens when we prove to the world how worthless the dollar is by printing 700 billion of them out of thin air? The United States dollar is the world reserve currency. What happens when due to runaway inflation the world starts to realize that those trillions of dollars they hold in reserve are absolutely worthless? They will start to get rid of them. How will the U.S. economy look when the dollar is worth pennies compared to other world currencies?

    Speculation, sub-standard loans, and spending beyond our means is catching up with us. The market has to drop. Propping up a broken system will only postpone the inevitable, you cannot fix overspending and bad loans with more overspending and bad loans.
    tkpenalty, Hawk1, flashstar and 3 others say thanks.
  25. kwchang007

    kwchang007 New Member

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    So the alternative is to sit here and watch the economy and to cross our fingers and to hope that it's not going to go to the gutter?

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