So if they failed, all the depositors would have received their guaranteed deposits back from....
....the federal government.
How much would that have cost, directly from the payments and indirectly from the inevitable run on other financial ins utions?
I expect a graph.
Com'on now. If not wanting to repeat the great depression makes one spoiled rotten then I guess thats me. Whats the point of advancing our society if we simply view the past sufferings with some kind of misplaced nostalgia? I'm fairly certain those who lived through the Great Depression would avoid it had they the chance to do so.
I can find fault in the average American for many things, but I can not fault them for not wanting to be out of work and or poor.
Anyone else worried that this jobless recovery, along with rising prices of oil and other commodities and quan ative easing and high levels of federal spending, might ultimately result in stagflation?
Yep, stupid people electing stupid politicians.
I'll agree to the point that Japan has a high tax burden and higher debt burden. We have been following. You cannot borrow yourself out of bankruptcy.
Look at the huge market drops when the bailout was being passed. Isn't that any indication to you it was the wrong approach?
OK, all the glitsy commercials made lemmings pull out second mortages and equity from their homes. People speculated in the housing market that was 100% sure to crash. Yes... they were stupid.
Bankers were given paths to loan money on bad loans. The investors on those banking stocks should all have lost their values rather than being propped up with tax dollars. When shareholders are threatened with bankruptcy, they make better decisions than when they are given money for bad choices.
Look... They are doing it again. They will fail again, because the regulations haven't changed.
My worry isn't the commodity prices, but that our government will tax productivity out of existance, and even more jobs will be lost.
Worried? No.
I see that as one of the best possible outcomes, the very best being a Japan style outcome.
Last edited by Winehole23; 10-29-2009 at 06:05 PM.
Sure. I'm not a bit nostalgic for it. I just don't think we'd weather it as well. We're spoiled rotten irrespective.
I don't fault anybody for it.
Strawman alert.
I'm fairly certain saying someone is spoiled rotten implies a fault, WH. Rotten certainly doesn't imply anything positive.
I'm not sure how well we'd weather it. I do think that there were perhaps many in the 1920s who felt the same way you do.
Sure, but the dependent clause -- because they don't want to be poor and unemployed -- is pure strawman.
What I said is we mightn't survive depression as well as our ancestors because we are spoiled. Not that we are spoiled because we are unwilling to be poor and unemployed.
Last edited by Winehole23; 10-29-2009 at 06:17 PM.
So does Irving Fisher.
http://us.yhs.search.yahoo.com/avg/s...-tb-web_us&p=b
From the excellent LondonBanker: http://londonbanker.blogspot.com/200...-of-great.html
Assuming, accordingly, that, at some point of time, a state of over-indebtedness exists, this will tend to lead to liquidation, through the alarm either of debtors or creditors or both. Then we may deduce the following chain of consequences in nine links: (1) Debt liquidation leads to distress selling and to (2) Contraction of deposit currency, as bank loans are paid off, and to a slowing down of velocity of circulation. This contraction of deposits and of their velocity, precipitated by distress selling, causes (3) A fall in the level of prices, in other words, a swelling of the dollar. Assuming, as above stated, that this fall of prices is not interfered with by reflation or otherwise, there must be (4) A still greater fall in the net worths of business, precipitating bankruptcies and (5) A like fall in profits, which in a “capitalistic,” that is, a private-profit society, leads the concerns which are running at a loss to make (6) A reduction in output, in trade and in employment of labor. These losses, bankruptcies and unemployment, lead to (7) Hoarding and slowing down still more the velocity of circulation.
The above eight changes cause (9) Complicated disturbances in the rates of interest, in particular, a fall in the nominal, or money, rates and a rise in the real, or commodity, rates of interest.
I blame that on all the Republicans saying the bailout wasn't going to work. If only they had talked up the plan, the economy would've went into an upswing.
Fair enough.
As long as the world economy remains on life support I'm not worried about inflation, much less stagflation......temporary worker numbers are up which are a good sign that employers are either hiring or are getting ready to hire more permenant workers...job-less growth come just before economic runs...all the signs are there for a few years of economic growth....if Obama can reduce overall spending during this growth, maybe we can start paying off some of that 10 trillion dollar debt Bush left us...
All the signs are there that we are doing exactly the same thing we did before. With luck maybe we do get a few years of economic growth out it. Then....
No, the big market players know better than what is hyped. The republicans only stated the truth.
They did more than say it wasn't going to work. The evil they displayed with those tea parties and all the hate is something I have never seen before.
Cute Darrin. Why are you rooting against the economy? Why do you hate America?
I'm not rooting against the economy. I've already recovered my losses from mid-2008.
I just think some of your comments are over-the-top.
Be more specific.
If we are to blame others for argueing in a negative aspect, then it's the media's fault for pushing a recession until their guy got elected. It's the Dem's fault for Iraq going so bad from 05-07. It's the media's fault we didn't recover faster than we did, for calling it a recession when Bush had 5% unemployment, in 02 I think.
Check yr sarcasm meters, boisss.
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