Posted on 09/23/2008 8:11:47 PM PDT by proudtobeanamerican1
How is it going to affect us in our every day lives? Your thoughts?
Get ready for some really stupid answers.
The average Joe Biden will be fine. The other average Joes, not so much...
It has affected my life by causing me to feel embarrassed for my country.
Most of us are not old enough to appreciate what a true collapse of the system will mean. At the very least will come the shock of being forced to live within our means. And those who are in deep debt will lose what they possess but do not technically own. We also have to remember that during the depression some people managed to make money and others weathered the storm by becoming more self-sufficient. It is also, I fear, an opportunity for the enemies of freedom and capitalism to prosper.
Strickly economically speaking, cost of liquid capital would skyrocket.
A few banks that would be left standing would be able to charge anything they want for morgages or loans.
Oil & commodity prices drop, coasing deflation, yes, deflation.
As far as average Joe is concerned, he won’t be able to get a loan or morgage of any kind, period. Let’s see - housing prices drop further, car sales - drop further.
Unemployment skyrockets, as companies can’t borrow.
From previous lessons in economics, it should last about 3 years.
What about those of us who owe no man anything and have a diversified portfolio?
I haven’t seen your answer yet. Mine is do we REALLY want to roll the dice and find out how bad it would get? Does ANYONE really KNOW how bad it would get?
Nothing. No emergency here.
If this were a real emergency, the traders on wall street would have already liquidated all their positions and taken what profits they could take earlier this week. They would not wait one minute for the chance of a bailout later, ie. a tax giveaway plan from Congress.
A real emergency would look like what happened to the stock market after September 11th. This is not an emergency.
So in other words, stupid people (that do NOT live within their means) suffer. Interest rates for cars go up, no worries. And CASH is king.
No worries.
Good points. But what would the down side be?
Move your portfolio into the safest deflation-resistant holdings you can, weather the crash, then buy like mad. You could very well set yourself - and your family - up for a VERY long time!
The productive people will pick themselves up and keep moving.
I was asking for your opinions.
I think that ultimately we are better off as an economy to not bail them out and let it work itself out naturally. I do not believe that this is the end if we do bail them out, so what is the point? The hands will keep being held out. They are already talking credit cards and car loans, where does it end?
I don’t understand how calling all the loans will help. I would say a large percentage of the US could not cover their mortgage. Do the remaining people buy all the property and we rent or get government subsidies? Those have to run out eventually.
In my opinion, the best way to proceed at this point, is, instead of government purchasing all the “bad dept”, we should basically partially nationalize some of the banks that are failing.
At this point, I see it as a best way to protect taxpayers. With AIG, government got 80% of the company, diluting existing shares 5 to 1.
To avoid this, some banks would raise capital, while other, in the bigger hole, would be partially nationalized, to be resold a few years later.
Cost to the taxpayers would be a fraction of $700 bil., and it would prevent all out recession.
Don’t forget, the FDIC will go bankrupt too, since IndyMac hit it pretty hard, and then WaMu will destroy the rest. During all of this, we’ll have a run on the banks that will make 1929 look like 1999. The the Euroweenie, Japanese, Chinese, and Arab banks will snap up anything that’s left with any value. Yeah, good idea.
Aside from the economic implications, I’m most concerned that the people(Paulson, GWB, admin) making the decision will not be in power in a few weeks. They don’t have the following years to preside over the country after their decision. IMO, this is a good enough reason to pass a stop gap measure until the new admin(hopefully McCain) takes over.
The bad actors are littered around DC. The enablers are the rhinos who remain silent along with the media and back bench talk show hosts.
Term limits are the answer.
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