VANITY: What happens when an economy collapses? (Just for conversational purposes)

Vanity | 3-27-2010 | Vanity

[OKSooner]

Here's a question to open up conversation today:

What happens when an economy collapses?

Okay, hyperinflation causes money to no longer be worth even the paper it's printed on.

[PugetSoundSoldier]

Here you go.

[central_va]

Down here, we have other contingency plans.....

[jjsheridan5]

You are right. But one thing to add: there will also be tremendous scarcity of some things. So there will also be some areas where money will have less purchasing power.

Another factor to consider is that while things like housing may become cheap, holding on to that house may become quite expensive. Expect property taxes to increase substantially, as governments attempt to squeeze whatever is left.

[raybbr]

There was a blog a few days ago about how the market was still going up after that bill was passed on Sunday. Did anyone have a reason for the market doing that? Something is just not right there and I didn't hear any explanation for it...

I often wonder the same thing. Especially when, yesterday, several companies announced humongous charges based on the HC bill.

The short answer, in my mind, is the people with the wealth are manipulating the marker for short term gain and then will bail out when the fan gets dirty.

I have no idea what, or if, the average investor is "investing" in. It makes no sense.

Also, remember the taxes that will be generated from a massive sell off. The WH is probable waiting with glee for that.

[Travis McGee]

You are callin’ Central Virginia “down here?”

Hell brother, from where I sit, you are next-door nighbors to the Yankees!

(Just funnin’ you.)

[444Flyer]

Obama zombies are not very bright.

Unfortunately, because they all have the entitlement mindset, they will feel free to attempt to steal what is yours. Something everyone should keep in mind when preparing.

[matginzac]

In posing this question, I think it behooves interested people to go back to Sept ‘08 and find out what caused the initial “crash” that conveniently affected the Nov ‘08 vote...even Rush found it to be a little too convenient...
then watch those players closely in the next few months...
I think we would be justified in thinking we are nothing but pawns on a chess board...except in our own back yards...

[ClearCase_guy]

And I don't think the Guard and Armed Forces will necessarily defend the current WH occupant by firing on a citizen army.

I agree -- but that's really the most important Unknown at this time. Certainly the military follows orders, but the emotional toll of firing on American citizens would be tremendous. PTSD? Yeah, I think the troops would have a really hard time shooting down middle aged Americans so that the Kenyan usurper could hold on to power. Those troops know they'd have to go home and tells their families what they did.

[Pelagius of Asturias]

I don’t have a pitchfork, but I do have . . .

[SonOfDarkSkies]

I have spoken to several brokers and investors over the last few weeks about the HCB. The brokers are clueless (but optimistic) and the investors are either following the crowd (and clueless themselves) or unsure of what to do.

Remember that the stock market is not the economy and has a life of its own. Its owners are fully capable collectively of excessive optimism, denial, blindness, confusion.

Since the markets typical move on REAL data and since the effects of the HCB haven't been felt yet (though some companies are reporting estimates of pain), I think the markets are still assessing the future effects of the HCB.

In its optimism, the market may be expecting the HCB to be "fixed" such that it deadlier aspects are removed. I am not of that opinion.

[mel]

i will do that also. thanks

[KevinB]

Ping

[mel]

Excellent question, one that probably many of us were too embarrassed to ask, but need to know. thanks

[Travis McGee]

The first edition is not well edited and there are some english/spanish miswording issues, but the information is priceless.

[Tarpon]

No problem here ...

Did you hear Sean’s interview yesterday with the Obama zombies? It was entertaining and enlightening at the same time ...

[central_va]

The difference between the two va’s, the one above the Rappahannock River (I call it “The New Rubicon”) and below it are stark as night and day.

[hstacey]

Thanks for the information. Will I guess we will see what happens. The big corporations are now getting a chance to really look at this bill and they are freaking, so I expect the market to follow suit...

[Misterioso]

An economy? The USA can't be described that way. There is no precedent in history. If you want to know what happens, just take notes.

[advance_copy]

Virginia defines Southern.

[444Flyer]

"....But the currency would be worthless as it is established on the good credit of the U.S., which no longer exists. Nothing less than tangible currency would be acceptable, which is gold, silver, platinum, anything of value to the traders."

Everyone should give these out to a family member who voted for or supports Obama for a Christmas present this year. When they ask what it's for, tell them it'll be their new wallet before Obama's done with America.