Posted on 12/02/2007 6:37:11 PM PST by Rockitz
Cash will be king and responsible savers and investors will be able to invest at rock-bottom prices.
You have some peculiar ideas of how the gold standard operated. Gold operated as the monetary base, not the sum of all bank money and credit money in the banking system. Von Mises Theory of Money and Credit is a good source for learning how it worked.
Alexander Hamilton built a large quantity of money for the US on a small stock of gold by accepting paper dollars or bank money for taxes, and paying out gold for interest on the debt, if gold was requested. Being on a gold standard didn’t confine the economy to the tiny amount of gold on hand in the Treasury.
Just like the Great Depression. The 25% unemployment rate was a drag, other that that.....
Unless their investments decline in value with a real-estate fueled depression...I think that’s what RC was getting at.
I assume you’re counting on FDIC for that cash, because the sort of price collapse you’re talking about will lead to a lot of bank failures.
There are many investments that are isolated from this debacle.
What percent of the bad loans are to illegal aliens who have stolen someone’s identity or social security number? 2003 is when the gubmint started requiring mortgage lenders to give loans to illegals with phony numbers and other nerdowells with undocumented incomes.
There are far more that are not.
And the borrowers can’t claim ignorance.
They had to sign a thousand pages of informed consent.
Choose wisely, grasshopper!
I think you should do some reading up on the Depression of the 1890s.
I would also like to know how many illegals have defaulted on their loans. My guess is that info will not be forthcoming.
“Cash will be king and responsible savers and investors will be able to invest at rock-bottom prices.”
That’s why I never keep more than 2 months cash in a bank account, that I can afford to lose.
I’ve never borrowed to buy anything but one home and that mortgage has been paid off for over 15 years, everything else I took my upbringing to hart that if you don’t have the cash to pay for it you don’t need it.
That included an airplane that I saved for yesrs for the $64,000 I paid for it.
Yes, well as in many other of life's ventures Nice Guys Finish Last. Hedonism Rules, especially when you can stick the squares with picking up the check.
If the GOP wants to placate the voters, a bail out is not the answer. Finding the ones responsible for the fraud, quick trial and a public execution would guarantee a GOP victory in 2008.
It might be here somewhere:
http://www.hispanic.cc/immigration.htm
I sure as HELL do not want to pay the payments on a bunch of dead beats who can’t make their payments. Let the Banks Fail. Let the Economy adjust itself. No Socialism and redistribution of wealth from the wise to the greedy or foolish.
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