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LET ECONOMIES CURE THEMSELVES
Forbes Magazine ^ | 08-07-08 | Paul Johnson

Posted on 09/23/2008 7:54:56 AM PDT by mick

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I apologize if this was posted before. But I just read it. And it answers for me at least the course of action the Government should take regarding the Wall Street melt down....let nature take it's course !!....but, sadly, I must say that this type of proposed bail-out coming from GWT confirms again everything his enemies on the right have been saying about the man...when push comes to shove he is not a friend of conservative, constitutional values and is devoid of principle. He is an ignorant fool. We are heading for bad times.
1 posted on 09/23/2008 7:55:04 AM PDT by mick
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To: mick

That’s “this type of bailout coming from GWB ! sorry.


2 posted on 09/23/2008 7:59:19 AM PDT by mick
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To: mick
but, sadly, I must say that this type of proposed bail-out coming from GWT confirms again everything his enemies on the right have been saying about the man...when push comes to shove he is not a friend of conservative, constitutional values and is devoid of principle. He is an ignorant fool. We are heading for bad times.

America needs decisive leadership, unfortunately, Bush has abdicated his powers to Hank Paulson.

3 posted on 09/23/2008 8:01:55 AM PDT by adm5 (WE HAVE TO STOP THE PAULSON BAILOUT SCHEME!)
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To: mick

I have watched CNBC a lot the past week and while there has been grumbling about the situation, what got us here and what’s been offered up every money manager, finance expert and even the commentators is about how seriously at risk the entire US economy is right now.

This problem started with the government now government has to fix it. Yes, there was mismanagement and greed involved but when the government told the banks that they had to start lending to people who didn’t deserve the money and that they would back the loans then the die was cast.


4 posted on 09/23/2008 8:05:56 AM PDT by misterrob (Obama-Keep the Change!)
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Comment #5 Removed by Moderator

To: adm5

I don’t want Bush leading this. I want him to give it to people who know their ass from their elbow and to demand some accountability for the outcome. I then want him to give it to people to sell the solution who can communicate the facts.

Delegation is the key.


6 posted on 09/23/2008 8:07:40 AM PDT by misterrob (Obama-Keep the Change!)
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To: tcrlaf
This aspect gets ignored by too many people. The loss of confidence in the US would pretty much reduce us to beggar status. The crash and accompanying fallout simply cannot be measured.

We have a chance now to get things under control, get our government spending priorities straight and emerge from this a bit wiser.

Not holding my breath though...

7 posted on 09/23/2008 8:12:32 AM PDT by misterrob (Obama-Keep the Change!)
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To: misterrob
is about how seriously at risk the entire US economy is right now

What is the downside? How much? How soon? Show me the math models.

I may want to suck up some pain now as a practical choice.

We are being sold a pig in a poke by people who should've seen this coming instead of assuring us at each bump in the road it was the last.

8 posted on 09/23/2008 8:16:28 AM PDT by Glenn (Free Venezuela!)
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To: mick

we had sound money in those days. There’s no reason to think this economy will recover under this fed. Look how high the price of gold is. I assure you that’s not because people suddenly want more dental fillings or bracelets.


9 posted on 09/23/2008 8:19:22 AM PDT by ari-freedom (We never hide from history. We make history!)
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To: Glenn

I draw a big difference between taking over the auto industry and their pensions due to bad decision making, poor management and communist unions and the financial sector.

The government made the banks loan money to people who didn’t deserve them and then said they would back the loans. People who then bought that debt were sold a bad bill of goods. Once people lost faith in the asset values then there was no way to lend money or gain access to credit. No credit availability means the financial system grinds to a halt and the ripple effects are felt everywhere.


10 posted on 09/23/2008 8:22:37 AM PDT by misterrob (Obama-Keep the Change!)
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To: mick

I suggest Congress pass a massive (and permanent) across-the-board tax cut, and then get out of the way.


11 posted on 09/23/2008 8:25:41 AM PDT by KingSnorky
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To: misterrob

I am not counting on any changes either.

The political philosophy that it’s the governments role to make everyone financially equal through using programs such as AA and CRA will not change. It must not even be discussed.

It’s reported that Obama is at 51% right now.

EVERYTHING we are going through now will reoccur in 25 years.


12 posted on 09/23/2008 8:34:54 AM PDT by NoLibZone (Fannie Mae & Freddie Mac - are not facing any kind of financial crisis,'' Barney Frank 9-10-03)
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To: misterrob

I agree with you. There are plenty of reasons for this debacle. Going all the way back to 1913 and the creation of the Fed. But the point of the article, as I read the history of previous crashes, is that no matter what the cause it is better for the whole country that the system is cleansed of these toxic assets by massive liquidation. Any kind of Government intervention will only make things worse. This is the lesson of history.


13 posted on 09/23/2008 8:43:30 AM PDT by mick
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To: KingSnorky

that’s not enough. That only works in a typical recession. We’re not in a typical recession, why the unemployment isn’t that high and GDP growth isn’t that low.

There’s a reason why the market chose to infect itself with all the subprime loans and other crap.


14 posted on 09/23/2008 8:53:01 AM PDT by ari-freedom (We never hide from history. We make history!)
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To: KingSnorky

I think it is time we make our own tax cuts. Stop with holding by changing W-4’s so no income tax is taken out of pay checks. If every employee did that the bastards in D.C. may get the message, It is our money.”


15 posted on 09/23/2008 8:56:59 AM PDT by Betty Jane
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To: mick

we wouldn’t have an economy after this ‘massive liquidation.’ No banks, no credit. Nothing. We’d have to barter.


16 posted on 09/23/2008 8:57:10 AM PDT by ari-freedom (We never hide from history. We make history!)
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To: ari-freedom

The real economy is farmers growing food, truckers delivering goods, manufacturers making things, etc, etc....and money would still be in the system to facilitate trade.....sure, a lot of people would lose tremendous amounts of paper and real assets and the economy would collapse for awhile....but read your history....productive people dig themselves out of these messes like was done before...besides , we have no alternative......liquidation is coming either sooner or later....IMHO better sooner and quicker so we can then start to re-build


17 posted on 09/23/2008 9:02:58 AM PDT by mick
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To: Betty Jane

Now that’s a plan !!!


18 posted on 09/23/2008 9:05:05 AM PDT by mick
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To: ari-freedom

I never said it was enough.

What I am saying is that tax cuts are beneficial to the economy regardless of whether it’s growing or receding, and should be part of the solution. (This is far preferable to another round of stimulus checks that the Dems are determined to pack into this bail out boondoggle.)

By the way, “the market” never “chose to infect itself with all the subprime loans and other crap.” The federal government — an economic Typhoid Mary — was the carrier of this infection.

Thanks for your message.


19 posted on 09/23/2008 9:11:09 AM PDT by KingSnorky
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To: mick

we can’t allow the economy to collapse. simply not an option.


20 posted on 09/23/2008 9:16:44 AM PDT by ari-freedom (We never hide from history. We make history!)
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