Posted on 09/28/2008 12:30:41 AM PDT by xtinct
Due to AP restriction click link
the Fed will have $700 billion worth of “bad debts”
and squatters living in $300,000 homes, that they can keep, with all the furnishings and 2 new cars they can now afford payment on, being Congress will forget all debtors
Would be interesting to see if this includes La Raza.
Your analysis is upside-down.
But people who believe in abortion up to the third trimester aren't going to go for that. It's the same kind of reasoning when you think about it. No exceptions! Bailouts of mistakes for all! Wipe it away so it looks like we weren't responsible for "the problem" whatever it may be.
Oh I knew this was coming, the resident political geniuses speculating that McCain was doomed unless he waived a magic wand and the Dems had a Come to Jesus moment when it came to Conservative principals. McCain did the right thing coming back to do his job, Obama the organ grinder monkey will still lose in a landslide. Don’t get your panties in wad just yet.
My uncertain recollection is that GE and GM both got themselves added to the list of financial companies whose stocks the SEC currently does not allow shorting.
GM however just got part of the $25 billion bailout in the other big bill from congress - the omnibus spending bill, so I'm hoping they can pay the rent for a few more weeks.
I suspect that GE (and GM) are representative of a class, but they are "outstanding" representatives of that class, and I don't offhand recall hearing specific names of any others in that class (well, Ford, perhaps).
“Every dollar of debt destroyed means that 8.65 dollars of money supply are lost due to the reserve ratio.”
Which means that those such as Dave Ramsey who preach the elimination of personal debt are economic subversives.
“The flakes and deadbeats do not because the government can just adjust their mortgages to fit their tear-jerking circumstances.”
The folks who have been responsible or tended toward responsibility will get themselves out of debt and be more receptive to an anti-debt philosophy as a result.
Those who are not responsible will probably remain eternally enslaved to debt anyway. They’re addicted. Helping float them right now just ensures that they don’t have to focus on their debt addiction. An addict never gets help unless they hit bottom. The banks are just making sure that they have a market for debt in the future.
The main force pushing up the prices will be the inflation that is, in my view, inescapable, as inflation is the only way we can reduce to a manageable level the impact of our current debt, and of our unfunded liabilities for Social Security, Medicare and various retirement fund commitments.
It says to check your Bank's rating and only invest in B+ or better. Can anyone tell me how to check a Bank's rating?
I had always thought that dept was money that you didn't have..and to be more to the point dept is imaginary money..(it's not there).IE: IOU..... I'd rather be dept free than be a slave to the lender...
IS YOUR BANK SAFE?Many banks are struggling in this tough economy.
Is yours safe?Check your bank's
This is even more reason why we can't let Obama become President. To have the Dems execute this mess with a D controlled Executive and Congress would be, well, enough to make me cry. I just hope McCain would have more leadership than Bush has had, to help us weather this mess. While everybody's dumping on the Dems participation of Fannie Mae and Freddie Mac, the Republicans had control of Congress once during this Administration. All of them need to be voted out IMHO.
As long as the RATs can please the 43% who don’t pay taxes they’ll be satisfied.
There was a deflation in the money supply then. Remember Clinton bragging that the government was ‘running a surplus’?
I was working for a commodity company then, the price of everything was droppping....
http://www.aei.org/publications/pubID.9831/pub_detail.asp
What are the symptoms of this dangerously accelerating deflation? To answer this question, it pays to look simultaneously at the behavior of interest rates, exchange rates, and stock prices. Normally a strengthening currency and rising interest rates together constitute a sign of economic vigor since upward real returns can generate that observable combination of price movements. Simultaneously one would expect to see stock prices climbing as a reflection of higher expected real returns. Investors in such circumstances would be switching from bonds into stocks as expected earnings rose faster than interest rates. International capital then flows into the country with rising real returns to buy into the higher expected real growth; this process leads to the popular notion that a strong economy means a strong currency. The demand for cash is stable with higher incomes pushing it up while ascending real interest rates quash cash demand and induce substitution into bonds and equities. This situation prevailed in the United States from mid-1995 to mid-1998.
Japan’s Lack of Wisdom
The picture changes in a world of accelerating deflation, especially when the government, as Japan has unwisely done, proposes to fight the deflation with more spending and tax cuts. Keynes identified absolute liquidity preference (he never mentioned a liquidity trap) as a situation in which investors have an absolute preference for cash over bonds because interest rates are so low that they expect them to rise. The conviction that bond prices can only fall (or interest rates can only rise) produces a strong or absolute preference for cash. Stock prices too are expected to fall because accelerating deflation pushes down expected earnings as the attendant rising expected of real yields on bonds and cash draws funds away from stocks. In this environment a rising currency and rising interest rates are matched by a falling stock market. This combination has appeared intermittently in Japan over the past several months and signals an urgent need for reflation.
Japan’s manifestation of the most serious deflationary symptoms demands a closer look. Japan has made a disastrous policy error by promising to fight deflation with higher spending and lower taxes. Under this plan the weaker the economy gets (and it is getting weaker, as seen in recent reports such as the Bank of Japan’s December Tankan survey), the larger the expected supply of bonds becomes. The rise in the expected bond supply supports the Keynesian notion of absolute liquidity preference by reinforcing the idea that bond prices will fall (interest rates will increase) and so funds rush into cash and out of bonds, stocks, and foreign assets. Foreigners can participate in the switch out of bonds and into cash by buying yen, selling Japanese government bonds (JGBs), and selling stocks.
“Dave Ramsey is incredible.”
Agreed. I never heard of him six months ago. His radio program isn’t played in my area. I ran across one of his podcasts and have been listening ever since. While I disagree with him on some details at the margins, his philosophy is sound and I’m delighted to see it spreading.
“..got out of debt. One of the best things that I have ever done.”
Congratulations! Emancipation feels good, doesn’t it?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.