Banking bailout: and so it begins.......
- Thread starter VeeDubb
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I like him. Let's write him in for President.
Krugman:
Quote:
When the Fed is worried about the state of the economy, it basically responds by printing more of that green paper, and using it to buy bonds from banks. The banks then use the green paper to make more loans, which causes businesses and households to spend more, and the economy expands.
This process can be almost magical in its effects: a committee in Washington gives some technical instructions to a trading desk in New York, and just like that, the economy creates millions of jobs.
But sometimes the magic doesn’t work. And this is one of those times.
Quote:
When the Fed is worried about the state of the economy, it basically responds by printing more of that green paper, and using it to buy bonds from banks. The banks then use the green paper to make more loans, which causes businesses and households to spend more, and the economy expands.
This process can be almost magical in its effects: a committee in Washington gives some technical instructions to a trading desk in New York, and just like that, the economy creates millions of jobs.
But sometimes the magic doesn’t work. And this is one of those times.
Indeed. We have stagflation, plain and simple. Funny money out the wazoo amidst rising prices - mainly as a result of energy costs, during a recession.
The best thing the fed could do is just stop - don't bail anyone out, let the recession run it's course and clean out the toilet, and we'll be a helluva lot better off going forward.
The best thing the fed could do is just stop - don't bail anyone out, let the recession run it's course and clean out the toilet, and we'll be a helluva lot better off going forward.
Originally Posted By: Drew99GT
The best thing the fed could do is just stop - don't bail anyone out, let the recession run it's course and clean out the toilet, and we'll be a helluva lot better off going forward.
But that's exactly what the Hoover administration did during the great depression and things went down the toilet real quick. Hoover was ideologically opposed to market interference and let it run its course. The result was one of the ugliest chapters of U.S. history. Bernanke, a student of the great depression, is doing the exact opposite of the Fed under Hoover. Big Ben is trying to preempt everything to keep the $hit from hitting the fan. I have no idea whether it will work but we all know the Hoover approach didn't work.
The best thing the fed could do is just stop - don't bail anyone out, let the recession run it's course and clean out the toilet, and we'll be a helluva lot better off going forward.
But that's exactly what the Hoover administration did during the great depression and things went down the toilet real quick. Hoover was ideologically opposed to market interference and let it run its course. The result was one of the ugliest chapters of U.S. history. Bernanke, a student of the great depression, is doing the exact opposite of the Fed under Hoover. Big Ben is trying to preempt everything to keep the $hit from hitting the fan. I have no idea whether it will work but we all know the Hoover approach didn't work.
Originally Posted By: VeeDubb
Originally Posted By: Drew99GT
The best thing the fed could do is just stop - don't bail anyone out, let the recession run it's course and clean out the toilet, and we'll be a helluva lot better off going forward.
But that's exactly what the Hoover administration did during the great depression and things went down the toilet real quick. Hoover was ideologically opposed to market interference and let it run its course. The result was one of the ugliest chapters of U.S. history. Bernanke, a student of the great depression, is doing the exact opposite of the Fed under Hoover. Big Ben is trying to preempt everything to keep the $hit from hitting the fan. I have no idea whether it will work but we all know the Hoover approach didn't work.
WWII really helped the U.S. climb out of the great depression.
Originally Posted By: Drew99GT
The best thing the fed could do is just stop - don't bail anyone out, let the recession run it's course and clean out the toilet, and we'll be a helluva lot better off going forward.
But that's exactly what the Hoover administration did during the great depression and things went down the toilet real quick. Hoover was ideologically opposed to market interference and let it run its course. The result was one of the ugliest chapters of U.S. history. Bernanke, a student of the great depression, is doing the exact opposite of the Fed under Hoover. Big Ben is trying to preempt everything to keep the $hit from hitting the fan. I have no idea whether it will work but we all know the Hoover approach didn't work.
WWII really helped the U.S. climb out of the great depression.
The more money that is printed the less the dollar is worth. So the cost of everything will go up { the price of oil for example}.I hope what happens will be the beast for everyone ,not just the ceos of the large corps.who own the politicians look up who gived the most$$$ to all the politicians.
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I'm sure it'll be the beast for all of us.
Originally Posted By: moribundman
I'm sure it'll be the beast for all of us.
Was that a mistake or a slip? Anyway mori keep me going.
I'm sure it'll be the beast for all of us.
Was that a mistake or a slip? Anyway mori keep me going.
not a mistake. prepare to be chipped
I'm watching the Money Masters DVD - interesting historical info on banking (fractional reserve, Rothchilds etc). Included was this quote:
Quote:
"If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered."
-- Thomas Jefferson
Quote:
"If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered."
-- Thomas Jefferson
Read that quote quite a few times.
http://www.livingdebtfree.info/banking_quotes.pdf
http://www.seek2know.net/money.html
http://www.livingdebtfree.info/banking_quotes.pdf
http://www.seek2know.net/money.html
One of many good quotes from that Jim Rogers clip:
Quote:
If you bail out every investment bank that gets in trouble, that's not capitalism, that's socialism for the rich. That's not the way this system's supposed to work. And why should 300 million Americans suffer so that we can bail out 2 or 3 investment banks on Wall Street. So that they can all ride around in Maseratis and get in planes and fly to exotic places around the world?
Quote:
If you bail out every investment bank that gets in trouble, that's not capitalism, that's socialism for the rich. That's not the way this system's supposed to work. And why should 300 million Americans suffer so that we can bail out 2 or 3 investment banks on Wall Street. So that they can all ride around in Maseratis and get in planes and fly to exotic places around the world?
Originally Posted By: tpitcher
Hi Veeubb,
I am debt free for the past 15 years except for a bit on the 15 yr, 5.25% mortgage.
I have all of the toys paid for.
If I use a credit card, it is paid off every month.
I have saved & invested & have cash in money mkt funds waiting to buy in whenever it looks better.
I think the commodities may be in a bubble, but could be wrong.
I would say you are correct everything runs in cycles .
Hi Veeubb,
I am debt free for the past 15 years except for a bit on the 15 yr, 5.25% mortgage.
I have all of the toys paid for.
If I use a credit card, it is paid off every month.
I have saved & invested & have cash in money mkt funds waiting to buy in whenever it looks better.
I think the commodities may be in a bubble, but could be wrong.
I would say you are correct everything runs in cycles .
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