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#276 (permalink) | ||
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MURICAN
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First of all, a recession is usually just 2 consecutive quarters of negative GDP growth, which we will probably see. You say recession like it means death. But the fact of the matter is that the economy and especially the financial markets are death! Nobody on Nubblies is more qualified (except maybe UMB) to talk about this than I, and I can tell you that the credit crisis is very real, people are going under just because people won't lend to them. People won't lend to each other because people are going under. Lots of value and jobs have been destroyed by this process. The US economy has been pumped up by easy money and "safe" real estate investments and now it's all going to shit. The only problem is it's going to shit on an exponentially increasing pace. YES The world really did change the other day when Lehman Brothers, one of the top 5 investment banks in the world was allowed to file for bankrupsy. It was as if not only did the situation of the world of finance change, or the rules of the game change, but we weren't even playing the same sport anymore. A "too big to fail" bank had failed. Holy fuck. Anyone can fail. You can't trust any investment. This is the attitude of the last 2 weeks. And it's very real man. It's not the media or the politicians. They actually don't know how fucking out of whack things are. I love Ron Paul. And I believe in what he stands for. Please support him without talking about things which you don't know about. You don't know how real the lack of credit and liquidity has been. | ||
![]() The basis of our governments being the opinion of the people, the very first object should be to keep that right; and were it left to me to decide whether we should have a government without newspapers, or newspapers without a government, I should not hesitate a moment to prefer the latter. But I should mean that every man should receive those papers and be capable of reading them. ![]() Last edited by DJ FC; 09-25-2008 at 03:18 PM. |
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#277 (permalink) |
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Almost there...
Join Date: Feb 2005
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It seems like, based on what GWB is saying, that this whole thing is kind of a self perpetuating thing. Basically, people won't lend money because people are failing, and people are failing because people won't lend money. If that's the case, isn't it just a confidence issue? I'm waaaaaaaaay out of my element here, I've never had a business class in my life, so sorry if my questions are stupid.
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#278 (permalink) |
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Senior Member
Join Date: Feb 2002
Location: U.S.A.
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You don't need to take any classes to understand this stuff, Repug.
And your question isn't stupid. Basically what happened was, the country, as a whole, was over leveraged. A domino effect happened. One firm went down, so everyone lost confidence which caused another firm to go down, and on and on and on like that. All the government is trying to do is serve as a giant buyer so everyone's confidence can be restored ("hey... someone is buying!!") This will lead to a market recovery and an increase in the value of the government's investment. In no uncertain terms, this buyout is a good thing. The only people who oppose it are extremist nutjobs. On the far right, you've got Ron Paul saying, "zomg... the government should never intervene ever!!". And on the far left, you've got Bernie Sanders saying, "fuck these greedy capitalists... let's not bail them out... let's watch them burn." Both of those philosophies are very harmful for all Americans. |
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Last edited by Ugly Bastard; 09-25-2008 at 05:04 PM. |
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#279 (permalink) | |
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Spice Master
Join Date: Jan 2004
Posts: 17,969
Internets: 284106
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Thank you. And for the record I agree with you on the bailout. We really don't have much of a choice from what i've been hearing from people pretty educated on the topic, and the alternative really isn't that appealing to me, because if people really think they wouldn't be affected by NOT bailing them out, they are horribly wrong. P.S. I've been reading that book so at least your p.o.v. makes a little more sense to me. | |
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Last edited by Mr. Blonde; 09-25-2008 at 05:21 PM. |
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#280 (permalink) |
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Gangnam Style
Join Date: Oct 2003
Location: DH's Massage Parlor
Posts: 6,383
Internets: 213510
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Probably the best Ron Paul article I've ever read was sent to my email today.
Dear Friends: The financial meltdown the economists of the Austrian School predicted has arrived. We are in this crisis because of an excess of artificially created credit at the hands of the Federal Reserve System. The solution being proposed? More artificial credit by the Federal Reserve. No liquidation of bad debt and malinvestment is to be allowed. By doing more of the same, we will only continue and intensify the distortions in our economy - all the capital misallocation, all the malinvestment - and prevent the market's attempt to re-establish rational pricing of houses and other assets. Last night the president addressed the nation about the financial crisis. There is no point in going through his remarks line by line, since I'd only be repeating what I've been saying over and over - not just for the past several days, but for years and even decades. Still, at least a few observations are necessary. The president assures us that his administration "is working with Congress to address the root cause behind much of the instability in our markets." Care to take a guess at whether the Federal Reserve and its money creation spree were even mentioned? We are told that "low interest rates" led to excessive borrowing, but we are not told how these low interest rates came about. They were a deliberate policy of the Federal Reserve. As always, artificially low interest rates distort the market. Entrepreneurs engage in malinvestments - investments that do not make sense in light of current resource availability, that occur in more temporally remote stages of the capital structure than the pattern of consumer demand can support, and that would not have been made at all if the interest rate had been permitted to tell the truth instead of being toyed with by the Fed. Not a word about any of that, of course, because Americans might then discover how the great wise men in Washington caused this great debacle. Better to keep scapegoating the mortgage industry or "wildcat capitalism" (as if we actually have a pure free market!). Speaking about Fannie Mae and Freddie Mac, the president said: "Because these companies were chartered by Congress, many believed they were guaranteed by the federal government. This allowed them to borrow enormous sums of money, fuel the market for questionable investments, and put our financial system at risk." Doesn't that prove the foolishness of chartering Fannie and Freddie in the first place? Doesn't that suggest that maybe, just maybe, government may have contributed to this mess? And of course, by bailing out Fannie and Freddie, hasn't the federal government shown that the "many" who "believed they were guaranteed by the federal government" were in fact correct? Then come the scare tactics. If we don't give dictatorial powers to the Treasury Secretary "the stock market would drop even more, which would reduce the value of your retirement account. The value of your home could plummet." Left unsaid, naturally, is that with the bailout and all the money and credit that must be produced out of thin air to fund it, the value of your retirement account will drop anyway, because the value of the dollar will suffer a precipitous decline. As for home prices, they are obviously much too high, and supply and demand cannot equilibrate if government insists on propping them up. It's the same destructive strategy that government tried during the Great Depression: prop up prices at all costs. The Depression went on for over a decade. On the other hand, when liquidation was allowed to occur in the equally devastating downturn of 1921, the economy recovered within less than a year. The president also tells us that Senators McCain and Obama will join him at the White House today in order to figure out how to get the bipartisan bailout passed. The two senators would do their country much more good if they stayed on the campaign trail debating who the bigger celebrity is, or whatever it is that occupies their attention these days. F.A. Hayek won the Nobel Prize for showing how central banks' manipulation of interest rates creates the boom-bust cycle with which we are sadly familiar. In 1932, in the depths of the Great Depression, he described the foolish policies being pursued in his day - and which are being proposed, just as destructively, in our own: Instead of furthering the inevitable liquidation of the maladjustments brought about by the boom during the last three years, all conceivable means have been used to prevent that readjustment from taking place; and one of these means, which has been repeatedly tried though without success, from the earliest to the most recent stages of depression, has been this deliberate policy of credit expansion. To combat the depression by a forced credit expansion is to attempt to cure the evil by the very means which brought it about; because we are suffering from a misdirection of production, we want to create further misdirection - a procedure that can only lead to a much more severe crisis as soon as the credit expansion comes to an end... It is probably to this experiment, together with the attempts to prevent liquidation once the crisis had come, that we owe the exceptional severity and duration of the depression. The only thing we learn from history, I am afraid, is that we do not learn from history. The very people who have spent the past several years assuring us that the economy is fundamentally sound, and who themselves foolishly cheered the extension of all these novel kinds of mortgages, are the ones who now claim to be the experts who will restore prosperity! Just how spectacularly wrong, how utterly without a clue, does someone have to be before his expert status is called into question? Oh, and did you notice that the bailout is now being called a "rescue plan"? I guess "bailout" wasn't sitting too well with the American people. The very people who with somber faces tell us of their deep concern for the spread of democracy around the world are the ones most insistent on forcing a bill through Congress that the American people overwhelmingly oppose. The very fact that some of you seem to think you're supposed to have a voice in all this actually seems to annoy them. I continue to urge you to contact your representatives and give them a piece of your mind. I myself am doing everything I can to promote the correct point of view on the crisis. Be sure also to educate yourselves on these subjects - the Campaign for Liberty blog is an excellent place to start. Read the posts, ask questions in the comment section, and learn. H.G. Wells once said that civilization was in a race between education and catastrophe. Let us learn the truth and spread it as far and wide as our circumstances allow. For the truth is the greatest weapon we have. In liberty, Ron Paul |
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#281 (permalink) |
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MURICAN
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Ron Paul is right on.
I disagree with one point thiough: Just as Warren Buffet investing in Goldman was a self fulfilling prophecy so too will be the govt bailout. When the govt buys these securities, the markets will rally and the govt stands to make a good buck doing so, actually helping the US taxpayer. So you could actually see this move as an investment. I still think the dollar is going to shit and that a lot of the blame goes to those who kept interest rates too low; spent too much dough fighting wars and supporting social programs. But the bailout may still be a good idea. |
![]() The basis of our governments being the opinion of the people, the very first object should be to keep that right; and were it left to me to decide whether we should have a government without newspapers, or newspapers without a government, I should not hesitate a moment to prefer the latter. But I should mean that every man should receive those papers and be capable of reading them. ![]() |
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#282 (permalink) | ||||
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Senior Member
Join Date: Feb 2002
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Internets: 247330
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Last edited by Ugly Bastard; 09-29-2008 at 10:08 PM. |
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#283 (permalink) |
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Gangnam Style
Join Date: Oct 2003
Location: DH's Massage Parlor
Posts: 6,383
Internets: 213510
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Apparently you didn't understand my quote of "UB, you're a fool if you believe this move is better for our country's future. This temporary solution is going to damn us all." It's a temp solution that interferes with a free market. Quit using your single sample size of people being stupid and selling off everything. Obviosly you don't buy into it, since you claimed you were buying up all kinds of stock. How'd that turn out for you? Same situation. Temporarily bad, should be a gold mine 6-12 months from now.
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#284 (permalink) |
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Senior Member
Join Date: Feb 2002
Location: U.S.A.
Posts: 13,643
Internets: 247330
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I was buying up all kinds of stock before I realized that Congress has more dumb Ron Paul nutjobs than I knew of. The Republicans are going to get their asses handed to them in 5 weeks, and I can't say they don't deserve it. They shit all over the country on this one. Wait till it hits Main Street. The bottom is a long, long ways away unless these idiots (quickly) realize how much they fucked up and get something back on the table.
Yea things should be fine in 6-12 months when unemployment is at 15% and Comrade Obama, with the backing of a heavily Democratic congress, spikes the capital gains tax up to 30%. Things should be juuuust fine then. |
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#288 (permalink) |
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Spice Master
Join Date: Jan 2004
Posts: 17,969
Internets: 284106
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i first posted something criticizing f3lix, but i hadn't watched it yet. now that I watched it, i'm not sure what to think, mostly because i'm drunk.
In sum, I agree with what Ron Paul is saying, but holy shit that made no sense. |
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Psychedelics are illegal not because a loving government is concerned that you may jump out of a third story window. Psychedelics are illegal because they dissolve opinion structures and culturally laid down models of behavior and information processing.
― Terence McKenna |
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#294 (permalink) |
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Senior Member
Join Date: Feb 2002
Location: U.S.A.
Posts: 13,643
Internets: 247330
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Blonde were you forced to go to church a lot as a kid? You seem to have a lot of hatred for organized religion so I'm just curious what your specific childhood was like in relation to it.
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#295 (permalink) |
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Spice Master
Join Date: Jan 2004
Posts: 17,969
Internets: 284106
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Baptized Catholic, Protestant church every Sunday until I was 18, did a lot of acolyting, in early teens went through Confirmation, was forced through peer pressure to 'accept Jesus into my heart' several times (even though I never felt anything), was heavily involved in Youth Group all through high school. Luckily was never molested.
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