Posted on 07/16/2010 2:20:16 PM PDT by SeekAndFind
Government has the power to fix the problem in the short term by bowering and printing money. However in the long term the situation becomes even more dire than what it would have been. Much of the problems we have faced is due to government policy, lack of enforcing existing law, ideological economic education in our schools, changing previous laws to favor a select few on the financial street at the cost of main street, total corruption of our political and financial system with people who are very much liberals, i.e. statists at heart. I can only imagine what the carnage and the hyperinflation we are going to face in the next few years is going to due to our economy and our society because we couldn’t take the pain that normally goes with cycles in the economy or from bubbles created by government in order to avoid them for a short time only making it worse. People only learn from pain on what not to do, but if there is too much then you may end up killing the patient or make them go insane.
Also, let’s see, U6 (I believe that is the better measure for unemployment), is above 16%. The reason why it’s not higher is because there is a certain level of economic activity required for just keeping things afloat. But the last I looked we have higher taxes coming next year due to expiring tax cuts, increased taxes from the Health care and the financial ‘reform’ bill, the EPA trying to shut down oil drilling and oil extraction among other industries. No doubt we will get Cap and Tax this year and whatever else in the lame duck session of congress. Once you make it impossible to keep things afloat then it becomes every man for themselves. And if anyone thinks unemployment is high now, baby you haven’t seen anything yet!
And yes I think the situation was dire before. A lot of disruptions would have taken place, but you know what? People would have survived and been innovative. New business models would have already been developed out of this disaster if they were left to their own devises, i.e. keep the government control freaks out of the way. But now we have more regulation, more spending by government, takeover of corporations reminiscent of the communism and fascism of the 20’s and 30’s. And we are just getting started. Some prices are just too high despite what the short term consequences will be.
Yeah, right. Jimmy Dunne, senior managing principal at investment-banking firm Sandler O’Neill, summed up my feelings perfectly when I asked him recently what he thought of those politicians: “They’re idiots,” he said.
I find it amazing that Canada didn’t have a meltdown.
Until this moment --- silly me --- I did not realize that you actually meant me when you referred to "enablers" in the previous post. Had I understood that earlier, I would not have honored such an insult with a reply.
What's happening Jim? I post a short remark about a bank run on Lehman, and you conclude from it that I am B. Arnold. I am no less in pain and no less angry when I see what they do to my county. But that does not give me, or you, the right to through baseless accusations at people.
Perhaps our interactions on some other thread will be more smooth. Have a good night.
“OK, let’s say we let these irresponsible banks ( e.g. Citibank, Wachovia, Washingtom Mutual, etc.) all fail without bailouts of any kind whatsoever... are you saying that all depositors of these banks should simply lose their money as well and government should simply stand by and let that happen ?
If not, what’s the alternative?”
A market correction. It’s called free enterprise. Did you ever read John Adams?
Right now, the taxpayers bailed out your thieving fascist banks with hundreds of billions, what good has been done?
Oh, wait, don’t answer that because you won’t and can’t.
Fortune was once a conservative rag...sad.
RE: Right now, the taxpayers bailed out your thieving fascist banks with hundreds of billions, what good has been done?
According to this site :
http://www.nytimes.com/2010/06/23/business/23tarp.html
Banks Have Repaid 75% of Bailout, Geithner Says
WASHINGTON (AP) — The Treasury secretary, Timothy F. Geithner, said on Tuesday that taxpayers were recovering their investment from the financial bailouts as the program was wound down. But he acknowledged there would probably be a loss from the rescue of the insurer American International Group.
Mr. Geithner told a watchdog panel that banks had repaid about 75 percent of the bailout money they received, and the government’s investments in those banks had brought taxpayers $21 billion.
(EXCERPT ONLY)
I thought you were referring to the alledged run on the money markets which never happened. But banks fail, and we cover them according to our laws.
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