General Category > General Discussion
$700 billion bailout
Baltimore:
I do not support the bailout and I question one of the things Brian said and I hope he can answer this.
If there is no bailout some banks will fail some large companies will fail. But once a few fail others will know that the time is now to sell assets. Banks and corporations will sell real estate at pennys on the dollar. Real estate prices will crash. Those of us with cash will be able to afford homes. We are talking about massive deflation. IF there was a bank run why couldn't the US government print up the money to back up the banks at that point instead of printing up a TRILLION dollars now to bail them out and create massive inflation. because of the printing press I see no reason to fear that the FDIC $100,000 garantee will disappear.
If this bailout plan happens then expect prices to double on numerous common items very soon. Also expect $6 to $10 for a gallon of gas as investors flock to oil for stability.
White Israelite:
--- Quote from: jaime on September 25, 2008, 08:26:34 AM ---Agree Dr. Dan. Not a cop in sight when it gets down to the pilfering in companies if anyone has a job left, home invasions [people feel more comfortable w/money under their mattresses these days. i read this lol.] and, when they bust into your beautiful home, they have AK4-7, hoods so you can't identify them, they take your car if they feel like, beat the $hit out of you or even kill you. I have been nagging my SO to get a gun. Anyone living w/out a gun is nuts. We need them. I do not feel safe here and I live in a family oriented community. It's just that it's near a freeway. You read so often how crimes are committed and they just disappear on a freeway.
--- End quote ---
I'll just use my AK47 then if they break into my house.
RationalThought110:
--- Quote from: Baltimore on September 25, 2008, 10:56:26 AM ---I do not support the bailout and I question one of the things Brian said and I hope he can answer this.
If there is no bailout some banks will fail some large companies will fail. But once a few fail others will know that the time is now to sell assets. Banks and corporations will sell real estate at pennys on the dollar. Real estate prices will crash. Those of us with cash will be able to afford homes. We are talking about massive deflation. IF there was a bank run why couldn't the US government print up the money to back up the banks at that point instead of printing up a TRILLION dollars now to bail them out and create massive inflation. because of the printing press I see no reason to fear that the FDIC $100,000 garantee will disappear.
If this bailout plan happens then expect prices to double on numerous common items very soon. Also expect $6 to $10 for a gallon of gas as investors flock to oil for stability.
--- End quote ---
How would things be if the dollar was still backed by gold?
Ulli:
I just have seen the poll-results.
I am proud of beeing a JTF member :)
briann:
--- Quote from: Ralph2 on September 25, 2008, 03:21:46 AM ---
--- Quote from: briann on September 25, 2008, 02:43:45 AM ---Yes. your mostly right. BUT, The bailout WONT be to buy companies... it will be to buy the companies troubled assets (IE their Mortgage Backed Securities that are NOT yet in default... but which represent negative equity.... (Ie 100,000 loan, for a house thats now worth 80,000)..
They will NOT pay 100,000 for this loan... they wiill instead pay for the market price of the securities... which will employ something called a reverse auction.
And yes... in the long run.. many economists beleive that this will be a good investment for the government... but that is debatable
All in all... if the bailout DOES NOT occur... the banks WILL collapse... and the holders of the deposits of these banks will NOT be able to get their $$ from FDIC, since it will simply be too massive to try and save the deposits... when the news of this hits the street, everyone will pull their $$ out of the banks...causing the other banks to run dry on reserves... cause them to collapse... and wala!!!! you have a depression... where no one trusts the banks... and its next to impossible to get a loan for anything... and the economy will completely hault.
--- End quote ---
It's not just about it being a good investment (which it isn't) it's about the morality. Government just prints more money and does whatever it wants. 94% of all Americans oppose this bailout yet the politicians are stealing their money. Millions of Americans can't even afford health care or higher education because they're overtaxed. The government has created a situation where there's less and less incentive for intelligent wealthy people to work harder because of the progressive tax and at the same time welfare bums have no incentive to work because they can leech. This is both immoral and unproductive. This is tyranny.
--- End quote ---
Regardless of what Ron Paul has been telling you.. this has NOTHING to do with the 'evil' fed printing money. The fed isnt even involved in this bailout.
I think its unfortunate that so many people want to believe that this is part of an evil conspiracy... and that all economists are lying when they say exactly what I am saying... that if this isn't done... we will fall into a depression... quite quickly.
Navigation
[0] Message Index
[#] Next page
[*] Previous page
Go to full version