Originally posted by reyes:what does alan greenspan has to say about this crisis besides once in a century shit.
he said, let it run naturally, if it is to fall, let it be, let the market adjust itself naturally, those who make poor decisions and cannot perform, too bad, either you jump or go poor, that is the nature punishment of failure, we can built the shit hole again from nothing, no problem. Scan and delete all financial virus connection, reboot and let get on with life.
Originally posted by skythewood:actually, the middleman lending money at high interest rates... isn't it like professional loan shark?
not loan shark, it killer whale
Originally posted by angel7030:
he said, let it run naturally, if it is to fall, let it be, let the market adjust itself naturally, those who make poor decisions and cannot perform, too bad, either you jump or go poor, that is the nature punishment of failure, we can built the shit hole again from nothing, no problem. Scan and delete all financial virus connection, reboot and let get on with life.
I'm not sure if I'm in the position to disagree with the "Great" Greenspan, but I still disagree. The people (right at the top) who make bad decisions are not only still rich, but at the end of it, its still the people right at the bottom who will end up the victims.
Also, if not remedied, its hard to predict how worse can it still get, and how bad its gonna affect global financial institutions also. The whole world might have get dragged down with it.
If a bail out is not the answer, they need to quickly rethink of another solution.
Originally posted by reyes:this problem is originate from american irresponsible Investment bank. But it has spread to Europe and some part of asia.
Dear Fuller, had it affect our Weimar Germany?? our german Reichsmark?
I wonder, where will the US govt get all the money?
From World Bank?
Print more money. Seriously, deal with the long term damage later. If it is a better alternative for now, thats the only move to make.
I do wonder, what would be the long term damage of printing more money... anyone here can comment?
Originally posted by Shotgun:I'm not sure if I'm in the position to disagree with the "Great" Greenspan, but I still disagree. The people (right at the top) who make bad decisions are not only still rich, but at the end of it, its still the people right at the bottom who will end up the victims.
Also, if not remedied, its hard to predict how worse can it still get, and how bad its gonna affect global financial institutions also. The whole world might have get dragged down with it.
If a bail out is not the answer, they need to quickly rethink of another solution.
bailing out will only help the rich get richer and irresponsible, average people got not much to loose except perhap got to look for another job, but for the rich to lost a job and asset, it will teach them a lesson. As a top rich man, you make a mistake and expect a bailout of 700bn to help you go thru safely, whereby the 700bn are taxpayers money or will be tax higher later on average people to compensate the lost in Fed reserve, so in the end, the rich will never get into trouble, when times are good, they get the cash from the poors, and when time are bad, they also get money from the poors thru another channel, ie the govt
...The governments paid for it in various ways: by taxation, by fiat money, by borrowing from banks (which created credit for the purpose), and by borrowing from the people by selling war bonds to them. Each of these methods of raising money had a different effect upon the two chief financial consequences of the war. These were inflation and public debt. The effects of the four ways of raising money upon these two can be seen from the following table:
It would appear from this table that the best way to pay for the war would be by taxation, and the worst way would be by bank credit. However, taxation sufficient to pay for a major war would have such a severe deflationary effect upon prices that economic production would not increase enough or fast enough. Any rapid increase in production is spurred by a small amount of inflation which provides the impetus of unusual profits to the economic system. Increase in public debt, on the other hand, contributes little of value to the effort toward economic mobilization.
From this point of view, it is not easy to say what method of financing a war is best. Probably the best is a combination of the four methods mixed in such a way that at the end there is a minimum of debt and no more inflation than was necessary to obtain complete and rapid economic mobilization. This would probably involve a combination of fiat money and taxation with considerable sales of bonds to individuals, the combination varying at different stages in the mobilization effort...
Originally posted by Shotgun:Print more money. Seriously, deal with the long term damage later. If it is a better alternative for now, thats the only move to make.
I do wonder, what would be the long term damage of printing more money... anyone here can comment?
my comment is you past me your shotgun and i fired it into your head
LOL! Paiseh, too much kick for you to fire.
Well, now that they don't want to bail out, what are they gonna do? Let it continue spiraling?
Originally posted by Shotgun:LOL! Paiseh, too much kick for you to fire.
Well, now that they don't want to bail out, what are they gonna do? Let it continue spiraling?
i can get the barrel saw off for better firing..
They will let nature take is cause, pain it shall be, but no pain, no gain, as a financial CON sultant, i believe the next thing will be alot of buying and selling of asset, join venture, acquisition and mergers.
Financial institute will merge together, support each other to form the economic of scale inorder to tackle this problem.
I understand the part about Financial Institutions merging together since there already a lot of that going on.
I think the question is still the matter of how they are gonna generate the money that supposedly went AWOL? It doesn't introduce any "new" money into the system. I don't see how they will be doing any buying or investing... doing it on debt again?
Originally posted by Shotgun:I understand the part about Financial Institutions merging together since there already a lot of that going on.
I think the question is still the matter of how they are gonna generate the money that supposedly went AWOL? It doesn't introduce any "new" money into the system. I don't see how they will be doing any buying or investing... doing it on debt again?
Now the problem is each institution is refusing to lend each other money, cos there is no trust, it is the time for the market to reshape itself by letting the stronger fish eats the weaker fish, If bank A cannot get money from the rich Bank B, let Bank B swallow some of bank A asset and business, become partner with bank B as the bigger shareholder, with that Bank B will certain help Bank A.
I see where this is going. Once they've acquired or merged sufficiently, confidence should return to start lending again? Still, wad about the mortgages?
how the american is going to finance the bailout bill of 700bn is by printing more money.
although i suppport no bailout but the consequences of it is quite clear. long and painful recession for USA and europe and probably some part of ASIA( especially so for Japan, Korea, Singapore).
a better way to pacify the mainstreet is probably to prosecuted a few of the guilty CEO and executive, so that the senator who oppose it can better sell the bailout plan to the ppl in their state.
Financial Tsunami: The End of the World as We Knew It
http://www.globalresearch.ca/index.php?contex
German Official Says U.S. Stature to Fall
http://online.wsj.com/article/SB12223794
France: Laissez-Faire Capitalism is Over
http://www.businessweek.com/globalbiz/c
'We Were All Staring into the Abyss'
http://www.spiegel.de/international/business
Europe wants to shift power away from the USA
http://www.theaustralian.news.com.au/story/0,25197
Germany sees an end to USA hegemony
http://www.ft.com/cms/s/0/a8ab34ea-8b63-11dd
Is the sun setting on USA economic supremacy?
Originally posted by Shotgun:I see where this is going. Once they've acquired or merged sufficiently, confidence should return to start lending again? Still, wad about the mortgages?
Once the financial institutions merged, there will be less finanical institutions as over the years, small and big financial insitutions had popped up here and there to grab short term profit will all be gone, mortages are guarantee by Insurance company, since insurance cannot paid the bank, the bank will eat up the insurance company and its assets then write off all the mortages slowly.
beside the rescue bill they should take to task those who brought about this financial crunch.