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Posted by: engineer 8 months, 2 weeks ago
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engineer8 months, 2 weeks ago
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I would let them fail!! The turmoil is there anyway. We as a nation cannot afford the bailouts. there thousands of businesses which fail. We don't bail them out. it's part of life.
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I don't feel sorry for them. If the money was given to the citizens and to businesses which make things, the country would be better off and employ many more people-
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ADAGUY8 months, 2 weeks ago
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nostalgia8 months, 2 weeks ago
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Aren't we already in a "world wide economic disaster"
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Billions and billions of your taxpayer dollars are being funneled from Treasury to AIG to other US companies who already received bailout funds and foreign banks
Are you seeing any improvement?-
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amazed8 months, 2 weeks ago
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Worse still, tens of billions of our taxpayer dollars have gone to foreign banks. We bought their notes -- most which weren't even in default yet -- at $1 per $1. Now, their using that money to buy American assets at $0.10 on the dollar.
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Great work!
Let's keep this bailout rolling!-
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jovial8 months, 2 weeks ago
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The banks are all intertwined. Those banks held notes on mortgages here also. Are we supposed to just say, 'F them" and let them all fail. We could, but they'll never do business with uis again. Who knows they may just drop the dollar all together. Then the U.S. will become just another banana republic. Is that what you guys want. Anger is good for venting frustration. But it takes a cool head to deal with a problem like this. I think Obama is maintaining that cool head we need. Americans could regret acting too hastily in this situation. We don't know how all this will pan out.
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jovial8 months, 2 weeks ago
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Maybe you're right. I kind of think, though that since we are printing dollars and not pesos, we might have a chance. If we didn't have the reserve currency of the world and started printing like crazy, then I think it would add a lot more futility.
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nostalgia8 months, 2 weeks ago
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Jovial
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Why do you think the rest of the world is considering ditching the dollar - even the UN?
U.N. panel says world should ditch dollar
A U.N. panel will next week recommend that the world ditch the dollar as its reserve currency in favor of a shared basket of currencies, a member of the panel said on Wednesday, adding to pressure on the dollar.
Currency specialist Avinash Persaud, a member of the panel of experts, told a Reuters Funds Summit in Luxembourg that the proposal was to create something like the old Ecu, or European currency unit, that was a hard-traded, weighted basket.
http://www.reuters.com/article/newsOne/idUSTRE52H2...
This is the first step - a basket of currency - talk about chaos!
When that becomes unwieldy where do you go from there - a world currency-
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jovial8 months, 2 weeks ago
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I submitted that article yesterday. I know what they are trying to do. I really think that they don't have enough world support to do it yet. Dropping our currency was in the cards even before AIG. World economists knew for a while that the dollar was a fiat currency.
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willottica8 months, 2 weeks ago
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Have you read this article?
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http://www.propeller.com/story/2009/03/19/un-panel...
Apparently, a UN panel is suggesting that the USD should no longer be used as a reserve currency. I can't help but agree, despite the further turmoil it would cause. The US Government and the Fed have shown themselves unfit for the responsibility.
They have used it to give themselves an unfair advantage by printing money out of thin air and inflating the money supply enormously, without fear of the dollar's collapse (because a collapse would hurt so many others). Well, it seems like the others are starting to wonder if that collapse would be better now or later.-
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jovial8 months, 2 weeks ago
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I submitted it. Yes I read it. What would be the ramifications, if any, if that happened? I'm asking an honest question here, because I don't know the answer. I'm thinking our standard of living in the U.S. would decline dramatically.
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willottica8 months, 2 weeks ago
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What would be the ramifications? I'm not sure, but I think a re-valuing of the USD would occur quite quickly (you can already see that it has been losing value in the FOREX markets recently). As a reserve currency, it remains in many countries' interest to see the relative value of USD remain high, or their investments in US Treasuries would decrease in value relative to their own currency.
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Without this reserve, then that interest is largely gone - other countries might not intervene to keep the dollar afloat. Also, when securities and stocks go down, the USD typically goes up (because people buy it, the safe bet, instead). Again, if the USD is no longer a reserve currency, it would no longer be a safe bet, and wouldn't get this artificial boost.
...And if the value of the USD goes down relative to world markets, and USD is not the set price of business transactions, then the price of imports to the US increases, and you will see inflation of the cost of goods. Right now, when the USD is strong, foreign exporters gain profits; when it is weak, they lose profits, and the customers in the US see very little difference. If these prices were set against a basket of currencies, prices would remain stable for foreign exporters (or would fluctuate with their OWN economies, instead), and American companies would start to see their expenses fluctuate due to change in value of the USD.
Many Canadian companies (the one I work for as an example) have all their expensed in CAD, yet sell their product in USD. So when the USD is strong, we do great, and when the CAD is strong (which should be good for us!) we suffer. When CAD rose to parity, our company lost 30% of its effective revenue. (Luckily our profit margin had been higher than that at the time. -
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willottica8 months, 2 weeks ago
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Long story short (Too Late!):
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The most likely effect of the USD ceasing to be the reserve currency would be inflation. Possibly hyperinflation, because the market would become flooded with USDollars that other countries neither want nor trust, and the US Government has shown no signs of fiscal restraint nor are the fundamentals of the economy "strong" or "sound". The US economy is based far more on "soft" areas like consumerism, financial instruments, and cheap imports than on "sound" principles like manufacting and resource exports. -
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nostalgia8 months, 2 weeks ago
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Jovial
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Your standard of living is going to decline quickly
The Fed just announced they are going to spend over $1 trillion
Geithner's bank bailout of toxic assets and foreclosures - $2 trillion
WSJ:
Obama's $3.6 trillion budget blueprint, by his own admission, redefines the role of government in our economy and society. The budget more than doubles the national debt held by the public, adding more to the debt than all previous presidents -- from George Washington to George W. Bush -- combined. It reduces defense spending to a level not sustained since the dangerous days before World War II, while increasing nondefense spending (relative to GDP) to the highest level in U.S. history. And it would raise taxes to historically high levels (again, relative to GDP). And all of this before addressing the impending explosion in Social Security and Medicare costs.
A CBO report is coming out today that will be devastating - deficit projection $2.6 TRILLION
By the end of the year what are you going to see - inflation - the inevitable result of printing all of this money
What does the Fed do when there is inflation - raise interest rates
What will interest rate increases do in a recession ??
The dive the economy takes when that happens is going to be even worse than what you are seeing right now
That doesn't even take into consideration the carbon cap and trade, unrealistic growth projections in the Obama budget etc
It's going to be very ugly Jovial. I just hope you are prepared
Start listening to the business channels and reading business news/journals
You will understand what we are in for
A number of economists have been predicting a double dip recession with the second "dip" deeper than the first and sliding toward depression depending upon the policies which are in place by the administration
Everyday people are showing more common sense about this than our govt
People are paying down debt and saving for the first time in decades-
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nostalgia8 months, 2 weeks ago
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Jovial
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The only thing that can be done right now is mitigate the damage which has been done
The spending on the Federal level needs to STOP
No new programs
No increase in departmental budgets
And actual cuts need to be made
We are a path to destruction with the current policies-
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jovial8 months, 2 weeks ago
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That is your opinion, others might see that differently. Is government the problem or is it the corporations? Both?We can cut programs all we want, but we can't seem to regulate CEO salaries or regulate the businesses effectively while at the same time trimming the government. I know the conservative line already, cut taxes, small government, and everything will eventually heal on it's own. I really think it's more complex than that. That's where our opinions differ.
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