NJ5 said:
TheRealMafoo said:
NJ5 said:
TheRealMafoo said:
Awesome news! I hope it's never passes. And no depression is coming, just a big recession.
The same recession that is going to happen regardless of if this bill passes or not.
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Why no depression? If more and more banks go down, how will people and businesses be able to sink even more into debt in order to keep the economies going?
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Because we are being doped by congress. It's bad, but not The Great Depression bad. In the great depression, 40% of all home loans defaulted. Right now we are at 4%. In the 30's we did not have FDIC, so most people lost there entire life savings. That can not happen today. Not all banks have stopped giving loans. It's only the ones with questionable lending practices. Most local banks are operating normally.
In fact, I tried to get a loan the other day at my bank, and it took 3 days because the loan officer was so busy (I then got the loan). They were busy because due to there quality lending practices, the are still going strong.
If you don't bail them out, the Banks that did the right thing are rewarded. If you do, the one that loaned money to anyone to make a quick buck are.
Guess which banks lobby congress ;)
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The crisis is only starting though. The FDIC is not an infinite supply of money either (unless money gets printed to fill it up, in which case inflation increases).
I agree with your last paragraphs though. Just notice that Paulson used to be the CEO of Goldman Sachs.
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I agree. We are fucked. I have been saying this all along. The chance to keep us out of a big recession had passed months ago. Stop screwing us over even more by trying to fix the problem. It's like trying to swim in quicksand, it only makes the problem worse.
