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Kasz216 on 26 August 2010
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fastyxx said:
Kasz216 said:

That's because... it IS worse.  You aren't facing too gradual dips.

You are facing the first dip... and then a dip that could end up being just as bad as the first.

Additionally, you are setting yourself up for future dips.

You aren't saving anyones lives.  You are treating the symptoms without treating the root cause.

It's like treating heroin withdrawl with heroin.

The problem isn't the withdrawl.  It's the addiction that caused the withdrawl.

If you want a cancer based analogy.  It's like removing a tumor in parts but leaving in the surrounding cancerous cells... with the risk as well of the cancer spreading between each operation.

When the Banks were failing... new banks were already taking their place.  New banks were opening, new credit unions.  People saw the banks falling and a lot of people saw oppurtunity to do it better.

Instead, nobody is really going to get the chance, because doing things irresponsibility if your big enough will cause you to get bailed out... repeatidly.  Meaning we're going to have the same problems over and over and over again.

 

The best analogy of all reminds me of something Charles Barkley said.

"I don't have a gambling problem.  I'm rich!

It's just a matter of keep spending more money to support risky, and more important bad gamblers.


you don't know any of this.  It's all supposition, so you can't treat it as fact.  You know it is, as you're writing in the conditional.

 

"You are facing the first dip... and then a dip that could end up being just as bad as the first."

Ot it could be much less.  Or it could not happen.  We don't KNOW the extent of any, but we it's a decent guess, just as the decent guess of the experts were that we couldn't let the potential big drop happen.

And we treat cancer that way all the time successfully by the way.  You remove the tumor and then use radiation or chemo to try and rid the other cells.  But if you don't remove the tumor first, the chemo or radiation won't have time to work.  So thanks for the analogy that helps my point. You're right. It is a good one.

I'm not sure where it said anywhere in the bills that to bail someone out once ensures you will be bailed out again later.  I agree they need more reform in the meantime, but that's unpassable with the way our political system i set up and with the influence the banks and corporations have over the money in the system.  But I'm not sure what that has to do with whether or not to allow a complete system collapse in the meantime.


Except... you know.  We're leaving the same cells in and doing no chemo at all.  Infact we're pumping in carcinagions if anything.

Also, yeah.. I pretty much do know that.  You can tell by the actual results that have happened.  Both in the past and present.  It's painfully obvious stimulus spending doesn't work... because it pretty much hasn't ever worked... ever. 

It's basic (non political) common sense.

Deflation spirals are complete nonsense because they ignore the fact that people want to buy stuff.

Sure someone may put off buying a car or TV for a few months because it might get cheaper... but they WANT a new car, TV or whatever.  Eventually the time waiting will far outweigh the price drop and people will buy.

Deflation will always be temporary and will end when people want to buy stuff.

Not that deflation even has that much to do with GDP shrink or growth at all.  In like, the 1880's and 1890's we had huge deflation and even huger GDP growth.

All market collapses are is corrections for overstimulated economies.  You get back because the value is there, of course it takes time, but you are healthier for it by not rewarding the same overstimulating mistakes that you made then.

You reward your friend with a gambling problem by giving him more money... and chances are they're just going to gamble again.  You've got to let them hit rock bottom.  If the companies can't make it through bankruptcy court and fold... then new ones will replace them.  If there is one thing most people can't turn down, it's an oppurtunity to fill a vacated niche.