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Forums - General - US Government considering paying people's mortgages

So you don't mind that were inflating the money supply and losing purchasing power that greatly affects your revenues and ALL business and people even worse?

The market would have fixed itself. Bankruptcy is a powerful market tool that for the most part was not even given a chance by the government and Federal Reserve that just tossed over trillions of our money like candy. You know, didn't ask me if it was Ok to use my candy.

Banks were failing, credit was screwed by why was that? What are the fundamental properties that create those problems and what can be done to not just fix them but prevent them? Artificial market factors caused them (thank you Fed and moronic regulators) so why assume artificial factors will fix it?

How long can we inflate bubble after bubble before there exists no more bubbles to inflate? How long can we monetize debt before we join the ranks of Weimar, Zimbabwe and Yugoslavia?
How long can we promise entitlements before people realize we'll never get them yet still shoulder the cost?



The rEVOLution is not being televised

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Viper1 said:
So you don't mind that were inflating the money supply and losing purchasing power that greatly affects your revenues and ALL business and people even worse?

The market would have fixed itself. Bankruptcy is a powerful market tool that for the most part was not even given a chance by the government and Federal Reserve that just tossed over trillions of our money like candy. You know, didn't ask me if it was Ok to use my candy.

Banks were failing, credit was screwed by why was that? What are the fundamental properties that create those problems and what can be done to not just fix them but prevent them? Artificial market factors caused them (thank you Fed and moronic regulators) so why assume artificial factors will fix it?

How long can we inflate bubble after bubble before there exists no more bubbles to inflate? How long can we monetize debt before we join the ranks of Weimar, Zimbabwe and Yugoslavia?
How long can we promise entitlements before people realize we'll never get them yet still shoulder the cost?

I understand your point... but I believe the crisis came from the opposite direction -> An artificial financial bubble market that exploded and is impacting the real economy.

So if I'm following your views, I don't believe any second that the real market economy has to sustain the failure of the financial markets.

It is just another level of interventionnisme (real market pays for the mistake of the banks instead of the governement who allowed them to do such things like the subprimes).

 

Why would the car manufactures, the utilities business, the services companies.... have to pay for the mistake of the banks ?

I'm a bit naive in my comments, I'm no economist... but it makes sense to me.



 

Evan Wells (Uncharted 2): I think the differences that you see between any two games has much more to do with the developer than whether it’s on the Xbox or PS3.

Sardauk said:
Viper1 said:
So you don't mind that were inflating the money supply and losing purchasing power that greatly affects your revenues and ALL business and people even worse?

The market would have fixed itself. Bankruptcy is a powerful market tool that for the most part was not even given a chance by the government and Federal Reserve that just tossed over trillions of our money like candy. You know, didn't ask me if it was Ok to use my candy.

Banks were failing, credit was screwed by why was that? What are the fundamental properties that create those problems and what can be done to not just fix them but prevent them? Artificial market factors caused them (thank you Fed and moronic regulators) so why assume artificial factors will fix it?

How long can we inflate bubble after bubble before there exists no more bubbles to inflate? How long can we monetize debt before we join the ranks of Weimar, Zimbabwe and Yugoslavia?
How long can we promise entitlements before people realize we'll never get them yet still shoulder the cost?

I understand your point... but I believe the crisis came from the opposite direction -> An artificial financial bubble market that exploded and is impacting the real economy.

So if I'm following your views, I don't believe any second that the real market economy has to sustain the failure of the financial markets.

It is just another level of interventionnisme (real market pays for the mistake of the banks instead of the governement who allowed them to do such things like the subprimes).

 

Why would the car manufactures, the utilities business, the services companies.... have to pay for the mistake of the banks ?

I'm a bit naive in my comments, I'm no economist... but it makes sense to me.

Why should I pay for them?



The rEVOLution is not being televised

I love how people want to look at history to solve there problems, but only want to look at some history. The worst economic collapse in US history, happened in 1921. It only lasted a year, because Government did nothing.

http://en.wikipedia.org/wiki/1921_recession

Then 9 years later comes along, we have less of an economic disaster, and government steps in. It lasts a decade.

Why do you then think we need Government to fix this problem?



Because you need them... like everybody ...

It is unfair but it is like that...



 

Evan Wells (Uncharted 2): I think the differences that you see between any two games has much more to do with the developer than whether it’s on the Xbox or PS3.

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Sardauk said:

Because you need them... like everybody ...

It is unfair but it is like that...

Why not just let them fail, go to bankruptcy court and let the only payment come from themselves?   Why put any burden on me, you , other business, etc...?

 

 



The rEVOLution is not being televised

TheRealMafoo said:
I love how people want to look at history to solve there problems, but only want to look at some history. The worst economic collapse in US history, happened in 1921. It only lasted a year, because Government did nothing.

http://en.wikipedia.org/wiki/1921_recession

Then 9 years later comes along, we have less of an economic disaster, and government steps in. It lasts a decade.

Why do you then think we need Government to fix this problem?

In Europe we had to... otherwise (thanks to the big failures of our American friends... and our financials iditios who bought those toxic portfolios) our entire banking systems would have collapsed or being taken over by foreign organizations...

No banks-no credits, no-credits-no economy and tons of business goes bankcrupt... 

Our governement saved some banks to minimize the impact, but our biggest and oldest one got taken over by the French...



 

Evan Wells (Uncharted 2): I think the differences that you see between any two games has much more to do with the developer than whether it’s on the Xbox or PS3.

Viper1 said:
Sardauk said:

Because you need them... like everybody ...

It is unfair but it is like that...

Why not just let them fail, go to bankruptcy court and let the only payment come from themselves?   Why put any burden on me, you , other business, etc...?

 

 

What people fail to understand is that we don't need any particular companies. Sure we need a financial system... not the one made by the big banks. There are plenty of regional and smaller banks which can provide the services people need.

The bailouts are just an excuse to maintain the status quo, which is what most politicians want (because it looks like a low risk alternative to keep going forward on the same path).

 



My Mario Kart Wii friend code: 2707-1866-0957

Viper1 said:
Sardauk said:

Because you need them... like everybody ...

It is unfair but it is like that...

Why not just let them fail, go to bankruptcy court and let the only payment come from themselves?   Why put any burden on me, you , other business, etc...?

 

 

Well it is obvious... it would go faster...

Tons of people who loose their jobs would only cripple more the consumption ... and more business... and more people...etc

 

I understand it is not only about saving the failing entities but rather preventing the other from failing as well. Like a domino.

 

No ? I believe it is especially true in the USA, where consumption is the driver of the market.



 

Evan Wells (Uncharted 2): I think the differences that you see between any two games has much more to do with the developer than whether it’s on the Xbox or PS3.

Well, I'm about to get a mortgage, so maybe they'll just outright buy my house and give it to me for free. I'm all for that




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