US heading towards epic depression - Page 2

i think the fact people are scared of the depression will make this worse

people will save money and spend less
so shop owners will make less profits and fire people and pay less taxes
so workers will have less money cuz theyre fired and spend even less
governement will get less taxes
maybe governement will fire people

can someone explain to me why the dollar gets stronger even thou economy is going down?

On October 06 2008 13:49 Floofy wrote: i think the fact people are scared of the depression will make this worse people will save money and spend less so shop owners will make less profits and fire people and pay less taxes so workers will have less money cuz theyre fired and spend even less governement will get less taxes maybe governement will fire people

i believe when people spend less it reduces inflation and therefore is good for economy

yes its true but....
i dont think US currently has major inflation problems
im not sure thought


its why social helping programs, stuff that gives money to the poor arent so bad because the poor always spend that money and therefore stimulate economy to the max. while money that goes to the rich, those rich people often store it in the bank.

u just have to balance inflation and developpement, not go 100% beating inflation or go 100% devellopement.

you know, the US schools teach neo liberism a lot, so i expect people here to promote it (BEAT INFLATION, BE COMPETITIVE WITH EXPORTATIONS, ETC)
but in quebec they like to state the positives aspect of being a more social governement

wtf are you guys babling about here.

Kwark wrote: If you all start going "zomg depression save monies don't spend" then it'll be a self justifying prophecy. As long as the media keeps a unified stance on this it doesn't actually matter what they say.

People don't save money during depressions cause it tends to devaluate way faster, also some financial breakedowns are caused by ass withdrawals.

anon wrote: i believe when people spend less it reduces inflation and therefore is good for economy

spending money is the sole reason why economy exists, I don't even know how did you came up with this.

anon wrote: yes its true but.... i dont think US currently has major inflation problems

because definition how inflation is calculated changed few times over past years it seems it's steady and low, while it's actually raging.

because definition how inflation is calculated changed few times over past years it seems it's steady and low, while it's actually raging.

wtf elaborate??

spending money is the sole reason why economy exists, I don't even know how did you came up with this.

heh he is right on this. when a bunch of people start buying, the dude who sells raise his prices cuz there is a lot of demand....

high demands = price rise
low demands = price diminush

inflation is the % at which price rise.

say u sell poker chips. if none buys ur poker chips ur gonna lower the price. but if there are tons and tons of buyers, ur gonna increase ur price.

Convert your US dollars into gold and Swiss Francs. You can thank me in 6 months by sending me a fruit basket.

Economy won't collapse, housing market might depending on what the govt ends up doing.

this is so much fun!

pair that with aliens coming to visit us on Oct 14th, and you're safe to WOOOT!

interest rates are higher and that increases the value of teh dollar.

one thing i'm curious about is credit default swaps. I watched a 60 minutes special on them last night that painted them as a bigger cause for the crises than the mortgage backed securities they're based on.
Basically what they are is an insurance policy sold alongside mortgage backed securities that ensures payment in case of mortgage default. apparently Lehman Bros, AIG and Bear Sterns were all selling tons of them. Its basically insurance but they're not regulated by typical insurance rules that stipulate the seller must actually have the funds to pay out all policies (and therefore not be leveraged).

It seems to me that these swaps would just transfer the liability from the investor back to the investment houses, but that they would be a 0-sum instrument, and thereby not make the crisis any better or worse. Worse for the investment banks for sure, but better for whoever holds the securities. Obviously the investors won't get paid in full because AIG etc can't afford to pay them out en masse..

Anyone know any more about it?

Also, the government bailout package, aside from donating a couple mil to NASCAR, is going to buy up these securities at a negotiated price. I know wallstreet is finding it impossible to value these securities, but its surprising to me that some of these investment banks aren't just selling them off at bargain basement prices, just to get them off the balance sheet. Has the inability to price these things really stopped all trading of them?

On October 06 2008 14:31 GsOne wrote: wtf are you guys babling about here. Show nested quote + Kwark wrote: If you all start going "zomg depression save monies don't spend" then it'll be a self justifying prophecy. As long as the media keeps a unified stance on this it doesn't actually matter what they say. People don't save money during depressions cause it tends to devaluate way faster, also some financial breakedowns are caused by ass withdrawals.   anon wrote: i believe when people spend less it reduces inflation and therefore is good for economy spending money is the sole reason why economy exists, I don't even know how did you came up with this.   anon wrote: yes its true but.... i dont think US currently has major inflation problems because definition how inflation is calculated changed few times over past years it seems it's steady and low, while it's actually raging.

American economy is based on spending, which has turned it into a economy based on credit and interest and subprime credits and mass house recollection is what collapsed wallstreet, the american way of living beyond their means on mass credit must end, this is the first sign, the bailt out will create a 1 trillion inflation and try to keep the same model when in fact it will just collapse ever harder, just later, same shit that happened early this year.

On October 06 2008 15:21 Fraser wrote: interest rates are higher and that increases the value of teh dollar. one thing i'm curious about is credit default swaps. I watched a 60 minutes special on them last night that painted them as a bigger cause for the crises than the mortgage backed securities they're based on. Basically what they are is an insurance policy sold alongside mortgage backed securities that ensures payment in case of mortgage default. apparently Lehman Bros, AIG and Bear Sterns were all selling tons of them. Its basically insurance but they're not regulated by typical insurance rules that stipulate the seller must actually have the funds to pay out all policies (and therefore not be leveraged). It seems to me that these swaps would just transfer the liability from the investor back to the investment houses, but that they would be a 0-sum instrument, and thereby not make the crisis any better or worse. Worse for the investment banks for sure, but better for whoever holds the securities. Obviously the investors won't get paid in full because AIG etc can't afford to pay them out en masse.. Anyone know any more about it? Also, the government bailout package, aside from donating a couple mil to NASCAR, is going to buy up these securities at a negotiated price. I know wallstreet is finding it impossible to value these securities, but its surprising to me that some of these investment banks aren't just selling them off at bargain basement prices, just to get them off the balance sheet. Has the inability to price these things really stopped all trading of them?

Im not sure what your question is here, but if what you mean is what make sit worse than only mass collected securities, is the fact Freddy and Fanny bough every single security from the Banks and even sub-prime loaners, which was a huge moral hazzard, so obviously the banks and subprimer loaners loaned money to the first mother fucker that stepped in their buildings, after all, in case he didnt pay, Freddy and Fanny would cover the losses.

This huge securities demand caused by FF bloated the market price to a ridiculous extent, and obviously people couldnt pay their loands, the mass reposession started and with the current bloated market nobody would ever take those houses back from FF and basically they just collapsed sitting in nearly 1 trillion of overvalued assets.

Plus the bailout is the most ridiculous thing ever... with the excuse of injecting liquidity to Wallstreet they are going to take those assets, that their prices were bloated by freddy and fanny, at nearly its original BLOATED price... so mother fucking shit, Freddy and Fanny buy 70% of all security houses, bloats the fucking price for the huge demand they caused, and then it proceeds to sell them smoothly at their bloated price to the fucking goverment... which in fact is using your money to buy those shitty properties AND creating 1 Trillion of extra debt to the central bank and inflation.

So long story short, you guys (along with the rest of the world sadly) got bent over and fucked in a sich scheme by FF cuz since the gov owns a big part of it, knew it was gonig to be saved, since they hold the biggest moral hazzard on walstreet.. which is being part of the government.

oh and the bailout wont change anything except buying some time at the expense of more inflation and a future stronger collapse.

On October 06 2008 14:31 GsOne wrote: wtf are you guys babling about here. Show nested quote + Kwark wrote: If you all start going "zomg depression save monies don't spend" then it'll be a self justifying prophecy. As long as the media keeps a unified stance on this it doesn't actually matter what they say. People don't save money during depressions cause it tends to devaluate way faster, also some financial breakedowns are caused by ass withdrawals.   anon wrote: i believe when people spend less it reduces inflation and therefore is good for economy spending money is the sole reason why economy exists, I don't even know how did you came up with this.   anon wrote: yes its true but.... i dont think US currently has major inflation problems because definition how inflation is calculated changed few times over past years it seems it's steady and low, while it's actually raging.

Erm, yes, they do. When the economy is doing well people like to spend their paychecks and buy nice things and generally not think about the future. They base their financial future on the assumption that the economy will continue to do well. When the economy then underperforms they stop buying shit they like and start worrying about paying the bills. Even if they are not personally effected the assumption that they will be fine is damaged so they get more cautious. Consumer spending drops and the economy contracts.

edit - lol @ me talking market on lp. lol temp ban imo.

GO RON PAUL

On October 06 2008 13:58 anon wrote: can someone explain to me why the dollar gets stronger even thou economy is going down?

http://www.oil-price.net/

Where the place to invest?

On October 15 2008 22:52 casinocasino wrote: Where the place to invest?

Guns and canned food