Americans: Explain

[Zkribbler]

First, why US Bank Failures dropped from hundreds in the 80s and early 90s, to single digits in the late 90s and early 00s?

In the 80s and early 90s, banks were being deregulated. They were being bought out and run by idiots and crooks who drove them into the ground and pillaged them. Thus, high failure rates.

Then in the late 90's, banks went into megamerger mode, and only a few banks remain today. They got the Republican minons in Congress to pass all kinds of pro-usury and anti-consumer legislation. Since then, they've been happily filling their coffers as the debt of the American populous goes through the roof.

[Kidlicious]

It is to be regretted that the rich and powerful too often bend the acts of government to their own selfish purposes.

-Andrew Jackson

[Berzerker]

First, why US Bank Failures dropped from hundreds in the 80s and early 90s, to single digits in the late 90s and early 00s?

When Reagan came into office he and Congress significantly increased Federal "insurance" - I think they raised it to $100 K per account etc. Then the booming south, especially California to Texas, went bust - building space was being built by speculators insured by our taxes and they far outbuilt the demand. Both parties were complicit, even the Dems told Dukakis to shut up when he wanted to use the growing scanda against Bush 1l. So we learned of the collapse of the S&L industry after the '88 election. They could have headed it off back around '83-84 but that was an election period to and it really ballooned afterward.

The short answer - the people who run the country ripped us off to the tune of a half trillion dollars by making us liable for other people's investments and then looking the other way. Why people still vote for the 2 parties amazes me...

Second, why all the blabla about what would happen if China suddenly stops trading with you, when your total trade with Mexico is bigger and with Canada it's twice as big?

Fearmongering sells? I dont know, but China carries enough of our debt to really screw us (and themselves) by getting nasty.

Third, how come your imports are almost twice as large as your exports? That makes no sense at all.

Following WW II the US was intact and at full production... Much of the industrialised world was in ruin and in need of stuff and the US had a boom period. By the 70s other countries were recovered and producing and we were bleeding marketshare, and then business sought out lower costs and taxes/regulations by moving jobs. Oh, we use alot of oil

Fourth, how come 8 of your 10 busiest ports are either in Texas or Louisiana? Shouldn't most trade come to the East or West coasts, not to the Gulf?

Oil, thats where most refineries are because of the Gulf Coast oil boom in the early part of 20th century.

And fifth, what on earth do the 235,654 employees of the Department of Veteran Affairs do?

We're choked by bureaucratism but I dont know about that number. Many are hospital people I imagine, paper pushers.

[Elok]

Originally posted by Kidicious
It is to be regretted that the rich and powerful too often bend the acts of government to their own selfish purposes, when they ought to be using them to mount genocidal campaigns against the injuns like I did.

-Andrew Jackson

[Kuciwalker]

If we killed more Indians they wouldn't be stealing our jobs

[KrazyHorse]

Re: Re: Americans: Explain

Originally posted by DrSpike

3) Americans are greedy. No, seriously, the current account deficit is offset by a capital account surplus

Errr...that's not an explanation. It's a consequence...

[Drake Tungsten]

Why do you fly the French flag?

I can't think of a better flag to fly. Vive la France!

[DrSpike]

Re: Re: Re: Americans: Explain

Originally posted by KrazyHorse


Errr...that's not an explanation. It's a consequence...

Well in open economy macro virtually all the major variables are endogenous if you look hard enough. So whilst your comment is not wrong, it is pretty unhelpful.

The original question was around how a country can import more than it exports. Lots of entertaining answers here (most partly right) but the key point to understand before you can get anywhere in analysing further is that the current account reflects one part of international transfers and in no way has to balance.

[KrazyHorse]

The original question was around how a country can import more than it exports.

If that was the question then your answer was fine. I thought he was looking for something more along the lines of "why does the US import so much more than it exports"...

[SlowwHand]

I have a better question. How does Canada exist at all?

[DinoDoc]

Originally posted by SlowwHand
I have a better question. How does Canada exist at all?

Well it wasn't for lack of trying on our part.

[Jaguar]

Originally posted by Kuciwalker
If we killed more Indians they wouldn't be stealing our jobs

Well played, sir.

[KrazyHorse]

Originally posted by SlowwHand
I have a better question. How does Canada exist at all?

Sheer stubbornness.

[Geronimo]

Originally posted by KrazyHorse


Sheer stubbornness.

Right.

Stubborn determination on the part of mother England to kick Canada out of her basement so it would finally have to go set up it's own flat.

[Barnabas]

In small countries, you can import more than what you export, if you cover that deficit with dollars entering the country thru tourism or foreign investment.

I guess in the USA they cover that with tourism + foreign investment + dollars from other countries brought to the USA by companies with headquarters in the USA

How right or wrong am I?

(I think my explanation does not explain everything, those three things are not enough)

Yanks can always print dollars and the rest of the world will take them anyway