Let the bad times roll

[Zkribbler]

Originally posted by Arrian
Meh. I wanted higher interest rates. Of course, I need to get off my ass and invest that money instead of leaving it in savings, but that's another matter...

With many sources predicting a major recession, this may be a good time to stay in cash and out of the equities market.

[Victor Galis]

Originally posted by Zkribbler


With many sources predicting a major recession, this may be a good time to stay in cash and out of the equities market.

Yes, though if that cash is American, it might not be so hot either :|

[Wezil]

Perhaps Americans should buy some real Canadian dollars instead of a sham of a currency they currently use.

[One_more_turn]

When you see something like that in the mainstream financial media, a bull market is usually around the corner.

[Apocalypse]

Originally posted by Aeson


My very limited grasp of economics... (correct me if I'm wrong)

The half point rate cut seems to point to we have already started to try to bail them out. And our dollar is suffering for it.

Yeah, but the stock market also bounced back a bit. It depends on what part of the economy you are helping.

[Apocalypse]

Originally posted by Arrian
Meh. I wanted higher interest rates. Of course, I need to get off my ass and invest that money instead of leaving it in savings, but that's another matter...

-Arrian

If you have over 10,000 in savings, you can find banks that let you put it in a savings account that gives you CD interest rates, as long as you have at least 10,000 in the account. It's pretty nice.

[Imran Siddiqui]

Originally posted by Vanguard
Still, not really anything else you can do at this point. As Victor points out, you can't let the whole economy go down the tubes to try teach a lesson to people. They wouldn't learn anything anyway.

Well yeah.. you can't let the economy tank completely. But I think you can take steps to contain the damage while not engaging in a direct bailout to the morons who put us in this position.

Then again, a recession every once in a while does tend to clean out the inefficiencies. We may need one in order to correct for all this crap (which was a point made far better by "The Economist" a couple issues ago, if you want to read it).

[Victor Galis]

Originally posted by Imran Siddiqui


Well yeah.. you can't let the economy tank completely. But I think you can take steps to contain the damage while not engaging in a direct bailout to the morons who put us in this position.

Then again, a recession every once in a while does tend to clean out the inefficiencies. We may need one in order to correct for all this crap (which was a point made far better by "The Economist" a couple issues ago, if you want to read it).

Yeah, I think interest rate lowering is an example of not letting the economy tank without bailouts for the worst idiots. I mean, lower interest rates do nothing for the hedge funds that bought illiquid assets that now can't even be valued because trading volume has fallen sharply.

[Kidlicious]

Originally posted by Imran Siddiqui
But I think you can take steps to contain the damage while not engaging in a direct bailout to the morons who put us in this position.

My link didn't work all day and no one told me. It works now. Please everyone read.

This is the main idea.

"The credit bubble is just starting to unwind, a credit-derivative insider says. And while U.S. borrowers are being blamed for the mess, they were really just pawns in a global game."

Ok I posted the whole article on the OP. Sorry, I was late for work this morning.

[Barnabas]

Wouldnt the state helping people who cant pay their loans be "populist"?

[Kidlicious]

Could be.

I support the bailout. I don't think it will cost anyone anything. I think it's the best thing to do for everyone.

[Victor Galis]

Originally posted by Kidicious
Could be.

I support the bailout. I don't think it will cost anyone anything. I think it's the best thing to do for everyone.

Eh? It's costing me a good 2-3% more to buy anything. Then again, the dollar might have fallen without the rate cut.

[Kidlicious]

Originally posted by Victor Galis


Eh? It's costing me a good 2-3% more to buy anything. Then again, the dollar might have fallen without the rate cut.

I was refering to a direct bailout.

By costs, do yo mean imports?

[Wezil]

Victor is paid in US $$, IIRC.

[Imran Siddiqui]

Originally posted by Kidicious
"The credit bubble is just starting to unwind, a credit-derivative insider says. And while U.S. borrowers are being blamed for the mess, they were really just pawns in a global game."

Pawns though they be, they still went with it. I mean most people could tell that interest only payments for the first 2-4 years or stuff like that was a BAD idea. But these folk didn't care and overextended themselves.

Now, the good news for people like me is that I can get a cheap house in a year or so when the Atlanta housing market collapses. But the idiots who thought they were getting a "deal to good to be true" don't deserve anything. That'll just reinforce an attitude that'll make them subject to this sort of stuff again.