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Originally posted by Lancer
That will lower interest rates to home buyers, yes?
That will lower interest rates to home buyers, yes?
Maybe, maybe not.
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Maybe, maybe not.
I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett Kavanaugh -
I'm kind of interested in what the real options are when dealing with a financial crisis. As I see it there are three main options:
1) Bail out, this is usually supported by people who have something directly to lose from the crisis, they point out the dire negative effects of doing nothing (jobs lost, companies going bust, pension funds & other investors going bust) and rationalize that a bail out is the only way to avoid those negatives. The con vote says that this only encourages bad behavior and costs taxpayers oodles of money.
2) Do nothing approach. This tends to be supported by the far right who point out allowing businesses to go bust makes and example of them and discourages others from such speculations in the future. Progressives point out that often it is not just the guilty but regular joes who get hit including pension funds meaning lots of penniless old folks in the streets while the financial crisis deepens into a possible depression taking down healthy companies along with the unsound ones.
3) Do some things but not others. A split the difference approach which says the risks of doing nothing are so dire that we must have some sort of bailout but at the same time acknowledging this will lead to more bad behavior. Thus regulations need to be enacted to stop the counterproductive speculative behaviors so that taxpayers aren't stuck cleaning up crisis after crisis.
Which way is best and are there other solutions out there?Try http://wordforge.net/index.php for discussion and debate.Comment
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It doesn't actually cost tax money though. It saves tax money, because if there is a recession or worse the government is going to lose much more.Originally posted by Oerdin
The con vote says that this only encourages bad behavior and costs taxpayers oodles of money.I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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Let some go bust, nationalize others.Originally posted by Oerdin
Which way is best and are there other solutions out there?
JMJon Miller-
I AM.CANADIAN
GENERATION 35: The first time you see this, copy it into your sig on any forum and add 1 to the generation. Social experiment.Comment
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A part of me is like "LOL the USA is having a Malaysian/Russian/Argentine-etc crisis" and the other part is very worriedI need a foot massageComment
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Not really a crisis like those three. More like the Japanese crisis of the early 90's. A burst speculative bubble made possible by laxed lending standards and real estate speculations.Try http://wordforge.net/index.php for discussion and debate.Comment
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It's hard to compare, since we've never once in our country's history been in those situations (or at least neither Argentina's nor Russia's).
I suggest that you don't lose a wink of sleep over what happens on Wall Street. But you might enjoy the spectacle of it all -- a LOL or two won't hurt anybody (like the Bear Stearns chairman playing in the bridge tourney on the day his firm's going bankrupt).Last edited by DanS; March 17, 2008, 12:02.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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Dont forget the fiscal irresponsability of Bush Junior + the devaluation of the dollarOriginally posted by Oerdin
Not really a crisis like those three. More like the Japanese crisis of the early 90's. A burst speculative bubble made possible by laxed lending standards and real estate speculations.I need a foot massageComment
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Yes, that does fall squarely in Jr's lap.Try http://wordforge.net/index.php for discussion and debate.Comment
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These situations aren't 1/10th of what Argentina and Russia experienced.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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The Far evil right(tm) approach is to raise the fed funds rate to defend the dollar thus making it even worse for said businesses and speculators.Originally posted by Oerdin
2) Do nothing approach. This tends to be supported by the far right who point out allowing businesses to go bust makes and example of them and discourages others from such speculations in the future.Comment
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The worst part about the Japanese situation (probably not a crisis) is that consumer confidence was hit so hard. If consumer confidence gets hit like that in the US is will definitely be a crisis though.Originally posted by Oerdin
Not really a crisis like those three. More like the Japanese crisis of the early 90's. A burst speculative bubble made possible by laxed lending standards and real estate speculations.I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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Especially since most of the economy is based on consumer spending; usually by borrowing money on credit cards.Try http://wordforge.net/index.php for discussion and debate.Comment
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Looks like both Lehman Brothers and National City Bank are going into the drink.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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I had March LEH puts and VIX calls. Too bad it was in paper money trading.
(10x and 2x profits on them. And since it was just paper money I slept in so didn't catch most of it.)Comment
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