Credit Crunch Reaches Main Street

[Japher]

Yup. Lets stop spending more than we're worth. Banks included.

700Billion though says we can keep doing it!

Yaay!



We are so screwed.

[notyoueither]

Originally posted by Aeson
This is how it's designed to work. Boom on consumer debt spending... bust when no one qualifies anymore. (Via a combination of overpriced assets and consumers who are up to their eyeballs in debt trying to keep up with them.) Now is sorta the wrong time to be acting, it will play out one way or another, until there is real capitulation in the markets and through our economy... and most people have marked down their assets to the new "affordable".

Funny thing is how our (predominantly) "Christian" nation misses out on virtually every lesson taught in the Bible, in this case, with Joseph interpreting Pharaoh's dreams.

I don't think this is how it was designed to work.

Are you seriously suggesting we use the Bible for economic planning?

[Aeson]

Originally posted by notyoueither
I don't think this is how it was designed to work.

You don't?

Perhaps not originally, but money is power... and those with power have been shaping our economy and politics to suit them.

The expansion and contraction of the market helps them. During the expansion they can sell off their assets at high prices. During the contraction they can buy back the assets (or seize them even) at minimal expense.

Then they're set for the next expansion. Sure there are casualties (even among the powerful) as no one can predict when it will turn exactly, and certainly everyone makes mistakes... gets [un]lucky... but it's obvious that some people (even among the lower classes) can make out very well in the end if they've set themselves up for the contraction properly.

It's JPM buying out other firms for pennies on the dollar. Or even getting the Fed to back the buyout. (Or having the Fed lend to them on the assets.) And who set up the Fed in the first place? JP Morgan. Now it's getting the US Gov to buy those assets for face value. Who's in charge of this and was calling for it? Paulson. Who just happens to have been the CEO for GS. But it's also smaller investors who have been in cash (so many people being in cash is one of the reasons for the contraction even), who will be able to buy up assets... stocks or houses or whatever... for much cheaper than they would have otherwise.

It's not a massive conspiracy. But it's certainly a bunch of people working for their own best interests, and gaming the system ... and in some cases even setting up systems ... for their own profit.

Are you seriously suggesting we use the Bible for economic planning?

I'm saying it's rather ironic that a predominantly "christian" nation fails to understand some of the applicable concepts that are taught in the bible.

Joseph's interpretation of Pharaoh's dream was that there would be 7 fat years, followed by 7 lean years. To plan for this, the excess of the fat years was saved to provide during the lean years. This worked out well. (Whether it happened or not is really not important, it's the principle of using excess to guard against the lean years that matters.)

We go about this backwards. Fat years we consume to excess, leaving little (or less than nothing actually... since we go into debt) to get us through the lean years.

The Bible isn't an economic road map, but there are applicable concepts within it. If we actually understood them, at least we wouldn't make mistakes that are easily known to be mistakes... so much so that peoples thousands of years ago could recognize the expediency of the precautions we ignore.

[notyoueither]

Those are interesting ideas. Do some digging and put up a web site. You'll get lots of views, I'm sure.

[Agathon]

Have Ben & Jerry's released "Credit Crunch" ice cream yet?

[Dauphin]

Yesterday, a friend got approved a $20k loan so they could "travel the world". Irresponsible lending from banks still exists.

[Elok]

Originally posted by Agathon
Have Ben & Jerry's released "Credit Crunch" ice cream yet?

I could go for some of that. Well, depending on what's in it. Fragile little dollar signs of chocolate that shatter the moment you touch them, or perhaps a green minty swirl suggestive of money going down the toilet?

[Provost Harrison]

Originally posted by Dauphin
Yesterday, a friend got approved a $20k loan so they could "travel the world". Irresponsible lending from banks still exists.

It wasn't a certain chubby Australian was it?

[Darius871]

Originally posted by Elok


I could go for some of that. Well, depending on what's in it. Fragile little dollar signs of chocolate that shatter the moment you touch them, or perhaps a green minty swirl suggestive of money going down the toilet?

mmmmm...

Maybe also some nuts to represent the government gone mad. Ooh and some jet-puffed marshmallows to represent the housing bubble. The possibilities are endless, and delicious!

[Kidlicious]

Originally posted by notyoueither


I don't think this is how it was designed to work.

They didn't design the market to fail, but then they didn't expect it to either. Now you can expect them to be stupid one time, but not continually like this. Then you have to assume that they are designing it to fail.

[Dauphin]

Originally posted by Provost Harrison


It wasn't a certain chubby Australian was it?

I have no idea who you are alluding to. None at all.

[Aeson]

Originally posted by Dauphin
Yesterday, a friend got approved a $20k loan so they could "travel the world". Irresponsible lending from banks still exists.

Yah, Wells Fargo was advertising HELOCs (which were selling for pennies on the dollar) to build pools (judging from the ad) on their front page as late as this spring.

[Darius871]

Originally posted by Darius871


mmmmm...

Maybe also some nuts to represent the government gone mad. Ooh and some jet-puffed marshmallows to represent the housing bubble. The possibilities are endless, and delicious!

Ooh ooh and graham crackers to represent Phil Gramm's repealing Glass-Steagal! How could I forget that?

Now I'm really hungry...

[Aeson]

'smore of the same?

[Dauphin]

Originally posted by Aeson


Yah, Wells Fargo was advertising HELOCs (which were selling for pennies on the dollar) to build pools (judging from the ad) on their front page as late as this spring.

I'm continually bombarded with bumph about pre-approved loans, and at the same time, savings and investments plans. Seems they want me to borrow at 6.7% APR so that I can invest in a tax free savings account at 5%. They is genius!