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US Economy in CRISIS! (pg. 8)
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| Cribby |
| quote: | Originally posted by DigiNut
Everybody here should be hoping that this bailout doesn't go through. This seems like one of the most non-partisan issues imaginable. Liberals shouldn't like it because it's only helping irresponsible corporations, and conservatives shouldn't like it because it's pissing away taxpayer money on sinking ships. The only point in favour seems to be a totally unfounded and short-sighted argument that it's somehow going to save the American economy. It's not! |
I agree with you. |
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| rabbitjoker |
| quote: | Originally posted by VDub
My god China is laughing right now....
They have TRILLIONS in US cash stockpiled away..... |
You obviously don't get it.
If the US dollar drops in value, China gets hammered. |
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| rabbitjoker |
| quote: | Originally posted by exstasie
Just imagine the kind of trouble the US would be in if China or Japan started selling some US Treasury Assets...
Oh dear god! Together China & Japan have $1.1 Trillion in US Treasury securities... |
They won't - because then their biggest importer (the USA) won't have any money (of value) to buy their exports. |
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| jchung52 |
| lol @ Bush: "We put together a big plan, cuz its a big problem" |
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| DigiNut |
| quote: | Originally posted by Skipper
It's about allowing the market to be able to function in the short term |
Failing business is part of the market's "function". The market's function is to weed out those businesses incapable of fulfilling their fiduciary responsibilities and allow the capable ones to succeed. Large, established corporations should be the least likely to fail because they have the biggest cushion of assets to fall back on if things go badly. Chucking government money into them is inflating a cushion that's already sprung a leak - it can't succeed.
Yes, I'm sure if you ask anyone that works in that sector or someone who's close to retirement and has a lot of assets in that sector, they will tell you a bailout would be a good thing. For them, personally. That's not evidence, it's emotion. It's not sound economics, it's feel-good politics. It's an indirect government handout for these people who should have moved or at least diversified their assets sooner.
The market is functioning. It's functioning exactly as it should be functioning, including in the short term. The only thing that can cause it not to function normally is government intervention. Among other things, crashes like this are great for competition and give the bit players a chance to show what they're capable of; that won't happen if the major leaguers are kept in a dominant position no matter how ty they play. |
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| Orko |
I'm 'happy' that the bail out failed. This is the best possible thing for the economy in the long term. The American way of life, was just unsustainable, with far too many people living outside their means. Somebody here said 'so sad that so many people are loosing their houses'. Well realistically, a lot of those people just should not have been able to get the loans for those houses in the first place.
Markets naturally go up and down, up and down. Who the actually thought that we could have unhindered growth for ever? Economists have seen enough recessions and expansions in the last 100 years to get a good sense of how to see them coming, and how to react. Unfortunately, we have only seen one large depression in the western world in that same time period. It will take some time, and new thinking to adjust and dig out selves out. With the possibility of expansion, there has to be a possibility of contraction. This is not a one way street.
With personal debt sky rocketing in this country as well, people in NA need to think about how they save and buy the things they need/want. Buying that couch from Leons now, and paying in two years, is not always the best plan. How about living within your means, and saving? I concede that loans are necessary for some projects in life, such as a business or education, but people have been taking on too much debt, for far too long in order to 'live nicely'.
Hopefully this period will show us how to go back to basics. |
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| Vivid Boy |
I just want to know how our real estate market will be effected. I put a nice offer on a nice piece of development land the other day, and the seller is just waiting on me to get a few documentations in before he accepts the offer.
now i think i should just drop the whole deal. and sit back and wait out. maybe go to school in the meantime |
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| jchung52 |
| quote: | Originally posted by Vivid Boy
I just want to know how our real estate market will be effected. I put a nice offer on a nice piece of development land the other day, and the seller is just waiting on me to get a few documentations in before he accepts the offer.
now i think i should just drop the whole deal. and sit back and wait out. maybe go to school in the meantime |
my friends mansion just dropped 100 k.... |
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| Orko |
| quote: | Originally posted by Vivid Boy
now i think i should just drop the whole deal. and sit back and wait out. |
I think this is your best option. The market is going to continue to drop primarily because it had been so hot for the last few years. Again, the market was going to correct, and the downturn in the U.S. only helps to compound the issue.
Our unemployment rate has been doing well for the last 10 years, but unfortunately, we have been adding too many low paying jobs, the types that cannot really afford houses. Plus with specs driving up the cost of condos, I believe they were over priced.
Keep an eye out on the sales of building supplies, and building permits, for old and new houses to check how things are doing. |
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| Vivid Boy |
| ya i think its my best bet too. i mean the property is in london and my contractor promised me we would have it complete in a motnh and a half, However, how long will i have to wait to sell? and how much will it depreciate while it sits. |
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| Vivid Boy |
| quote: | Originally posted by jchung52
my friends mansion just dropped 100 k.... |
higher end homes will always drop before lower end. |
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| jchung52 |
| quote: | Originally posted by Vivid Boy
higher end homes will always drop before lower end. |
ya i know... i actually had thoughts of buying it lol.. but then all this happened and well...ya.. f it |
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