Reason for Economic Crisis

NutmegCT

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Ramón - that *is* a good article. I tend to wonder what's going through the presidential candidates' minds as they see the problems one of them will inherit in a few months.

Here's another good summary of the recent economic meltdown:

http://news.bbc.co.uk/2/hi/business/7521250.stm

It all goes well 'til it doesn't!

Personally I find a lot of truth in Bacevich's book "The Limits of Power". In sum, he writes that the USA has transformed Jefferson's "Life, Liberty, and the Pursuit of Happiness" into:

"Whoever dies with the most toys wins"; "Shop till you drop"; "If it feels good, do it."


Tom
 

fiveboy

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Re Herald Tribune

Re Herald Tribune

Great article but its re stating the obvious view from a rear view mirror perspective. Allowing that what is stated is accurate - and clearly it is - (economic theater, money sloshers, false self serving perceptions, candidates bickering rather than addressing... ) then the question is what is the new model, what is the solution!??

While a great analysis it is also completely rhetorical.

OK now what!???? By whom and when?
 

Heron

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Fiveboy, there is no solution. It is only a moment of a bigger plot.
Someone is making lots of money and there is frantic activity all over.
With a pen they can fix it very quick.
A huge realignment is taking place. As I told you all, how come Brazil was in the bottom of a list and still belongs to G-20?
Now it is going to be part of the G-6 when G-8 is no more.
This has been played from way back, I mean B.C. stuff.
Heron
 

NutmegCT

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Great article but its re stating the obvious view from a rear view mirror perspective. Allowing that what is stated is accurate - and clearly it is - (economic theater, money sloshers, false self serving perceptions, candidates bickering rather than addressing... ) then the question is what is the new model, what is the solution!??

While a great analysis it is also completely rhetorical.

OK now what!???? By whom and when?
Yep - lots of rearward vision in an article that describes how we got here. But he also gives a suggestion:

"It will take, he suggests, a global leadership class that can answer essential questions: How much leverage should be allowed? Can we preserve the development model in which certain nations pile up giant reserves and park them in the U.S.?

Until these and other issues are addressed, the global markets will lack confidence in asset values. Bankers will cower, afraid to lend. America's role as the global hub will be threatened. Europeans will drift toward nationalization. Neomercantilists will fill the vacuum."


Here's a first step: electing leaders who are responsible, and who we hold to their own responsibility. Way too often we elect people and then totally ignore what they're doing 'til just before election time - when the PR machine spins half truths at 100 knots.

Legislation is notoriously short-sighted. We keep having fun, while telling the politicians to "fix" things; they pass stop-gap patches, instead of laying a broad groundwork for improvement. And we try to blame the politicians for our problems - yet we keep electing them. Amazing.

Getting back into a stable economy ain't gonna happen fast, especially if we keep giving a "nudge nudge wink wink" at what goes on in politics. But if we actually take an active part, instead of giving away the power and then ignoring what they do, we might make some progress.

Just my 2¢.
Tom
 

PW_Plack

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The article misses the role of governments, given the power to counterfeit their own currencies, in creating bubbles. Too much liquidity means people overbid whatever is the "next big thing," whether dot-com stocks, homes, oil futures, etc. The bubble bursts when the bidding reaches an extreme, and those who counted on always being able to borrow more get burned.

A government which is allowed to print its currency without backing or run up deficits suddenly acquires a powerful incentive to encourage inflation. (Bernanke has admitted this.) If you can devalue the currency by half, your debt is halved in inflation-adjusted terms.
 

Jazzenjohn

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The people who really pay are the ones who were doing the "right thing" and saving and not using excessive credit because they'll also be the ones who will ultimately pay for the mess. The people who bought big homes they could not truly afford were doing the same as the wall street big boys, just on a vastly smaller scale. None of the bailout proposals has addressed any of the underlying problems. The rules should be set up such that by doing the "right thing" (saving, taking care of yourself and family, using credit wisely, etc.) should be also the best thing for those that do it. Fundamentally those are Libertarian principals.
It could be argued that first they need to stop the freefall of the equities markets before thinking about reform though.
 

Heron

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John
Not too long ago, a friend of ours Zelia de Melo, Minister of Economy, seized all savings account, my Dad´s included.
Those especulating on a 14% a month interest rate, some sold property to ride de wave, woke up broken.
The President Fernando Henrique in 1998, just right after reelection, changed exchange rate to the Dollar, overnight, people lost bundles.
You cant save anything that is controlled by Govt. they will enact laws or emergency measures and your money will disappear in a flash.
You will have a home that is worth nothing but shelter, your job will be gone and the supermarket will be closed. Even water will be hard to find.
Those on rural areas will last longer.
Heron
 

automan1223

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There is one difference !

There is one difference !

We are not there yet Heron, But I can tell you the big difference between your country and ours is this.

WE HAVE GUNS.

And lots of ammo to back it up.

If "they" screw with the people in our country too much more I predict riots that will make the Rodney King incident look like a park picnic.

Back in the 30's our government made owning gold illegal. This happened when the banksters took over our government in a finanical coup and wiped out everyone overnight. The panic selling and relocation of assets TODAY is not ignorant of what could happen.

I just have to wonder when people will wake up and realize this was planned for years....all the pieces were put into place......both sides are guilty of this treason......we will all pay dearly for our own inaction.

This is what the "conspiracy" crowd was telling us for years. "A planned destruction of our economy......so the [NWO] could roll out a common currency and huge new global taxes....."

A Chicken in every pot !

Jonathan
 

PW_Plack

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The people who really pay are the ones who were doing the "right thing" and saving and not using excessive credit...

I'm with you John, with one exception...if you had a few thou in savings available right now, there are some great deals right now in the stock market and on the courthouse steps!
 

Jazzenjohn

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I have a bit in savings Paul. My current fave stock for the last month is DTO but I just bought 5000 shares of Ford today too. I'm eyeballing jumping into ISRG as well. I'd like to get it for $150 per stub or less. I also bought this house on the courthouse steps 2 weeks ago.

http://www.woodside.st/Woodside/Welcome.html
 

PW_Plack

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Automotive and airline stocks could be amazing buys if you think they'll survive.

Here in Salt Lake City, where housing prices never boomed to the extent they did in hot markets, high-end homes have been going for roughly half earlier assessments, many sold by builders who overbuilt.

Remarkable times!
 

kc0iv

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If people would look at the history of the Dow Jones they would see it isn't nearly as bad as the think. Go back to let's say 1980 where the Dow was running around 1,000. Had a person bought some stock in 1980 and sold it today that person would have done to bad.

The stock market is made for two types of people. Those for long time gains and those who what to attempt to guess the market for the short term. Stay in for the long term and you'll make money. Play the market and there is a good chance you'll get burned.

Leon
(kc0iv)
 

fiveboy

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Stox and real estate are like watching a man walk up a hill bouncing a ball... watch the man, not the ball!
 

Resasi

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In the end it will end up as always with some people winning and some people losing. That is the way of things.

In a world economic crisis, such as the one that is threatening us all, there will still be winners. Difference is the ratio. There will be many more losers by a massive amount
 

Jazzenjohn

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Stox and real estate are like watching a man walk up a hill bouncing a ball... watch the man, not the ball!
I like that Robert! That's pretty good.
 

Sir Real

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Jonathan, being the staunch supporter of gun rights that I am, I have to ask you: If the government can convice the Army that our stuff needs to be taken, do you think our little Small Arms collections will help us? The Army will have our guns & our rights in three weeks, discounting a few of us operating as guerillas.

And if they can convince the MARINES, it'll only take about 8 days...
 

Lee Scatt

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A few of us? I can assure you, my neighborhood will not go down without a firefight, no matter as to who comes to take our weapons. I don't think the marines or the army would ever be convinced that disarming the public is a good idea. They are the public too... Power to the militia!
 

Heron

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How are you gonna call yourselves? Insurgents?
Jonathan, I have seen people do that in the USA, many woke up with no pension or savings and I did not hear gunfire.
Just lawyers talk and the money gone. I am starting to believe it is a hoax this thing of yours with the guns.
When that guys was shooting people out on the streets, I saw you hide!
The pen is mightier than the sword. Or so they think . . .
Heron
 
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