It is two way street, you think give those bums and irresponsible people a break on their debts, think again, the creditor aren't that stupid. cost of capital will sky-rocketing, third world countries may stopping accept USD as payments, all sort shit can happen if USD crash to worthless piece of paper. Personally, I think US could be even more dangerous place to live in.
At what point will the Fed come in to try and save the dollar?
- Thread starter will848
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It is two way street, you think give those bums and irresponsible people a break on their debts, think again, the creditor aren't that stupid. cost of capital will sky-rocketing, third world countries may stopping accept USD as payments, all sort shit can happen if USD crash to worthless piece of paper. Personally, I think US could be even more dangerous place to live in.
They have to. Chinese do not buy, they save. So without us buying Chinese goods they will get set back 20-30 years.
They grew to where they are today because we buy everything from them.
The powers that be have already planned how to quickly put down the next revolution. I'm not so sure I want to say how I think they will do this for fear someone will have me committed. Kidding aside, is there anything occurring in recent events that could be used as a method of "shutting off" any sort of revolution?
Quote from Scataphagos:
CORRECTAMUNDO! EVERYBODY GETS HOSED so that few selected and favored benefit...
This will continue until the "Second American Revolution"... where we collectively rise up and THROW ALL THE REPUB AND DEM BASTARDS INTO THE STREET... Of course, if we don't do it "in time" it won't make any difference...
"Destroy your currency... destroy your country and your citizens..."
It depends on the timing. If another stock market bubble occurs in the near future there's no telling how ugly it could get. If the Fed can raise rates before the bubble really takes form then they have ammo.
I think the biggest mistake the government made was allowing banks to abandone M2M accounting methods and mark their properties in a highly favorable manner. That has artificially improved balance sheets and increased earnings.
I recently read that companies can now look back as far as 2004 and write off current losses against historic profits. Man! If that don't lay the groundwork for a future implosion. What happens when all the available look back profits have been used? Do they get to reuse it or perhaps we can look back to the roaring 90's?
Whatever the case, artificially elevated stock prices and artificially elevated housing prices, coupled with a free money/carry trade environment spells trouble in the future. At some point BAC will have to unload those properties, probably at toxic prices. If they don't have the earnings to offset the losses look out. But then, I suppose that is why the Fed plans to keep rates so low for so long. Rates will probably go up once the banks books have been cleared up. Only....only then it may be too late.
I think the biggest mistake the government made was allowing banks to abandone M2M accounting methods and mark their properties in a highly favorable manner. That has artificially improved balance sheets and increased earnings.
I recently read that companies can now look back as far as 2004 and write off current losses against historic profits. Man! If that don't lay the groundwork for a future implosion. What happens when all the available look back profits have been used? Do they get to reuse it or perhaps we can look back to the roaring 90's?
Whatever the case, artificially elevated stock prices and artificially elevated housing prices, coupled with a free money/carry trade environment spells trouble in the future. At some point BAC will have to unload those properties, probably at toxic prices. If they don't have the earnings to offset the losses look out. But then, I suppose that is why the Fed plans to keep rates so low for so long. Rates will probably go up once the banks books have been cleared up. Only....only then it may be too late.