Debitism - The new capitalism
- Thread starter Fishbird
- Start date
Good stuff but one thing.
This is essentially capitalism. Federal Reserve is a corporation and the Government is run by big business. This is just an evolution.
Capitalism, without restrain, is economic fascism. Just think like a corporation or an insatiable greedy pig, the natural progression of capitalism is toward a monopoluy/oligopoly. No corporation wants competition, unlike the saying, competition IS NOT good for business.
The problem is of course force. I would never want to live with a wife that forced me to give away my credit card.
Money buys power, power buys money, itâs a game. Most love the game it seems. Those who donât are forced to pay the cost.
What is going to replace the mortgage finance bubble? I want theories.
Here's a doozy for you:
A new stock market bubble.
Now that residential real estate, with easy financing, and speculative fervor, is a dead end, for just how long will savers, with the hundreds of billions (maybe trillions?) the world over they have in CDs, money markets, treasury notes, checking/saving accounts and other fixed income vehicles tolerate their measly 4 1/2 to 5 1/2 % annual returns?
If the stock market breaks out to past old resistance levels on even a moderate basis for some time, look for that sidelined money to join the race, regardless of recession risks, etc.
It's human psychology: "Why shouldn't I participate in chasing higher returns when my lousy bank is paying me 4 1/2 % annually, and inflation is around 3.8%???"
If markets break through resistance this fall, look for latecomers to rotate their savings into the markets.
Only time will tell if that is the set-up for a bull run, or the beginning of a protracted bear market.
Quote from IV_Trader:
should we call it a voodoo economics ?
Hmm, maybe not a bad name. Voodoo a religion practiced in secret by slaves.
Libertarians will always be slaves since they donât have the desire to rule others and thus donât have the same motivation to play tug of war games.
the theory to begin with, doesn't make sense. and most of the posts in this thread make little sense either.
debt is nothing knew. and for your information, it is the people who own proporties. there is no real added-value to governments in owning lands in ways put above. it is an asset for people of the land to own property. clear property rights in most leading nations is a key factor in achieving this. on top of which, you may secure other credits, loans, and other securities etc. A very well known book is written on this subject, and why poor nations continuelly fail to develop like those that have. it also reflects CONFIDENCE in the financial system and the state as a whole. those that do not hate the fed may well be "jerks", but only those that do knew where they would be without it.
capitalism has it limits. but no single establishment today, or even through history, has been purely under one roof 'Capitalist', 'Fascist' etc. they've all been a flavoured mix.
much of these ideas just give a nice turn to those 'intellectuals' who have nothing else to do than philosophise and rape every concept known to man.
credit (debt) is one of the key ingredients to faster growth and better economic well being. of course a sword can also be given to the wrong hands. nevertheless, it is working class, who have, and will remain, in the most stressed economic class. and it is THEM who are the least educated, and will forever pay for the cycle, as they have no sense of what money is.
debt is nothing knew. and for your information, it is the people who own proporties. there is no real added-value to governments in owning lands in ways put above. it is an asset for people of the land to own property. clear property rights in most leading nations is a key factor in achieving this. on top of which, you may secure other credits, loans, and other securities etc. A very well known book is written on this subject, and why poor nations continuelly fail to develop like those that have. it also reflects CONFIDENCE in the financial system and the state as a whole. those that do not hate the fed may well be "jerks", but only those that do knew where they would be without it.
capitalism has it limits. but no single establishment today, or even through history, has been purely under one roof 'Capitalist', 'Fascist' etc. they've all been a flavoured mix.
much of these ideas just give a nice turn to those 'intellectuals' who have nothing else to do than philosophise and rape every concept known to man.
credit (debt) is one of the key ingredients to faster growth and better economic well being. of course a sword can also be given to the wrong hands. nevertheless, it is working class, who have, and will remain, in the most stressed economic class. and it is THEM who are the least educated, and will forever pay for the cycle, as they have no sense of what money is.
Heh - funny I was just contemplating this today. IF the market finds a reason to keep on rising (building on the start in late '05 - which is still intact)... it's quite possible the ROI rates will entice the RE investors money back into the markets... at least for a while.
If this does happen it could dramatic... there is huge potential for panic rotation. The late comers to RE are losing their asses while the markets are roaring.
Who knows though... it's difficult to pinpoint something that might spark a bubble.