Why I think this will be worse than the Great Depression

I can't believe your creditors will keep buying your debt.Both Bill and Hillary made comments so they know it's on the cards.Everyone knows in their blood that modern mainstream economics is a religion not a science.It pays Governments to keep the populaton in the dark to grow Government and siphon off savings to themselves.What happens when the risk of exposure of the lie is less than the financial impact of the truth.China will cut you free.
 
Quote from Debaser82:

[...] what we face today is more a solvancy crisis thus raising the question of moral hazard...

Care to comment on that?

Cheers.
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Increasing the money supply is only one prong in what needs to be a multi-pronged approach to addressing this financial crisis.

As regards to moral hazard, the current situation is already beyond the point where moral hazard can be effectively addressed without throwing the baby out with the bathwater. It's like worrying about possible addiction to painkillers in the middle of an operation with the patient suffering excruciating pain. The issue should be kept in mind but it should not stand in the way of efforts to fight off the crisis. There are more pressing issues at stake.
 
Can one sew the Fed goverment?
for lets say bad country wealth managment...for example?
or do they have "political emmunity"?
...they write the law u know!!
 
Quote from kalzayani:

Can one sew the Fed goverment?
for lets say bad country wealth managment...for example?
or do they have "political emmunity"?
...they write the law u know!!
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Doubt one can sue the Gummint for being incompetent...

You can, however, sue them.... with their permission, of course.
 
hehe
well they can not mess with things that are free from god

incase we do go into very bad times..here is how to handle it
gl

===============
Handbook 2009


Health:
1. Drink plenty of water.
2. Eat breakfast like a king, lunch like a prince and dinner like a beggar.
3. Eat more foods that grow on trees and plants and eat less food that is manufactured in plants.
4. Live with the 3 E's -- Energy, Enthusiasm, and Empathy.
5. Make time to practice meditation, yoga, and prayer.
6. Play more games.
7. Read more books than you did in 2008.
8. Sit in silence for at least 10 minutes each day.
9. Sleep for 7 hours.
10. Take a 10-30 minutes walk every day. And while you walk, smile.

Personality:

11. Don't compare your life to others'. You have no idea what their journey is all about.
12. Don't have negative thoughts or things you cannot control. Instead invest your energy in the positive present moment.
13. Don't over do. Keep your limits.
14. Don't take yourself so seriously. No one else does.
15. Don't waste your precious energy on gossip.
16. Dream more while you are awake.
17. Envy is a waste of time. You already have all you need.
18. Forget issues of the past. Don't remind your partner with his/ her mistakes of the past. That will ruin your present appiness.
19. Life is too short to waste time hating anyone. Don't hate others.
20.. Make peace with your past so it won't spoil the present.
21. No one is in charge of your happiness except you.
22. Realize that life is a school and you are here to learn. Problems are simply part of the curriculum that appear and fade away like algebra class but the lessons you learn will last a lifetime.
23. Smile and laugh more.
24. You don't have to win every argument. Agree to disagree.

Society:

25. Call your family often.
26. Each day give something good to others.
27. Forgive everyone for everything.
28. Spend time with people over the age of 70 & under the age of 6.
29. Try to make at least three people smile each day.
30. What other people think of you is none of your business.
31. Your job won't take care of you when you are sick. Your friends will. Stay in touch.

Life:

32. Do the right thing!
33. Get rid of anything that isn't useful, beautiful or joyful.
34. GOD heals everything.
35. However good or bad a situation is, it will change.
36. No matter how you feel, get up, dress up and show up.
37. The best is yet to come.
38. When you awake alive in the morning, thank GOD for it.
39. Your Inner most is always happy. So, be happy.
 
60 trillion dollar did not evaporate. They merely exchange hands and nominal value. That's the true nature of "crisis"

You are right about the "stimulus" it wont get anywhere. That's why people like this thread.

Thank you.


Quote from Capablanca:

WRONG. According to Friedman the money supply did decrease by 1/3---but it wasn't caused by the Fed. It was caused by the string of bank failures. The Fed's fault according to Friedman was not doing enough. So when you see Helicopter Ben showering money and loosening the spigots it's because he is following Uncle Milton's advice.

Since the beginning of this current financial crisis an estimated $60 trillion has evaporated. There is reason to believe the proposed stimulus even when taken in concert with the rest of the world is nowhere near enough to stanch the bloodletting. It is being adopted to alleviate the pain but it's not going to be enough to fix the problem. A blood transfusion isn't enough if the arteries are also clogged.

If you cannot get such simple elementary facts straight you don't stand a chance of understanding what's really going on. Judging from most of the responses in this thread you have a lot of company.
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Everything was kept artificially low.

Low interest rates, low currency value, high credit, massive deficit (war)

Now the market took enough and this are going back to equilibrium. A painful equilibrium.

Quote from Capablanca:

I got the figure from Marc Faber on an interview on Bloomberg. Couldn't find the link to that so I'll link to this instead which shows the 30 billion loss in market cap on world stock markets sourced also via Marc Faber:

http://forum.globalhousepricecrash.com/lofiversion/index.php/t45670.html

If a lot of US dollars disappeared that would mean the supply of dollars would have diminished and according to the law of supply and demand you could anticipate the dollar gaining value. Guess what has happened? The dollar has appreciated. Marc Faber was one of the few commentators to correctly diagnose beforehand that the immediate result of the financial crisis would be the appreciation of the US dollar. He is a long term gold bug though.
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I dont know what to say.
All central banks are doing what they do best, printing money. How fast they do this and how fast they economic fundamentals deteriorate will determine currency valuations. A little difficult to predict.

But I know this much, the massive trade deficit the US had for a decade are long gone. This was artificially done by credit and those years will never come back.


Quote from allaboutmoney:

dollar is appreciating against other currencies, because other currencies are depreciating at a faster rate, but even this I believe is temporary, there will be a sudden reverse within a year and the dollar will depreciate against almost all other currencies

in the end I think this seems to be the problem; the dollar is fucked
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You are right but you forgot to free the banking industry from the FED

Quote from syswizard:

The solutions to today's problems are very simple in concept, but impossible to implement in this quasi-socio-capitalist economy of ours:
1) Reduce the size and scope of government. This will effectively remove roadblocks to getting things done efficiently and also to reduces taxes.
2) Let the free market decide who gets to stay in their homes, who gets a job, who must live on their savings, etc, etc.
Otherwise, whatever the government tries to implement, it won't be fair to many people. Also, let's ban labor unionism - again, not fair unless EVERYONE can join one. Look at what happened to GM with the powerful UAW ! Now we must pay for that debacle as well. No wonder Santelli blew a fuse last week. The land of the free has become the land of the unfair.
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