Maybe the bailout is the right thing to do

[Ravi]

Thats how I feel about people on welfare and other free government programs.

I can understand that. But I'm talking about something much worse. If the economy melts down and no one can get credit, we'll all be in for a world of hurt. You'll long for the days of just bitching about welfare recipients.

 

[MalibuMan]

I can understand that. But I'm talking about something much worse. If the economy melts down and no one can get credit, we'll all be in for a world of hurt. You'll long for the days of just bitching about welfare recipients.

LOL I will be fine. I am not worried.

 

[editec]

I can understand that. But I'm talking about something much worse. If the economy melts down and no one can get credit, we'll all be in for a world of hurt. You'll long for the days of just bitching about welfare recipients.

I understand your point, Ravi.

But if you understood ours you'd realize that all the bail out will be doing anthesnitizing the economy while the disease rages on.

While I do NOT understand how any modern ecomy can return to the "hard money" (read metal based money) economy which I think the Austrains school of econ. advocates, ( I definitely DO believe somebody has to find some way to inject fiat money into the system because the system continues to increase the good and services that it is producing, and to maintina static amount of currency creates a deflationary cycle) I see NO REASON to hand that power to a group of privately owned banks pulling the strings behind the sham that the FED is a government controlled entity.

So here's my question for you all who belive that the Mises Institute has the 411...

If they were going to redesign our economy...how EXACTLY would it work?

Bear in mind that their solution must include the TRANSITION from what we have NOW, to their improved system, too.


For example.... the banks don't really have any money to lend out right now, right?

So how does the new money get infused into our system to offset the new goods and services which our society is always producing?

 

[Zoomie1980]

I understand your point, Ravi.

But if you understood ours you'd realize that all the bail out will be doing anthesnitizing the economy while the disease rages on.

While I do NOT understand how any modern ecomy can return to the "hard money" (read metal based money) economy which I think the Austrains school of econ. advocates, ( I definitely DO believe somebody has to find some way to inject fiat money into the system because the system continues to increase the good and services that it is producing, and to maintina static amount of currency creates a deflationary cycle) I see NO REASON to hand that power to a group of privately owned banks pulling the strings behind the sham that the FED is a government controlled entity.

So here's my question for you all who belive that the Mises Institute has the 411...

If they were going to redesign our economy...how EXACTLY would it work?

Bear in mind that their solution must include the TRANSITION from what we have NOW, to their improved system, too.


For example.... the banks don't really have any money to lend out right now, right?

So how does the new money get infused into our system to offset the new goods and services which our society is always producing?

Banks have plenty of money to lend out. In fact they have more now than when the crisis first started because they keep getting new deposits but are refusing to loan it out! They are HOARDING cash out of abject FEAR.

FEAR is the enemy. FEAR drove oil to ridiculous prices on the upside and now it's doing in the opposite direction. FEAR is driving down stocks, not economic fundamentals. FEAR is causing banks to no loan.

Once that fear runs it's course, things will start to turn around. And some smart people think FEARFUL times are the BEST times to MAKE MONEY. Like Warren Buffet.

 

[editec]

Banks have plenty of money to lend out. In fact they have more now than when the crisis first started because they keep getting new deposits but are refusing to loan it out! They are HOARDING cash out of abject FEAR.

FEAR is the enemy. FEAR drove oil to ridiculous prices on the upside and now it's doing in the opposite direction. FEAR is driving down stocks, not economic fundamentals. FEAR is causing banks to no loan.

Once that fear runs it's course, things will start to turn around. And some smart people think FEARFUL times are the BEST times to MAKE MONEY. Like Warren Buffet.

So we just go back to the same system we've had all along, is that your point, Zoomie?

I don't think so.

I think the system we've been screwing up reached that tipping point where it is impossible to manage with the tools we're using to try to manage it.

It's time for another FAIR DEAL to save capitalism from its own excesses.

That's what it took last time, that's what it's going to take this time, too.

Just my opinion, of course.

Time will tell.