the “financial industry has effectively captured our government

Discussion in 'Economy' started by Neubarth, Jan 10, 2010.

  1. Neubarth
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    Neubarth At the Ballpark July 30th

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    Economists Warn: Another Great Depression is Coming

    It is being dubbed as the Great Depression 2 and all fingers are pointing toward Wall Street as the ultimate culprit of our impending total meltdown.

    Former IMF chief economist, Simon Johnson said, the “financial industry has effectively captured our government and is blocking essential reform.”
    He adds that if we cannot break its suffocating grip on Washington, we will not be able to stop the Great Depression 2.

    Johnson is not alone in his prediction. Phrases like; "capitalism-without-morals” are being recited by other economic guru’s who are frustrated by what they see as imminent. Columbia University Professor and Nobel Prize economist, Joseph Stiglitz, is among them. Stiglitz said, "the financial sector will only try to circumvent whatever new regulations we put in place. We will simply have a short respite before the next crisis."


    What we are experiencing now is only a small taste of what is on the horizon, and it is only the arrogance of the American attitude that prevents so many from seeing it.

    Economists warn: Another great depression is likely
     
  2. Neubarth
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    Neubarth At the Ballpark July 30th

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    The Big Banks are helping Obama make all of his decisions. That is the reason why he is going along with them in hyping an imaginary Economic Recovery. With that hype they are encouraging more and more Americans to put their IRA's and 401K plans into the stock market again, as they want to believe in the recovery that government says is happening.

    Those same BIG BANKS are planning to take all of that money when the market collapses and their derivative short positions pay off.

    Poof the Trillions of dollars will be gone!

    Poof the Big Banks will be Trillions of dollars richer!

    Poof, retirement plans will be broken and the fools who believed in Obama's imaginary recovery will live in poverty in their retirement!

    Gosh, if you have no moral conscience, it must be great to be a Big Banker.
     
  3. Toro
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    Toro Diamond Member

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    I have heard Johnson speak before, and though I disagree with the assertion that this is the Great Depression 2.0, he is correct that the financial industry has captured the US government, and it does make it likely that a repeat of what we have gone through recently will be repeated in the future, and that the Great Depression 2.0 may yet come.
     
  4. Douger
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    Douger BANNED

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    How will you know ?
    If you don't think it's there already you are seriously delusional.
    :cuckoo:
     
  5. Big Fitz
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    Big Fitz User Quit *****

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    I unfortunately have to agree, we are in the start of the Next Great Depression. What I find even more disturbing is that this is going to be a W shaped recovery as we enter a sucker's rally this year as the party in power tries to buy the election. I don't think it will work, and after the mid-terms are over the slide will begin again and continue till the government is no longer to bail anyone out and it crashes to it's bottom. Only then will we begin to recover.

    Unfortunately, this will not happen till 2012, unless for some reason Fiscal Conservatives, sworn to turn about all the economic policies enacted since... oh wow, the Department of Homeland Security was founded. Yes, we started going wrong that far back, and the foundations of this disaster reach all the way back to Carter, thanks to the Community Reinvestment act.

    To stop this disaster, the next congress must do some to all of the following:

    1. Repeal all new spending and programs created after 2006.
    2. Have a 10 year spending freeze at 2004 levels requiring REAL cuts to services at the federal level across the board.
    3. End all bailouts, incentives and subsidies for all programs that do not show a positive impact on the economy in real dollars.
    4. Stop bailing out state and local municipalities. Force them to accept the brunt of their own failed policies as well.
    5. Stop borrowing from foreign nations and force the balanced budget.
    6. Cut all taxes that go after investment and encourage business by giving a tax moritorium for all new businesses for at least 4 years, creating a business friendly environment encouraging foreign investment and job growth.

    We have to accept the pain of surgery to save our nation. The faster we do this the faster we can recover.
     
  6. Neubarth
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    Neubarth At the Ballpark July 30th

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    Sadly, a lot of people like Toro have bought into the Government propaganda about an economic recovery. THERE IS NO RECOVERY, BUT THE FOOLS OUT THERE ARE STARTING TO PUT THEIR SAVINGS INTO THE MUTUAL FUNDS AGAIN, EVEN THOUGH EARNINGS ARE NOT COMING UP FOR OVER 90 PERCENT OF THE COMPANIES OUT THERE. As we all know, some companies can increase revenue and hopefully earnings even in a Depression. That happened in the 1930's, too.

    I have posted the economic numbers that I have gathered from Yahoo about a hundred times over the years. At least ten times on this board. Those numbers do not show any hint of an economic recovery. The closest we can come to claiming improvement is in manufacturing where that small part of the economy has had a Big Fish Flop Up in the past three months. That Flip Flop Up was in excess of 3%. When you consider that manufacturing is about ten percent of the economy then that 3% increase in manufacturing translates to a 0.3 % upward impetus to the economy. The other indicators remove that so, at best, we have been even while resting on the bottom of a stepped collapse over the past three months. It looks to me that there are other steps downward in the very near future.
     
  7. Neubarth
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    Neubarth At the Ballpark July 30th

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    Big Fitz, Damn, Dude! Here we are in a cesspool up to our ears and you are suggesting that we blow bubbles!

    Yuck!

    Though I like your conservative approach, it is too late to ask for a balanced budget. Somehow the US government has to come up with an additional Trillion dollars of income a year. I say that the government go into the oil business and drill in the Arctic Ocean for oil. According to three Big Oil Friends of mine, there is more oil off of the north shore of Alaska than in the entire Middle East. If we drilled for it and sold it on the international marketplace, we could pay off the national debt in a decade. Unfortunately we signed one of those environmental treaties agreeing never to explore for oil in the Arctic Ocean. Of well, treaties were made to be broken.
     
  8. Sunni Man
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    The banks and large financial institutions are owned by one particular group of people.

    Their loyalities are not with the U.S. or the American people.

    Their last names will answer who they are and what their agenda is.
     
  9. Neubarth
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    Neubarth At the Ballpark July 30th

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    Are you talking about all those rich fucking Arabs with all of that oil money? Damn them to high holy hell anyway.
     
  10. Toro
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    This is not a depression. This is a severe recession. And it will have officially ended last summer.

    You don't have economic growth in a depression. The economy grew 2.2% in the third quarter and will grow 3%-4% in the fourth.

    During the Great Depression, real GDP declined 26%. In this recession, the economy has declined by a little more than 4%.

    The comparisons to the Great Depression are specious.
     

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