and while I know that the blogging world/comments/discussion has been S-L-O-W around here lately (looking pointedly at all of you) maybe I could stir up some discussion....
Politics first:
How strange that Senator McCain says the fundamentals of our economy are strong on the 6th worst Day of Wall Street History.
A $600 billion dollar bankruptcy?
A bankruptcy ten times the size of the Enron collapse....the biggest drop in the S&P and Dow Since 9/11.....the collapse of two of the largest wall street firms.
What was really bananas during the Great Depression was the run on the banks, where people pulled their money out like crazy and the banks had nothing left to lend.
The difference now is people in the U.S. have no money in the bank to withdraw, it's all tied up in debt on houses that are drastically decreasing in value, IF they can even get them to sell. So then what? The banks begin closing? When banks close, there's no money to lend.
So more money is printed in an effort to float the economy, the dollar is inflated...there's more OF it, but it's worth nothing.
In the case of a 21st Century depression, we will be floating in money but it will not buy very much because it will have little relative value. It will be very tough on people with fixed incomes.
What's this all mean? I don't know - don't ask me. I'm just observing. Don't think that I'm all tied up in the financial market or stocks, banking, etc. etc.....I just find this all very interesting. What do you think?
Thought on this? Anyone anyone? Buehler? Buehler?
I'll do a poll for the lurking fence-riders who don't want to comment, but if you want to discuss in the comments section, feel free....or, PLEASE DO - because I'm interested to hear what the people smarter than me (which is most of you) have to say about this.
A bankruptcy ten times the size of the Enron collapse....the biggest drop in the S&P and Dow Since 9/11.....the collapse of two of the largest wall street firms.
What was really bananas during the Great Depression was the run on the banks, where people pulled their money out like crazy and the banks had nothing left to lend.
The difference now is people in the U.S. have no money in the bank to withdraw, it's all tied up in debt on houses that are drastically decreasing in value, IF they can even get them to sell. So then what? The banks begin closing? When banks close, there's no money to lend.
So more money is printed in an effort to float the economy, the dollar is inflated...there's more OF it, but it's worth nothing.
In the case of a 21st Century depression, we will be floating in money but it will not buy very much because it will have little relative value. It will be very tough on people with fixed incomes.
What's this all mean? I don't know - don't ask me. I'm just observing. Don't think that I'm all tied up in the financial market or stocks, banking, etc. etc.....I just find this all very interesting. What do you think?
Thought on this? Anyone anyone? Buehler? Buehler?
I'll do a poll for the lurking fence-riders who don't want to comment, but if you want to discuss in the comments section, feel free....or, PLEASE DO - because I'm interested to hear what the people smarter than me (which is most of you) have to say about this.
Posts
3 comments:
Personally, the US's current state of economics scares the hell out of me. I think that the country's economic stituation will be one of the most important concerns our next president will have to face. The question will be how does he fix it without causing too many more problems in the process. I do think it will have to get worse before it will get better. Because were in recession which is part of a cycle and you can't skip the steps of the cycle unfortunately.
That's what I think anyway. :)
#$%^&&^%$#@$(*&^%$#@*(*&^%$#@!@^)(*&^%$#@~!&()*&^%$#@!#%^&()*&^$#@!#$%^&*_)(*&^%$#@$%&*()_)(*&^%$#@&+*)(&*^%$#$$%^*_)*(&^%. And that's all I'll say about them.
Who? The feds? Wall Street? Merrill Lynch? AIG? John McCain? I hear ya on that one.
:)
Post a Comment