Results 1 to 6 of 6

Thread: How does a bailout extend the crisis?

  1. #1

    How does a bailout extend the crisis?

    .....other than just killing time?

    Is it just as simple as allowing the machine to keep turning for a while longer until it finally does collapse and we the people are $700B poorer?



  2. Remove this section of ads by registering.
  3. #2
    ok so they bail these companies out supposedly allowing some home owners to stay in their homes (however i dont see anything in their that protects their investments save for the raising of the FDIC insurance) (mainly to get the insurance paid by banks who haven't paid for awhile

    So you have that and you have people spending money as prices stay really high or get higher, then all of a sudden crash, no one is making money and alot of people and i mean a lot of people lose their jobs. The economy goes into a slow down, businesses close all around the US and people fight beg borrow and steal just to stay in homes, (don't get me started on people wanting to eat) and slowly but surely as Americans stand up and bend to the pressure working and eating little the economy will pick up and then all of a sudden BOOM.

    This is the boom and bust cycle in a nut shell. unfortunately the bust is this bad because of so many booms right after another, and no bust because congress and the fed legitimately allowed for its sustainment by lowering interest rates (to allow interbank loans) and expanded credit to citizens so they can spend spend spend in hopes to get more money flowing into the economy.

    if you're wondering the stimulus check you got didn't do a damn thing it was the first of many bailouts that was just labeled better because congress could give out money if the Fed printed it.

  4. #3
    Also, if you look at the booms and busts of the 70s and 80s you'll see it'll take about the same amount of time to deflate this bubble as it did to inflate it. Without the bailout I'd say we were in for a 10 year recession. Now... God help us.
    "My pride in my country is inversely proportional to Michelle Obama's pride in her country."
    - Me

  5. #4
    Quote Originally Posted by LibertasPraesidium View Post
    ok so they bail these companies out supposedly allowing some home owners to stay in their homes (however i dont see anything in their that protects their investments save for the raising of the FDIC insurance) (mainly to get the insurance paid by banks who haven't paid for awhile

    So you have that and you have people spending money as prices stay really high or get higher, then all of a sudden crash, no one is making money and alot of people and i mean a lot of people lose their jobs. The economy goes into a slow down, businesses close all around the US and people fight beg borrow and steal just to stay in homes, (don't get me started on people wanting to eat) and slowly but surely as Americans stand up and bend to the pressure working and eating little the economy will pick up and then all of a sudden BOOM.

    This is the boom and bust cycle in a nut shell. unfortunately the bust is this bad because of so many booms right after another, and no bust because congress and the fed legitimately allowed for its sustainment by lowering interest rates (to allow interbank loans) and expanded credit to citizens so they can spend spend spend in hopes to get more money flowing into the economy.

    if you're wondering the stimulus check you got didn't do a damn thing it was the first of many bailouts that was just labeled better because congress could give out money if the Fed printed it.
    dont forget this bust is also bigger and can be much much worse than ever because of all the debt we have and the devaluation of the dollar.
    its litterally a perfect storm for financial disaster.


    also, with the bailout, either they're going to print 700B devaluing the dollar even more, or they will tax it. But that is a ton of money to tax, so id bet they print alot of it off, and what they tax is taken away from the consumer, taking away the consumers buying power, therefore decreasing the amount of money the consumer is spending or saving, thus hurting the economy more.

  6. #5
    Imagine going into a depression with a hugely inflated dollar. It would be much worse than if they had not inflated it like they are planning on doing.

  7. #6

    Wink

    Quote Originally Posted by TastyWheat View Post
    Also, if you look at the booms and busts of the 70s and 80s you'll see it'll take about the same amount of time to deflate this bubble as it did to inflate it. Without the bailout I'd say we were in for a 10 year recession. Now... God help us.

    Thanks all. I recently watched Chris Martenson's videos that helped me further understand. He shows that bubbles are generally symmetrical on a graph as you say.

    What about Ron Paul and others who say if we did not have the bailout we would have a sharp recession for a year or two then get moving again? Maybe I am confusing the housing bubble with the economy as a whole.

    Dr3D, that makes sense too. Instead of going into a recession at our present level we will be heading in with a further devalued dollar.

    Learnin' every day.....



Similar Threads

  1. Greek Crisis: How Long Before a Fed Bailout?
    By jct74 in forum Ron Paul Forum
    Replies: 0
    Last Post: 06-27-2015, 12:29 PM
  2. Is the Bailout Plan Breeding a Greater Crisis?
    By donnay in forum U.S. Political News
    Replies: 1
    Last Post: 03-26-2009, 09:27 AM
  3. Replies: 0
    Last Post: 02-04-2009, 07:25 AM
  4. Wow we SURVIVED our first crisis WITHOUT a bailout!!
    By CountryMe in forum Grassroots Central
    Replies: 6
    Last Post: 09-26-2008, 09:24 AM
  5. Replies: 8
    Last Post: 09-24-2008, 10:26 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •