I has the dumb?

Sep 26, 2008 09:31

 Oh wise and wonderous f-list, thou art infinitely smarter than I ( Read more... )

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dancing_nerd September 26 2008, 14:54:26 UTC
Yeah...that doesn't match up with the *catastrophic* interpretation of events that I keep hearing about from the financial peeps (like my mom, etc.)

Are we headed for a GIGANTIC DEPRESSION or just a glitch?

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tedeisenstein September 26 2008, 16:26:48 UTC
Me? Large glitch. It's not as if there's 25% unemployment as there was in the early '30's; factories are still making stuff, people are still buying stuff, especially overseas. It's not as if the stock market were going to lose 75% of its value; there's been some large drops number-wise but not percentage-wise, and besides, in 1987 the stock market lost over 20% of its value in one day, and no Depression resulted.

(Remember, too, that there's an election coming up, so the President is hoping that the Republicans will come out of this mess as saviors and win the election. Problem is, quite a few people believe Republicans are, by and large, the cause of the problem, too. You can't take credit for solving a problem you caused.)

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tedeisenstein September 26 2008, 16:22:40 UTC
Banks and bankers being rich, they have good PR firms and better lobbyists than us ordinary folk ( ... )

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dancing_nerd September 26 2008, 17:14:21 UTC
Okay, this sounds VERY MUCH like what I thought was going on, but I thought it couldn't possibly be that blatant, because there was no way the "American People" (whomever we are) would stand for it!

Or that the politicians would be so ballsy as to propose such a thing!!!!

Um, WHAT THE HELL???????

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leaw123 September 26 2008, 16:33:21 UTC
Because apparently we favor deregulation and support the market controlling what happens until we have a financial crisis and not bailing them out would devestate the economy even more.

http://www.nytimes.com/2008/09/16/us/politics/16record.html?_r=1&hp=&pagewanted=all&oref=slogin

Merrill Lynch was McCain's largest campaign contributor. $300,000. Obama got 9.9 million from individuals who make their money in securities. I wonder why no one listens to me or bails me out?

Money and politics. There is no difference in this country.

Anyone can be President. Hahahahahaha!

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dancing_nerd September 26 2008, 17:24:30 UTC
"Anyone can be president"

...but then again, look at Sarah Palin...

/snarkiness

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Don't kill the messenger azlarry September 27 2008, 00:18:31 UTC
Ok this problem started under Carter, back in the late 70's we had another huge economic CF that nearly brought us to our knees. President Carter and the Demo congress thought that mortgage companies had to many restrictions on people getting a mortgage and not enough lower middle class or minorities were qualifying for homes, so they enacted legislation that forced Fannie mae and freddie mac and farmer mac to make sure that lending standards were relaxed from the usual 20% down and mortgage not being more than 25% of a families take home pay. The 80's brought Reagan and 20% interest on home loans so few people bought homes, then the late 80's brought on the Savings and Loan debacle and the congress created the RTC to buy up all of the properties. There were so many properties that this kept real estate prices nationwide low and growing slowly. By the mid 90's all RTC properties had been sold and the market started to heat up. However wall street was exploding with tech issues from this new "internet" and investors were off to the ( ... )

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How to fix it azlarry September 27 2008, 00:18:57 UTC
Here is what I wrote to McCain today on how to fix the problem ( ... )

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