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September 30, 2008 at 1:00 pm #640885
MagpieParticipantThere is a lot of oversimplification going on about this crisis and just how far it will ultimately affect the American people (and the world financial markets). This time, trickle down economics will trickle down all the way to small businesses in a way that we haven’t seen in any of our lifetimes. Small businesses could fail at record rates. Small businesses are the backbone of America. I don’t believe that we have seen any where near the worst of this. I have the opportunity to go out to lunch a couple of times a month and I have noticed that restaurants that used to be full are not even half full. Conventions are not covering their minimums in Seattle because business travel is down. Airlines are cutting back, retailers are cutting back (it starts with cutting back from 40-32 hours..these people haven’t hit the unemployment numbers because their hours have just been cut..) Banks make it hard to get a loan. Construction jobs are artificially high on projects that are completing (but who will buy the condos, etc being built or can even get a loan?). All of this reduces state tax revenues tremendously at a time where more people need assistance. I could go on and on with doom and gloom. Even the casinos in Vegas are taking a hit and they thought they were inflation proof.
No matter what we are told by the media or by politicians, they might as well be blindfolded and throwing a darts. All of what we are being told is theoretical and no one knows what is going to happen. This situation is completely unprecidented. No matter if you live within your means or not, there are so many things that you won’t have any control over in this economy. Unfortunatley, what we saw yesterday from Congress was a complete lack of leadership. All these guys care about is being re elected and I can assure you that being on a banking committee in Congress doesn’t make you an expert.
September 30, 2008 at 2:47 pm #640886
TheHouseMemberMagpie, sounds like a track off of the 1990 Def Leppard album titled “Hysteria”.
September 30, 2008 at 2:59 pm #640887
beachdrivegirlParticipantI think a lot of people have a misperception that the cause of this economic downfall has to do with bad loans. When in reality it had to do with the deregulation of our financial institutions.
When looking at the facts there has only been roughly $10 billion in losses due to bad loans.
Although $10 billion is a significant amount, we need to get past that, and look @ the real culprit which is the more than $20 billion that individuals made while reselling the mortgage papers over and over again.
September 30, 2008 at 3:04 pm #640888
AnonymousInactiveTheHouse, in your opinion, is the best action, no action? As in, ride it out and let the market and interest rates correct itself? Do you think bailing out any of these guys is a bad idea, including the takeover of freddie/fannie?
It seems for every economist, there’s a different opinion. And I’m not feeling any hysteria, always have tried to live within my means or lack there of, I should say.
September 30, 2008 at 3:09 pm #640889
WSratsinacageMemberHouse, I too am a homeowner, conservative, under 40, married with kids and free of mental and sexual dysfunction. Stick around, I feel the same way you do about these boards.
September 30, 2008 at 3:28 pm #640890
TheHouseMemberJT, I would not recommend no action. I believe that in some cases, some of of the financial institutions do require government intervention. I would recommend studying them on a case by case basis. Where criminal mismanagement is found, the government does not interfere and those who broke the law are charged/prosecuted for their crimes.
I haven’t looked into what BDG stated above, but it make perfect sense.
One of the things that I do not support is government regulation on CEO salary. In my opinion, we need a consortium (group of large corporation CEOs) to self govern CEO pay. It should be higher than the average worker, but it should be based on performance. One of the companies I worked for was run into the ground and when he left he received $16 million+stock. That is completely wrong, when all of the other employees are compensated on performance base.
I’d go on more, but I need to go to work……
September 30, 2008 at 5:23 pm #640891
flipjackParticipantTrue Power.
If ya’ll don’t realize that democrats and republicans are two sides of the same coin and just want to blame each side then you’ve just played into the hands of the “powers” that be.
Keep the people separated by race, political jargon and whatever else keeps them distracted from the reality of the situation. That’s the government’s job and they do it so well that the congress doesn’t even know that they are doing it.
The only thing democratic about this country is when The People are to blame or at least pay the final price. It’s all completely absurd.
No real change will ever happen through politics. It will only happen through human conciousness and awareness, realizing we are all one, spiritual beings having a physical experience.
Most if this nonsense is just that, and is just a tiny fragment of an experience compared to the grand scheme of things.
We live in an abundant universe, just look around at the resilience of nature, the cycles and the change. We’re all made of the same stuff, it doesn’t matter who thinks they have the power. We all have power to change and thrive and adapt and to live in our power. Why give it away to meaningless human ego fear based actions??
Word of advice: Seriously, don’t take it all too seriously.
September 30, 2008 at 5:50 pm #640892
flipjackParticipant“The right view of the financial mess is that an enormous fraction of subprime lending should never have occurred in the first place. Someone has to pay for that. That someone should not be, and does not need to be, the U.S. taxpayer.”
http://www.cnn.com/2008/POLITICS/09/29/miron.bailout/index.html?iref=mpstoryview
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