tryreading

I was thinking about this earlier. My house is almost paid off, last payment will be this December. Dawgon it, I want some bailout, man, but don't need it. Sucks.

tryreading

I use Wamu too. I really don't care that they died, it won't affect my or your accounts.

But about the overdrafts, this system is nothing but a very profitable scam for the bank. If you haven't already, you should talk to them about opting out of the overdraft 'protection' system. Not sure if Wamu offers that, I don't need it because I have overdraft protection set up, but some banks do.

I learned a few years ago that it costs your bank about $1.50 to process an NSF check. The bank then charges you over $30.00 for each overdraft. What a rip off.

Ethereal

This is something we could argue for pages upon pages. It will suffice it to say that I cannot agree this assessment. I have strong faith in the ability of free markets to adapt and sustain economic growth so long as we protect against fraud. The government got us into this mess and I have absolutely zero faith in their ability to get us out. Perhaps it would be better if we just agree to disagree because we could argue theory without end.

Dezaad

There would be no benefit to the everyday American to widespread falling prices. This is called deflation. Historically, deflations almost always are accompanied by high unemployment, falling wages and salaries and general economic stagnation.

There are many dynamics that feed into why this is the case. One example is that no one wants to borrow money. Anything you borrow will be extremely difficult to pay back because the dollar you borrow today is much 'expensive' to replace tomorrow. People don't want to lend money either. Why let someone else use your money when you're increasing it's value every day just letting it sit in the safe in your wall? When this kind of thinking grips the economy, businesses fail, millions lose their jobs, and the rest who are lucky enough to have jobs are forced to work for less. In such conditions, any benefit from falling prices is more than offset by falling salaries. The ONLY people who benefit are those who have cash that they don't have to spend.

Deflationary periods feed on themselves dynamically, in a much more dramatic way than inflationary ones do. This has historically been the case. During the Depression, the deflationary cycle caused 1 in 4 people in America to be unemployed. 1 in 4!!! And nearly everyone was worse off at the end of the Depression than they were before it began.

So, be careful what you wish for. Instead of wishing for lower prices, wish for higher wages. A little bit of Inflation is even a good thing. Pray to whatever God you hold dear that we don't see anything like deflation... we're on the verge of precipice now.

Dezaad

This is a blind, almost religious, faith that markets are somehow magically invincible.

In a deflationary cycle everyone would be making perfectly rational market oriented decisions that would make nearly everyone worse and worse off.

Curious George

Sure. I was referring to the fact that most (all?) of Europe is awash in socialism and paying stupid high taxes.

I'm not sure I addressed any partisan issues in that post except to say that the current Republican administration has engaged in a large number of bailouts for a number of different industries. Bailouts have typically been a Democratic tactic. My point was that, if Republicans are embracing bailouts in this fashion, I shudder to think what waits in store for us when Democrats control the executive branch.

I didn't mean to insult Europe with my post. If you took it that way, I apologize. I'm of Italian, Irish and Dutch descent so I think very fondly of Europe in many ways. You guys have a system that works for you and that's fine, but here in the U.S. there's still a very strong independent streak. We want to make it on our own, we're not looking for a hand out, and we'd prefer to keep our liberties in tact and our taxes low. We mostly prefer capitalism to socialism (though there seems to be a more recent trend toward the latter).

Personally, I think both systems can and do work probably equally well when correctly implemented, with some obvious pros and cons in different areas. I just prefer the pros and cons of capitalism.

Btw, I highly doubt Barclay's first thought when presented with the option to buy out Lehman Bros. was "Yay, we get to help the Americans!" It was probably closer to "Woo! More money for us!" But thanks just the same.

dirtpoorchris

The track we are walking down feeds more inflation so that when we need to find a home for all this negative money it will just require even more effort. Once all the bad money was allowed to find its place (after Hoovers BS) the great depression was over in a year. I, for one, can handle a bad economy for 1 or 2 years to restore America's circulitory system. The alternative is to repeat time and turn this into a 15 year depression.

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America. God is wearing black.

Ethereal

And you're exercising a blind, almost religious faith in the ability of the government to wave their magic wand to get us out of this mess, especially when it was Keynesian economic theory that got us here in the first place. Everytime I study a depression or economic downturn the cause inevetiably comes back to the government, but everytime I hear of economic expansion in foreign countries it can be traced back to market liberalization, a tearing down of obsolescent socialist economic policy. Sorry, but you cannot convince me that government elitists can actually "manage" an economy, nobody except consumers can manage the economy. The failures of command style economics are rife throughout history.

apark3

Even if the bailout reaches a trillion it would only represent about 2% of the national wealth. The great depression from what I understand wiped out about half the national wealth at the time. Yes, the depression lasted almost eight years, proportional to the loss. So, yes our system of free enterprise and a capitalistic system would auto-correct accrodingly. It will take maybe 2-3 years but the financial system would recover. Most importantly, lessons, regulations, criminal intent and many aspects of the causes could be adressed to hopefully prevent the same event. Of course, mostly greed, as always is rooted.

Let's hope our leaders understand, we the people want them to let it go!!!

Hatuey

The real question for me is why....why should I help Wall Street? Why should I help people who made horrible decisions and are now going to pay for it? I wouldn't blink twice if half of the people sweating bullets right now went down and lost everything. So why should I help them? Why should I give my money to the same Wall Street who's been telling me they need more freedom?

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Is Intolerant Because He Won't Let The Intolerant Run Other People's Lives.