Osama Bid Laden is Dead and GM is Alive!!!

When does financing end? There is some indication that China does not buy our bonds for the interest on them but because it buys them access to the US marketplace for their products.

GM SHOULD be dead...

The auto bailout was beyond ridiculous. Companies should NEVER be handed taxpayer dollars!

How is it fair that thousands of local businesses have failed in the recession, causing millions to lose their jobs, but it's a huge multinational corporation that gets bailed out?

The government should never bail any company out.

Washington has always been in the pocket of GM. Our trade policy since 1980 has been based primarily on cars and screw everything and everybody else.

Fisher said:

When does financing end? There is some indication that China does not buy our bonds for the interest on them but because it buys them access to the US marketplace for their products.

Click to expand...

It's a bit more complicated then that. China's large (well, formerly large) export surplus with the US resulted in a large amount of dollars sitting in reserves in China. China is going to sit on a sizable amount but it has to find some place to put the rest. As the RMB is pegged to the dollar, removing dollars from circulation causes the dollar to strengthen which damages China's capacity to compete. China then feeds back the dollar into the US market to weaken the dollar and finance the US government which then props up a debt financed economy to buy more Chinese goods. Furthermore, the more US debt China holds, the more it can threaten a US-England currency demand.

obvious Child said:

You said the economy wouldn't have collapsed. Except that you admit that we are reliant upon financing. I cited an example of when financing ends an economy hits a wall. In some cases literally. Tell me how an economy as dependent upon financing as ours would survive when that financing ends.

Click to expand...

I didn't admit the economy is reliant on financing. Although it does play a large factor. The economy survives as it survives in many other places. People want things, other people make it.

obvious Child said:

YEC is an analogy to you accept things based on faith rather then logic and facts.

Click to expand...

Like your faith that the economy would have collapsed? Yet to see any logic or facts backing that up.

Aberration said:

I didn't admit the economy is reliant on financing. Although it does play a large factor. The economy survives as it survives in many other places. People want things, other people make it.

Click to expand...

So the economy would be okay if we went back to local economy dependent on local sources? That is hardly the economy we have today.

Like your faith that the economy would have collapsed?

Click to expand...

I understand just how reliant we are upon financing. Even banks needed it to stay alive. The American economy is house of cards built upon financing.

obvious Child said:

So the economy would be okay if we went back to local economy dependent on local sources? That is hardly the economy we have today.

Click to expand...

I didn't say it would be OK. Quit making it black and white.

obvious Child said:

I understand just how reliant we are upon financing. Even banks needed it to stay alive. The American economy is house of cards built upon financing.

Click to expand...

Banks need deposits to stay alive. Financing is a multiplier. No matter of the house collapses the underlying demand is still there. And someone will supply that demand.

The only way the economy will collapse, is if the majority of people die.

Aberration said:

I didn't say it would be OK. Quit making it black and white.

Click to expand...

What the hell do you think since you keep changing your argument?

Banks need deposits to stay alive. Financing is a multiplier. No matter of the house collapses the underlying demand is still there. And someone will supply that demand.

Click to expand...

Come again? Just because people want housing doesn't mean they can afford it. Furthermore, bank foreclosures will not sell below a certain price range. And the amount of bank foreclosures is huge. The demand is there, but the financing to match demand to supply doesn't exist. Bank requirements now to get financing are so much higher then they were before. Granted, it's better than it was back in 2010, but it's still hard get financing for a house much less a business. Even IBM was having problems getting investment rates on domestic bonds. It had to suggest that collateral would be foreign cash waiting for repatriation in case of a potential problem. [/A blue chip couldn't even get financing.

The only way the economy will collapse, is if the majority of people die.

Click to expand...

In the sense of total ending, yes. But in terms of what we have today, no. Remove financing and we fall into a local community with a very different lifestyle.

obvious Child said:

What the hell do you think since you keep changing your argument?

Click to expand...

I haven't.

Come again? Just because people want housing doesn't mean they can afford it. Furthermore, bank foreclosures will not sell below a certain price range. And the amount of bank foreclosures is huge. The demand is there, but the financing to match demand to supply doesn't exist. Bank requirements now to get financing are so much higher then they were before. Granted, it's better than it was back in 2010, but it's still hard get financing for a house much less a business. Even IBM was having problems getting investment rates on domestic bonds. It had to suggest that collateral would be foreign cash waiting for repatriation in case of a potential problem. [/A blue chip couldn't even get financing.

Click to expand...

I know plenty of people buying houses, including myself. And I sold a house, which someone bought. Its only hard for people who shouldnt get getting the financing. Which is good, those people defaulting is what triggered the mess.

In the sense of total ending, yes. But in terms of what we have today, no. Remove financing and we fall into a local community with a very different lifestyle.

Click to expand...

Collapsing is a the total end. Which is why I said the economy wasn't collapsing. It suffered severe damage. But IMO it was necessary. If we had the lending standard then that we have now, or that we had before, this would have never happened. Of course if Clinton hadn't removed the regulations it wouldn't have happened either.

P.S. Thank you recession. I got one sweet house out of it.

Bin Laden is dead but al Qaeda is still alive much to the administration's embarrassment. All of that boasting about killing Bin Laden and then to be helpless as an Ambassador and 3 State Department employees are murdered in a terrorist attack. No wonder all of the lies about an obscure movie that nobody had seen. What's really pathetic and shameful is that by shining the light on the movie in order to escape scrutiny and responsibility for lax security on the anniversary of 9/11, Obama gave militant Islamists ammunition to incite masses. Think of all of the people killed, endangered and threatened because of the worldwide riots. All of the lives disrupted because of the destruction of property.
It was the act of a true coward.

jerry7 said:

Bin Laden is dead but al Qaeda is still alive much to the administration's embarrassment. All of that boasting about killing Bin Laden and then to be helpless as an Ambassador and 3 State Department employees are murdered in a terrorist attack. No wonder all of the lies about an obscure movie that nobody had seen. What's really pathetic and shameful is that by shining the light on the movie in order to escape scrutiny and responsibility for lax security on the anniversary of 9/11, Obama gave militant Islamists ammunition to incite masses. Think of all of the people killed, endangered and threatened because of the worldwide riots. All of the lives disrupted because of the destruction of property.
It was the act of a true coward.

Click to expand...

Wasn't the reason for closing Gitmo the fact that is was a recruiting tool?

What does Obama think bragging about killing Bin Laden does in that regard? I would call what Obama has been doing bragging about killing Bin Laden.