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It's grossly unfair, but it's got to be done
Comments
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Say hello to hyperinflation if this misguided plan goes ahead.
Hyperinflation didn't occur in 1989. Any reason why it should now?
Given the oil price movements (somewhat overlooked in the recent melee) and a recession looking inevitable, it seems likely that at least in the short term, there will be downward pressure on inflation.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
This is going to be the last rescue plan - if it goes through then the next crisis will be the last under our current monetary system.
!!!!!!,
Please stop thinking you are Moses!;)In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
so what your saying is I can get massively in debt without any worries because tax payers (not really the Govement) will bail me out....awesome
You need to ask yourself a simple question: Will the economy completely stop working if you go bankrupt? If the answer is yes, then you'll have to be bailed out. Otherwise, you're expendable.No reliance should be placed on the above! Absolutely none, do you hear?0 -
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Hyperinflation didn't occur in 1989. Any reason why it should now?
Because the US government is essentially monetizing all the bad debt created by the banks.
Short term - gets the system off the hook. But more importantly it gives the big players who actually looked like they might get stung plenty of time to bail out and crash proof themselves.
It really is an abject lesson in how if you scare people enough (and people have been scared by events of recent weeks) you can get away with doing anything no matter how stupid it is.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
This rescue plan is to stop the financial market to crumble and avoid huge panic! BUT this economy plan is not to boost more customer debt and high house price increase. That is not going to happen for few years! All they are doing is rescue the banks and get them going. Think of it like this:
You are running really fast...and suddenly you trip and fall on your face. You are hurt and having trouble getting up...someone comes and help you to sit up, give you water and help you stand on your feet. You are now going to walk on your own and NOT run! because you don't have the strength or energy to run!
The runner is the bank and the helper is the US Government.
Makes sense?!0 -
formulaonefan wrote: »This rescue plan is to stop the financial market to crumble and avoid huge panic! BUT this economy plan is not to boost more customer debt and high house price increase. That is not going to happen for few years! All they are doing is rescue the banks and get them going. Think of it like this:
You are running really fast...and suddenly you trip and fall on your face. You are hurt and having trouble getting up...someone comes and help you to sit up, give you water and help you stand on your feet. You are now going to walk on your own and NOT run! because you don't have the strength or energy to run!
The runner is the bank and the helper is the US Government.
Makes sense?!
My analogy would be more like:
You run a business which isn't making enough profit to meet expectations so you go down to the bookies with a harebrained scheme to bet your entire cash assets on a 100 to 1 longshot. It doesn't come in, you lose all your money (actually, you the money you were going to pay your creditors) so the government comes along and says "Don't worry, we'll give you all the cash you just lost and we'll just print up some more to replace it. No harm done".
Mutliply that by every business in the country doing it at the same time.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
My analogy would be more like:
You run a business which isn't making enough profit to meet expectations so you go down to the bookies with a harebrained scheme to bet your entire cash assets on a 100 to 1 longshot. It doesn't come in, you lose all your money (actually, you the money you were going to pay your creditors) so the government comes along and says "Don't worry, we'll give you all the cash you just lost and we'll just print up some more to replace it. No harm done".
Mutliply that by every business in the country doing it at the same time.
But as per your analogy, they won't learn anything. They will gamble it all again! But mine says they won't be able to run straight away as they are hurt. But they will again when they get the energy and strength to run again!
So in your analogy maybe we should say: They were banned to gamble for next two years!
Its friday and I don't have anything better to do! lol0 -
Can I just go off at a tangent. I paid some money into Northern Wreck recently, and the staff there seemed to be so pleased about it. Do they get commission or something for new accounts opened? Bonuses based on what the branch brings in?No reliance should be placed on the above! Absolutely none, do you hear?0
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Sorry - thought I was entitled to an opinion.
You are of course entitled to your opinion, and I agree my response was a little harsh. However, your post that I responded to hardly presented itself as an opinion (This is going to be the last rescue plan - if it goes through then the next crisis will be the last under our current monetary system)Because the US government is essentially monetizing all the bad debt created by the banks.
But that is essentially what happened in 1989 and we didn't have hyperinflation then?
http://en.wikipedia.org/wiki/Savings_and_Loan_crisisIn case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0
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