The state of Economy.

[aceofskies05]

My dad was telling me that right now were probably making history with the recent events. Stock markets are falling and gas could hit 4$ this summer. I donno I just want a bit of discussion on this.

 

[KillerCharlie]

Yeah, okay, I think there's a forum for this.

 

[FoBoT]

my advice:
buy guns/ammo/food

 

[SampSon]

History is made everyday.

 

[TheoPetro]

It is all in how the Fed and the government react (monetary and fiscal policy). If we limit money supply and create a shit ton of public works projects (ala great depression) we will be screwed. The fed is focusing on economic growth but its tools dont seem to be working the way they want them to. They know how to deal with inflation because we have had more experience with it as opposed to economic slowdown, recessions. Honestly until the amount of bad debt is known and accounted for on the financial institution's books we will continue to have problems. Even after they realize all of the losses there still may be problems regarding the "credit crunch." A .5% Fed funds rate doesnt do shit for me if no one will give me a loan.

 

[EKKC]

i heard mexico and canada are fortifying their borders from the influx of illegal american immigrants to be rushing in within 3 years.

 

[Eeezee]

Your dad's right. You can see the signs in the newspaper and all over the money websites. Our economy's going into the shitter, and there's little that can be done to stop it. All we can do is try to minimize the effects. In the long run everything will be be fine, but the next few years may be rough for a lot of people.

 

[JulesMaximus]

Originally posted by: TheoPetro
It is all in how the Fed and the government react (monetary and fiscal policy). If we limit money supply and create a shit ton of public works projects (ala great depression) we will be screwed. The fed is focusing on economic growth but its tools dont seem to be working the way they want them to. They know how to deal with inflation because we have had more experience with it as opposed to economic slowdown, recessions. Honestly until the amount of bad debt is known and accounted for on the financial institution's books we will continue to have problems. Even after they realize all of the losses there still may be problems regarding the "credit crunch." A .5% Fed funds rate doesnt do shit for me if no one will give me a loan.

Well, because of the fact that the federal government is currently headed by an incompetent boob, it doesn't surprise me in the least that those "tools" don't seem to be working. Those "tools" haven't really been "working" for years have they?

Ouch, this thread just took a turn for P&N. :laugh:

 

[Nitemare]

We have a president now that believes that throwing money at everything and everyone fixes everything

 

[TehMac]

Originally posted by: Eeezee
Your dad's right. You can see the signs in the newspaper and all over the money websites. Our economy's going into the shitter, and there's little that can be done to stop it. All we can do is try to minimize the effects. In the long run everything will be be fine, but the next few years may be rough for a lot of people.

Its shitty for people who were irresponsible with their money in a number of ways and now are getting nabbed in the ass.


Besides that, and oil, the economy is fine. The only problem with the economy is the dollar's value, because as America spends more for oil, the dollar is worth less in foreign markets. But domestically, the dollar is fine.

 

[ranmaniac]

Originally posted by: FoBoT
my advice:
buy guns/ammo/food

QFT

If I were the OP, I'd go down to Carter's Country or whatever local hunting/gun store and pick up a gun and a box of ammo.

 

[spidey07]

Here's the real deal. If you believe the economy is in the shitter then you are a product of the main stream media. This is buy time. You can't FIND highly skilled highly qualified people and if you do they demand a pretty penny that supply/demand dictates. Solution? Use this to your advantage.

It's up to you to make the most money you can out of current conditions. If you don't, then hey - that's just economical darwinism for ya.

 

[yankeesfan]

Originally posted by: ranmaniac

Originally posted by: FoBoT
my advice:
buy guns/ammo/food

QFT

If I were the OP, I'd go down to Carter's Country or whatever local hunting/gun store and pick up a gun and a box of ammo.

But don't do anything rash!

 

[LegendKiller]

Originally posted by: JulesMaximus

Originally posted by: TheoPetro
It is all in how the Fed and the government react (monetary and fiscal policy). If we limit money supply and create a shit ton of public works projects (ala great depression) we will be screwed. The fed is focusing on economic growth but its tools dont seem to be working the way they want them to. They know how to deal with inflation because we have had more experience with it as opposed to economic slowdown, recessions. Honestly until the amount of bad debt is known and accounted for on the financial institution's books we will continue to have problems. Even after they realize all of the losses there still may be problems regarding the "credit crunch." A .5% Fed funds rate doesnt do shit for me if no one will give me a loan.

Well, because of the fact that the federal government is currently headed by an incompetent boob, it doesn't surprise me in the least that those "tools" don't seem to be working. Those "tools" haven't really been "working" for years have they?

Ouch, this thread just took a turn for P&N. :laugh:

The tools aren't working for one reason, transparency.

There are trillions of dollars being diverted to other parts of the financial markets right now because nobody likes guessing what problems may be lurking around the corner. If banks were open-kimono about their exposures and just said "ok, here it all is, we aren't hiding now" they'd suddenly find that the market would tier the banks and allocate capital accordingly. The market would be flush and things would work out quickly.

However, nobody will lend if they don't know whats going on.

If somebody hands you a bag and says "Pay $10 for it" you're going to ask what's in it. Of course, it could be a stick of lit TNT, thus, you don't pay. Many call this the "lemon theory".

If I were BB, I'd demand that if the banks want liquidity, they need to open up.

 

[destrekor]

Originally posted by: Nitemare
We have a president now that believes that throwing money at everything and everyone fixes everything

because the president is the most powerful person in the world! ya, he can do whatever he wants and what he says goes! :roll:
no one ever wants to blame the incompetence that runs through Congress, or the amount of power the Judicial Branch has given themselves in the past decade. No... the president is an easy scapegoat for anyone who doesn't understand how the government works.
Easiest way to get things done is vote properly at the Congressional level, and problems work themselves out. Congress has the most power if they can get their asses in gear and work together. They'd rather go for each other's throats and get nothing accomplished.


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