i never said Great Depression. I think that's made up. Yes, a recession would be fine by me. And, admittedly, for personal gains. But, I don't htink it's the end of the world. We can't have a booming economy 100% of the time.UK wrote:No plan is going to be perfect, the plan is designed to be a compromise between parties. Giving them till next Sunday to try and rework it does little to nothing at all if their partisan provisions remain the same.AWvsCBsteeeerike3 wrote: So, for the sake of saving two or three bad days or even weeks on Wall Street, congress should push through an abhorrent bailout plan without getting it corrected? I don't think they should do it at all, and you're asking for the poo version to be pushed through. You may know more about financial markets and the economy than I do, but I don't think I'm wrong for being happy the bailout didn't go through yesterday.
No, I'm focusing on the economy as a whole as well. And, my simple reasoning is this: If you are a good investment (ie, have good credit, a solid job, and can make your monthly payments - be it a small business or an individual home/car buyer), banks will invest in you. Maybe not WaMu or Goldman Sachs or whoever else because they've all shot themselves in the foot. But, and I don't know this I can only guess - so if I'm wrong please tell me - there would be a bank, somewhere maybe Europe or Asia, just chomping at the bit to be the banker that all they have to do is follow a standard that banks with great success followed for 100+ years (or however long) and make a killing. If there's no banks wanting to make money and not bankrupt, then I guess I am wrong. But, seriously, America has been a pretty good country with a pretty good finanacial system for a long time. If all the banks here fail, all one has to do is step up with the capital, charge a little bit more for theirmoney, give out only loans that would have been approved in the 80's, follow old practices and make a boatload of money.
So, if our banks fail, every other bank worldwide fails as well? I agree with more regulation. I just wish the people that pushed for no government invovlement weren't the ones now screaming the loudest about how they need a trillion dollars.
I just simply don't believe this. I refuse to believe that banks will stop investing in good investments.
Further decline is fine by me.
Where is the govt getting the 700 billion from? They can afford that, but can't help the little guy get money to finance his home? This, imo, would be a lot better investment than handing over a blank check to whomever.
You can't be focusing on the economy if you think certain increased recession and a possible Great Depression is fine by you.
You're wrong in the fact that you don't think that more people will be looking to borrow than the banks will provide credit, I think you misunderstand how vital lending is to the economy and not how critical denying an additional 5% of the mortgages, small business loans, student loan, etc. is to the economy. In this economy, people are looking to borrow more than they have in many years b/c they're making the same but expenses have increased, unemployment is high, and people had been living beyond their means.
They're getting the 700 billion from the taxpayers, having that go directly to the gov't does nothing for the banks, you need the banking system to revive and get the economy looking forward.
I fully understand how important lending is to the economy. 75% of my clients have their projects financed. And, of those 75%, probably half to a third didn't deserve the loans they got. And, they were the ones that I am having problems collecting from. However, there are other markets, such as the green energy boom and infrastructure that we've discussed that will keep everyone afloat to say the least.
Unemployment at 6% is not that high. 4% is almost fully employed as there is a constant flux in people switching jobs and what not. And, people need to stop spending more than they make. If that doesn't happen, all this is moot because we're doomed.
How are they getting the 700 billion from the taxpayers? Taxes aren't due for half a year and I haven't gotten a bill...... I agree you need a banking system to keep the economy moving forward.
