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Consequences of nothing
Tweet Topic Started: Sep 30 2008, 10:01 AM (80 Views)
Maker13 Sep 30 2008, 10:01 AM Post #1
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I may have missed it somewhere in another thread, but I've been wondering and looking for some info on what happens if no bill ends up getting passed. What are the consequences? What happens to the banks, the people with these loans and mortgages, those with the investments, and the general economy. Obviously it's all bad, but if anyone has an article or opinion or anything to help define that course of action, I'd appreciate learning a little more on it. Thanks!
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md11flyer Sep 30 2008, 10:26 AM Post #2
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Here is a descent Chicago Sun Times article. There are many others but nearly all say the same thing.

IF we do nothing

There seems to be a consensus by financial experts that doing nothing is not a viable option. I was and still am against the bill as written but I do believe that it will be necessary to do something to free up the credit market or this mess will really begin to hit on "main street".

I was shocked to hear that the Dems had language in the bill as first written that had earmarks in it to support such political organizations as ACORN. That to me is just frigging unbelievable! Pelosi's speech before the vote yesterday was also one of the most political partisan dumbass things I have ever seen.



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Mr Gray Sep 30 2008, 12:25 PM Post #3
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I think we should do nothing and suffer the consequences of the general population burying it's head in the sand while our government has grown larger and powerful enough to cause such a gigantic problem. If we get bailed out by the rich (the majority of the taxpayers) once again, we will never learn.
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The body knows what fighters don't: how to protect itself. A neck can only twist so far. Twist it just a hair more and the body says, "Hey, I'll take it from here because you obviously don't know what you're doing... Lie down now, rest, and we'll talk about this when you regain your senses." It's called the knockout mechanism.
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md11flyer Sep 30 2008, 12:53 PM Post #4
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aaronk2727
Sep 30 2008, 12:25 PM
I think we should do nothing and suffer the consequences of the general population burying it's head in the sand while our government has grown larger and powerful enough to cause such a gigantic problem. If we get bailed out by the rich (the majority of the taxpayers) once again, we will never learn.
If it was just about Wall St., I could care less, let em burn. Unfortunately, regardless of who is to blame, the financial problem has been allowed to progress to a point that the credit markets are drying up and that affects everything and everyone. Being the capitalist I am, my gut feeling is just like yours Aaron, let the market take care of itself, and it would eventually. I just honestly don't know what is best here. I think there are things that can be done that would help ease the crisis without any kind of a rescue bill. Problem is, it mostly involves tax relief to corporations and on capital gains. In the current political climate, that is not going to happen so government just keeps getting bigger and more socialist. We are in for a hell of a ride in the next year and I don't believe anyone is at the wheel.
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Mr Gray Sep 30 2008, 01:16 PM Post #5
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md11flyer
Sep 30 2008, 12:53 PM
aaronk2727
Sep 30 2008, 12:25 PM
I think we should do nothing and suffer the consequences of the general population burying it's head in the sand while our government has grown larger and powerful enough to cause such a gigantic problem. If we get bailed out by the rich (the majority of the taxpayers) once again, we will never learn.
If it was just about Wall St., I could care less, let em burn. Unfortunately, regardless of who is to blame, the financial problem has been allowed to progress to a point that the credit markets are drying up and that affects everything and everyone. Being the capitalist I am, my gut feeling is just like yours Aaron, let the market take care of itself, and it would eventually. I just honestly don't know what is best here. I think there are things that can be done that would help ease the crisis without any kind of a rescue bill. Problem is, it mostly involves tax relief to corporations and on capital gains. In the current political climate, that is not going to happen so government just keeps getting bigger and more socialist. We are in for a hell of a ride in the next year and I don't believe anyone is at the wheel.
I agree MD..it is a tough one. You're right that it will affect more than just Wall St. it will affect almost everyone. My point is that it probably should affect everyone, because everyone is partially to blame. We have the constitutional power to control our government....key word "OUR", yet the majority of people have other interested and would just assume "let other people worry about that stuff"...etc etc. I think that if we all lose our ass and understand why (that is the most difficult part), we might not let these dishonest, big government crooks run our show for us.

Of course, I'm merely dreaming, because the media will spin it the way they want it portrayed, and the vast majority of the public will never know for sure what happened and what they need to do to prevent it from happening again.
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The body knows what fighters don't: how to protect itself. A neck can only twist so far. Twist it just a hair more and the body says, "Hey, I'll take it from here because you obviously don't know what you're doing... Lie down now, rest, and we'll talk about this when you regain your senses." It's called the knockout mechanism.
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Maker13 Sep 30 2008, 01:26 PM Post #6
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So what is it exactly that we're going to have to suffer through? Everyone seems to be so obsessed with fixing the blame somewhere and figuring out why this has all happened and I haven't heard much, if any, coverage on what it is that's going to happen. I agree that it's important to know what the causes are of the current problem, but I would think that it would presently be a more pressing issue as to what the future consequences are of each course of action.
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HoosierLars Sep 30 2008, 02:10 PM Post #7
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Maker13
Sep 30 2008, 01:26 PM
So what is it exactly that we're going to have to suffer through? Everyone seems to be so obsessed with fixing the blame somewhere and figuring out why this has all happened and I haven't heard much, if any, coverage on what it is that's going to happen. I agree that it's important to know what the causes are of the current problem, but I would think that it would presently be a more pressing issue as to what the future consequences are of each course of action.
Nobody really knows what is going to happen, which is why there is panic in the financial markets. I think there's a better than 50% chance that the immediate crisis will be averted, and then we'll have a recession caused by people reducing their spending.

It would just be us Boilermakers' luck if our civilization came to an end just as we were poised to make a run at our first bball NC. :P
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Mr Gray Sep 30 2008, 02:18 PM Post #8
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Maker13
Sep 30 2008, 01:26 PM
So what is it exactly that we're going to have to suffer through? Everyone seems to be so obsessed with fixing the blame somewhere and figuring out why this has all happened and I haven't heard much, if any, coverage on what it is that's going to happen. I agree that it's important to know what the causes are of the current problem, but I would think that it would presently be a more pressing issue as to what the future consequences are of each course of action.
I don't know everything there is to know about the situation, but none of us do unless we have been in the meetings and weeded through the financial statements of the failing companies, so I can't say for certain, but I can generalize. What we will suffer through will be

1) a general decline the stock market. This will impact most peoples 401Ks, IRAs, pensions (if they still exist), and obviously your stock portfolio in general. It may hurt the folks who are reliant on a fixed income that is leveredged higher in the market. Each of these consequences will cause a drawback on discretionary consume spending, causing a small decrease in jobs and pinch profits for companies of all shapes and sizes.

2) The lack of capital in the system will cause some highly leveredged businesses to fail, some to seek bankruptcy protection, and the vast majority to simply cut back on capital expenditures while they ride out the storm. This will lead to a general decline in the construction and tech industry as those two categories make up a large portion of corporate capital expenditures, which would be scaled back.

Now, that being said, it all will be temporary, especially the lack of available capital. Capital doesn't just "disappear" as many are suggesting (including Bush :fuckyou: ). It is just more readilly available when it is being hosted by large easily accessible banks and financial institutions, such as those that are failing. The fact is, their capital is already gone and has been for some time. They loaned it out and it was spent, therefore it has transferred hands, not "disappeared". It is not sitting in the hands of many citizens, private businesses, business owners, ....etc etc etc.....meaning it is spread out all over the place now.

As long as there is demand for capital (which there is and always will be) those privateers mentioned above that are now holding the cash, will invest it in the areas that need it at rates based proportinally on the risk (the way investment is intended). Some of the richer people/businesses will invest it directly, but the majority will have it invested indirectly via mutual funds and other investment vehicles looking for ways to take advantage of the perceived capital shortage. This won't happen overnight (hence the fed's urgency to act right now). It will take a few months to a year for the capital to find it's way back into the market, especially given the extra due diligence that most large investors will now undertake before sinking money into anything besides commodities and bonds. When it does find it's way, however, the market will come back, but this time with more sound fundaments of non-intervention based free market capitalism. There will always be problems in the free market as well, but no where near the stick of dynamite that the gov. attaches to them.

Sorry to go off.....but does that make sense to you?
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The body knows what fighters don't: how to protect itself. A neck can only twist so far. Twist it just a hair more and the body says, "Hey, I'll take it from here because you obviously don't know what you're doing... Lie down now, rest, and we'll talk about this when you regain your senses." It's called the knockout mechanism.
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