Great Depression risk may force U.S. Gov to buy assets, page 1/
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Topic started on 13-2-2008 @ 06:36 PM by DimensionalDetective

Great Depression risk may force U.S. Gov to buy assets


www.reuters.com
NEW YORK (Reuters) - Fear that a hobbled banking sector may set off another Great Depression could force the U.S. government and Federal Reserve to take the unprecedented step of buying a broad range of assets, including stocks, according to one of the most bearish market analysts.

That extreme scenario, which would aim to stave off deflation and stabilize the economy, is evolving as the base case for Bernard Connolly, global strategist at Banque AIG in London.

(visit the link for the full news article)


reply posted on 13-2-2008 @ 07:03 PM by RedGolem
reply to post by DimensionalDetective


When reading what you referenced I could not help but think this is more to the possibility of this happening then what was said. First off buying stocks is not like buy commodities, like the gold the government bought back in the 1920s or so. So I think if the government does decide to buy stocks, it will be done with the inside knowledge of the most powerful stock traders. Meaning, it will just be yet another was for the richest, most powerful people to get more of the tax dollars from the poor people and make them richer.



reply posted on 13-2-2008 @ 07:42 PM by RedGolem
reply to post by Agit8dChop


Well, if you want to compare it to the way the government cornered the gold market in the early part of last century they will let us hang out to dry. I just don't think that can be done with stocks they way they did with gold. I just also think the only people it is really going to help are the rich powerful traders that have large stock portfolios in big companies. And that alone would seem to be enough to get the laws pushed through in this day and age.


reply posted on 13-2-2008 @ 08:25 PM by HimWhoHathAnEar
reply to post by marg6043


Well said Marge. First of all, the Government doesn't have any money. Only what they can collect in taxes (which is already too much) and what they can print (which brings on horrific inflation). Monetizing Debt is a recipe for disaster. Case study Weimar Republic and Yugoslavia early 90's.

For that matter, the Gov't has 10 trillion worth of its own problem. So now they're gonna add how much to that? Meanwhile War's and Deficits running rampant.


reply posted on 13-2-2008 @ 09:17 PM by RedGolem
reply to post by Bangin


ok so not backed by but the commodity of oil traded in. All right got it.
So when they switch to the Euro we will be seeing a big crash.


reply posted on 13-2-2008 @ 10:00 PM by DimensionalDetective
reply to post by RedGolem


That's EXACTLY the first thing I thought of. Since OPEC just announced they may drop the dollar in favor of the now much stronger Euro, we are totally screwed. This is like a bad dream that just keeps getting worse and you can't wake up from it.


reply posted on 14-2-2008 @ 05:43 AM by JRedBeard
Originally posted by TheBorg
Everyone here does realize that if the government goes out and buys up all of that stock, that they therefore own all of the businesses that they hold a 51% or greater share in, right?
TheBorg


My initial thought here was, "But don't we own the government? Or at least represent the responsibility of our national debt?" So I decided to do a little research real quick..

It turns out that, according to this article (the title of which pretty much describes my google query) The US government itself does own the (slim) majority of our national debt, via medicare, social security and other tax holdings.

(That money is ours though still right? More research would be needed on that, probably involving some legal stuff, and more wading through .gov info-masses.)

The remainder however (roughly 25%) belongs to these foreign countries. In light of the current topic, this would seem to be the bad news, not to mention a redundant reminder, and recurring theme in regards to our economy lately.

Let's just make sure the rest of the world owns ALL of our companies eh?


reply posted on 14-2-2008 @ 06:12 AM by sty
reply to post by DimensionalDetective


FED is NOT GOV!
the FED is owned by private share holders ( the names are secret )
- is is actually a private corporation. The depressions are used for this exact purpose- to buy assets at a low price and doing this to extend power of the elites.

I posted some eassy - to - understand videos here:

www.belowtopsecret.com...'


reply posted on 14-2-2008 @ 07:35 AM by marg6043
reply to post by RedGolem


I am sorry I could not come back to you faster to answer you question, but I see that Bangin did a great job.

We know that right now oil moves the world.
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