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Originally posted by TH3ON3
I think the speculation is premature and it will proly take much more than a bad stretch in the world markets to really crash the global economy.
Originally posted by CoffinFeeder
your banks are not going to start closing up left and right,
Originally posted by CoffinFeeder
Question to ponder: if the bank that services your loan fails, disappears, goes belly up, whatever.. more or less, ends up disappearing.. what happens to your mortgage and property? One would assume that the bank has more or less a fire sale for its mortgages.. but what if yours is one thats not picked up?I'm sure it'll matter depending on how your loan was done.. as in the bank owns it until you pay off, or you own it and the bank has/had a lein on teh deed.
“The market is following natural laws of economics and there is no reason why both prosperity and the market should not continue for years at this high level or even higher.”
“The economic condition of the world seems on the verge of a great forward movement.”
“The outlook for the fall months seems brighter than at any time.”
“There may be a recession in stock prices, but not anything in the nature of a crash.”
“Don’t part with your illusions; when they are gone, you may still exist, but you have ceased to live.”
“This crash is not going to have much effect on business.”
“Cautioning against hysterical selling, brokerage houses in their market letters this morning will strike a note of optimism, advising the purchase of seasoned stocks at the present low levels. The public is strongly urged not to liquidate stocks in the present market.”
“The worst is over. The selling yesterday was panicky brought on by hysteria. General conditions are good. Our inquiries assure us that throughout the country business is sound.”
“A severe depression like that of 1920-21 is outside the range of probability. We are not facing protracted liquidation.”
“Financial storm definitely passed.”
“I am convinced ... we have re-established confidence. Wages should remain stable. A very large degree of industrial unemployment and suffering which would otherwise have occurred has been prevented.”
“I see nothing ... in the present situation that is either menacing or warrants pessimism. During the winter months there may be some slackness or unemployment but hardly more than at this season each year. I have every confidence that there will be a revival of activity in the spring, and that during the coming year the country will make steady progress.”
“More people are borrowing and speculating today than ever in our history. Sooner or later a crash is coming and it may be terrific. Wise are those investors who now get out of debt and reef their sails.”
“the election of Hoover and a Republican Congress should result in continued prosperity in 1929.”
Originally posted by Mainer
I call tell you that right now, in Maine, the lobster industry is collapsing. They have perishable merchandise that needs to move quickly from source to market. The inability of the Canadian processors to obtain credit has stranded tons of lobster on the coast. The price per pound has dropped to levels last seen when Jimmy Carter was President. This is one of those industries that runs on a very tight supply chain, they tend to show disruptive effects first.
Economic Crisis Effects Maine Lobster Industry
No Depression This Time
In the 1930s, nobody in the private sector could borrow, raise equity or sell insurance because everyone lost trust in everyone else. Uncle Sam stood on the sidelines and marveled at the chaos. But today Uncle Sam is saying, "Listen, if you households and firms are too scared to invest in each other or sell each other insurance, give us your money, and we'll do it for you. We'll pay you a sure return on the Treasuries and, if our investments and insurance sales do well, you'll benefit by paying lower taxes."
This may sound like socialism or state capitalism, but it's simply rearranging the financial furniture. As Americans have freaked out, Uncle Sam has stepped up. He'll continue doing so until we realize the sky is not falling. The $700 billion rescue authorizes the federal government to keep doing what it has been doing for the past year to the tune of $400 billion -- buying distressed assets at bargain-basement prices and selling insurance at high premiums. If all works out, Uncle Sam will make a killing. This would be great, given our government's real problem -- paying the long-term Social Security and medical costs of retiring baby boomers.
Laurence J. Kotlikoff, a professor of economics at Boston University, is co-author of "Spend 'Til the End." Perry Mehrling is a professor of economics at Columbia University's Barnard College and author of "Fischer Black and the Revolutionary Idea of Finance."