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Uncle Sam won't let the economy fail

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posted on Oct, 13 2008 @ 09:46 AM
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Uncle Sam won't let the economy fail


www.cleveland.com

Global markets have not been reassured by the coordinated interest rate cuts of several central banks or by recent congressional action, but they should be. Our bet is that financial markets will return to normal in short order and that the U.S. economy will squeak by with a moderate recession. Recapitalizing the banks and working out mortgages will take time, but the financial system will not collapse -- the government won't let it.

The markets, of course, seem to be factoring in some probability of collapse. Why is this wrong?

For starters, the biggest subprime mortgage gamblers have already failed, been nationalized or been married off, shotgun-style, to banks run by grown-ups. Yes, lots of small shoes may still drop, but the Paulson "buy-up" bill, and, ultimately, the Fed's ability to print money, provides the Treasury and Federal Reserve all the tools they need.
(visit the link for the full news article)




Headline: Please use the original story headline from your source.

[edit on 13-10-2008 by 12m8keall2c]




posted on Oct, 13 2008 @ 09:46 AM
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Our economy as of recent has been slowly digressing towards a crash. Democracy in a sense has been lost, however, I do not believe that our market will crash. We have gone through many slow periods (the 70's for example) where our economy has been in a rut. I believe this is only a glorified hole that we are in, one that we can claw out of. We as the United States have overcome gigantic obstacles, the Cold War is the first one that comes to mind (the world as we know it nearly ended multiple times). One big factor in our failing market is the fact that it is an election year. There is much financial uncertainty regarding the future of our country. Sen. McCain plans on continuing the spending trend, which I think is what some people fear. (I will finish this soon, gotta get to class)

www.cleveland.com
(visit the link for the full news article)



posted on Oct, 13 2008 @ 11:02 AM
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Had to say something here, "the FED's ability to create money" !
That surely will save our economy...

All the lowering of interest rates and injection of money by the FED has really helped to stop the market collapsing...

I think you need to look more into this situation rather than believe that it won't collapse because the "government won't let it"

The gov. doesn't have control anymore, its the FED, the same guys who have been doing the exact things that got us into this mess in the first.

You're most likely right about the economy not completely disentegrating, but to continue it on the way it is currently going would be completely asinine.



posted on Oct, 13 2008 @ 11:07 AM
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I don't want the economy to fail, but let's be realistic here. The subprime arms were only the first part of this intended fiasco. The second part will be the options mortgages, which I understand will start kicking in end of q1, beginning of q2 of 2009.

www.allbusiness.com...

Figure in about a 6mth to 1yr lag, and we're still in tough economic times for at least another year.

[edit on 13-10-2008 by 1011010110]



posted on Oct, 13 2008 @ 11:11 AM
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During our past economic woes were we borrowing this much money? Were we creating large sums of money with nothing to back it? Were all our jobs being lost and sent to other countries? Were people driving 40 miles one way just to find work then pay $300 a month in fuel just to get there? How about the 65% increase in energy (including the predicted 15% increase this winter) to heat your homes in the past 5 years?

Does this sound like a stable environment? Sounds like a third world country waiting to happen. As long as our government fails to balance the budget we are doomed.



posted on Oct, 13 2008 @ 11:49 AM
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Ok, now. I see your points, however, I still think we will come out of this one.

-Election years tend to have a down economy.

-The economy goes through high's and low's constantly. Look at the history of it. I believe this is just a low.

-In the early 90's we saw a fall just short of where we are now and recovered in 6 months.

-After the Great Depression, the economic system of the U.S. was set up to never fall as far as it did.

-Great Britain has aided it's banks as well. I think we can assume that other countries will follow.

I think that it is true that our modern day "empire" will collapse. It is imminent. Anyone that wants to dispute that fact is just another follower of the "good ole boys" and the other stereotypical ignorant American who needs to wake up. I just don't think that now is the time.



posted on Oct, 13 2008 @ 11:53 AM
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Will be interesting of how long the american empire, can keep on this track and endlessly spend. Surely economics works on equations that have to be balanced at some point.

When will it balance is anyones guess, we will see.



posted on Oct, 13 2008 @ 12:07 PM
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reply to post by andy1033
 


I am interested in your post's reference to the American empire. I think this is a propaganda illusion that has been used against the world. And I was once inclined to believe in it.

The truth is that it's NOT America's "empire" - it's CORPORATE America's Empire. American don't benefit from the 'empire' building activities of the corporate executive 'decider'-in-chief. Nor do we benefit from the profit enterprise of the national bank, nor do we benefit from any of those corporate activities, except in the smaller measure, as potential labor and middle management of their agendas.



posted on Oct, 13 2008 @ 12:26 PM
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It is impossible to fix the economy at this point, because the only thing on the government's mind is to find a "quick-fix" to the problem. The quick fix will only delay the inevitable, for the short run.

Here we have debt in the trillions. How will this be fixed? Will our government borrow more money from other countries furthering this debt? Will they start to tax their citizens in great amounts, taxes from a people who already are struggling to put food on the table?

So far, all they have done is give banks more money, so they can make more loans. If you have a child that has maxed out their credit card, and is in debt from it, do you give them another credit card to pay off that debt?

It's the same thing happening here.

[edit on 13-10-2008 by DJMessiah]



posted on Oct, 13 2008 @ 01:04 PM
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reply to post by prestonposthuma
 


With a QUADTRILLION in derivatives still out there,watch this space boys and girls.Believe me ,this a'int even started yet.



posted on Oct, 13 2008 @ 01:35 PM
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Originally posted by prestonposthuma
Ok, now. I see your points, however, I still think we will come out of this one.

-Election years tend to have a down economy.

-The economy goes through high's and low's constantly. Look at the history of it. I believe this is just a low.

-In the early 90's we saw a fall just short of where we are now and recovered in 6 months.

-After the Great Depression, the economic system of the U.S. was set up to never fall as far as it did.

-Great Britain has aided it's banks as well. I think we can assume that other countries will follow.

I think that it is true that our modern day "empire" will collapse. It is imminent. Anyone that wants to dispute that fact is just another follower of the "good ole boys" and the other stereotypical ignorant American who needs to wake up. I just don't think that now is the time.


Yes, it’s called the business cycle. The economy has its ups and downs but the overall trend is increased growth.

That being said, we still have much to deal with economically. A 10 trillion dollar debt, a half a trillion dollar deficit, rising inflation, rising energy costs, stagnant wages, outsourcing of jobs, illegal immigration, the list goes on. But the country has seen dire times in the past and we always come through it ok. We will this time as well. If there is one thing we Americans are good at it is finding ways to overcome our challenges to defeat defeat.

There is a dark cloud over us right now but clouds always give way to brighter days and Americas brightest days are yet ahead! You can count on it!



posted on Oct, 13 2008 @ 01:41 PM
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In my opinion(sry I'm European)m Uncle Sam doesn't do a thing to save the economy and conquer the recent crisis.
It all started in the USA and now it's worldwide. The European Governments take their responsability but the American Government not!!
So Uncle Sam....thank you......not!!!



posted on Oct, 13 2008 @ 01:44 PM
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Uncle Sam might not have a say in the matter.

The bigger say will come from those who hold US debt and those who no longer use US dollars in the international arena.



posted on Oct, 13 2008 @ 02:50 PM
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The Dow is at +778 as of this writing and could be poised to rise even higher before the exchange closes.

money.cnn.com...



posted on Oct, 13 2008 @ 03:11 PM
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Originally posted by GradyPhilpott
The Dow is at +778 as of this writing and could be poised to rise even higher before the exchange closes.

money.cnn.com...



Was this not the expected rebound of the officially recognized 'cycle'? We have seen this before. If you feel encouraged and believe it will remain 'up' or 'normalized' then I hope you're correct.

But it has always been my understanding that events following this 'pattern' of collapse usually are 'momentarily' marked by an upward surge in the market. Also, I thought that one cannot simplify the equation to the the point of reasonably assuming that because the market is doing well, the economy is doing well.

I say all this in the hopes that more qualified members may confirm or correct my notions. I don't want to be right.



posted on Oct, 13 2008 @ 03:46 PM
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I understand that we are in an insane amount of debt, but we as a country have always been in debt, since our conception. The DJI also finished ahead today some 960 points. That still doesn't put then back where they were before this whole fiasco started, but it's a step in the right direction. Also, with global support this fix should work for at least sometime. Hopefully in the meanwhile we can figure something out to work in the long run, or we may be in trouble in the future. However, I think (and hope) for the time being we don't need to stock up on canned goods.



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