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Originally posted by mybigunit
reply to post by anachryon
It does make me sick. What scares me even more is if I go and buy all sorts of silver and gold which I am strongly considering and then the governments flood the market with it to get money killing the price of gold and silver. Im at a standstill Im not sure where the hell to put my money.
Originally posted by rtcctr
if i got this right then the Bailout actually hurt more than helped
if this is the case then the government is causing hyper inflation in the economy and could lead us into a depression
Originally posted by Comind
Now Treasury auctions having been going very well. All durations are down in yield due to high demand--but I'm not sure how much they've actually sold and whether it has been enough to offset all their programs (TARP being the latest).
Obviously, you want to get this analysis right because it has huge investing implications.
The auction was "awful" because there were no participants, said Andrew Brenner, co-head of structured products and emerging markets at MF Global.
Originally posted by anachryon
As long as the money sits there in the banks, it's not a huge deal. The instant it starts moving into the day to day economy - via loans, interest paid, hiring, building new bank branches, etc - though, the economy starts to inflate.
Inflation is what causes prices to go up due to the increase of the amount of money "in the wild." Think about what $100 could buy you 10 years ago and compare it to what $100 can buy you today; this is due to inflation. A dollar just ain't worth what it used to be, ya know??
When inflation gets out of control, it can become hyper-inflation. We're seeing this in Zimbabwe, where it costs like a billion dollars for a loaf of bread.
It was Oct. 17, just four days after JPMorgan Chase’s chief executive, Jamie Dimon, agreed to take a $25 billion capital injection courtesy of the United States government, when a JPMorgan employee asked that question. It came toward the end of an employee-only conference call that had been largely devoted to meshing certain divisions of JPMorgan with its new acquisition, Washington Mutual.
Which, of course, it also got thanks to the federal government. Christmas came early at JPMorgan Chase.
The JPMorgan executive who was moderating the employee conference call didn’t hesitate to answer a question that was pretty politically sensitive given the events of the previous few weeks.
Given the way, that is, that Treasury Secretary Henry M. Paulson Jr. had decided to use the first installment of the $700 billion bailout money to recapitalize banks instead of buying up their toxic securities, which he had then sold to Congress and the American people as the best and fastest way to get the banks to start making loans again, and help prevent this recession from getting much, much worse.
In point of fact, the dirty little secret of the banking industry is that it has no intention of using the money to make new loans. But this executive was the first insider who’s been indiscreet enough to say it within earshot of a journalist.
(He didn’t mean to, of course, but I obtained the call-in number and listened to a recording.)
“Twenty-five billion dollars is obviously going to help the folks who are struggling more than Chase,” he began. “What we do think it will help us do is perhaps be a little bit more active on the acquisition side or opportunistic side for some banks who are still struggling. And I would not assume that we are done on the acquisition side just because of the Washington Mutual and Bear Stearns mergers. I think there are going to be some great opportunities for us to grow in this environment, and I think we have an opportunity to use that $25 billion in that way and obviously depending on whether recession turns into depression or what happens in the future, you know, we have that as a backstop.”
Originally posted by Anonymous ATS
reply to post by mybigunit
Your best bet is to liquidate everything you have, get out and stay out of debt and buy a home with acerage in the country. Be sure you have a GOOD water source. Grow your own food, farm animals. Bring or find as many like-minded people as you can. Best places in the USA are small, unincorporated county areas in the rural parts of...then you incorporate NEW towns. Learn to hunt & fish!