So are we ****ed?

[SPTO]

Re: So are we ****ed?

I still want to visit Canada sometime. Are the winters extremely cold anywhere in Canada?

If you're looking for a moderate type of climate then I suggest BC. I wouldn't say Vancouver though but most likely Victoria BC. The weather in most parts of BC is akin to Washington and Oregon.

[dave374]

Re: So are we ****ed?

Failed system?

The only thing that failed here was the stupid loans these banks gave out.

If you believe that's all that failed here, I have a house you might be interested in.

[illinifan91]

Re: So are we ****ed?

Better take your money out of the banks now guys.

This is the reason we are in this boat right now. People get scared that things are going south, pull their money and then we go south. Its a self fulfilling proficy. The more people panic and the more they pull their money out the farther stock will fall. Also i would like to not this isnt solely George Bush's fault. The mortgage deal that f-ed stuff up was put in during Clinton's rain of terror.

[TheMatrix31]

Re: So are we ****ed?

^ Posts like that will get this thread locked in a hurry.

[dkgojackets]

Re: So are we ****ed?

^ Posts like that will get this thread locked in a hurry.

just gonna get in before the lock here, I give it 10 more replies.

Oh well, people were stupid trying to borrow more money than they could pay back to buy a house they couldnt afford and are paying the consequences. Banks were stupid for lending out money to people who werent going to pay it back. Fail all around.

[gta95]

Re: So are we ****ed?

This may be the end of the USA as we know it. Capitalism is what made this country have the strongest economy in the world. As we are reverting to socialism, the Europeans are going back to capitalism as they have already tried socialism and seen it's failures. Why would we want to have a failed system?

Another end of the world prediction from james. I feel safer now.

I think this situation will hurt us for years to come, but I don't think the USA is gonna up and fall apart all of a sudden. Lets not get crazy.

[fistofrage]

Re: So are we ****ed?

I think everyone has to take a step back and look at what really is going on here if they let the banks completely fail, everything else would fail too.

Even healthy businesses carry around a certain amount of debt. Even now with the bailout, interest rates on short term loans to business are going to rise.

Just look at the Libor rates, they are up 400 basis points. What does that mean, higher interest rates to even the good businesses that have kept their covenants, thats if the banks don't call those loans in all together.

Now the higher interest rates are going to mean higher prices for goods and services because the consumer will have to offset the businesses erosion of margin due to increased interest expense.

As more businesses fail, higher unemployment, higher unemployment means more businesses failing.

Without a bailout we'd be forced into socialism to help sustain life for the masses of unemployed. Thing is there wouldn't be new jobs forming any time soon because loans would be impossible to get for new business start ups.

Either scenario, the rich would get richer because healthy companies, well the few that remain, that don't have debt would have superior competetive advantage and no new loans would create barriers to entry so they'd be insulated.

Letting the banking system completely fail, while that would be fair under true market capitalism(which we don't have and have never truly seen anyway), it would lead to many more problems than it would solve.

[SPTO]

Re: So are we ****ed?

Fistofrage,

That seems like a very well informed post there. It seems that no matter what course of action taken it'd still lead to hard times. What you said about businesses failing and such and loss of jobs/increase in the prices of goods sounds like a vicious cycle that would be hard to get out of. So I guess we should hope that we don't see widespread failures or it's going to be very very tough economically.

[Herbsinator]

Re: So are we ****ed?

He's also a rich billionaire, who is friends with other rich billionaires....they don't give a **** about me or you.

Considering that he is giving basically his entire fortune to charity....I don't think he is like "most" billionaires. He is actually the complete opposite of most billionaires. He has lived in the same house since 1958.

[callmetaternuts]

Re: So are we ****ed?

The world is not ending, our economic system and economic principles havent changed, the sky isnt falling, and the dollar isnt worthless.

These are tough times, as is evident by alot of things. The market cant make up its mind, but i dont se that as a bad thing. People are nervous, and rightfully so, but i think some are starting to see that fleeing for the sidelines and putting their money in their mattress doesnt solve the problem.

The bailout, imo, is worse than the original submission, and yet it passed so people wouldnt over react. Most of us, including the majority of Wall Street are in "wait and see" mode. The short term looks to be on somewhat stable footing, but long term, we still have issues.

Hang in there everyone, its not the end

[Double Eights]

Re: So are we ****ed?

I'm a bit surprised by the amount of uninformed individuals we have here posting at OS. It's actually quite shocking to see that a kid, superjames, is more enlightened than many adults who have posted.

The middle class just got butt-****ed, and no one seems to notice. The government just stuck their hand in all of our pockets and stole our money, without our permission, to pay off big-business failures here and abroad (no one here probably knows $100Billion+ of that bailout is going to foreign corporations). Our nation was formed due to this kind of action by government, yet here we sit, some of us even content with the situation. Sickening to say the least.

No Taxation Without Representation!

[ZB9]

Re: So are we ****ed?

this country probably would have been better off in the long run without this bill. The market needed a good "cleansing". All of the "sky is falling" stuff was BS

I can understand why the govt. wanted to do something major though

[bkfount]

Re: So are we ****ed?

You should have also learned that letting the banking system fails is just short of civil war on the "Oh ****" scale.

but the banking system wasn't going to fail, poorly managed ones that took higher risks were. They'd then fail, get bought out, or merge.

Besides, what helps keep the consumer confidence more, knowing that a poorly managed financial institution failed but a stronger one took it over, or that a poorly managed financial institution was going to fail, but the government kept it in business?

For example, Washington Mutual was the largest bank failure in the US. However, it was sold to a stronger company. No one lost their bank accounts, and only investors in the company stock suffered. Sucks for them. The market works the way it's supposed to by sorting the winners from the losers. Government intervention is what clogs everything up, which is why it was a horrible mistake passing the bailout.

[bkrich83]

Re: So are we ****ed?

I'm a bit surprised by the amount of uninformed individuals we have here posting at OS. It's actually quite shocking to see that a kid, superjames, is more enlightened than many adults who have posted.

The middle class just got butt-****ed, and no one seems to notice. The government just stuck their hand in all of our pockets and stole our money, without our permission, to pay off big-business failures here and abroad (no one here probably knows $100Billion+ of that bailout is going to foreign corporations). Our nation was formed due to this kind of action by government, yet here we sit, some of us even content with the situation. Sickening to say the least.

No Taxation Without Representation!

Our pockets? LOL

[bkrich83]

Re: So are we ****ed?

but the banking system wasn't going to fail, poorly managed ones that took higher risks were. They'd then fail, get bought out, or merge.

Besides, what helps keep the consumer confidence more, knowing that a poorly managed financial institution failed but a stronger one took it over, or that a poorly managed financial institution was going to fail, but the government kept it in business?

For example, Washington Mutual was the largest bank failure in the US. However, it was sold to a stronger company. No one lost their bank accounts, and only investors in the company stock suffered. Sucks for them. The market works the way it's supposed to by sorting the winners from the losers. Government intervention is what clogs everything up, which is why it was a horrible mistake passing the bailout.

I agree for the most part. Imo, the market and economy (much like the housing market, and the tech bubble in the late 90's) was correcting itself, and government intervention is just going to muddy the waters further.

That being said, I am not going to fall in the the "Sky is Falling" rhetoric some are throwing around here, or saying we are now a socialist state.