Ok so the strategy is to print dollars to get out of this mess...but...

Charly · Nov 25, 2008

Some are very happy at the moment -
e.g. banks or those top notch managers of the car industry (21 Mill. / year sal. for ruining some previously wonderful companies and their employees) however, even worse will be an inflation in the long run mankind probably never has seen imho.
Yes I know - at the moment the "experts"
are talking about deflation - lol.

Sandybestdog · Nov 25, 2008

There have been a few times on ET that I have suggested that perhaps the little guy shouldn't be screwed so much. That either we should stop printing up money, or companys should pay people more to make up for the higher cost of living. Usually when I mention fairness I am usually told I'm a Socialist. Or that I should have to work harder to make up for it. Or that I should spend thousands of dollars on college so that I can get a better job. Basically I have to work twice as hard and spend more money just to stay ahead. Meanwhile the Man gets a bailout and gets to print money. I don't want a bailout, just stop printing up money out of thin air so I can have a shot at getting ahead.

swtrader · Nov 25, 2008

Quote from Nofear777:

What happens to the majority of american people ? Less jobs, less wages, less money, and now a weak dollar?

It seems to me the powers that be have the regular joe dead last in priority.

What the fed is doing is bordering on criminal imo.
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I learned from H-1b, that when you're on the wrong side of political power, you get body slammed, and the reality of what happened gets popped into the memory hole - it never happened

truth is, in today's reality, banks are shitting solid gold - must be nice to have someone buy your turds like they were faberge eggs

eagle · Nov 25, 2008

Ok so the strategy is to print dollars to get out of this mess...but...

You screw the lenders. Then they will remember you and you can't do that for second time.

Mecro · Nov 25, 2008

Quote from Nofear777:

It seems to me the powers that be have the regular joe dead last in priority.

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What a revelation!

Too bad it's decades if not centuries overdue.

Dr. Zhivodka · Nov 25, 2008

Bullshit...how many time has Argentina and Mexico been afforded new loans (I'm talking to you citi)? Russia shit the bed ...and four years later every bank in the world was lining up to extend them credit and loans.

Quote from eagle:

Ok so the strategy is to print dollars to get out of this mess...but...

You screw the lenders. Then they will remember you and you can't do that for second time.
More...

Renegen · Nov 25, 2008

No time to lose then

eagle · Nov 25, 2008

When the small guy did, the punishment is less severe than the big guy did.

Quote from Dr. Zhivodka:

Bullshit...how many time has Argentina and Mexico been afforded new loans (I'm talking to you citi)? Russia shit the bed ...and four years later every bank in the world was lining up to extend them credit and loans.
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Mvic · Nov 25, 2008

Greed's memory is short.

ByLoSellHi · Nov 25, 2008

I swear to G_d that I've never been more disenchanted and disgusted with out political system and governmental structure as I am now.

There is no doubt in my mind that the Federal Reserve needs to be disbanded, and the Treasury Department needs to be brought under taxpayer oversight directly.

We have no competency in government. None.

Quote from Mvic:

http://www.bloomberg.com/apps/news?pid=20601109&sid=an3k2rZMNgDw&refer=home

$7.7 Trillion

If they had cured mortgages back in 2007 by reducing rates, extending terms, extending IO where necessary we could have let time and inflation take care of 95% of this mess. Mortgages were the string that unraveled the whole. Then they could have taken $1 or even $2 trillion and pumped it in to sectors of the economy that create growth and high paying jobs and still have had another $1 trillion to throw at infrastructure and keeping the grunts employed.

The sad fact is that all this money has done very little. Essentially what has happened is that as leverage has disappeared the government has stepped in and met those margin calls and as every trader knows, if you do that your opportunity cost is extremely high as you no longer have that money to deploy where it can help you make a decent return. In this case it is money that we now don't have available to do the ONLY thing that will solve our economic problems long term and that is invest in and incentivize areas of the economy that will produce growth. Unfortunately the plan Obama is talking about will not do that, improve roads and bridges does not produce the kind of high rate growth we need (didn't for FDR nor for Japan), the money needs to be pumped in to the life sciences, material sciences, renewable energy, biotech, hi tech etc. These are the areas that will produce the only type of growth that will save the US economy and create the jobs we need, we can still do it if the politicians and the economists who advise them would just use a bit of common sense, but unfortunately now we do it $8 trillion more in the hole than we were before.

Think about it another way, we are going to have to ask the rest of the world to help us pay for all this crap by having them buy our long term debt. Well guess what, the rest of the world also has a dearth of roads and bridges and general infrastructure, they may just decide that if the US is fucked and no longer able to buy their exports they may as well deploy their resources domestically on their own infrastructure. On the other hand if they think they are lending to a country that is revitalizing it is high growth indistries (the technology then trickles down also meaning they are also getting subsidized US R&D for their money) and creating high paying jobs that will boost global consumption and secure demand for their exports then buying US debt actually looks more attractive than deploying those re4sources domestically. The big stimulous in China recently is perhaps the 1st step toward the gloabl realization that pumping money in the US debt may no longer work to fuel the global growth engine because the US is no longer doing anything with that money that is producing the necessary drivers for growth.
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