Recession is a necessary evil

Discussion in 'Economics' started by NanoTick, Feb 1, 2009.

  1. Recession is a necessary evil. In a free economy, only a recession can weed out unproductive businesses and put people to better use. In a way it’s the free economy repairing its flaws, painful but necessary.
  2. ehmoran



    You know, I've heard about Treasury's 6900 Protocol and others. I know that Bernanke is the Depression Master, and now they have the Inflation and Fed Rate master Volcker. Paulson put in the temporary floor for the Financials. But the Rot is leaving.

    But, Bush set this Economy up the best he could for Obama to could succeed, unlike the mess Clinton left for Bush.

    Now its time for Obama (hopefully not the 2008 Hoover) and the rest of Washington to show their SOULS.

    IF they screw this up, you'll never see another Liberal in OFFICE.
  3. last comic standing? lol
  4. "Bush set this Economy up the best he could for Obama to could succeed, unlike the mess Clinton left for Bush."

    Wow. Just wow.
  5. Agreed. The worst part of a recession is the whining school girls that go with it, not to mention the overly emotional political crowd that just KNOWS the democrats or the republicans are to blame for anything and everything.

    All the high school educated amateur economists should just march on Washington and take over the government. They obviously have it all figured out.
  6. ehmoran



    We've been in this ultra bubble since Clinton passed the Utilities Bill in the mid 90's (the one that infused ENRON, COMCAST, QUEST, and others). Then just before he left office, Washington passed the bill eliminting the up-tick rule and the 1908 bill that was designed to restrict and regulate this Credit Default crap, you know, the same crap that was responsible for 1907 Panic, as reported.

    Then from 2005 to 2007, Congress forces loans based on NINJA (I think that's the acronym). Very responsible, ALL MONEY NOW IS FREE!

    As far as the Iraq War, the troops still needed to be paid, just that now they went to work. More money was spent on ammunition, but used for war not war games. These are just a few thoughts. You can think of others.
  7. the problem this time is that there is so much debt built up in the system that a recession could easily turn into much worse.
  8. tradersboredom

    tradersboredom Guest

    debt or leverage is same thing.

    all debts must be paid.

    there is no free lunches.

    market corrections is the method that capitalism reversion to the mean or makes the economy more efficient and finding the price for equilibrium

    home prices were too high.
    oil pricess too high
    real estate too high etc
    war debt too high.

  9. Recessions are easy to get out of. Just fire up the printing press! That's all that is required for prosperity!
  10. ehmoran


    Yeh, but the $25 trillion "lost" in the Markets just didn't disappear, or take a flight Mars, or get incinerated, it's waiting to make more money through INVESTMENT.

    The Shorts will come out SOON.
    #10     Feb 1, 2009