Market crash/Gov't takeover (in Off-topic)
September 19 2008 11:11 AM EDT
I assume everyone heard the announcement that our financial system is days away from a crash, and President Bush is now attempting to pass legislation to expand federal power over it. He just finished his speech minutes ago.
Thoughts? Comments? Concerns? (I have much in the concerns department, and not so much in regards to finance!)
I refuse to believe.
Isn't the DOW up for the last two days or something?
September 19 2008 11:26 AM EDT
It's happening. No doubt about it. We're in the worst scenario since the Great Depression.
However, not everyone here is from the US... and shouldn't this be in 'Off-Topic'?
The FTSE has practically died over the last couple of weeks, not promising for the economy when several large companies go bankrupt either.
September 19 2008 11:31 AM EDT
Yes, it should be in Off-Topic; however, I shockingly find myself unable to move the topic into the correct forum, so I'm simply waiting for an admin that can do that for me.
September 19 2008 11:40 AM EDT
People keep talking about a "depression" when really what we're talking about is a recession, and even that is up for debate as to the severity. And I'm not sure where the info is coming from, but I haven't heard anything about said "financial system" being days away from crashing. Since that would crash the world economy. I have heard about large institutions that made poor decisions and put themselves in high risk scenarios by their own stupidity that are now reaping what they've sown. And the gov't is stepping in to help some of them. But it's not the entire financial system. If that were the case there would be a run on banks world wide with people pulling their cash and burying it in the backyard or plastering it up in the walls of their houses.
"If that were the case there would be a run on banks world wide with people pulling their cash and burying it in the backyard or plastering it up in the walls of their houses." I hope this happens. It's how you fix economic downturns: take all the money out of the economy, and just hang on to it.
I propose heavy tariffs on foreign goods that have a valid equivalent produced in the United States. If an actual industry in the United States is facing competition from an "American" company whose production facilities are 99% located overseas, that doesn't help the American economy. Jobs need to be un-outsourced. Unemployment's up, and no one can pay their mortgages. Does American industry exist anymore?
Actually, I'm worried about this because of all the current Presidential candidates' talk about "carbon credits." Really? We really want to cripple our economy by outlawing the use of energy in the production of goods without direct payment to the government?
Really, though. Bring jobs back to the United States. If your business is worth anybody's money, your company will still be viable, even with higher unit production costs.
September 19 2008 12:54 PM EDT
"I hope this happens. It's how you fix economic downturns: take all the money out of the economy, and just hang on to it."
That's what causes economic downturns.
"I propose heavy tariffs on foreign goods that have a valid equivalent produced in the United States. If an actual industry in the United States is facing competition from an "American" company whose production facilities are 99% located overseas, that doesn't help the American economy. Jobs need to be un-outsourced. Unemployment's up, and no one can pay their mortgages. Does American industry exist anymore?"
This raises prices for everyone consuming those goods; including the people you are trying to help. Not to mention every other country gets annoyed and raises their tariffs. This is the closest you can get to an economic shot in the foot.
September 19 2008 1:01 PM EDT
I wasn't aware CB was home to the greatest economic based minds the world has ever seen! Get out thar and fix stuff!
On a related note, lol. I'm moving to Canada =) Toronto..... *sigh*
September 19 2008 1:04 PM EDT
I blame it on bush lol, heres the site if u havent seen it http://biz.yahoo.com/ap/080919/financial_meltdown.html
You can blame whomever you'd like. Although I wasn't aware that simply finding someone to blame actually fixed problems...
""I hope this happens. It's how you fix economic downturns: take all the money out of the economy, and just hang on to it."
That's what causes economic downturns."
I tried to word it as sarcastically as I could, but I understand that it is hard to get sarcasm across in a text forum.
What I was getting at (with the stupid thing about tariffs) is that, as a nation, we need to actually produce something, rather than simply monitoring its production. Yes, it's cheaper to produce (and, therefore, to buy) things that are manufactured in China, and it's cheaper to pay salaries to workers in this or that country where $.50 an hour is ultimate riches, but two questions are then raised: 1. Is it ethical? and 2. Is it weakening the American economy?
I alluded to price increases at the end of the last post when I said that people will pay for anything worth buying. Having to pay American workers to produce McDonald's Happy Meal toys would probably make it a very unprofitable business... but who needs Happy Meal toys?
Not that I'm even suggesting we create American jobs by opening a plastic-toys factory in America and shutting all the Chinese ones down... but what about all the real jobs that were outsourced?
Y'know what I'm saying?
GW: I'm trying to discuss my thoughts and concerns, I guess. Sorry if I came in here like Grand Master Adam Smith.
the out-sourcing of american industry has already happened. even if we tried to recover, i am not sure the employees that have been laid off would trust corporations once again. we have pretty much limited our industry to service and information.
like it or not we have started down the path to a global economy rather than national. pulling back at this point is pretty impossible and would likely hurt only ourselves.
whether or not we agree with it all, it is far too late to stop it in my opinion. i hate to sound like a conspiracy theorist, but you do have to wonder if this was all part of the plan...perhaps not the crisis we are in now, but moreso the once the realization comes it will be too late.
"Consumers around the world continue to seek out American products, as evidenced by record-high exports." No one told him that was evidence of a weak dollar?
On the subject of un-outsourcing, all this would really do is hurt companies competitiveness abroad, and pass on an increased cost of labor into products they sell.
September 19 2008 6:40 PM EDT
"I tried to word it as sarcastically as I could, but I understand that it is hard to get sarcasm across in a text forum."
Sorry, I probably missed most of the sarcasm as it's in text form and I didn't get much sleep.
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