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Greenspan says more banks, institutions may founder

Discussion in 'Political Discussion' started by reflexblue, Aug 5, 2008.

  1. reflexblue

    reflexblue PatsFans.com Supporter PatsFans.com Supporter

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    #91 Jersey

    Time to put Prozac in the drinking water.

    http://news.yahoo.com/s/nm/20080804...reenspan_dc;_ylt=ArcKdPvIjtHINlD5Ula.48Ss0NUE

    LONDON (Reuters) - More banks and financial institutions are likely to face insolvency and need bailouts before the global financial crisis is over, according to former Federal Reserve chairman Alan Greenspan.


    Writing in the Financial Times, Greenspan called the current crisis -- which started a year ago -- a once or twice in a century event and said insolvency would only end once U.S. house prices stabilized, underpinning mortgage-backed securities.

    Until then, the threat of collapse among banks and other global financial institutions would persist.

    "Fears of insolvency have not, as yet, been fully set aside," Greenspan wrote in an article published online on Monday. "There may be numbers of banks and other financial institutions that, at the edge
  2. PressCoverage

    PressCoverage Banned

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    i need to own a gun, and learn horticulture... how about you?
  3. reflexblue

    reflexblue PatsFans.com Supporter PatsFans.com Supporter

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    #91 Jersey

    Its a start. Live like Jed Clampetdid before the big find,or Road Warrior Here We Come.
    Last edited: Aug 5, 2008
  4. PressCoverage

    PressCoverage Banned

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    tell you one thing... if you have a spare $1K or so? buy an ounce of gold...
  5. reflexblue

    reflexblue PatsFans.com Supporter PatsFans.com Supporter

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    #91 Jersey

    I think I'd go with diamonds they weigh a lot less. And easier to hide.
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  6. reflexblue

    reflexblue PatsFans.com Supporter PatsFans.com Supporter

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    #91 Jersey

    .......Or Spam and cheap hallucinagens probably go toghether well. You just carve the spam into any shape you want a Turkey, steak, salmon etc. And that Government cheese on cheap macaroni can't be beat. :D
    Last edited: Aug 5, 2008
  7. PatriotsReign

    PatriotsReign On the Roster

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    I have yet to read anyone's opinion of why it is just assumed our government should bail out every failed financial institution. Can someone step up and do that for us?

    Even a supposedly semi-genius like Alan Greenspan talks as if it is just understood that this will happen. It makes no sense to me.
  8. reflexblue

    reflexblue PatsFans.com Supporter PatsFans.com Supporter

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    #91 Jersey

    After the Great Depression economist George Keynesian came up with the idea of goverment intervention in times of economic crisis. This is where farm subsadies comes from,or airline bailouts. The particular industry is of such a scale thet if it failed it cause a major economic down turn Any ways the point is that sometimes the government has to intervine,the invisible hand of the free market doesn't work. At least thats what I remember.
    Last edited: Aug 5, 2008
  9. PatriotsReign

    PatriotsReign On the Roster

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    Maybe we are supposed to be in a major economic downturn is my point. I do understand the reasoning behind this action, but our federal gov. has gotten carried away with too many programs when you include this year's "economic stimulus" checks and another one being discussed before year's end.

    The danger we are facing is that the economy won't find the natural balance a true recession will bring. Every single government bailout whether its the financial industry or the public (stimulus) increases the monsy supply and that throws the economy off-course even more.

    The major lesson we should have learned by now is that we avoided a major recession in 2000 because the Fed and the financial institutions created the housing bubble. That was actually just an allusion brought about by foolish and irresponsible government policy and business models. So, let's look at the results of the federal government's plan of avoiding that recession...and we see that we are in a "Heap 'O trouble now".

    In summary, the government action in 2000 made things 10 times worse and what is happening now? We're doing the same thing all over again! Using government policy in an effort to avoid recession.

    The only difference is this time "it aint gonna work".
  10. reflexblue

    reflexblue PatsFans.com Supporter PatsFans.com Supporter

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    #91 Jersey

    Made a mistake it was John Maynard Keynes,not G Keynesian that came up with the public works government intervention strategy. I was reading a excerpt from a book about George Bush and Kyesian economics and ended up with George Keynesian. :confused:
    Last edited: Aug 5, 2008
  11. Real World

    Real World Moderator Staff Member

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    The fed bails out institutions because of the far reaching ramifications their failure would have. PR, or RW going belly up doesn't affect a populace, or economy, in the same way a bank that funds, lends, holds, employs, and invest capital does. While we both don't like it, what's more of a concern inthe grand scheme of things, Sovereign/Citizens/Eastern Bank folding, or some 33 year old racist, homophobe, bigot, cheap SOB, retard from Cheslea losing his house? :D One, or all, of those banks failing hurts lots of people in many different ways. By injecting capital, by way of a federal loan, into those intitutions to keep them solvent, the fed feels it is maintaining economic order.
  12. PatriotsReign

    PatriotsReign On the Roster

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    I still do not support the bailouts on a carte blanche level. Gee, I'm sure the shareholders are happy:rolleyes:...and that is what greatly disappoints me. All those shareholders should be losing everything and that would be fine by me. I do have sympathy for the customers and the employees but none for the shareholders.

    also, keep in mind this actually does harm to the economic correction that is SUPPOSED to be taking place. Unemployment is supposed to be increasing which decreases the money supply and results in lowering inflation. By ADDING money intot the economy and keeping people employed, the money supply remains high along with inflation and thus delaying the inevitable.

    I guarantee that recession is unavoidable, yet our government keeps doing STUPID things in an effort to do just that. It belies common sense. You watch, another "economic stimulus" will be passed in the next 2 months.

    Another great example is govenor Duval Patrick's 3-month freeze on foreclosures in Massachusetts. This moratorium is scheduled to end in September, so you just watch the HUGE number of foreclosures that come onto to the market in the coming weeks. it will blow your mind.
    Last edited: Aug 5, 2008
  13. MrBigglesWorth

    MrBigglesWorth Rookie

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    wasn't Greenspan a major contributor to this mess by keeping interest rates too low for too long a time?
  14. PatriotsReign

    PatriotsReign On the Roster

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    BINGO!!!

    Some genius, huh?:rolleyes:
  15. MrBigglesWorth

    MrBigglesWorth Rookie

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    here's a question for you. does the government own a stake in that company they bailed out for life or is the compnay expected to give back to pay its debt(bailout)?

    i don't think anyone has really addressed that.

    and would that not make us a bit socialist or fascist having the state own a private company?
  16. PatriotsReign

    PatriotsReign On the Roster

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    The money does not have to be paid back. It's a freebie to the company and it's shareholders and that is what I find to be dispicable (said like Daffy Duck)
  17. MrBigglesWorth

    MrBigglesWorth Rookie

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    it's great to live in the US where there's unlimited funds and no credit limit.

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