Quote:
Originally Posted by wig
So your contention is that the bailout did not solve the problem of frozen credit markets where companies and countries (like Brazil) who had nothing to do with CDS's, etc. found themselves unable to meet their obligations since they could not use the normal credit market.
Sorry, but it did fix that problem and all the other commentary you offered after that is just that, commentary.
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You can call them frozen credit markets, they were frozen. But they were more injected credit markets, where more money was created, the supply increased, and money flow moving again.
The market would have supplied for Brazil as they have an economy that produces and consumes.
And an economy where the people and business have to survive on credit, really has no economic future.
Less banks is never a good thing for a Country, it creates problems were a few control the money flow, which is a very bad thing for the future of any Country or economy.
Quote:
Originally Posted by wig
It would have been more than just tough at first. What your talking about experiencing is the great depression (same basic economics at play) but times 10. I think that is the difference that I'm driving at.
And the idea that the future wouldn't have corps pulling the strings after a collapse doesn't seem obvious to me either.
I still have not heard a reasonable explanation for why collapse would have been better.
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It's not really possible to be like the great depression. If our economy was like it was back then, then yes.. but today we produce, we generate revenue, we have several sustainable revenue generating markets that only need money flow to keep going.
The right corps go down, an extreme shift of power happens, and I don't think it would be to one corp but to many, thus splitting up the influence they have, giving us back a little bit for once.
Well, if every time my kid screwed up really bad, if I gave up a $100 and a ice cream, he's going to think it's okay to screw up again. So the first few times he just tests it, to see how giving I am, then he hammers it... and I bark, but I bail him out, then the nasty really comes down, and I do it again. Logically, me, you and nobody is going to stop, we have no reason to stop - and damn sure no fat cat, super ass greedy, super corp, multi-billionaire that currently about to fuck the entire country over for 1/3 of our countries wealth. Lessons have to be learned and sometimes you just have to cut them off, or they'll keep taking, and taking, and taking. And that's why it happened, and that's why it will happen again, it will only stop, once we stop feeding them our money!
It would have been better because this would have finally stopped... everything after that, is us doing it differently, so speculating on exactly how or what, isn't possible, as it hasn't ever happened in an economy as developed as ours.