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Originally Posted by marketsmart
no, i disagree.. we have been trying to use economic principles used during the depression and they dont work..
you are talking opinion here and not based on anything other than what economists and other so called experts are telling you..
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That seems inconsistent with the data. When money was tightened during the great depression is when the shit really hit the fan. Based on that mistake, that has been avoided and we have had different results so far. It may have other consequences in the future, but these facts are clear.
And while some of all of this is based on opinions, there is also a good deal of empirical data to take into account.
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we have no idea what would have happened if we let the banks fail..
i believe that backed into a corner, the banks would have figured out how to survive without the bailout..
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Many of the banks who received capital injections didn't need it and didn't want to take it, so yes it is possible that some would have survived, but that's not the point. Investment banks... well Lehman did fail and the result was plain to see, not just opinion. AIG, pretty much the sole insurer of all the CDS's wasn't in a position to figure out how to survive. It is just a brute fact that when the market place saw the contagion unfolding no body was letting go of any money, period. It was a matter of confidence withing the whole system and confidence is a fragile thing. It wasn't merely a coincidence that the credit markets unfroze when massive liquidity was injected.
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it is my opinion that this entire scenario was deliberate..
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Great, conspiracy theory.
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go watch a few of the better documentaries out there and you might change your mind..
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Sure, point me to the documentaries that you think are "better" and while your at it point out the ones that are not.
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and i am not talking about tinfoil shit, i am talking about what led to this in the first place and how the banks knew exactly how this would play out..
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Hanlon's Razor
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i would have rather faced the consequences of a global collapse than do what the govt did..
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Perhaps "global collapse" means different things to different people. I find it hard to believe you unless you are naive about the consequences, which I don't think you are. I'll just chalk it up to hyperbole.
Unless one is spouseless, childless, penniless and has a cabin in the woods of Colorado with all the preparation still in place from Y2K, it makes no sense in real terms.
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and btw, letting the banks have money at 0% has not freed up the credit markets one bit...
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I'm not sure what you are referring to but as far as the bailout money goes it was not at 0%. And it is demonstrably false that the credit markets were not freed up one bit.
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