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There is a big elephant right in the room that you're totally overlooking - the very real possibility and likelihood that the U.S. economy will collapse entirely. I think what we've just seen for the past nine months is only the prelude.
It will be interesting to see how the U.S. government actually defaults on its debt obligations. Will it do so honestly like the Russians did in 1998 and simply not pay, or will Ben Bernake fire up the printing presses to full capacity and pay everyone in mini-dollars?
That is my concern also. Someone in another thread likened our current situation to a choice between a car crash (intense but fast) and cancer (less intense but longer lasting). We've opted for cancer. I think that's a good analogy. It seems most other countries are doing the same, running up government debt, etc.
Here's the sad part, I'm 25 years old, was kicked out of college, probably party way too much and do stupid things. BUT, I get it. Funny how all these *******s coming from Harvard and Yale are unable to...
I think many posters on this thread have demonstrated a bizarre world view and fundamental lack of understanding of the US economy as well as the wealth multiplier effect of debt.
I think many posters on this thread have demonstrated a bizarre world view and fundamental lack of understanding of the US economy as well as the wealth multiplier effect of debt.
When economies collapse it is a negative.
Debt based on ability to repay - i.e. productive capacity - can have a multiplier effect. If we were accumulating all this debt to fund additional productive capacity, that would be one thing. We've used it to acquire imported consumer goods and blow up bubbles of things will little or no underlying value (real estate and stocks).
Collapse is the inevitable result of too much debt that can never be repaid. It would take an act of God to give bring back our productive capacity enough to repay this debt (and no, Bernake firing up the printing press does not count )
It seems to me that all the non tin-foil hat folks have demonstrated a fundamental lack of understanding as to what money really is.
I think many posters on this thread have demonstrated a bizarre world view and fundamental lack of understanding of the US economy as well as the wealth multiplier effect of debt.
When economies collapse it is a negative.
Perhaps it's more of a difference of opinion rather than everyone here is clueless besides you.
If someone really want's to get a basic fundamental understading of how our econonomy is/has been run, they can simply ask themselves what they would do in there personal lives to be fiscally responsible and build wealth. (i.e. balance check books, do not spend money until you have earned it, and most of all, make sure there is more coming in than going out so your children arent automatically ****ed when college rolls around).
Now if you do the exact opposite, you will understand the US economy...collapse.
I just think it's funny, not much of an impact. You see on the news how many of those collapsed countries call the Americans stupid for getting in the economic mess because of greed and stupidity, while they invested so much funds in the same exact things and got burned much worse.
The US economy should end fine, certainly not a collapse, making the assumption they are going to put in a plan to pay off the national debt not to prolong the pain. There have been worse recessions then this, though not many with 2 bubbles exploding so close in time. This will be historically painful but valuable lesson for consumers that prudence and buying what they can afford is a good mindset compared to overdosing on debt.
Before some one goes whining about my "Lack of understanding" as with other posters. I think with a BA in Econ, MBA in Finance, and 7 years in corporate finance I have a little idea how to form my own opinion.
I just think it's funny, not much of an impact. You see on the news how many of those collapsed countries call the Americans stupid for getting in the economic mess because of greed and stupidity, while they invested so much funds in the same exact things and got burned much worse.
The US economy should end fine, certainly not a collapse, making the assumption they are going to put in a plan to pay off the national debt not to prolong the pain. There have been worse recessions then this, though not many with 2 bubbles exploding so close in time. This will be historically painful but valuable lesson for consumers that prudence and buying what they can afford is a good mindset compared to overdosing on debt.
Before some one goes whining about my "Lack of understanding" as with other posters. I think with a BA in Econ, MBA in Finance, and 7 years in corporate finance I have a little idea how to form my own opinion.
HAHAHA! (to the comment in bold). You and I and every other non-delusional person knows that is not going to happen. You can't pay debt with a debt spending spree and trillion dollar "reforms". With your degrees I would assume you have a handle on that.
I will agree with your comment regarding the hypocritical nations of this world who have/are going through the same situation as us. On top of that, it was FOREIGN loans/investment which led to this mess.
It's like me giving money to a drunk and being pissed off when he spends it on booze.
A few of us have logically pointed out our reasons for believing an inevitable collapse; can anyone give a different perspective on why not? (Other than simply dismissing our posts)
The way to prove understanding is not be citing education, but applying it. You comments about the likelihood of collapse are much more in line with mainstream thought then the outliers that seem to believe in freakish scenarios...
The way to prove understanding is not be citing education, but applying it. You comments about the likelihood of collapse are much more in line with mainstream thought then the outliers that seem to believe in freakish scenarios...
One may call it Logic?
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