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You know what, if I ran a business, I would never consider borrowing money to run the day to day operations. That to me is a failed model, and if you have to borrow money just to meet payroll, you aren't doing something right. It's one thing for a business to borrow to make a large purchase of equipment, quite another to borrow for regular business expenses.
Try running a business where you front expenses until completion of a project... Take construction for example. The contractor buys all materials and is reimbursed throughout the process by a series of draws.
Now throw in government contracts, where a contractor feels relatively safe while they're working on a multi-million dollar project. Now if state, federal or city governments fail to get their budgets completed on a timely basis, the business owner is left with a crew to pay, materials to pay for, equipment payments, etc.
Ron Paul is right, The economy will not implode. That is what Capitalism is about. Competition and the risk of failure. The rest of the world is watching America. If a Bailout is needed to stabalise the country, then it will just show the world that Capitalism DOESN'T work. This must be solved by cutting out the rot and allowing the markets to find their own level. This bailout just tells the World that Capitalism is paper thin and can only survive if bailed out by the Govt. In other words Socialism. If this Bill is allowed to go through, America can NEVER again say it doesn't believe in Socialism, as it has now saved the country with it.
I'll highlight the relevant passages for the little brains.
Quote:
close to three quarters of U.S. ethanol plants, or 123 of America’s 160 operating ethanol plants, are at risk of being shuttered in the coming months, according to Citigroup analyst David Driscoll. Small and mid-sized ethanol plants are in trouble due to a record-setting spike in corn prices, bumped up by the Midwest floods and increasing demand. This news comes after Citigroup downgraded all the major publicly traded ethanol players including Archer Daniels Midland, BioFuel Energy and VeraSun Energy.
Plans for new ethanol plants are being put on hold or canceled, too. Since May we’ve counted 11 planned plants suspended. The credit crunch is making it increasingly difficult for proposed plants to get financed. Heartland Ethanol announced last week that it has pulled the plug on seven planned ethanol plants. Walker R. Filbert, the president of developer Heartland Ethanol told the News-Gazette that the company was unable to get bank loans to finance the plants. Filbert said: “We’ve been digging out from [the credit crunch] for 10 months for all businesses, let alone ethanol plants.”
So, Ron Paul would do nothing, as production slowly grinds to a halt and there are massive job losses, lay-offs and plant closings.
This bailout just tells the World that Capitalism is paper thin and can only survive if bailed out by the Govt. In other words Socialism. If this Bill is allowed to go through, America can NEVER again say it doesn't believe in Socialism, as it has now saved the country with it.
No... it says that those in government wish to manipulate the market in order to stay elected by trading short term illusions of stability for long term havoc.
Propping up failing banks doesn't prove that capitalism doesn't work... it proves that failures are a possibility, which has been a known fact for quite some time.
I'll highlight the relevant passages for the little brains.
So, Ron Paul would do nothing, as production slowly grinds to a halt and there are massive job losses, lay-offs and plant closings.
He'll get my vote.
Heaven forbid ethanol plants shut down due to high costs... and prove unsustainable even after heavy subsidies. Maybe then we'll stop mandating ethanol use in gasoline, increase fuel efficiency, and lower the cost of feed for food producers.
Perhaps you haven't seen the plant closings in the chicken industry and other food sectors where corn prices have affected jobs. <snicker>
I know a drop in 780 points sounds big, but lets put in perspective. In terms of percentage drop it was only a 7% drop in value.
Is there anyone out there that can post the 20 biggest drops percentage wise in the Stock Market declines over the last 100 years?
BTW The media, Bush and Paulson and the Democrats need to stop over dramatizing the situation. They just make things worse and it scares old people.
Marketwatch gave us the last 16 largest last night.
In fact, there have been 16 other occasions since the Dow was created in 1896 in which the Dow's percentage drop was greater than it was Monday. That works out to an average of every seven years.
I'll highlight the relevant passages for the little brains.
So, Ron Paul would do nothing, as production slowly grinds to a halt and there are massive job losses, lay-offs and plant closings.
He'll get my vote.
What would you have us do? Increase inflation? deflate the currency? These are both possible outcomes of the housing bill depending on what Paulson does with the money. The flaw is in the system. The system has to be purged.
Ron Paul is a quack who looks like he is in a perpetual hangover.
And you're not intelligent to construct an argument to support any assertion, leaving it to lackluster one-liners to highlight your unwillingness to research any positions.
How do you like baseless statements?
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