So let's say this bail out doesn't work....

TwixVoy

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Sun Sep-21-08 12:41 AM
Original message

So let's say this bail out doesn't work....

For those here a little bit more economically minded a question....

Let's say it turns out the bush administration doesn't actually know what they are doing (I know, hard to believe) and this "plan" doesn't work.... then what happens?

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still_one

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Sun Sep-21-08 12:45 AM
Response to Original message

1. It won't work, and it will cause even worse problems later down the road

companies who are mismanged, should not be rewarded for their mismanagement

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CoffeeCat

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Sun Sep-21-08 12:45 AM
Response to Original message

2. I think we needed to do this...

...but I don't think it will work.

So, ok, we gave these companies oodles of cash.

The theory is that these companies will use the cash--to make money. That is contingent
upon businesses borrowing that money.

Ok, our economy is in a recession. Consumer spending is contracting. Businesses are not
going to take on more debt and borrow money--when there is so much uncertainty in the
air--and when consumers are not buying their products.

I feel so cynical--but really, I don't see how this works.

I'm no economics expert, and my president won't tell me what is going on. So, I'm forced
to guess. So, if I'm wrong, I'm very ready to be enlightened.

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Wiley50

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Sun Sep-21-08 01:25 AM
Response to Reply #2

13. You say you're very ready to be enlightened.

Edited on Sun Sep-21-08 01:27 AM by Wiley50

Read this. It's quick and easy to understand

http://www.economicpopulist.org/?q=content/what-hell-just-happened

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prayin4rain

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Sun Sep-21-08 12:49 AM
Response to Original message

3. "It's not going to be resolved by a quick "patch up" and will

likely have the same impact on the current generation that the
depression of the 1930s had on its parents, grandparents and
great grandparents."............

from an awesome article posted by kpete earlier http://current.com/items/89322147_the_financial_meltdown_explained

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JVS

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Sun Sep-21-08 12:50 AM
Response to Original message

4. Well at least rich people got another $700,000,000,000

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EmeraldCityGrl

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Sun Sep-21-08 12:51 AM
Response to Original message

5. I'm not an expert. I do believe all confidence in the dollar will be lost.

The Euro will replace the dollar and we will have lost our economic leverage in the world.

Given Bush's history, this would be the likely "final straw."

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nadinbrzezinski

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Sun Sep-21-08 12:51 AM
Response to Original message

6. Well I 'd like to note that the guys in charge are not bush and chenney

Edited on Sun Sep-21-08 12:52 AM by nadinbrzezinski

I suspect Bush has had a nice collapse... violins and all

Now if this does not work... we are facing first the collapse of credit

Once that goes most bidnesses larger than a local restaurant, will close. They NEED that credit for their yearly expenses. No credit, no cash... and you will see pink slips going out like confetti

And it snowballs from there.

On the bright side, regardless, I suspect the current form of globalization is pretty much over

Oh and I forgot, that money then goes poof and our debt goes up to a couple trillion

Hyperinflation is possible as well

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lonestarnot

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Sun Sep-21-08 12:59 AM
Response to Reply #6

10. The N.O. levy analogy, dominoes what have you. The dollar is

kaputzed despite the theft, so what are they going to gain by hauling all those boatloads of money away? Fuck 'em. We'll have the last laugh, we already know how to live on nothing. Mr. and Mrs. Plastic won't be able to pay the chef, the pool man, or for their other 9 houses and maybe we'll get lucky and they'll jump off the roof. They needn't be asking me to put them out if they start themselves on fire.

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nadinbrzezinski

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Sun Sep-21-08 01:02 AM
Response to Reply #10

11. Hate to point this to you... but many people on the bottom also depend

Edited on Sun Sep-21-08 01:03 AM by nadinbrzezinski

on plastic these days

And I will not be shocked if the local store stops accepting credit

You are aware that the national savings rate is -4%, aren't you?

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lonestarnot

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Sun Sep-21-08 01:20 AM
Response to Reply #11

12. I was not referring to credit cards. I was referring to plastic phoney fucking uber class people.

And who the fuck is to blame for that -4% when stagnate wages have not kept up with inflation, not to mention those on fixed incomes, who saves under those conditions. People can't afford food how the hell do they save? Eat coupons, dream, and stash the grocery money?

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Greyhound

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Sun Sep-21-08 01:57 AM
Response to Reply #6

14. Unless we quit.

The boom-bust-chaos is all externally imposed. What we have, we still have, we do not need the system except to work in the system.

It failed in the 30s and it was preserved out of fear and greed, the very motivations it still responds to today. It failed again in the 70s and we have delayed the results for over 30 years. It is inevitable and the timing presents a unique opportunity for a leader with the vision to make a real change for the better.

It's really going to suck either way, at least this way we have a chance to come out better afterward.

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alittlelark

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Sun Sep-21-08 12:53 AM
Response to Original message

7. TwixVoy is back. It's been awhile.

:freak:

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The_Casual_Observer

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Sun Sep-21-08 12:58 AM
Response to Original message

8. There are tough times ahead for working people (as usual).

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whistle

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Sun Sep-21-08 12:59 AM
Response to Original message

9. Correction, it will not work, it is theft and looting of a dead system

...so the money is being totally wasted.

Immediate efforts need to go into changing the system back to what we know has worked, the FDR New Deal and the financial and economic actions that were implemented by FDR. That worked well into the 1960s until republicans under Richard Nixon began the dismantling process, followed by the Reagan/Bush I debacle, with a feeble restoration by Clinton and then the Bush II economic Seppuku (a.k.a. Hara-kiri in common language).

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