Bernaki, recession more likely w/o bail out

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Bernaki, recession more likely w/o bail out - 9/23/2008 12:10:19 PM

pahunkboy

Posts: 33061
Joined: 2/26/2006
From: Central Pennsylvania
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http://news.yahoo.com/s/ap/20080923/ap_on_bi_ge/financial_meltdown_600;_ylt=AhEsaDqjHyLBryKheGxxgnhv24cA

there is too much mystery on how this money system works. lets let the bad banks go under.

WHY are they acting like a nuclear bomb went off?

this "crises" seems to me like they are whining.

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RE: Bernaki, recession more likely w/o bail out - 9/23/2008 12:45:13 PM

bipolarber

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Well, should several more banks fail, there's the possibility that the inter-banking credit system will seize up. That means that the overnight and short term loans that banks (the ones in your neighborhood) use to ensure liquididty, won't be available. When that happens, your bank issued credit cards will be blocked. The paycheck you get from your employer will not be honored, and financial chaos will ensue as a huge fraction of the American population will be unable to pay their bills, purchase food, keep gas in their cars, and possibly be late on their mortgages until such time as the seize ends. By that time, God only knows how many more people (who have been living hand to mouth in the crummy Bush policy inspired economy, will be going into foreclosure because of the interrupt. So, the SECOND cycle of bank failures will be triggered, and so on....

But, as I'm sure you'll delight in telling me, long term investments (like your 401k) will still exist... maybe.

(in reply to pahunkboy)

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RE: Bernaki, recession more likely w/o bail out - 9/23/2008 2:18:29 PM

popeye1250

Posts: 18104
Joined: 1/27/2006
From: New Hampshire
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PaHunk, I agree.

"We Want a Recession!"
"We Want a Recession!"

_____________________________

"But Your Honor, this is not a Jury of my Peers, these people are all decent, honest, law-abiding citizens!"

(in reply to pahunkboy)

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RE: Bernaki, recession more likely w/o bail out - 9/23/2008 2:45:36 PM

pahunkboy

Posts: 33061
Joined: 2/26/2006
From: Central Pennsylvania
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quote:

ORIGINAL: bipolarber

Well, should several more banks fail, there's the possibility that the inter-banking credit system will seize up. That means that the overnight and short term loans that banks (the ones in your neighborhood) use to ensure liquididty, won't be available. When that happens, your bank issued credit cards will be blocked. The paycheck you get from your employer will not be honored, and financial chaos will ensue as a huge fraction of the American population will be unable to pay their bills, purchase food, keep gas in their cars, and possibly be late on their mortgages until such time as the seize ends. By that time, God only knows how many more people (who have been living hand to mouth in the crummy Bush policy inspired economy, will be going into foreclosure because of the interrupt. So, the SECOND cycle of bank failures will be triggered, and so on....

But, as I'm sure you'll delight in telling me, long term investments (like your 401k) will still exist... maybe.

Most people I know are living paycheck to paycheck.

so they lent out money they did not have. that would be jail time. ...If I write a check to Weis and it is no good. They first phone. If they cant get payment they file charges. And quite possibly if you did this- and STILL did not pay- we have a lovely jail that is over 100 years old.

With people living so on the edge- just in time inventory and payments. ....

So the 700 bn is an IOU to the IOU.

I want fort knox audited.

If this bail out happens the cost of everything will shoot up.

THe banks merge and consolidate all the time.

But on your point- people are helpless after a hurricane...even when they were warned to stock up on flashelights and batteries....

So hurricane ...disaster replays are lickly to occur for whatever reason ......

(in reply to bipolarber)

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