Sunday, March 16, 2008

Great Depression

Here are links to top stories copied from Bloomberg's website.
It's going to be Black Monday tomorrow.

· Fed Cuts Discount Rate, Opens Lending to Primary Dealers in Emergency Move
· U.S. Futures, Asian Stocks, Dollar Tumble on Fed Cut, Sale of Bear Stearns
· JPMorgan Buys Bear Stearns for $240 Million, Tenth of Its Value Last Week
· Dollar Declines Below 96 Yen for First Time in 12 Years on Subprime Losses
· Australia, Japan Company Bond Risk Surges After Bear Stearns Sale, Fed Cut
· Housing Starts in U.S. Probably Slid to 17-Year Low, Factory Output Fell
· Macquarie, Mitsubishi UFJ Slump as Credit Concerns Mount on Bear Stearns
· Ahmadinejad's Nuclear Mandate Strengthened After Iranian Election Victory
· New York Rescuers Search for Missing After Crane Killed Four in Manhattan


Haik Bedrosian said...

You reap what you sow, America.

Nothing is all that complicated. People took loans they couldn't afford. Banks made those loans knowing the borrowers couldn't afford them, but they didn't care because they just sold the loans to other banks. People ran up their credit cards and then borrowed against their houses to pay them off. Then they ran the cards up again.

The government spends way way beyond its means and borrows like crazy from China and Saudi Arabia. Now that the Euro's around, nations don't necessarily need dollars to buy oil any more. The gold standard has been gone for 35 years. The dollar is only propped up by America's ability to kill, and we're blowing that on a meaningless trillion dollar war and occupation. The oil is running out. Our infrastructure is shit. We don't make anything in this country.

No great mystery how we got to this point. No great mystery how we get out-

1) Balance the budget by raising taxes on anyone making 100K+.
2) Tax the shit out of imports and provide massive incentives for domestic manufacturing.
3) Regulate the fuck out of the lending industry. No more of this ARM crap. Cap credit card interest at 10%.
4) Invest massive amounts into roads, bridges, water systems, rail, damns, the electrical grid, etc., including alternative energy.
5) End the engagement in Iraq and slash military spending.
6)Single Payer, Government Run universal health insurance.
6.5) Free Universal pre-school, mandatory paid five week vacations, 1 year paid leave for new mothers. And how about some fucking job training... oh and ban guns... and legalize and tax marijuana.
7) Go back to the gold standard. The dollar isn't worth shit anymore.

It's simple America! Seven and a half easy steps to cure your black monday blues. Now let's get to work!

frank said...

Who should feel sorry for the people who work at Bear Stearns? Nobody, that's who. Anyone who works in an industry based upon speculation has to realize that everything's at risk including their jobs. That's the nature of free enterprise: the law of the jungle prevails and you suffer the consequences of bad investment decisions. It's only too bad the government had to prevent the disaster from spreading and forestall the true day of reckoning. If you want no risk go into the public service sector and exchange a chance at big money for security. Everyone has to make their own decisions and live with the consequences - especially those who bought homes they knew they could not afford...And let's be glad we have a strong military because that trumps not being able to repay our debts.

Haik Bedrosian said...

...And let's be glad we have a strong military because that trumps not being able to repay our debts.

In many cases, perhaps- but it doesn't trump having to pay the military itself.

Cassandra Jupiter said...

I hope you're joking about the gold standard, I don't see how that's going to get us anywhere.

Haik Bedrosian said...

I'm not joking. Money has to be worth something.