Is the U.S. economy about to collapse?

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  • inmytree
    inmytree Posts: 4,741
    JamMastaE wrote:
    the market is going to crash,the fed is keeping it afloat with money they print out of thin air with no gold backing making it worthless,that causes the inflation to soar and with America's manufacturing gone over seas we have no way to over come the inflation bubble that will eventually burst.period.

    oh yeah most of you probably don't know the federal reserve is a private bank and was set up to rob this country a long time ago.

    http://www.bigeye.com/griffin.htm

    you mention something I had a question about...which is the Fed is pumping money into the system...yesterday 17 billion

    http://uk.news.yahoo.com/afp/20070816/tts-markets-finance-us-bank-inject-3c8ed92_1.html

    and last week I think it was over 30 billion...

    http://www.reuters.com/article/businessNews/idUSN1045424320070810

    honestly, I don't understand this process of injecting money into the "system" and why it happens...

    it seems to be a shell game...which can't be good..right...?
  • mammasan
    mammasan Posts: 5,656
    jlew24asu wrote:
    mammassan for president! :D

    I couldn't do any worse than the sad string of Presidents we have had in recent times.
    "When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
  • jlew24asu
    jlew24asu Posts: 10,118
    inmytree wrote:
    you mention something I had a question about...which is the Fed is pumping money into the system...yesterday 17 billion

    http://uk.news.yahoo.com/afp/20070816/tts-markets-finance-us-bank-inject-3c8ed92_1.html

    and last week I think it was over 30 billion...

    http://www.reuters.com/article/businessNews/idUSN1045424320070810

    honestly, I don't understand this process of injecting money into the "system" and why it happens...

    it seems to be a shell game...which can't be good..right...?

    I just posted in the other thread about this. the Federal Reserve added $19 billion in temporary funds to the banking system through the purchase of mortgage-backed securities to help meet demand for cash amid a rout in bonds backed by home loans to riskier borrowers.

    The Fed accepted only mortgage-backed debt as collateral for this morning’s weekend repurchase agreement. Losses in U.S. subprime mortgage investments have been rippling through global credit markets, driving interest rates higher and sinking share prices. The Fed also added $24 billion last week, the most since April, as demand for cash increased.

    this isnt exactly letting the markets act "freely" but it helps.

    look what happen this morning....

    http://money.cnn.com/2007/08/17/news/economy/fed_rates/index.htm?postversion=2007081710

    The Federal Reserve, reacting to concerns about the subprime lending crisis that's rocked financial markets in recent weeks, Friday cut its so-called discount rate half a percentage point, to 5.75 percent.

    The discount rate, the rate the Federal Reserve charges qualified lenders, mainly banks, for temporary loans, is largely symbolic. The central bank did not change its more closely watched federal funds rate, which affects credit cards, home equity lines of credit, car loans and other consumer loan rates. That rate remains at 5.25 percent.

    But one economist suggested that the Fed's discount rate cut has more than token significance. David Wyss, chief economist with Standard & Poor's, said the cut could help convince banks it was okay to keep lending to companies or consumers that actually are creditworthy.

    "This is an important move. It's not just a symbolic action. The Fed is telling banks that the discount window is open. Take what you need," Wyss said.
  • jlew24asu
    jlew24asu Posts: 10,118
    mammasan wrote:
    I couldn't do any worse than the sad string of Presidents we have had in recent times.

    just do your worst. thats all we can ask. :)
  • mammasan
    mammasan Posts: 5,656
    jlew24asu wrote:
    just do your worst. thats all we can ask. :)

    Well now if someone can lend me about 50 million dollars to start up my campaign I'll be in business.
    "When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
  • gue_barium
    gue_barium Posts: 5,515
    Can someone explain to me why any of this matters? It's all Chinese to me.
    all posts by ©gue_barium are protected under US copyright law and are not to be reproduced, exchanged or sold
    except by express written permission of ©gue_barium, the author.
  • jlew24asu
    jlew24asu Posts: 10,118
    gue_barium wrote:
    Can someone explain to me why any of this matters? It's all Chinese to me.

    :eek: the strength/weakness of the american economy matters to most.
  • inmytree
    inmytree Posts: 4,741
    jlew24asu wrote:
    I just posted in the other thread about this. the Federal Reserve added $19 billion in temporary funds to the banking system through the purchase of mortgage-backed securities to help meet demand for cash amid a rout in bonds backed by home loans to riskier borrowers.

    The Fed accepted only mortgage-backed debt as collateral for this morning’s weekend repurchase agreement. Losses in U.S. subprime mortgage investments have been rippling through global credit markets, driving interest rates higher and sinking share prices. The Fed also added $24 billion last week, the most since April, as demand for cash increased.

    this isnt exactly letting the markets act "freely" but it helps.

    look what happen this morning....

    http://money.cnn.com/2007/08/17/news/economy/fed_rates/index.htm?postversion=2007081710

    The Federal Reserve, reacting to concerns about the subprime lending crisis that's rocked financial markets in recent weeks, Friday cut its so-called discount rate half a percentage point, to 5.75 percent.

    The discount rate, the rate the Federal Reserve charges qualified lenders, mainly banks, for temporary loans, is largely symbolic. The central bank did not change its more closely watched federal funds rate, which affects credit cards, home equity lines of credit, car loans and other consumer loan rates. That rate remains at 5.25 percent.

    But one economist suggested that the Fed's discount rate cut has more than token significance. David Wyss, chief economist with Standard & Poor's, said the cut could help convince banks it was okay to keep lending to companies or consumers that actually are creditworthy.

    "This is an important move. It's not just a symbolic action. The Fed is telling banks that the discount window is open. Take what you need," Wyss said.

    correct me if I'm wrong...but this looks like the fed is manipulating the market rather than letting the "free market decide"....

    also, the fed is bailing out companies who fucked up...which, to me is not right...
  • gue_barium
    gue_barium Posts: 5,515
    gue_barium wrote:
    Can someone explain to me why any of this matters? It's all Chinese to me.

    Anyone but Jlew.

    No offense little buddy.
    all posts by ©gue_barium are protected under US copyright law and are not to be reproduced, exchanged or sold
    except by express written permission of ©gue_barium, the author.
  • jlew24asu
    jlew24asu Posts: 10,118
    inmytree wrote:
    correct me if I'm wrong...but this looks like the fed is manipulating the market rather than letting the "free market decide"....

    also, the fed is bailing out companies who fucked up...which, to me is not right...

    I agree. but they are manipulating the market in a good way so its hard to say stop.
  • jeffbr
    jeffbr Seattle Posts: 7,177
    gue_barium wrote:
    Anyone but Jlew.

    No offense little buddy.


    :eek: the strength/weakness of the american economy matters to most.
    "I'll use the magic word - let's just shut the fuck up, please." EV, 04/13/08
  • jlew24asu
    jlew24asu Posts: 10,118
    gue_barium wrote:
    Anyone but Jlew.

    No offense little buddy.

    no one else is going to answer your dumb question.
  • mammasan
    mammasan Posts: 5,656
    gue_barium wrote:
    Can someone explain to me why any of this matters? It's all Chinese to me.

    It matters because if our economies slows down too much you start to see job loss. Bad economy less jobs - good economy more jobs.
    "When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
  • inmytree
    inmytree Posts: 4,741
    jlew24asu wrote:
    I agree. but they are manipulating the market in a good way so its hard to say stop.

    so, when I'm I bit short at the end of the month, I should contact the fed and have them pump money into my account...?

    please note, I'm not being smart with you personally, I just think this manipulation of the market is bullshit...
  • jlew24asu
    jlew24asu Posts: 10,118
    mammasan wrote:
    It matters because if our economies slows down too much you start to see job loss. Bad economy less jobs - good economy more jobs.

    here is the technical explanation

    http://en.wikipedia.org/wiki/Common_sense
  • jlew24asu
    jlew24asu Posts: 10,118
    inmytree wrote:
    so, when I'm I bit short at the end of the month, I should contact the fed and have them pump money into my account...?

    please note, I'm not being smart with you personally, I just think this manipulation of the market is bullshit...

    I with ya on this. but we really have to keep in mind, they are helping.
  • LikeAnOcean
    LikeAnOcean Posts: 7,718
    mammasan wrote:
    Can you imagine the impact if we developed a corn based ethenol. It would break our dependency on foreign fuel, it would aid our farmers, and it would bring a much needed boost in foreign investments into our country. The dollar would climb back up to the top of the currency ladder.
    You do know that food prices would soar?.. Milk, beer, wine and soon many other foods will be rising because of corn based ethenol. BAD IDEA.

    I'd rather have cheap food and expensive oil over cheaper fuel and expensive food.
  • jlew24asu
    jlew24asu Posts: 10,118
    LikeAnOcean wrote:
    You do know that food prices would soar?.. Milk and alcohol are already rising because of corn based ethenol. BAD IDEA.

    we will just have to produce more corn. which I think we are capable of?
  • mammasan
    mammasan Posts: 5,656
    LikeAnOcean wrote:
    You do know that food prices would soar?.. Milk and alcohol are already rising because of corn based ethenol. BAD IDEA.

    No I didn't know that, but food prices would soar if the Euro replaced the Dollar as the petro currency as well.
    "When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
  • gue_barium
    gue_barium Posts: 5,515
    mammasan wrote:
    It matters because if our economies slows down too much you start to see job loss. Bad economy less jobs - good economy more jobs.

    Slows down? How do "economies" slow down? Why are more jobs good? Why are less jobs bad? Isn't just living a job? And aren't most jobs related to polluting the environment, anyway? Who are we working for in America? Where are we trying to get the economy to race to. Is there a finish line?
    Honest to goodness, I don't know what this all means.
    all posts by ©gue_barium are protected under US copyright law and are not to be reproduced, exchanged or sold
    except by express written permission of ©gue_barium, the author.

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