Your understanding of Financial Bailouts

[Palerider]

I also think its sad when the Market is waiting to see what the Gov't is going to do in order to make investments.....should it not be the Market looking at a Company and then decide if they want to invest???

[Palerider]

I will never forget what Ronald Reagan said.......we are a nation that has a Gov't -not the other way around....

[sparkledog]

This is my understanding of it:

“Work for more government intervention and control of the business activities of the people. In this way the American people will accept Communism without knowing it.” - Joseph Stalin

From what I'm hearing that's the goal behind it.

[Maxel]

“Work for more government intervention and control of the business activities of the people. In this way the American people will accept Communism without knowing it.” - Joseph Stalin

Note to self: Not every quote by someone named 'Joseph' is from Joseph Smith.

I was trying to wrap my head around why Brother Joseph was encouraging communism. I saw Joseph and apparently skipped over the last name. *headdesk*

[LittleWyvern]

From what I feel about the bailout, it's a gamble. It could drive the economy to produce more, thereby repaying this debt faster than it would have been, and perhaps be as sucessful as the New Deal... or, it could just push us farther into debt and we'll have to find a new solution.

“Work for more government intervention and control of the business activities of the people. In this way the American people will accept Communism without knowing it.” - Joseph Stalin

This looks like a fake quote. Besides, I don't think the bailout will even bring us close to communism. Sure, like the New Deal, these programs are slightly more socialist than we're used to, but did the New Deal make the United States into a communist country? No...

Edited February 15, 2009 by LittleWyvern

[Just_A_Guy]

but did the New Deal make the United States into a communist country? No...

The issue isn't communism. The issue is liberty. The New Deal did fundamentally change the role of government in our society. Prior to the New Deal, a farmer could grow food for his own family on his own property without fear of prosecution for exceeding some government-imposed quota intended to control price levels. After the New Deal, that was no longer the case.

Besides, whether the New Deal even worked is a subject for continued debate. Some pretty smart folks think that most of what Roosevelt did actually prolonged the Depression. And if Keynesian theory is behind this stimulus--well, the idea of Keynesian theory is that you spend as much as possible, as fast as possible. But the stimulus spreads the spending out through (IIRC) 2014. Keynesians like Paul Krugman have complained bitterly about this.

Any decently-informed politician who pushes this simply must know it won't work. All the stimulus is is a) an excuse to fund pet projects and programs, and b) an excuse to fund even more pet projects and programs next year (when this bill's failure to save the economy becomes painfully clear) by saying "well, we didn't do it right the first time, so let's spend even more, and faster".

Edited February 15, 2009 by Just_A_Guy

[trulykiwi]

All I have to say is there is a book that President Ezra Taft Benson encouraged us to read and this will explain what all this is about, and why there is a financial collapse.

'NONE DARE CALL IT CONSPIRACY" - by Gary Allen

[Aesa]

What a bailout does is that is keeps the debt and inflation going. In other words, it keeps the creation of money going.

The reason why this is happening is because the money can only expand a certain amount. This is basic fractional reserve policy.

Once the expansion of money stops, then the exact opposite has to happen which is a contraction.

A contraction spells out depression, and in this case mega-depression. Because we don't have the gold standard which means we can print money like crazy, and thus devalue our currency like crazy. At least they had their gold in the last depression and not huge outstanding loans that couldn't be payed off because the money is worth nothing.

But the important thing to understand is this is no accident. It's completely designed into the system and the bankers have always known this would/will happen.