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someone explain this economy shit
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<blockquote data-quote="momuzykent" data-source="post: 5691206" data-attributes="member: 572154"><p>Ok all of my answers didnt come thru so here goes again:</p><p></p><p>1. Its not a point of whether they should lend to them. One of the reasons we are in the mess we are in is because they made bad loans they now couldnt be repaid and then sold those loans to other countries. i.e. china, japan, whoever else would buy them and thats the reason its not just America, its global because now they are all tied in to our credit mess.</p><p></p><p>2. You need to do your research, banks arent suppose to acquire others but do your homework, they are.</p><p></p><p>3. This is one of the reasons the recession will last longer than it is suppose. America is suppose to be free trade. If the banks made bad loans and cant repay, then they should have to write it off and take the loss, not have the gov print money out of thin air to correct their mistakes. You dont understand they dont play by the same rules me and you do. For example, if you had a, hmmm lets say car audio business and you had a bad business model or you loaned out your stereo equipment hoping you would get paid in the future. I gurantee if your customers could not pay you, you would not be getting part of the stimulus check so you could write off your bad loans &amp; shore up your balance sheets. If they wont do it for you, why should they be able to do it.</p><p></p><p>4. This is incorrect as well. If the market has been inflated and loans good or bad given out on house and then your property prices decline, why should you be overleveraged or owe more on a house that isnt worth anything. Not sure how you see that as good but that doesnt make any sense to me at all. Even if you had good credit and put down 20%, if your property values decrease by 30%, something just doesnt sound right about that.</p><p></p><p>5. You should look up superinflation and hyperinflation. Check your history and look at Weimer Germany or for current day situation look at Zimbawe. Printing more moeny out of think air does nothing but devaluate your currency. In Germany once it struck the price of food doubled every day. In Zimbawe they are rolling around wheel barrows full of money and cant buy anyting because the price of everything is so high and their money is worthless. Running the printing presses will do nothing positive at all. Well let me correct myself, with technology you dont even have to print money anyways, just go the computer and push a button!</p><p></p><p>...and no the gov shoudlnt rescue business that are failing in a free trade market. When &amp; if they do then its not really free trade! The only thing that will get us out of this recession is if some new type of energy is found that hasnt been done yet. Other than that, we are in the recession (really depression) and going further into it. employment is going to get worse. the gov lies about those statistics as well. we are already up to 15% at least and I think it will get up to 20 to 25% before its over (not leaving out real numbers like gov does with what they called discouraged workers and u5 &amp; u9). if you dont have a job you are unemployed, doesnt matter how long you havent had a job!</p></blockquote><p></p>
[QUOTE="momuzykent, post: 5691206, member: 572154"] Ok all of my answers didnt come thru so here goes again: 1. Its not a point of whether they should lend to them. One of the reasons we are in the mess we are in is because they made bad loans they now couldnt be repaid and then sold those loans to other countries. i.e. china, japan, whoever else would buy them and thats the reason its not just America, its global because now they are all tied in to our credit mess. 2. You need to do your research, banks arent suppose to acquire others but do your homework, they are. 3. This is one of the reasons the recession will last longer than it is suppose. America is suppose to be free trade. If the banks made bad loans and cant repay, then they should have to write it off and take the loss, not have the gov print money out of thin air to correct their mistakes. You dont understand they dont play by the same rules me and you do. For example, if you had a, hmmm lets say car audio business and you had a bad business model or you loaned out your stereo equipment hoping you would get paid in the future. I gurantee if your customers could not pay you, you would not be getting part of the stimulus check so you could write off your bad loans & shore up your balance sheets. If they wont do it for you, why should they be able to do it. 4. This is incorrect as well. If the market has been inflated and loans good or bad given out on house and then your property prices decline, why should you be overleveraged or owe more on a house that isnt worth anything. Not sure how you see that as good but that doesnt make any sense to me at all. Even if you had good credit and put down 20%, if your property values decrease by 30%, something just doesnt sound right about that. 5. You should look up superinflation and hyperinflation. Check your history and look at Weimer Germany or for current day situation look at Zimbawe. Printing more moeny out of think air does nothing but devaluate your currency. In Germany once it struck the price of food doubled every day. In Zimbawe they are rolling around wheel barrows full of money and cant buy anyting because the price of everything is so high and their money is worthless. Running the printing presses will do nothing positive at all. Well let me correct myself, with technology you dont even have to print money anyways, just go the computer and push a button! ...and no the gov shoudlnt rescue business that are failing in a free trade market. When & if they do then its not really free trade! The only thing that will get us out of this recession is if some new type of energy is found that hasnt been done yet. Other than that, we are in the recession (really depression) and going further into it. employment is going to get worse. the gov lies about those statistics as well. we are already up to 15% at least and I think it will get up to 20 to 25% before its over (not leaving out real numbers like gov does with what they called discouraged workers and u5 & u9). if you dont have a job you are unemployed, doesnt matter how long you havent had a job! [/QUOTE]
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