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10-07-2008, 03:28 PM #13
Senior Member
Dear Wall Street
What if people are desperate? Desperation paved the way for FDR to push big government throughout the republic.
Originally Posted by Markass
You have two scenarios really:
1.) The bailout works; new leadership is ushered by way of baby boomer power demise. New leadership will in fact encompass our generation, paving the way for liberty and justice for all.
2.) The bailout does not work, and the world suddenly stops doing shit. If Americans do not have money to buy things, China collapses. Paper debasement via Asian states redeeming their US treasury certificates surfaces, which could force the treasury to offer better interest rates. Liquidity would drain from free market investment into that of government insured paper, sending retirement accounts into a frenzy. Those that were to retire work longer, offering less jobs to new graduates. Massive deflation follows...
Nobody in their right or blazed mind wants scenario 2.:jointsmile:
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