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Woody020354

Woody020354
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  • New European Bank Agreement: Deceiving Themselves And The World [View article]
    Russia's stock market collapsed in 1998 and the govt defaulted on their debts/financial obligations, but have been recovering since then. Do you think other nations currently unable to pay their debts (US, Greece, Italy, Spain, etc) will follow suit?
    Jul 12, 2012. 10:14 PM | Likes Like |Link to Comment
  • New European Bank Agreement: Deceiving Themselves And The World [View article]
    But..... what will it take to get the politicians to implement the solutions/changes you listed and when that ever happen? While it is a much over used expression, the can just keeps getting kicked down the road. Trying to effect a cure with bail outs, printing more money and more bonds are all only temporary fixes. It is like trying to keep a gasoline engine running with repeated sprays of starting fluid into the carburetor, when a tune up or overhaul is what is really needed.
    Jul 12, 2012. 09:58 PM | 1 Like Like |Link to Comment
  • New European Bank Agreement: Deceiving Themselves And The World [View article]
    You make a good point about deflation currently being a greater problem than inflation, however, stimulus monies given by govts to banks only helps the banks if they change their lending and investing habits. I see runaway debt, on all levels > personal, businesses, cities, states and nations, as being the focal point for our current world financial mess. Spending more money than is taken in and then using credit, bail outs, and for nations > printing more money to try to remedy the situation only offer put off the inevitible and compound the problems. Also, on the subject of bankers and other lenders, I will bet that they would toughen up the requirements for getting loans if they could not re-sell mortgage loans to Freddie/Fannie and had to assume the full risk for giving loans unqualified applicants.
    Jul 11, 2012. 10:35 PM | Likes Like |Link to Comment
  • New European Bank Agreement: Deceiving Themselves And The World [View article]
    Unfortunately the forecast for less consumer demand, more job losses, more home foreclosures, more loan defaults, etc. will make the short term outlook for banks (and everyone else in general) poor. Excess debt accumulation on all levels > personal, businesses, cities, and nations is the main problem. Giving the banks more money to make more loans won't fix the problem, but will only offer short lasting and minor improvement of the situation.
    Jul 11, 2012. 10:34 PM | Likes Like |Link to Comment
  • New European Bank Agreement: Deceiving Themselves And The World [View article]
    Do any other countries have a similar model to the US (Fannie / Freddie) for selling / transferring mortgage packages to the country's govt or do the European banks keep their mortgage loans in house (and hold full risk/ exposure in the face of a worsening economy and more foreclosures)?
    Jul 11, 2012. 10:33 PM | Likes Like |Link to Comment
  • New European Bank Agreement: Deceiving Themselves And The World [View article]
    I like your arguement that it is the velocity/rate of the flow of money that creates/encourages the growth of wealth, however I have a couple of questions / comments about some other statements. How does ultra-low interest rates on loans slow borrowing? Do you really feel that nations can just print more money to pay their debts and for stimulus packages or bailouts and that not end up causing inflation? You mentioned that the worst thing that people can do is to hoard money and take it out of circulation. I think that the worst think people, cities, states, and nations can do is to spend more money than they take in and then think they can solve the problem by making/taking more loans or in the case of nations, printing their way out of debt. When people, ciities, states or nations allow themselves to get hopelessly in debt and can no longer raise money via loans, bonds, or depleting retirement accts (or in the case of nations - gold reserves), then the house of cards falls and we end up with a second world wide depression. Watch the rate of credit card, mortgage, auto loan and bond defaults increase as time passes. That depression is on the horizon. But the good news is, like the first Great Depression, the world will survive and the economy will later rebound. The economy is currently in a gradual descent and the stock market has yet to panic. When the plane runs out of lift and nosedives - watch out!
    Jul 11, 2012. 10:24 PM | 1 Like Like |Link to Comment
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