Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I prefer this article. This is what got the street in a selling frenzy. Worse case scenario, they go belly up, housing prices further decline, and they bring some investment banks down with them, and we have a run on the banks like you haven't ever seen before bringing us to financial armageddon.
What is likely to happen is that the Fed, treasury, and some private equity will come up with a plan to bail them out this weekend, similiar to what happend to Bear Stearns. Expect futher depreciation of the dollar, more downside to financials and the broader market in general, and a major rally in gold (which I see going to $1200 if not more by the end of the year, depending on how much more the financials come crashing down.)
the taxpayer will pay, who else do you think will?? There IS nobody else!
they will print the money in the billions or trillions whatever it is, as a consequence of increasing the money supply by this much the currency will drop like a rock, that means the cost of everything increases more.
As it is people are reeling from rising prices, what will happen if costs would increase another 20-30%? It would be devastating!
Our government, in it's infinite wisdom tried to manipulate the market by artificially low interest rates and lack of lending oversight preventing a natural correction that should have occured years ago, this is the reason we are in this mess. Now things have become out of control. Even now, they are refusing to acknowledge that they need to raise interest rates immediately as was done by Paul Volcker in the 80s. Sure, it will be painful, but we can pay a price now or risk total meltdown later which will be devastating. The truth is we are WAY PAST the point of trying to resusitate this economy, the government should back out of the whole thing and let the capital markets self-correct.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.