U.S. bailout package will spark inflation and shift the burden to foreign investors

[luckytxn 2,265]

And the best thing to do is just to stop spending so much money and start getting a surplus and paying down the debt. Radical idea. Anyone want to guess who did it last?

[Ban Hammer 14,571]

And the best thing to do is just to stop spending so much money and start getting a surplus and paying down the debt. Radical idea. Anyone want to guess who did it last?

that makes too much sense!

[luckytxn 2,265]

LOL. That is the truth.

[Rocky_nBullwinkle 6]

And the best thing to do is just to stop spending so much money and start getting a surplus and paying down the debt. Radical idea. Anyone want to guess who did it last?

A Republican Congress and a Democratic President? I think they called it a "train wreck". It did not take them long to fix the tracks, and start the money machine again!

--Bullwinkle

Edited January 25, 2009 by Rocky_nBullwinkle

[SAT 9,609]

And the best thing to do is just to stop spending so much money and start getting a surplus and paying down the debt. Radical idea. Anyone want to guess who did it last?

Lucky, thats what Geezer was talking about......deflation. If we all stop spending, that's going to cause deflation. It's not a good thing. Any price instability is bad, inflation or deflation. The bad things about deflation would include.......

would be consumers putting off purchases further in hopes of even lower prices.

companies scale back production due to low demand, thus cutting more jobs.

A prime example is our housing market right now..........

Japan has seen periods of deflation in the past 2 decades, and it hasn't worked out good for them.

Oh #######........I actually learned something in skool?..........

[luckytxn 2,265]

Where do you get the Republican congress?

[Rocky_nBullwinkle 6]

Where do you get the Republican congress?

Class of '95. Clinton and the Gingrich Congress could not agree on a budget number, so the government shut down while Clinton was blackmailed into accepting a slimmed down budget for 1996. The efforts of Diminichi and Kasich to produce balanced budgets and the dot.com bubble created a short period when revenues exceeded expenses. Since budgets are outlooking, the combined effect created the "surplus" numbers that Bush squandered with more than willing Republican help.

--Bullwinkle

Edited January 25, 2009 by Rocky_nBullwinkle

[w¡n9Nµ7 §£@¥€r 123]

... the government shut down while Clinton was blackmailed into accepting a slimmed down budget for 1996.

Blackmailed?

[luckytxn 2,265]

You do know that the dot com bubble burst way later in the 90's right?

[w¡n9Nµ7 §£@¥€r 123]

1999 was my first year in the industry and the money flowed like sweet sweet honey until 2000-01.

[Rocky_nBullwinkle 6]

... the government shut down while Clinton was blackmailed into accepting a slimmed down budget for 1996.

Blackmailed?

Seems I remember that term being used. Negociated? Encouraged? You pick the verb, but Bill was not a happy guy at the time. But, in total Clinton style, he did take full credit for the budget he finally signed. I did not say the man did not have style!

--Bullwinkle

You do know that the dot com bubble burst way later in the 90's right?

Yep. And more bubbles are busting now.

--Bullwinkle

[w¡n9Nµ7 §£@¥€r 123]

... the government shut down while Clinton was blackmailed into accepting a slimmed down budget for 1996.

Blackmailed?

Seems I remember that term being used. Negociated? Encouraged? You pick the verb, but Bill was not a happy guy at the time. But, in total Clinton style, he did take full credit for the budget he finally signed. I did not say the man did not have style!

BJ was a total weasel

[luckytxn 2,265]

And the best thing to do is just to stop spending so much money and start getting a surplus and paying down the debt. Radical idea. Anyone want to guess who did it last?

Lucky, thats what Geezer was talking about......deflation. If we all stop spending, that's going to cause deflation. It's not a good thing. Any price instability is bad, inflation or deflation. The bad things about deflation would include.......

would be consumers putting off purchases further in hopes of even lower prices.

companies scale back production due to low demand, thus cutting more jobs.

A prime example is our housing market right now..........

Japan has seen periods of deflation in the past 2 decades, and it hasn't worked out good for them.

Oh #######........I actually learned something in skool?..........

Deflation will not happen because the Government is being fiscally responsible. Now I understand on why many think inflation is so good and all. It means that later dollars are cheaper and you pay back your debt with cheaper dollars. This was bandied around when Reagan was president and know way before that. Now for us to think that throwing money out there to everyone including corporations to cushion the pain may need to rethink. What happens when it doesn't work? The last stimulus money didn't help. Is it that we just need to throw more money? We can keep printing more and more money and throwing it all out there but does everyone think this is a good idea? If not then when is enough enough?

[kaydee457 13]

Ah....Jimmy Carter redux! Welcome to 15% inflation and 21% mortgage rates......

I've said it many times here, this empty suit is Jimmy's clone!

[geezer 1]

Ah....Jimmy Carter redux! Welcome to 15% inflation and 21% mortgage rates......

I've said it many times here, this empty suit is Jimmy's clone!

Unfortunately it dosent matter who is in power. The basic problem is that the banks lent out about 3x more money than they had to people who could not pay it back.

This has caused the collapse of the banking system world wide. It is not over yet because nobody really knows how much bad debt is out there. The fact is no one really knows what is going on, what is going to happen or how to fix it.

Remember last summer when everyone swore that the price of oil would only go up?

Everyone can speculate but nobady knows for sure where we are headed. Its still very early in the cycle, during the Great Depression it took 3 years from the crash in 1929 for stocks and the economy to bottom and it took another 7 years until WW2 to begin to recover.

We could be in for a long ride down...