Economic Recession? Depression? Impending Doom?

[6SpeedTA95]

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Economic Recession? Depression? Impending Doom? | The Liberty Lounge

The United States is an economic powerhouse. The economic engine of the US has more output than any other nation on the planet. In fact only recently and due to the fall of the dollar has the EU surpassed the US in dollar output. The EU has 50% more people than the US and had the dollar not slid or had the slide stopped in mid/late 2006 the US would still be ahead of the EU in USD output as our real economic output has gone up considerably the last few years. However, this economic engine has begun to sputter.

I believe the government needs to take a series of steps to help smooth out the economic bumps in the road. The government is partially responsible for this current economic slowdown and as a result they need to help limit the impacts of the recession. We need to limit mortgage adjustments for loans that are resetting. The fed chairman needs to keep rates relatively low. Finally, it is imperative that corporations bear some responsibility for their bad decisions. More on my recommendations in a bit, first a brief history in how/why we’re in the mess we’re in.

[bheld]

Home values need to re-adjust no matter what. Unfortunately this means that many people will not be able to keep their homes. These aren't poor people, they're people that over-extended themselves, speculators, and other people that for some reason or another bit off more than they could chew. These people collectively forced home prices higher and should bear the brunt of the correction along with the banks that went along just to make a buck.

No bailout. The sooner we get all of this behind us the better. Lower fed rates, locks on rate adjustments, and all these other types of "solutions" only prolong the inevitable. The reality is that we will not go back to 2002-2005 growth rates for a very long time, if ever, and consequently the people banking on 10% annual growth are going to get flushed out sooner or later. There's no need to prolong the inevitable just to give irresponsible lenders time to pass the buck.

[Phantom]

Originally Posted by bheld

No bailout. The sooner we get all of this behind us the better. Lower fed rates, locks on rate adjustments, and all these other types of "solutions" only prolong the inevitable. The reality is that we will not go back to 2002-2005 growth rates for a very long time, if ever, and consequently the people banking on 10% annual growth are going to get flushed out sooner or later. There's no need to prolong the inevitable just to give irresponsible lenders time to pass the buck.

agreed 100%

I had you pegged in my mind as a bleeding heart liberal. I must have been wrong. Good post.

[motivez]

Originally Posted by bheld

Home values need to re-adjust no matter what. Unfortunately this means that many people will not be able to keep their homes. These aren't poor people, they're people that over-extended themselves, speculators, and other people that for some reason or another bit off more than they could chew. These people collectively forced home prices higher and should bear the brunt of the correction along with the banks that went along just to make a buck.

No bailout. The sooner we get all of this behind us the better. Lower fed rates, locks on rate adjustments, and all these other types of "solutions" only prolong the inevitable. The reality is that we will not go back to 2002-2005 growth rates for a very long time, if ever, and consequently the people banking on 10% annual growth are going to get flushed out sooner or later. There's no need to prolong the inevitable just to give irresponsible lenders time to pass the buck.

I don't think the companies should get any bailouts either, and I agree when Obama has talked about not helping people who don't actually live in the homes, and were just trying to play the market..

But as far as families and people who actually live in the homes in question go, I think something should be done so we don't have entire neighborhoods and maybe even some communities go bellyup because of massive amounts of foreclosures.

[6SpeedTA95]

Originally Posted by motivez

I don't think the companies should get any bailouts either, and I agree when Obama has talked about not helping people who don't actually live in the homes, and were just trying to play the market..

But as far as families and people who actually live in the homes in question go, I think something should be done so we don't have entire neighborhoods and maybe even some communities go bellyup because of massive amounts of foreclosures.

Thats just it, banks people and government are all to blame on thsi deal. And as big a free market guy as I am, there are some rare instances, this is one where something needs to help ease the pressure on housing or it has a huge impact on us and really the world.

[Donkey®]

That's the problem with a "free market". Free market is all wonderful when profits are rolling in...but when companies like Bear and Stearns or the airlines need a bailout, who ends up bailing them out? The taxpayer...the government. The same people that are for these bailouts are the ones screaming "personal responsibility" at individuals who need a bailout.

[Ardentfrost]

why, again, are you saying "government bailout" is "free market?"

As I've said before, let those businesses die. They made poor decisions, and deserve it.

People might be screaming for bailout, but those people don't embrace the personal responsibility mantra.

[Rouger2]

Originally Posted by Donkey®

That's the problem with a "free market". Free market is all wonderful when profits are rolling in...but when companies like Bear and Stearns or the airlines need a bailout, who ends up bailing them out? The taxpayer...the government. The same people that are for these bailouts are the ones screaming "personal responsibility" at individuals who need a bailout.

Like the old saying goes, capitalism for the poor or average guy and socialism for the rich or big business.