USA Debt Crisis

quantum.jpg
 
Doomberg said:
Some of you may of noticed that it was a crazy day on the markets as Dow fell by 300 points very fast, and of course other Indices followed. With the amount of quantum easing going on i think there could be serious issues ahead, here's an interesting recent video:

http://edition.cnn.com/2011/POLITICS/08/01/debt.talks/index.html?hpt=hp_t1

Whats your views on the whole topic?
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quantum easing? so it both happens and doesn't happen... shroedinger's economy :eek:

in some ways i wanted to see what would happen if the US got a debt downgrade because it would be an EPIC day in economic history but it would be so disastrous that it's best left to computer simulation to see what happens

scary times ahead, my hypothesis is that peak oil is already being priced into all aspects of the world economy hence increased political instability etc, of course there are a multitude of explanations regarding this issue and others but the root cause in my opinion is peak oil
 
A downgrade didn't put a scratch on Japan. I believe it will be the same for the US.
 
enragedcow said:
scary times ahead, my hypothesis is that peak oil is already being priced into all aspects of the world economy hence increased political instability etc
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that is a very short hypothesis.....i may have misunderstood your statement, but you are in effect saying rising oil prices are causing increased political instability? or maybe your saying that regardless the oil price (its fluctuated massively in last few mths - up and down), the fact that demand for oil will always outweigh supply going fwd has created tensions between democrats and republicans? and the relevance of either of these to US debt is exactly what?

always assumed oil prices were more sensitive to whats going on now and in the near future - global recession (usd index & demand fluctuations), middle east instability, japanese natural disasters etc.
 
new_trader said:
Also the most implausible...The world's reserve currency is being debased and the blame is placed on peak oil? :LOL:
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Having read a couple of your posts on the subject of macro economics If I were you <shudder> I'd refrain from involvement were your shallow Daily Mail inspired views don't cut the mustard..;)
 
Black Swan said:
Having read a couple of your posts on the subject of macro economics If I were you <shudder> I'd refrain from involvement were your shallow Daily Mail inspired views don't cut the mustard..;)
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What's with the ad hominem bull**** lately? I thought you were one of the less stupid people on the board...

It's laughable to think that instability resulting from a debt crisis with origins in the mortgage market is caused by pre emptive expectations of peak oil.
 
rawrschach said:
What's with the ad hominem bull**** lately? I thought you were one of the less stupid people on the board...

It's laughable to think that instability resulting from a debt crisis with origins in the mortgage market is caused by pre emptive expectations of peak oil.
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IMHO enraged cow made a valid point...'blame' all economic woes on peak oil? Nope, however to ignore it's influence is absurd..
 
Martinghoul said:
What's "quantum easing"?
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Citizens get loan from Bank to buy House
Sold by largely people who work for banks raising business.
Citizens can't meet mortgage loan payments to bank
Banks resposses Houses
Citizens owe Banks debt
Governments give trillions of money to Banks
Citizens pay tax to Government to give more money to Banks


Banks have House
Banks have government bail-out
Banks have citizens who owe them money

Citizens lose house
Citizens pay more tax

Banks refuse to make loans
Government give Banks more money - increase national debt
Citizens owe more tax but to be paid in the future


Bankers, Top Management, Politicians and selected Quango's continue receiving record bonuses as we need their specialised skills that produced this mess to get us out of this mess.


QE is a way for the economy to fart quietely without attracting much attention.



I still don't understand the transmission process... :eek:
 
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After The Wall Street financial crash in the 1920s the politicians put restrictions on the banks. Then along comes Clinton in the USA who removed these restrictions. It would be interesting what the bankers gave him to accomplish this. The UK's poodle Prime Minister Blair copied the US as did others ( prolly just a coincidence he became a director of JP Morgan ? ).

RESULT disaster -

Conclusion - the bankers can't be trusted with our money and never should be.
 
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You should go to Market Oracle and look in the Author Archives for "James Quinn". You probably wouldn't agree with all of his opinions, but on these topics I'd imagine you'll really like his stuff.

Atilla said:
Citizens get loan from Bank to buy House
Sold by largely people who work for banks raising business.
Citizens can't meet mortgage loan payments to bank
Banks resposses Houses
Citizens owe Banks debt
Governments give trillions of money to Banks
Citizens pay tax to Government to give more money to Banks


Banks have House
Banks have government bail-out
Banks have citizens who owe them money

Citizens lose house
Citizens pay more tax

Banks refuse to make loans
Government give Banks more money - increase national debt
Citizens owe more tax but to be paid in the future


Bankers, Top Management, Politicians and selected Quango's continue receiving record bonuses as we need their specialised skills that produced this mess to get us out of this mess.


QE is a way for the economy to fart quietely without attracting much attention.



I still don't understand the transmission process... :eek:
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A great opportunity fot the USA and others to reform their ineffective and incompetent OLD, senile systems. They are unfair too. I doubt they will until they are forced to and by then it will be too late.

The USA's system was cutting edge in the 18th century but now ? No way.

The business sector is doing pretty well considering the "fudge-ocracy" it has to labour under.
 
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Atilla said:
Citizens get loan from Bank to buy House
Sold by largely people who work for banks raising business.
Citizens can't meet mortgage loan payments to bank
...
I still don't understand the transmission process... :eek:
Click to expand...
Yes, but this isn't "quantum easing", is it? If you mean "quantitative easing", it has stopped and isn't "going on".
 
Martinghoul said:
Yes, but this isn't "quantum easing", is it? If you mean "quantitative easing", it has stopped and isn't "going on".
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No it's not.

Technical summary is it is supposed to allow liquidity to the banks to facilitate lending.

QE has happened - lending isn't happening.



My point!

Governments should have bailed out people and those poor individuals who could not meet mortgage payments. Not banks who are and were the guilty party along with the mortgage fixers.

The whole well being of nation and poor people would have been lifted.
Individuals could have maintained their debt payments
Banks would have had a chance to unwind from their risky mortgaged backed securities
Would have cost a lot less
Demand in economy and liquidity in the banking sector could have been maintained

The whole capitalist system is well messed up.

I also think derivative markets and hedge fun managers - short selling of stock should be banned.

System is being manipulated by big these powerful institutions acting like thugs...


Revolution is well over due. :mad:
 
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