Is the Current US Economy Affecting You?

[Professor Fann]

Exactly as the title says.

With this weks on (or so) of many US banks falling and many sales and requisitions ... and the House of Reps rejected a bailout plan to save the banks and the losses and whatever ... they mention it as an economic crisis, which is true, but how has this all affected your lifes and spending, if any, in anyway?

I'm just sorta curious, since I don't really comprehend all this, and where I am, there has never been any sort of economic crisis here that affected my life and finances directly.

[Sorrum]

The US Economy is sh*t right now. Mostly because of the war in Iraq.

[swimstud600]

The economy isn't as bad as people are saying. If any of you, or the panicking politicians had bothered to look back at recent history, there was another situation like this about 12 years back. The economy corrected itself in time, and it may be able to do the same thing now. I don't know if the government needs to bail them out or not, but I do know that they don't need $700 billion. The idea is that once the market returns to normal then the U.S. will actually make a profit and hopefully return the money to the taxpayers. The aforementioned bill however, was the product of a rush decision, hoping to make it appear to the common citizen as though the government is doing something. Which they probably will, whether action is needed or not. Regardless, this bill had too many flaws, too many unanswered questions and had to be voted down.

Now in regards to how this is affecting me personally, thus far it has not. This 'crisis' i by no means another depression. The noise everyone hears is amplified because there's a big election coming up in November and this is one of the key issues. But from what I can tell, this isn't going to cause gas, groceries or anything else to rise in price. All its going to do is more of what it already has, screw over some people's retirement plans.

With most of the stocks dropping, more and more idiots are freaking out and selling when in reality, the best thing they can do right now is hold. The market will correct itself in time, might be a couple years but hey, its for your retirement right? The best thing to do right now actually is buy. Stocks are insanely cheap right now, now is the best time ever to buy, you are almost guaranteed to make a profit.

Which brings me back to the $700 billion bailout. The damage has already been done, some people's credit are already ruined, some people have already lost their jobs. Buying out companies and helping them get back on their feet is not going to repair that. A much better plan would be to divide up the $700 billion and divide it equally among every American citizen over the age of 18, More people would be able to afford college, buy cars, support their families... that'd be better than bailing out CEOs that don't deserve it.

[Professor Fann]

So you're suggesting to give money back to the people to increase spending?

If taht's the case, how is that different, if any, from the tax cuts done on and on the few years back? Did it really allow the people to have more money, or does that mean the government has few money to maintain a sustained economy and could have led to this current troubling era?

Sorrum - you're not answering the question at all.

[swimstud600]

I'm not suggesting that giving money to increase spending is the answer, merely that it is an answer, and a much better one than passing the origanal $700 billion bill drafted soley to set the public at ease. Hopefully the next will be better worded.

[Fusion]

Well, in reality, the economy should've went through this phase about 7 years ago. A bit after 9/11, stocks were falling left and right. But to try to keep the economy up, the Administration loosened the Banks' loan restraints and just told them to "go at it". It's worked just long enough to be a political tool.

[Captain SpExtacular]

Well the war in Iraq is one place where a lot in money goes. There are loads of things we're spending stuff on here that's just ridiculous. Millions of dollars for research on stupid things like researching if bats can carry bombs and things like that. Also a bunch of loop holes where people can just pool money. The other thing is all the outsourcing we've been doing in recent years. Banks get bought and close all the time, just not on this scale usually. But people are getting laid off because its so much easier to open a plant in a third world country where you don't have to deal with unions and minimum wage things. So as a result, we fall into a downward spiral. Hopefully somebody comes up with some kind of plan to get us out of this situation. But thanks to the wonderful world of politics, nobody has any balls to do anything!

[Professor Fann]

Wel, with the Senate and even now the Representatives supporting the 700 billion dollar bailout and Bush signing it as a law within hours ... what do you think will happen now? Anyone here who deems himself to be a good economist may answer adn provide details if possible. I'd like to hear all of it.

[Captain SpExtacular]

Well from what I understand...They just gave those companies that died from corruption, a blank check that comes from our taxes to fix themselves. Last I heard all the CEOs flew our to Las Vegas and were spending $400,000 a night on hookers, rooms, and large parties. So judging from how well our economists can spend our money, I'd say it wont belong till America plunges into poverty.