+- MacResource (https://forums.macresource.com)
+-- Forum: My Category (https://forums.macresource.com/forumdisplay.php?fid=1)
+--- Forum: 'Friendly' Political Ranting (https://forums.macresource.com/forumdisplay.php?fid=6)
+--- Thread: How to get out of this financial mess. (/showthread.php?tid=68781)
How to get out of this financial mess. - Go To Top - 12-21-2008
http://www.nytimes.com/2008/12/21/opinion/21friedman.html?_r=1&hp
Save, don't spend.
Re: How to get out of this financial mess. - swampy - 12-21-2008
Been saying that for years.
Re: How to get out of this financial mess. - Ted King - 12-21-2008
It's primarily those who have a lot of debt that need to start saving - well, first they need to pay off much of their debt. Ironically, though, it is right now when those of us who have been saving that need to do some spending of some of those savings. If those who were spending by going into debt now quit spending and those who were saving significant chunks of money save even more and spend less, the economy will tank even significantly worse than it would otherwise. Jobs ultimately depend on demand for goods and services and if everyone significantly reduces demand for goods and services by spending less at the same time, jobs are going to evaporate at an increasing rate. And the more jobs evaporate, the less demand so even more jobs evaporate. We need to stay out of the awful feedback loop. So we conscientious savers need to do our bit for everyone else and buy lots of stuff! I know it's an awful sacrifice to ask but it's only temporary. In a year or so we can probably go back to our contented miserly ways. :-)
Re: How to get out of this financial mess. - Wags - 12-21-2008
How long will it take to pay off 12 trillion dollars?
Re: How to get out of this financial mess. - mikeylikesit - 12-21-2008
We ain't gonna' spend our way out of this so why not just stop spending and live a simpler existence while letting the chips fall where they may? Pick up what's left and go on from there.
Re: How to get out of this financial mess. - Go To Top - 12-21-2008
We just had 8 years of unregulated greed. Military equipment will be rusting in the desert for the next 100 years. So much for Keynes.
I say simplify, simplify for me.
Re: How to get out of this financial mess. - Wags - 12-21-2008
mikeylikesit wrote:
We ain't gonna' spend our way out of this so why not just stop spending and live a simpler existence while letting the chips fall where they may? Pick up what's left and go on from there.
I don't see putting money into carefully chosen infrastructure projects as spending, more like investing. Pumping money into multinational banks and investment houses, well, that's starting to look like the sham most expected it to be.
I'm in the minority, in that I actually have savings, and no credit cards or debt of any kind. My reward is interest rates that maybe offset half of what inflation takes. At least I don't have any chips in the Wall Street Casino. Those people should have been allowed to fail, then the Gov should have gone after all their assets, like the multiple homes and ridiculous luxury items. The local and regional banks would have eventually taken up the slack and we'd all end up more diverse and healthier.
Re: How to get out of this financial mess. - Ted King - 12-21-2008
mikeylikesit wrote:
We ain't gonna' spend our way out of this so why not just stop spending and live a simpler existence while letting the chips fall where they may? Pick up what's left and go on from there.
I'm pretty sure most economists are of the opinion that if we are to avoid something like what happened during the Great Depression then we need to do exactly the opposite of what you are saying. You sound surprisingly like a Neo-Hooverite:
http://www.washingtonmonthly.com/archives/individual/2008_12/016025.php
Re: How to get out of this financial mess. - mikeylikesit - 12-21-2008
I was addressing it on a personal level. Remember Mr. Bush after 9/11 -- Hey folks go spend some money, we need that. Let the government do what it will to promote growth, it's time people took control of their own growth and started saving (even into a mattress) rather than spending.
The government took 300 billion dollars and handed it to the same banks that were the problem to begin with, with almost no strings attached, what did the banks do? They now sit on an appropriation of the same amount and will in all likelyhood release it prior to the new administration taking office.
Anyone here feel like they've been raped?
Re: How to get out of this financial mess. - kj - 12-21-2008
I agree with rog. We're going to have to get used to having less. I don't think that's such a terrible thing, myself. kj.