Depression Diary

[Onkel Neal]

Yeah. This is a good follow up article on the diary.

“The only way to break the economic deadlock brought on by the Depression was to shock it back to life,” said Mr. Brinkley, who then added that for all of Roosevelt’s willingness to experiment and spend, the reason the Depression lasted so long was that the president didn’t spend enough.

That, of course, is what most people believe today — and that dogma is the reason the government last year threw literally trillions of dollars at the banking system to keep it from collapsing.

[AVGWarhawk]

To a point Mr Brinkley is correct. Look at the movie, "It's a Wonderful Life", what happens when the deposit is lost? Collapse of the bank and the home owners. Jimmy telling Mr. Brown, why your money is tied up in Mr. Greens house and Mr. Green, your money is tied up in Mr. Smiths house. You get the picture. A run in the bank. Banks need to keep solvent. It was hard to do when loans are defaulting like they are.

[Jimbuna]

In the UK the banks were bailed out to the tune of approximately £150 billion.

The initial cost to the citizens of the UK over the next 24 months is estimated to be somewhere in the region 50,00 job losses and massive cuts in public services (dependant on which source you enquire of......this one being UNISON the largest public sector union in the UK).

It is believed the debt may not be repaid for at least 15 years.

Banks continue to pay out huge bonus sums to the highest paid employees

[STEED]

Originally Posted by jimbuna

In the UK the banks were bailed out to the tune of approximately £150 billion.

The initial cost to the citizens of the UK over the next 24 months is estimated to be somewhere in the region 50,00 job losses and massive cuts in public services (dependant on which source you enquire of......this one being UNISON the largest public sector union in the UK).

It is believed the debt may not be repaid for at least 15 years.

Banks continue to pay out huge bonus sums to the highest paid employees

Nation’s debt equivalent to £26,100 for each British household.

http://www.debtbombshell.com/

The UK national debt is the total amount of money the British government owes to the private sector and other purchasers of UK gilts.
From figures published February 18th 2010, UK public sector net debt was £848.5 billion. (or 59.9% of National GDP) – Source: Office National Statistics
Excluding Financial sector intervention, public sector debt is £743 billion or (52.7% per cent of GDP)
The PBR (annual government borrowing) forecast for 2009/10 is for net borrowing of £178 billion or 12.6% of GDP.

[August]

Originally Posted by AVGWarhawk

To a point Mr Brinkley is correct. Look at the movie, "It's a Wonderful Life", what happens when the deposit is lost? Collapse of the bank and the home owners. Jimmy telling Mr. Brown, why your money is tied up in Mr. Greens house and Mr. Green, your money is tied up in Mr. Smiths house. You get the picture. A run in the bank. Banks need to keep solvent. It was hard to do when loans are defaulting like they are.

I agree with your premise but you need to watch the movie again dood! The run and the lost deposit are two separate events.

[AVGWarhawk]

Originally Posted by August

I agree with your premise but you need to watch the movie again dood! The run and the lost deposit are two separate events.

You are correct but it was just an example made easy to understand. My money is tied up here and there but here and there are defaulting. I'm feeling the pain.

[AVGWarhawk]

From Neal's posted link

"Alan Greenspan was the maestro, and both parties in Washington were united in a belief that the markets would take care of themselves."

Alot in Washington think the entire system will "just take care of itself." More often it does. When it does'nt, time to look for a scape goat.

[Onkel Neal]

Originally Posted by AVGWarhawk

From Neal's posted link



Alot in Washington think the entire system will "just take care of itself." More often it does. When it does'nt, time to look for a scape goat.

Yeah, I'm a free market guy, and the fewer rules, the better. but that doesn't mean zero rules. People cheat and smart people will screw up the system if there is no oversight.

A lot in Washington no longer believe in the market will always fix itself, Greenspan and Gramm among them.

There was clearly the implication that deep government involvement had screwed up the mortgage business, but a couple years ago Gramm (and Alan Greenspan) seemed to think that the magic of modern financial markets would compensate for all that government meddling. Now they don't.