The progressive recession

[mechromancer]

I'm starting to think that the warning cries about how this financial mess will bring doom to the average American are unfounded. I also can't muster any sympathy for the majority of the foreclosure cases

Comments

[anonymous]

I'm with mechromancer on this one. I am not sold on the plan at all. It's a vague and powerful piece of legislative bullshit that is further being crapped on with incentives like every other bill in the past X years to get it passed.

I think something probably needs to be done, but I am doubtful the past or current bailout plan are it. Furthermore, while it is not normally something the house/senate does, this needs to be explained to the american people, because it is an election issue. That's great that Bush, Obama, and Mccain all want this pass, but if Obama/Mccain want to use this issue they are really going to have to tell people exactly why letting the banks go down is a bad thing. They haven't done that yet, no one has. Finding out what will happen involves research, knowledge of the economic system, and an imagination.

And Janeway, the stocks regained more than half of their lost value the very next day and is trading evenly until the next vote. I'm glad that congress is attempting to react to the underlying economic issue, but they should not feel compelled to act or not act because the stock market won't like it. And yes, I am an interested party in the stock market as well as our economy as a whole.

Both are the sux0rz right now, and there is little hope. "The fundamentals of our economy" are not strong, and neither is wall street. Hold on tight, because no matter where this bill goes it's going to suck.

-adam j.

[katejaneway]

"That's great that Bush, Obama, and Mccain all want this pass, but if Obama/Mccain want to use this issue they are really going to have to tell people exactly why letting the banks go down is a bad thing. They haven't done that yet, no one has. Finding out what will happen involves research, knowledge of the economic system, and an imagination."

There's a little thing circa the 1920's called the Great Depression :)

[anonymous]

I don't think I've heard anyone that is a serious economist say this will come close to the great depression, and I don't listen to fearmongers.

-adam j.

[katejaneway]

Well true, but isn't it going in that direction? The depression was bad because the banks went bankrupt and couldn't get back all the money they invested into the stock market. If 8/10 of the biggest banks in the United States go down, what happens to everyone's savings & investments?
I keep hearing that millions of people will become unemployed.

Another example is European nations have already bailed out five of their largest banks, since they're experiencing the same economic crisis that we are. I am not sure what the effects of this are yet, but it's another example for you.

Hey at least this House vote today is going on after the market has closed.

Although I have tried to read all the articles I come across on this crisis, because I still don't feel like I totally understand it. The Washington Post usually puts up 5 or so articles a day, and I find that they've been the most informative, from what I've seen of local news & pop-news like CNN & MSN.

[anonymous]

A recession is not the same as a depression, and a depression is not the same as the great depression. The banks will not all go bankrupt, people will not lose all their money.

The european nations bailing out their banks does not explain to the country what we would go through if we did not. Also, the european nations are bailing out in a completely different way than this bill is going to, which basically hands out $700 billion dollars and hopes for the best.

Okay, I've said my peace. Sorry for taking over your blog mechromancer, I'll go back to my hole now.

-adam j.

[katejaneway]

Woah boy.

[anonymous]

Momentarily back out of my hole - I've realized that the great depression is the economies 9-11. If you just bring it up you can get the people and the government to do anything.

-adam j.