Author Topic: BREAKING NEWS: Wall Street down in triple digits as Lehman Bros. goes bankrupt  (Read 258 times)


  • Shot Caller
  • Muthafuckin' Don!
  • *****
  • Offline Offline
  • Posts: 3048
  • Karma: 332
Re: BREAKING NEWS: Wall Street down in triple digits as Lehman Bros. goes bankru
« Reply #25 on: September 20, 2008, 08:34:53 AM »

There is one positive about all of this and that is slowly the veil is being lifted on the men who really control the world and just how their scam works. I am ruing ignoring the advice I was given to buy gold when it was $200 though.

Don Jacob

  • Muthafuckin' Don!
  • *****
  • Offline Offline
  • Posts: 13842
  • Karma: -136
  • don status, bitch
the fed is a privately owned corporation set up by prominent NY bankers of the time like JP Morgan.  To this day i think 5 or so private banks benefit from this central banking sytem from association
 or something.

the way the fed works is that it loans out money ON interest that has to be paid back. however here's the catch, they're the ones who control the money supply, so they control inflation, and create an endless cycle of debt. ain't that fucked up? anyways mdogg, listen to virtuoso, he knows what he's talking about.

btw, props on the finanace major, i'm a business major and we have to take a couple of core finance classes and i hAAAAAAAAAAAAAAAAAAAAAAAted those with a peppered passion.
« Last Edit: September 24, 2008, 05:48:02 PM by Don Jacob »

R.I.P.  To my Queen and Princess 07-05-09


  • Guest
Is anyone hoping the entire US economy collapses, and capitalism fails?

Perhaps the economy should collapse when it's malfunctioning, but what difference would it make now? It's pretty obvious that people currently aren't in agreement about the causes of this crisis, so what makes you assume things would change for the better after a total collapse?

America is flawed because they simply over consume what they can't afford.

That much is true. Now ask yourself, is that to be blamed on the workings of capitalism, or on a government and federal system which keeps trying to please everyone regardless of whether they have earned it? In a truly free capitalist market, no bank would get the idea of handing out loans that probably won't be paid back. If you want to make money, invest it so that the final outcome shows a maximized surplus. How is handing out irresponsible loans going to achieve that? How are people who spend more than they're worth, production wise, going to do any good for an economy? That's where the corruption starts: right where federal organizations start to mess with the economy.

In a real capitalist market, banks would disappear if they went bankrupt because of their poor policies. People would lose their money if they handed it to someone who spends it on poor investments. That's what should happen to malfunctioning banks and their customers. It's everyone's personal responsibility to look after their cash, and not hand it to some retards who'll blow it all on loans for people who'll never be able to pay back. Problem is that there's too many government policies controlling the economy, for those workings to be functioning properly. Capitalism is a self regulating system. It works precisely because of its ability to autocorrect itself. If a bank's misusing the money you deposited, you take it to another bank that will make it safe. But as soon as the government gets to decide what happens with loan and interest rates, they're forcing a certain value on the money which overrules the natural workings of supply and demand. The result leaves little to be questioned. How can you possibly say it's capitalism failing, when really, it's the government that's been messing with its basic principles? Does that really mean capitalism is failing, or does it show how much the government policies are an unfitting failure?

The saddest part is, that the sloppier the economy gets, the more the government starts regulating. But really, all that that might do, is make things worse. If you're going to save banks who otherwise would have been in a bankruptcy, you're keeping them alive as zombies. Such government policies are keeping maladministrations in existence, with all due consequences. There is no way to mess up when your enterprise can't go out of existence. The boards of banks might just do whatever, because it won't matter anyway. The government will save them, regardless of their errors. Do you still think it's capitalism that's failing?

Now that such policies are activealready, all they can do to save the economy, is to give people back their savings and get these banks off the market. Hands off the market, and let it recover. Capitalism requires responsibility from all parties involved. You can't let yourself weaken for a moment without feeling the consequences. That's exactly why the government should never try to get involved...