Bailout a bargain?

Discussion in 'General Real Estate and Real Estate Finance' started by Non Sequitur, Apr 23, 2009.

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  1. Non Sequitur

    Non Sequitur Elite Member

    9
    Feb 14, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Louisiana
  2. timd354

    timd354 Senior Member

    8
    Jan 11, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Maryland
    There will 3 options or a combination of 3 options regarding the repayment of the massive federal debt:

    1. Default.
    2. Raise Taxes to an extremely high level.
    3. Massively devalue the currency by simply printing the dollars needed to pay off the debt.

    In my opinion, default is not likely as I just don't think that would be politically acceptable to most people. I think that option #2 will be attempted but will end in failure since a massive tax increase will kill the economy, and, thus, the government will be unable to raise enough tax revenue to cover the debt. That leaves option #3, a massive devaluation of the currency as the end result. This will simply wipe out many people's savings and wreak economic havoc, but, unfortunately, it is the most likely outcome.
     
  3. Greg Bell

    Greg Bell Senior Member

    0
    Jul 7, 2006
    Professional Status:
    Gvmt Agency, FNMA, HUD, VA etc.
    State:
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    Default of the the national debt is unavoidable.It's just matter of when.I suspect hyper inflation will take the US down , Fasten your seat belts it's going to be a bumpy ride (Thanks Betty)..Quick but Beans , Ammo and Gold...
     
  4. Austin

    Austin Elite Member

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    Jan 16, 2002
    Professional Status:
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    State:
    Virginia
    I figured that out 44 years ago when I was a college freshman majoring in econ. It had to end that way. That was the first econ class I took, 101. The last course I took was "The Economics of The Soviet Union." In that class I learned that our free market capitalistic system was most efficient at allocating resources. That serves a greater purpose than as a medium of exchange. Destroy the currency and the free market you end up with total caos and turmoil.
    I also learned why socialist systems always fail-it is because socialism is an attempt to allocate resources based on political whim as opposed to economic principles. Air heads cannot grasp that principle. When a loaf of break is the same price as a new TV it may sink in.
    :peace:
     
  5. Greg Bell

    Greg Bell Senior Member

    0
    Jul 7, 2006
    Professional Status:
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    State:
    Louisiana
    Let's try FDR again , a true socialist..

    "All safe deposit boxes in banks or financial institutions have been sealed... and may only be opened in the presence of an agent of the I.R.S."
    - President F.D. Roosevelt, 1933
     
  6. Lloyd Bonafide

    Lloyd Bonafide Senior Member

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    Jan 15, 2006
    Professional Status:
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    State:
    California
    I think you are probably correct.

    But our state will default first - guaranteed!
     
  7. Couch Potato

    Couch Potato Elite Member

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    Mar 15, 2004
    Professional Status:
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    It would be interesting to see how a default on the national debt would work given more than a third of the the debt is owed to the federal reserve. :new_all_coholic:
     
  8. Greg Bell

    Greg Bell Senior Member

    0
    Jul 7, 2006
    Professional Status:
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    State:
    Louisiana
    That's probably correct , however , The Abomination will print money to support bankrupt states till hyper inflation kicks in...Did to buy your beans and ammo???
     
  9. Greg Bell

    Greg Bell Senior Member

    0
    Jul 7, 2006
    Professional Status:
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    State:
    Louisiana
    The debt , or funny play money , that's owed to the Federal Reserve will be forgiven and all debts that were shuffled around the Mickey Mouse government will be wiped clean.The rest of the world will dump US Dollars before the great day which will devalue the dollar on par with the peso.(See 1933 Germany)...Beans $500 per can...Ammo $2 Per round..
     
  10. George Ellerman

    George Ellerman Senior Member

    1
    Feb 21, 2005
    Professional Status:
    Licensed Appraiser
    State:
    Ohio
    Within a period of one or two years we will be in a state of hyperinflation.
    It can't be avoided the way the government is printing money.
    The only answer for the hyperinflation will be another recession of even greater magnitude. I simply don't see anyway this can be avoided. Short term fixes of the economy by infusing worthless dollars is meant simply to be a quick fix for a rudderless administration which is hoping just to get buy till the next election.
    All of this talk about prosecuting interrogators is meant to create a diversion to a serious economic situation.
     
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