Depression: Part 2!

[rushyrulz]

So, the bailout bill was declined. Dow is down 800 points. We're gonna be going into a depression similar to the one in the 30's if we keep doing nothing. This sucks.

[who_cares973]

WE NEED TO SPEND MORE MONIES!

i suggest we ignore child labor laws for now until things get better

[Squeek]

betr go resurrect fdr

[Franklin_Delano_Roosevelt]

Did someone call for me?

[Sh4d0wD3v1L]

And gold went up 25%. If you have any, sell sell sell. Before you know it, it'll be currency again.

[iceefudgesickle]

Did someone call for me?

Woah. Niiiiiiiiiice. I saw this and I lol'd.

I don't know much about economics but depression similar to 30's = bad

[sameoldbloodrush!]

We've been talking about this non-stop in my Civics class. It's scary to think that we're going into another depression. Yeah, I can definitely see that happening. As much as everybody would like to avoid it-- our economy is running straight into the ground.

[foilman8805]

Like I said in that other thread related to this, we aren't going to be the only ones going into a depression.

The whole world is going to feel this one, as the economy we know that is based on paper is shaken to its foundations.

I actually think Sh4d0wD3v1L could be right...I can fathom a return to a system that is actually based on precious metals rather than paper and credit.

[DarknessXoXLight]

What do you think will happen if we do go into another depression?

[OrganisM]

Even precious metals require us to attach a value to them. It is best to deal with them because they never become more or less than what they are, as opposed to paper. But even so, we're still ****ed.

[Xception704]

Yeah we talked about this in my Economics class.

The House rejected the $700 billion bill too ... to think it was only -178.xx this morning and we were like "omg this is horrribbbbbbleeeeeeee!!!"

... that wasn't even the start of it.




But really, I remember hearing a while back that economists had said that our government had "safeguards" in place in the event that a crisis ever did occur.

... anyone know about these and what exactly they would do to prevent a depression, or did I really just fabricate that in hope?

[chidori!]

What do you think will happen if we do go into another depression?
the internet will be empty :(
EDIT: i still don't get how a depression starts

[foilman8805]

You really just fabricated that.

You will witness the demise of the world economy in the imminent future.

EDIT: Well, you're actually witnessing the start of it right now to be honest.

BRACE FOR DOMINO EFFECT

[Crashfan3]

As much as I dislike most of what Obama stands for, I know that if McCain gets into the big office, we are all as ****ed as is possible. But, personally, I don't think Obama, or anyone for that matter, can fix this mess.

[Xception704]

so bottom line is that we r fuk'd

[foilman8805]

Big time.

[tsugomaru]

Did someone call for me?

Will of the D.

I know it never fails.

~Tsugomaru

[Relambrien]

But really, I remember hearing a while back that economists had said that our government had "safeguards" in place in the event that a crisis ever did occur.

... anyone know about these and what exactly they would do to prevent a depression, or did I really just fabricate that in hope?

1) The FDIC. It insures bank accounts up to $100,000, so that when things like this occur, people know their money is safe and don't freak out and try to withdraw all of it, which was the cause of a huge number of bank failures in the '30s.

2) If a major stock falls by some percent (10% I think) in one day, the market closes immediately, to give investors time to clear their heads and avoid a panic that could exacerbate the situation.

Panicked people withdrawing all their money from the bank and panicked investors selling as soon as they saw the market drop were two of the main reasons for the Depression. These two things hope to prevent that.

(Note, all of this information was from my ninth grade Government/Economics class. As such, there's probably a whole host of things going on that aren't adequately explained by what I've written)

[Kekeb]

Sup, Canadian here.
Looks like the rest of the world will be along for the ride.

[foilman8805]

Yeah, all you people that said in the other thread that you would move to Canada are just as ****ed as the rest of us.

[Kekeb]

I don't pay attention to the state of the economy, but is it really that bad? It seems to be a lot of unsightly panic.

[foilman8805]

Kekeb, it's really bad. Really, really bad.

Most people have no idea either.

[Sh4d0wD3v1L]

Yeah, all you people that said in the other thread that you would move to Canada are just as ****ed as the rest of us.

True. However, I could get legally drunk in Canada, so at the least while I'm up there I can forget about it. That is, if I can afford booze. Maybe I'll go to America to get it since the dollar is such a piece of **** right now.

[ddr_f4n]

The reason why Canada is just as ****ed is because we depend on the U.S as our major trading partner. If you fail, we fail.

And it's just great how it will affect us who are either just entering university/college or leaving it to look for a job. We are the ones who will lose big time.

[foilman8805]

You will witness the demise of the world economy in the imminent future.

EDIT: Well, you're actually witnessing the start of it right now to be honest.

BRACE FOR DOMINO EFFECT

Oh, hey, I'm a prophet.

http://www.foxnews.com/story/0,2933,430381,00.html

All major Asian stock markets in the region tumbled across the board, succumbing to heightened fears of a broader global financial crisis.

Japan's benchmark Nikkei 225 index nose-dived more than 544 points, or 4.6 percent, to 11,199.07, with popular stocks like Sony Corp. down 6.8 percent and Toyota Motor Corp. down 4.6 percent.

In Hong Kong, the Hang Seng index sank 3.6 percent. Markets in Australia, South Korea and the Philippines were also down sharply.

It's not fear anymore...it's the truth.

P.S. This is just the beginning, and I can't wait to prove lord_carbo wrong about the falsity of The Fed.

[Phynx]

I say open a wider market with the world. And yes, make precious metals a currency again. This gives instant value to them if we have a world market that isn't so constrained.

[gnr61]

ur all commies
if we bail out an economy that is plummeting because of human error we are no longer a capitalist nation sorry. it's a game of winners and losers and if you don't let the losers lose, the fundamentals of our economy become lost.

yes it's scary
deal w/ it

[tsugomaru]

P.S. This is just the beginning, and I can't wait to prove lord_carbo wrong about the falsity of The Fed.

He did say something about only having one year of Government in the 9th grade.

~Tsugomaru

[foilman8805]

I didn't say I wanted to bail the economy out. :(

Not a commie. :(

EDIT:

He did say something about only having one year of Government in the 9th grade.

~Tsugomaru

That was Relambrien earlier in the thread...I'm talking about what carbo said to me in another thread the other day.

Also triple lol @ foilman for thinking the Fed "is a sham." Bernanke is a goddamn smart economist and as of now he holds more information out of single every person in the world about the crisis. Collective wisdom is another story, but if you compare him with every other economist one on one, he knows more because he's the Fed chairman.

Owned.

He will soon find out that The Fed is just a huge scam of a privately owned business that rips off everyone who pays taxes, as well as the government. And it's largely the greed of people that control The Fed, and other huge money holding institutions that have caused this all to happen.

[Phynx]

Haha, and I find it funny to think that the next election comes in 2012... XD if not world destruction from a apocalyptic event then social order as we know it is surely to fall apart near that time. Maybe 2012 is the end of world order. Maybe chaos and anarchy reigns during that time. I for one see something happening then really, even if it's not what I'm saying here, I see SOMETHING bad happening at the next election.

[pokelda]

What do you think will happen if we do go into another depression?

jesus happens

[Franklin_Delano_Roosevelt]

It will be alright.

I'm sure the President that America has elected into office knows how to learn from past mistakes.

...oh.

[Starshot]

I went to three different banks today to try to get a loan for a CD release, all three turned me down.

Damn market.

[zhul4nder]

wait, so excuse me for being ignorant...but how did exactly did we get into this mess? the war?

[foilman8805]

wait, so excuse me for being ignorant...but how did exactly did we get into this mess? the war?

No, the war has nothing to do with it.

And it's not any one particular thing that caused it either.

[flipsta_lombax]

So we have this problem.

Solution: Take care of your monetary issues carefully. America is known for excessive needs for merely nothing. Don't blame the president or the government for everything. Consumers play a role in this economy as well, expecially those who likes to make waste of pretty much anything they use quickly... besides food (although excessive eating does this too. Stupid fatarses...).

[Relambrien]

He did say something about only having one year of Government in the 9th grade.

~Tsugomaru

Yeah that was me. Sorry for the confusion.

Anyway someone wrote a pretty nice dissertation on what's going on with the economy over at a Starcraft fansite (not what you'd expect): http://www.teamliquid.net/forum/viewmessage.php?topic_id=79544

[boondocks77]

Ahahahahahah US is burrowing money from overseas
poor ****s
=]

[OrganisM]

It's called lots of bad management, some crooks, and terrible circumstances.

[tsugomaru]

Ahahahahahah US is burrowing money from overseas
poor ****s
=]

And oddly enough, it's the nation who lends us the money who loses out.

~Tsugomaru

[CyanoticXtC]

Good thing i'll have a steady paycheck no matter what.. I feel horrible for everyone else that will be suffering from this.
The main thing that saved us from the Great Depression was WWII.

[foilman8805]

Bumping this because as of today, the bailout was pretty much a failure.

All global stock markets were down more than 5% today (some as high as 20%), and the DJIA is currently under 10,000 for the first time in years. More and more banks and financial institutions are having to be rescued in Europe, so we're definitely not the only ones.

Also, I love quoting myself:

You will witness the demise of the world economy in the imminent future.

EDIT: Well, you're actually witnessing the start of it right now to be honest.

BRACE FOR DOMINO EFFECT

[H3llacious]

Just look at all the killers: http://www.nyse.com/

edit: The Stock Exchange should be moved to Chicago. Synth will be in charge of putting our economy back into shape.

[foilman8805]

Just to add to the good news here (note: sarcasm), here's an article about two of the biggest banks in America suing each other.

http://www.foxbusiness.com/story/markets/industries/finance/citigroup-files-complaint-wells-fargo-wachovia/

You know times are tough and tensions are high when banks sue each other for money.

[sonic-fast-fingers]

the internet will be empty :(
EDIT: i still don't get how a depression starts

The original depression started from banks lending money to people who couldn't pay them back. (this is happening again)

When banks trust people and give them the $500,000 they need to buy a house and the person can't pay any money back to the bank, the bank forecloses on the people (kicking them out of their house). Then the bank auctions off the house and in most cases the house gets sold for a very low amount as compared to the net worth of the house. Meaning that all of these banks are losing more and more money. Then you have plenty of other things that cause us to lose money. (i forgot the terminology but it is when a company is purchasing more than they are selling which means you are losing money).

[KA0Z R4VR]

Some key events that lead up and entail the depression might give you an idea as well. Some keys points to keep in mind:

GOLD! We all love it, it is worth a bunch, but did you know the value of our dollar depends on the gold we have (as a country)? And we aren't the only country either. Almost every country needs to be backed up by ingots, or gold bars. Simply put, the more gold you have, the more your currency is worth. The price of gold jumped $30 a few weeks ago, and in the course of a day. Gold is one of the most consistent forms of currency, so when gold prices start to rise and drop so much within a day, something is going on. The same day gold jumped $30 higher in value, some of the biggest companies' shares fell -300 points in our Stock Market. In short, it started to crash.

Also, don't forget, we are in debt with a lot of countries in the world; this also plays a big part, but what does that mean? Back to gold! Countries are buying out our gold since the value jumped. If they have more gold, then their currency has more value. In essence, they are buying themselves back the money we owe. But let's go back to gold for a minute: The more gold you have, the more your dollar is worth. If we are losing our gold and selling it to other countries, then our dollar is losing value very quickly, yet at the same time, their currency is gaining more value.



Subprime lending is also to blame here. With lending credit being abused and set free into the "free-market" (aka being deregulated), banks' have gotten themselves into heaps of trouble. They let others borrow money, and they didn't get money in return, especially for real estate. What's happening here is what happened back in the "Great Depression" when banks had loaned "on the margin" and no one had the money to reimburse either the buyers, sellers, or common bank users. Something to keep in mind, a bank isn't just holding your money, it is using it "behind the scenes" usually knowing that is has enough money to back up what it's doing. Hence, why savings account usually have interest growth; the bank is paying you back for letting you use your money, if you will. In the great depression, the banks were using everyones money, and lost it all. Now, the FDIC is inclined (in most bank branches) to protect up to $100,000 of your money in your bank account. That way we have a little assurance that our money isn't going anywhere.

So what does this all mean?
tl;dr?

Gold value went up, US started selling it's gold to other countries, "selling" itself out of debt while countries are "buying" themselves into surplus. Meanwhile, banks were lending money they shouldn't have been due to deregulation. Stocks started to crash with the depreciation of our dollar, including national bank shares and lending companies. So now you have a dollar worth less, and other countries having more value which in turn leads to the selling and "buying-out" of the US's major companies and shares in the stock market, and now we can't buy ourselves out of it so easily since our dollar isn't worth as much now as it was at the time of lending. The US is in debt: with our banks, with ourselves, and with the world. The end.

[OrganisM]

Dun wurry gaiz, the rite ppl r makin munny.

[Adamaja456]

US got pwnd on the 1 year anniversary of DOWs highest recorded number. like 14100. and now its down to 8600 or something. i hope this doesn't affect my finical aid for college(but it probably will :( )

[travman301]

****, the honey bees are still dying too. =(

[Biff_tech]

We must invest in bee farms everyone must invest in bee farms it's the only sure thing to get us out of this depression!

Anyways I don't really have much thought on this because well i'm not American and I don't really care about who screwed up as long as I have a job and don't have to join the military for some bs war. *Since i'm in Canada that's not going to happen HURRAY*

[travman301]

We must invest in bee farms everyone must invest in bee farms it's the only sure thing to get us out of this depression!

Anyways I don't really have much thought on this because well i'm not American and I don't really care about who screwed up as long as I have a job and don't have to join the military for some bs war. *Since i'm in Canada that's not going to happen HURRAY*

Oh hallo thar worldwide markets. This is affecting the whole world, not just America.

Also, its not a depression just yet.

[DDRBaller123]

Watch this...

[Chorus:]
This is the Depression
Just when I thought I said all I could say
The United States about to die we losing money got another one on the way
this is the depression
Man I'm thrown and I dont know what to do
I guess I gotta hear part 2 of the depression
If I'm gonna listen to it then I gotta listen tol it all
Damn near cried when I got that phone call
I'm so throwed and I don't know what to do
But to hear my part 2 of the depression

[Verse 1]
Now this gon' be the hardest thing I think I ever had to do
Got me talkin' to myself askin' how I'm gon' tell you
'bout that depression on part 1 I told ya'll that we were deep in with, deep in with
Said the depression's 3 months in and the news was repeat it
The first thing that came to mind was you
Second thing was how do I know if it's a lie and is it true
Third thing was me wishin' that the depression never did what It did
How I ain't ready for no Part2 and bye bye to Part1

[Chorus:]
This is the Depression
Just when I thought I said all I could say
The United States about to die we losing money got another one on the way
this is the depression
Man I'm thrown and I dont know what to do
I guess I gotta hear part 2 of the depression
If I'm gonna listen to it then I gotta listen tol it all
Damn near cried when I got that phone call
I'm so throwed and I don't know what to do
But to hear my part 2 of the depression

[Verse 2]
Sittin here stuck on stupid, tryna figure out
When, what, and how the depression is gonna let this stop come out of the people's mouth
Said it ain't gon' be easy
But we need to stop thinkin', contemplatin'
Get BUSH and tell him to get this over with (over with)
I'm ridin' in my whip
Racin' to the U.N place
Talkin' to myself
Preparin' to tell them to their face
I got there and open up on the floor and they didn't want to come near me
I said "one second please hear me"

[Chorus:]
This is the Depression
Just when I thought I said all I could say
The United States about to die we losing money got another one on the way
this is the depression
Man I'm thrown and I dont know what to do
I guess I gotta hear part 2 of the depression
If I'm gonna listen to it then I gotta listen tol it all
Damn near cried when I got that phone call
I'm so throwed and I don't know what to do
But to hear my part 2 of the depression

[Breakdown]
This by far is the hardest thing I think I've ever had to do
To tell them, the one NATION I love
That I'm having a Depression Part2 by the NYSE that I barely even know
I hope you can accept the fact that I'm am part of a NATION and PROUD to tell you this
And hopefully you will not give the Depression another chance
This ain't about U
This ain't about Me
It's about our NATION
Please

[Chorus:]
This is the Depression
Just when I thought I said all I could say
The United States about to die we losing money got another one on the way
this is the depression
Man I'm thrown and I dont know what to do
I guess I gotta hear part 2 of the depression
If I'm gonna listen to it then I gotta listen tol it all
Damn near cried when I got that phone call
I'm so throwed and I don't know what to do
But to hear my part 2 of the depression

[Adamaja456]

deep recession = depression

[MalReynolds]

Within 5 minutes of the market opening today, it dropped 500 points.

...

whoo.

[who_cares973]

**** is going down

[foilman8805]

The US is in debt: with our banks, with ourselves, and with the world. The end.

The world is also in debt with their banks, theirselves and with the world.

We are not the sole progenitor of our economic demise. And you will watch the world economy suffer in the coming year like I've said before. It's not just us.

After the global recession, the financial system that is based on greed and selfishness as we know now will be replaced with a more fair, and functional financial system.

[KA0Z R4VR]

The world is also in debt with their banks, theirselves and with the world.

We are not the sole progenitor of our economic demise. And you will watch the world economy suffer in the coming year like I've said before. It's not just us.

After the global recession, the financial system that is based on greed and selfishness as we know now will be replaced with a more fair, and functional financial system.

Dubai isn't having a real estate crisis. Russia is growing military wise and under the socialism, the government will always have money. Iraq is in a $70,000,000 surplus. So when one of the worlds worst off countries is in a surplus, I can almost guarantee the US is in a worst condition than many others. Reason being, the US is always trying to help everyone else without taking the time to help itself.

There isn't a global recession at hand. I have a friend who just moved to Japan for a little while, and she LOVES it over there. She makes a living and their economy so is so much more stable. In fact, she doesn't want to move back to the US. This is a US recession, and just because we have ties to other countries doesn't mean "we all fall down".

[H3llacious]

**** is going downGas is going down.

$2.99/gallon. Hasn't been that low in a year; all because of the Wall Street crisis. See if I can buy another small truck if it goes down to $2.50/gallon.

[Sullyman2007]

It's called lots of bad management, some crooks, and terrible circumstances.

Nah, I think Flipstah pretty much nailed this. The economy is just as much our responsibility as it is the governments. Actually government regulation was nearly unheard of until very recently. We even tried to de-regulate for a while thar.

Yes I am saying we need regulation. In case I sound like I'm contradicting myself, I'm all for divine intervention at this point.

[OrganisM]

*sigh*

[x After Dawn x]

It's a shame that this all had to happen right when Canada's economy was strong...because as we all know from past experience, when the U.S. sneezes, Canada tends to catch the cold as well.

Luckily I've been saving hundreds and thousands of dollars all my life, so hopefully all this money will come into good use when I need it.

[H3llacious]

Got my hours cut. Now I'm only working weekends. ****.

[wwwJ4mmYcouk]

There is not going to be another 1929 so dont even think that.

None of you REALLY no whats going on (to be honest i don't either but i have been told by people)... you see the ftse100, the dow, ect go down... it does not mean we will have another great depression!

Seriously. Here in London i am friends with a few traders (dont care if you believe me, as you probably wont), and they have said it's NOT going to get that bad as before as your government in America and the donut we have wont let it.

[KA0Z R4VR]

Yes, some of us "REALLY" do know whats going on. Some are interested in political science and economics. Not many, but still few. Read my post and you will understand this a bit more.

And please, before you say "there is not going to be another 1929..." the last thing I want to read from the post is "Here in London..."

[wwwJ4mmYcouk]

Yes, some of us "REALLY" do know whats going on. Some are interested in political science and economics. Not many, but still few. Read my post and you will understand this a bit more.

And please, before you say "there is not going to be another 1929..." the last thing I want to read from the post is "Here in London..."

Does not matter if i say "here in London", the wallstreet crash messed up London too.

Anyway - i had a few too many drinks when i replied last night :-)

[Relambrien]

Anyway - i had a few too many drinks when i replied last night :-)

Remember kids, don't drink and post. You might end up like wwwJ4mmYcouk, and be trolled and flamed off of your life-long forum and lose all your e-friends.

[OrganisM]

OH GAWD here comes the motivational...

http://www.bandyhumor.com/Handler.ashx?PhotoID=51&Size=L

[Mr. Bob]

solution to all of this

i am moving to antarctica to start a new community utilizing a trade/barter system

[OrganisM]

i have the best idea

i'm going to stock up on cheetos, marijuana, and beer, and I'm going to have constant sex, drinking, smoking, snacking, and gaming until it's all over.

wait, that's what many of us are doing anyways.

[super kid]

i have the best idea

i'm going to stock up on cheetos, marijuana, and beer, and I'm going to have constant sex, drinking, smoking, snacking, and gaming until it's all over.

wait, that's what many of us are doing anyways.

:P You know it lol.

By far the best idea. Although i doubt we will have another depression like the 30's

[pokelda]

If you think there is going to be another depression you're an idiot.

wat

[OrganisM]

maybe we should just RRRAAAAAAAAAAGE.

[wwwJ4mmYcouk]

Remember kids, don't drink and post. You might end up like wwwJ4mmYcouk, and be trolled and flamed off of your life-long forum and lose all your e-friends.

Remember kids (Your age is 17).

Nice attempt at being funny though.

[super kid]

Dow up 936 points.

[Sullyman2007]

Lol, we aren't heading into a depression. I pay attention to the stock market.. and I've dealt with it a bit myself. It pretty much has hit the ****ter but I'm certain things will clear up before it gets to the point that you all are thinking.

[csoup1414]

Did someone call for me?

way to go =D awesome job.
another depression is bad...don't know enough about politics and such to say much else