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Thread: The big bail out

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  1. #1
    Join Date
    Apr 2004
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    America is in trouble. I smell the general public revolting. It is going to get scary out there. No one, and I mean NO ONE is going to have any money. Banks are going to go under. All our money will be worthless. We are witnessing the collapse of our country. We have stretched ourselves to thin and we are now destroying it from the inside out. The government is going to be overthrown and Marshall Law is going to reign supreme. I am truthfully scared.

  2. #2
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    Oct 2002
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    Quote Originally Posted by Sir Lifts-a-lot View Post
    America is in trouble. I smell the general public revolting. It is going to get scary out there. No one, and I mean NO ONE is going to have any money. Banks are going to go under. All our money will be worthless. We are witnessing the collapse of our country. We have stretched ourselves to thin and we are now destroying it from the inside out. The government is going to be overthrown and Marshall Law is going to reign supreme. I am truthfully scared.
    That isn't going to happen.

    We have something in the neighborhood of 10 trillion in debt as a country, so this proposed bailout is roughly 7% of that.

    How could our currency suddenly implode more than 7%?

    If it did, there would be an insane arbitrage opportunity for foreign investors, and it would immediately correct itself with normal trading / hedging.

  3. #3
    Join Date
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    Quote Originally Posted by daem View Post
    That isn't going to happen.

    We have something in the neighborhood of 10 trillion in debt as a country, so this proposed bailout is roughly 7% of that.

    How could our currency suddenly implode more than 7%?

    If it did, there would be an insane arbitrage opportunity for foreign investors, and it would immediately correct itself with normal trading / hedging.
    You forgot to calculate the contraction of money in circulation by the banks when they all stopping lending money. I am gonna guess that this is wash as far as inflation goes.

    Fed reserve isn't the only ones that can print money. What do you think banks do when they take in $1 and lend out $2.

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