Economy saved but for how long?

[RadioRaheem84]

I figured the big bankers and monetarists in the Fed learned their lesson with this last crash but it seems like they patched things up long enough to wait for the next bubble. It seems like TARP was just another in a series of the government acting as lender of last resort.

Hank Paulson, in this video can't even answer a critic of the TARP program when he explains that the economy may have been saved from collapse but the issue now is that nothing has changed to avoid another collapse, in fact it's worse than before! The next crash could make this one look like nothing we've ever seen.

http://news.yahoo.com/video/politics-15749652/17913953#video=17915025

Your thoughts? Anyone in here good with Economics? Jacob Richter?

[cyu]

I think there's a difference between "economy saved" versus "capitalism saved" or "bankers saved" - one might argue that capitalism and bankers have been saved, while the economy has always just been cycling between crap and crappier.

[RadioRaheem84]

Right. That's kind of what I meant by economy.


Do you guys think the economy will teeter on the brink of another collapse that will eclipse this last one?

[cyu]

Do you guys think the economy will teeter on the brink of another collapse that will eclipse this last one?


When it comes to issues like this, I'd rather focus on policies than predictions. The policies I favor would be whatever causes the capitalist economic system to collapse and be replaced by economic systems that can actually provide for the poor.

To that end, I would encourage left-leaning nations to dump both the "precious" metals and foreign exchange that they have in their treasuries, into the global market - using that to gather up things that will improve their own productive ability: things like machinery, raw materials, technology, information, etc.

The more they dump the mediums of exchange that capitalist nations rely on, the more those mediums of exchange appear in the market chasing the same number of goods - this of course leads to a drop in their value. The more left-leaning nations that join in this dumping, the faster their value falls. If left unchecked, it will lead to a crash in capitalist mediums of exchange that will force even pro-capitalist nations to dump them as well if they want to preserve their wealth.

Who ends up holding all the cards when this is over? The people who are actually doing the work and who actually have the means of production to do that work. I suspect at that point, even many capitalists would be forced to switch their alliegances - because to do otherwise would just result in their own economic downfall.

[Misanthrope]

Capitalism is a system of decadence that periodically experiences crisis. The economy is not 'saved'.

[RadioRaheem84]

Capitalism is a system of decadence that periodically experiences crisis. The economy is not 'saved'.

;) Yeah, I already got that, thanks.

Point is that this crises has been averted and there is preparation being made for the next one to unfold. Only this time its supposed to be much worse.

[RadioRaheem84]

http://finance.yahoo.com/news/Recessions-job-losses-likely-cnnm-1998556151.html?x=0

Capitalist admit their numbers were a bit off. Job loss is much worse than initially recorded. Not expected to get any better. It looks as though the big banks were saved from collapse but not the American people.