If every debt holder cashed in right now

[magnifier661]

I don't think you understood my post then, since it is the government that makes all this possible.

Oh don't misquote me because I agree there will be another financial collapse soon, but for somewhat different reasons.

The government is the problem. Never said it wasn't. The world-wide economic model is seriously broken. Any economist would agree that over-leveraging 10-1 will eventually create a bankruptcy. If I had a wife that maxed out all my credit cards and I had to fund seconds on all my homes to pay off the debt; only to have my wife max out the credit cards again is not even a 10-1 leverage; yet I would probably be bankrupt quicker than 2 years.

 

[huevonkiller]

The government is the problem. Never said it wasn't. The world-wide economic model is seriously broken. Any economist would agree that over-leveraging 10-1 will eventually create a bankruptcy. If I had a wife that maxed out all my credit cards and I had to fund seconds on all my homes to pay off the debt; only to have my wife max out the credit cards again is not even a 10-1 leverage; yet I would probably be bankrupt quicker than 2 years.

I like that explanation too.

 

[magnifier661]

No I am looking at percentage of jobs lost during the recession, not the amount of jobs lost. There's a difference.

A job is a job, and the connection to the world-wide economy actually effects every sector. Let's say Joe has a metal fabrication company. They make molds for Hospital Beds. Let's say the oil industry sector drops by 20%. That in turn increases the cost of oil by 40%. Transportation costs increase by 40%; which jacks the price of the molds by 20%. The hospital bed wholesalers, then decide to purchase beds from China because they are now 20-30% cheaper than the US company. That snow balls with China requiring more steel to meet the demands of the US hospital companies; which in turn increases the price of steel. Then the car manufacturing companies pay increased premium for steel and can't afford to sell their cars at the desired consumer pricing model.

The car companies and steel fabricators are both effected and they lose jobs because they aren't receiving the revenue to keep the currently employed.

 

[magnifier661]

I like that explanation too.

Thanks man. I know I sound a little paranoid; but I just think we as the people in this country need to be a little more cautious on the government we put in office. Any congression that believes a 10-1 leverage spending is just a complete set up for failure.

 

[BLAZINGGIANTS]

You really think that in a mass panic bank run people are going to be thinking about the long-term and what's good for the country? People will be rushing to get what they possibly can before it's completely gone. That's why bank runs have happened and why the government and Feds were incredibly scared of that happening in 2008.

No, I think they'll know before the mass panic what they'd be in for, so they would avoid the mass panic altogether. If it did get to mass panic, EVERYBODY would be fucked, and I think those with the ability to cause mass panic know this, therefore, again, they would do what they can to avoid it. I guess you missed that point of my posts.

 

[magnifier661]

No, I think they'll know before the mass panic what they'd be in for, so they would avoid the mass panic altogether. If it did get to mass panic, EVERYBODY would be fucked, and I think those with the ability to cause mass panic know this, therefore, again, they would do what they can to avoid it. I guess you missed that point of my posts.

But what if the government elected is actually creating the panic and are the decision makers for this country? What if our government is leveraged spending 10-1? Who will stop them?