MrKrisSullivan

Ummm... yeah exactly pretty much what I said on the other topic posted about the "Bail-Out"
The depression was caused by buying "on margin". Just like credit card companies can give you a credit- card not knowing if you have any means to pay the debt back. That's why there tightening up on just handing out credit cards in the last several months, they knew this was about to happen.
So picture this will ya>>>>> say a 100,000 people use their credit cards to buy gas and milk, that's it. They each ring up say a couple thousand dollars in debt.... they can't pay back their debt due to hard times and job cuts high prices and the fact inflation had definatly caught up to us. So 200 million dollars that never gets paid back, that's on a extremly small scale too you could easily multiply that buy ten. Now we can talk about the housing market and forcloseures on homes. Who do you think pays for all this?? Our government, we are screwing ourselves.
In the 20's you could "buy on margin" with Wall-Street... esencially credit in stocks... people would buy stocks with credit. Can you imagine?? Sounds dumb as hell right? But it happend.
What's happening now is in some way the same thing everyone has credit cards it's becoming harder to pay the debt down and people are just forfeiting their debt.

mopar2ya

Is Billionaire trying to tell us he will be engaging in WWIII...

Billionaire

They had to massively raise taxes to pay for world war ii, which created a lot of jobs, which got the money flowing again. IIRC they didn't have an income tax before Franklin Roosevelt, so rich people got to keep almost all the money they made. The WW2 was the reason taxes were raised, but we don't have to have a war to tax and spend. If we really have an emergency, I guess we could raise taxes on the very wealthy people & wealthy corporations and use the money to create jobs in order to get the money flowing and stimulate the economy. I read that the top few percent of people have most of the wealth in the USA. I think we should at least raise taxes on the oil companies, which are making windfall profits right now.

MrKrisSullivan

First off... I agree with you totally... next we have been at war for several years and haven't raised taxes which is one of the big reasons for this debt, besides the whole credit issue we've gotten into.
going to Iraq was the first time that we've been at war and didn't raise taxes..

lear4406

I don't think its the raising of taxes as it is the demand for product. Supply and demand. That is one principle I am familiar with. Credit can be good but its a very dangerous waltz. We as americans for the most part... live beyond our means. Houses and cars I can see, electronics and comfort items don't make a lot of sense. And here we are.

Billionaire

If people have more money to spend (from jobs and loans or whatever) there will be more demand for products, which creates more jobs. And the reverse is true too. After black tuesday in 1929, everyone severely cut their spending because they were scared to death.

MoparToYou

No problems here. I bought the car late in the day on a Saturday, and didn't finally sign the papers until just after 5 PM. The banks were already closed, but the dealer let me take the car home that night anyway. The loan was huge because there was no trade in, and I only put $5000 down. So I thought for sure I would be getting a call from the dealership on Monday. I had also heard about how tight the banks were getting with loans. On Monday I did get a call from the dealership, but it was because the bank had given me a better interest rate (3%, instead of 3.75%) and they needed me to sign the new credit application for the lower amount. I guess the credit mess isn't as bad as you would think by watching the TV news every night.

MoparToYou

Billionaire

Geez! The news reporters are even bigger liars than I thought. They're all saying that credit is totally frozen and nobody can get a loan anymore, including those with good credit histories.

Guess what? My sales are still good too. I mean they showed retailers on TV saying that their sales were down, but mine aren't.

mopar2ya

Been seeing 8% sales gains this year over last years sales here. Not quite the gains we saw last year but respectable none the less. Just hope people don"t get too scared from all the media hogwash and we continue to see this kind of growth. Time will tell...

lear4406

Seems speculation drives alot of the gains and losses. I hope that all who have the means and can repay it will get the opportunity to do so. I have no credit cards and have dealt in cash for most of my purchases. House being the only exception. Hard to come up with that kind of cash I got rid of the credit cards when I learned how dishonest they are in their dealings. I do not regret getting rid of them. My life is kept as simple as is possible. I have been blessed with good health and pray I stay this way. To eneryone out there beware of those who lend, but do try to keep even kealed on the economy. I would not panic and continue to move forward with my financial plans... albeit very causously