Great Depression risk may force U.S. Gov to buy assets

also when the market threatens to crash the Plunge Protection Team is known to step up and buy stock futures

if you are a short seller this is a big problem, but if you are a citizen i think i would rather have the gov't or fed step in and prop up the markets b/c it will help sustain postive consumer sentiment (especially among the groups that typically hold these stocks in highest amounts)

there must be limits and though to when it is too costly to act or when the pressure (selling) is too great and overwhelms their efforts.

Originally posted by Vitchilo
That's it, i'm buying one year worth of food and guns...

VITCHILO-Don't be such an alarmist, be patient and wait a few more months.

With Federal acquisition and majority control of Kroger and Smith and Wesson, their products will be included in your tax rebate ( er I mean dividend)

BlackRock here we come!!!

There's really no other way to say it. We are dealing with the politics of economic decline. Government officials can see what's coming, and they're going to exploit it in the only way they know how. I am really goad to see other people talking about this.

reply to post by TheBorg



I agree with this. The line between huge corps & Gov is thinning all the time. They are basically becomming one and the same entity. The big corps basically RUN our gov, so they may as well become 50/50 partners. Problem is, this will extend and trickle all the way down to literally ANY business that owns stocks. More power and wealth grabs.

How do banks make their money? Is banking actually a profitable business?

The banks take big gambles. When they win, they keep the profits. When they lose, they get bailed out by the government. Government bailouts work to an extent, but the banks generally prefer to hand their risk to someone else. This risk was put into complicated derivative instruments, although some remained with the original banks.

one thing to keep aprised of is the whole petro dollar recyling game and the upcoming pressures placed on it.

As the fed lowers rates, and loans more and more dollars into existance to bailout banks (or keep them solvent)

look at first two charts here (they show how desperate and extreme the bank borrowing was and how bad it was needed)

www.marketoracle.co.uk...

as they do this and the rest of the world (china, japan) continue to keep their currency down ( and from rising too fast) the race to the bottom begins for ALL fiat currency's including the EURO ( Euro zone banks are hit hard and the central bank is soon to cut rates their as well) this will ignite Gold and Silver (even platinum) prices, the trend may slow in america short term (vs. metals priced in other currency's simply because the dollar has bounced up from it's weakest levels (only in relation to the devaluation in other currency's though).

but i am getting away from the point i was trying to make in the beginning, as The FED is getting desperate to recapitalize banks , and with continued writedowns, they will continue to need to lend more dollars into existance and by doing so, the inflation in the united states (and the inflation expectation going forward will cause bond (i.e treasury) returns to be hard pressed to even equal the yearly increase in inflation (devaluation in purchasing power). Thus this puts pressure on the petro-dollar system in my mind. some day the OPEC country's will start investing their revenues in GOLD and SILVER instead of U.S treasury's because treasury's are losing money. This will lead to war because the weakening of treasury purchases weaken the u.s power and thus (the U.s) leverage in the world finacial and military arena's. The U.S empire will not go down w/o a fight IMO.

or perhaps the OPEC country's will allow america's military threat to keep them holding and buying treasury so that 1/ they are not attacked 2/ a stoppage of treasury purchases could result in a run out of the dollar, causing these country's to lose even more of their investment (mountains of dollar reserve's) who knows? But GOLD ans Silver should do well, especially denominated in euro currency, but also dollar and yen and yuan and swiss franc as well.

either way all currency's will be getting devalued at varying rates and stability in the global arena is not gauranteed, **if you have the means, you NEED to have a back up plan b (which would involve guns, seeds/water/canned food, and a rural property) if you don't network to find someone that does, because a world built on debt, and the growing of that debt based on a financial system in decline spells very large social changes. **

the possibility also exists that their is another false flag attack which is allowed to collapse the financial markets (or allow those propping them up to stop) this will deflect the populous's anger toward the suspected perpatrators as well as destabalize the country and demand a police state response. after that we are in uncharted territory and perhaps biological weapons will be released ( wonder why all those microbiologists died?) to cull the useless eaters, since they will be unemployed and incapable of providing for themselves. gloom and doom is a realistic part of history, which shines it's face on the present every so often.

[edit on 15-2-2008 by cpdaman]

[edit on 15-2-2008 by cpdaman]

reply to post by crontab


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