National Bankruptcy

[88Mariner]

http://www.cnbc.com/id/26656750/site/14081545/

The end result of the global economic slowdown may be the U.S. announcing national bankruptcy as the government cannot afford the bailouts that it promised and the market will not bail out the government, Martin Hennecke, senior manager of private clients at Tyche, told CNBC on Thursday.

"We expect a depression in the United States. We expect a depression, very possibly, also in Europe," Hennecke said on "Worldwide Exchange."

jaysus. screw the election. this is more important.

[FM]

Re: National Bankruptcy

Lehman may be filing bankruptcy tonight.

Add another to the list.

[FM]

Re: National Bankruptcy

In the past, a town or 2 may either declare bankruptcy, or ultimately get taken over/run by the state through receivership, loans, etc.

Just recently, there are now a few counties either bankrupt, or on the verge of such.

Next could very well be an actual state.

It just keeps progressing upward.

[88Mariner]

Re: National Bankruptcy

^ Ron Paul predicted the Lehman bankruptcy years ago. I'm not calling him prophetic, but I'm beginning to think that his words should be lent more weight. Some of the recent stuff he's said worrisome....and Greenspan has substantiated them--> the 'Span said that McCains tax cuts will not work....man that could be troublesome if he does get elected.....

I'm all for tax cuts and limited government, but if I were to choose between higher taxes and saving the fiscal viability of the US, or taking a tax cut and losing it all....obviously the choice is the former.

Then again, perhaps the former would only prolong the inevitable?

[Lorn]

Re: National Bankruptcy

^^What does the average family do when things are tough on the finance side? They cut the budget.............

[88Mariner]

Re: National Bankruptcy

And what do those families do when they declare bankruptcy?

[Lorn]

Re: National Bankruptcy

Lose everything and start over.

[88Mariner]

Re: National Bankruptcy

Joe Klein reveals ( http://www.time-blog.com/swampland/2...sescontin.html ) that John McCain's chief economic adviser is smart enough to know that unless there are real, deep cuts in entitlements, taxes will have to be raised somewhere if the US is not going to fall off a fiscal cliff. But McCain will not say so in this campaign. Why? Matt Miller's forthcoming book explains:

So why does tax-cutting mania persist among Republicans, I asked [Douglas] Holtz-Eakin, the McCain adviser--given...that, as Holtz-Eakin himself explained to me, taxes soon have to go up substantially in any event?

"It's the brand," he said, "and you don't dilute the brand."

Beneath McCain's veneer of dishonesty lies another veneer of cynicism. They're interested in marketing, not governing, in lying, not debating.

[Lorn]

Re: National Bankruptcy

Right. Lets stop with the tax cut bull*&$ and start cutting spending....the current foreclosure numbers reflect what is happening with our governments spending, ie, spending more then it can afford, but does it anyway because they can borrow it.

This is nonsense. I understand the US has enormous resources but there will come a time when it simply can't go on like it presently is.

To go through all the unfunded liabilities congress has co called guaranteed is mind boggling.

Looking back at what happened during or more accurately right before the great depression of the 30's, Banks had huge 'Banking Pools' where they pooled together depositor money to try and rescue the sputtering financial system of the day, kind of like the FED of today and what they are/have been doing.

Now the lender of last resort is turning out to be Congress. Trying to stop the natural course of risk is in an of itself a much greater risk and this is what they are attempting to do.

[i!!ustrious]

Re: National Bankruptcy

It is asphyxiating that they have been calling this "Black Sunday" btw.

I can only imagine all the panic going on right now in high places. IMHO this is going to suck hard, but this inflated bubble had to burst, for better forms of economic reform to take place. The elephant can no longer hide under the rug, and even the media/politicans can't spin the situation otherwise.

Remember Lincoln with the Greenbacks and Kennedy with the 2 dollar bill thing? nuts.

/Investing in gold etc.

[Lorn]

Re: National Bankruptcy

http://www.securagroup.com/news/archives/articles/2008/AB080827.pdf

The banks have been paying money to the FDIC, the FDIC has
been turning the money over to the Treasury, and the Treasury has been
spending it on missiles, school lunches, water projects, and the like. The
money's gone.

Interesting little read on the FDIC and banking industry by a former chairman of the FDIC.

[FM]

Re: National Bankruptcy

which is why if a few more institutions fail in a row, the FDIC would be out of money to insure the accounts that they would vs. what's available in their annual budget...so they go to the Treasury for more!

I'm waiting to see G.D.-style of thousands lining up at banks to try and get their money out (was a pretty good sight when IndyMac failed)

[Miroslav]

Re: National Bankruptcy

keep in mind that the US Government doesn't "run out of money"; they can print football fields full of the stuff, if they wish. The real problem is that the stuff then becomes near worthless as heavy inflation takes hold. And that is like a direct and massive tax on every one of us that undercuts our standard of living. See my "recession or hyperinflation" thread.

[Localizer]

Re: National Bankruptcy

^ exactly. This is reminiscent of the depression of 1929. Well, I guess I'll be able to experience a depression.

[toasty]

Re: National Bankruptcy

Well, I guess I'll be able to experience a depression.

To anyone that's been listening to me for the last 36 years, when I said I'd like to experience everything once, I forgot to exclude "a depression." My bad.