Banks Bailout - Utopia

Zynks

Let's get real. If the objective is to jump start the economy, it just won't work. Why? Because there is almost nobody to lend to. Most individuals are either maxed out or in negative equity territory. Others can't afford (yet) what they would like to get, and the wise ones who have some savings are just sitting back and laughing at the meltdown.

Companies need overdrafts and loans to revive their cash flow, for sure...but who is willing to lend to them? There are very few safe bets out there. This will not be resolved by banks, and it is where the government should intervene. But many more casualties should be expected before things get any better.

The only way things will start working again is when we manage to pay back a good chunk of what we owe and we have spare cash to spend and get the economy in motion. There is no magic formula, we are just stuck. The sooner we accept that and start looking at ways to pay back, the sooner things will get better.

We need a few banks to survive the huge losses, but it would be no harm to let a few of them sink, which means hedge funds and institutional investors will have to take a chunk of the pain, and some pension funds will dry out.

And the same applies to the US. Sit back and enjoy the sight as they throw good trillions behind bad trillions.

ionix5891

Zynks wrote: »

and the wise ones who have some savings are just sitting back and laughing at the meltdown.

ive alot of savings, and watching nervously as once this deflation clears out the house of the accumulated crap we will end up with real risk of hyperinflation due to all the money being printed flooding the shrunken market

and damned property (to live in not to invest) is still to expensive

Zynks

I wouldn't worry too much about hyperinflation. They can print as much as they want. There are very few channels for this money to enter into circulation.

It is sad though to see savers not being rewarded. We need many of those and far less spenders on credit.