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Author Topic: The Economic Downturn..  (Read 116021 times)

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Danecho1967

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Re: The Economic Downturn..
« Reply #495 on: August 11, 2011, 01:56:11 PM »
As to FDIC insured money, i fail to see how what i said is wrong.  Ill cut you some slack and assume i didnt word it well enough to explain my point.   My money (aka money i have earned and worked) I put into the bank.  The bank goes under aka invest all the money badly and loses it all.  The government says well those who put their money into the bank we have insured.  So they pay those who lost their money in the bank with their money (i assume revenue gathered from taxes).  So although you are paid back and you still have the same amount of money, the money you have came from a different place.  Was made in a different manner.  It is literally different money. 
But, if I make a cash deposit one day and withdraw the same amount the next, odds are good I would have literally different money...  If your point is that having the government insure people's bank deposits is wrong, I could see THAT point.

I think anyone who has ever seen my comments here knows I'm a small government guy.  As such, I should (probably) oppose programs like the FDIC.  There are two reasons that I don't. 

First: putting your money into a bank should not be a gamble.  There should be no risk of losing your money because you put it somewhere "safe." 

Second: Try as I may, I can't think of a better way that banks can make money to stay open than for deposits to be insured by an organization that has less chance of going under than the bank itself.  I can't think of any organization that fits that description other than the US government.  (For US banks, of course.)

Mismanaged as it is (it is, let's be honest) the US government is still less likely to completely fail than any other organization that could provide deposit insurance.


Offline Tripe

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Re: The Economic Downturn..
« Reply #496 on: August 11, 2011, 01:58:53 PM »
Mismanaged as it is (it is, let's be honest) the US government is still less likely to completely fail than any other organization that could provide deposit insurance.
Bingo, and there we agree. Remember  my thing about corporate/gestalt entities for a hile back, that's the foundational reason for their existence.: Size = Stability (of a sort) and Leverage. :)
« Last Edit: August 11, 2011, 02:01:09 PM by Tripe H. Redux »


Offline sarcasm_made_Easy

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Re: The Economic Downturn..
« Reply #497 on: August 11, 2011, 02:10:39 PM »
Quote
But, if I make a cash deposit one day and withdraw the same amount the next, odds are good I would have literally different money...  If your point is that having the government insure people's bank deposits is wrong, I could see THAT poin

Nope.  I dont think its wrong.  Well maybe.  but that has nothing to do with my point.  When you withdraw money as you are saying they are giving you back the "worth" that you put in.  yeah the dollar bills arent the same ones, but that wasnt what i meant either. I am referring to the fact that where the money comes from is LITERALLY different.  When you withdraw you are pulling out your money when the government (or any insurance company) steps in the money you receive is coming from somewhere else.  So when the government is paying back they are taking money they raised to give to replace the money that you raised that is lost. 

Really that was my only point.  That the money returned wasnt "your" money in exactly the same way.  I made no judgement on wether or not it is a good thing.  I still dont have such a judgement.  .

Quote
I didn't say you were dense I said you were being obtuse. It's not an insult


from dictionary.com:

obtuse - 5 dictionary results
ob·tuse   /əbˈtus, -ˈtyus/  Show Spelled
[uhb-toos, -tyoos]  Show IPA
 
–adjective
1. not quick or alert in perception, feeling, or intellect; not sensitive or observant; dull.
2. not sharp, acute, or pointed; blunt in form.
3. (of a leaf, petal, etc.) rounded at the extremity.

I am sure you didnt mean it as an insullt youve always seemed pretty cool to me.  However i fail to see how it isn't an insult.  I guess i just have no idea what you are really getting at. 


Offline mike5150

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Re: The Economic Downturn..
« Reply #498 on: August 11, 2011, 03:21:31 PM »
I didn't say you were dense I said you were being obtuse. It's not an insult.


Now if you said he was being ACUTE......well, that would just sound gay 


Offline k1

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Re: The Economic Downturn..
« Reply #499 on: August 11, 2011, 03:31:57 PM »
And Mike swoops in and saves the day!


Online RVR II

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Re: The Economic Downturn..
« Reply #500 on: August 11, 2011, 04:00:39 PM »
And Mike swoops in and saves the day!
:D :D


Offline k1

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Re: The Economic Downturn..
« Reply #501 on: August 11, 2011, 04:04:10 PM »
And Mike swoops in and saves the day!
:D :D

Free cookies and PUNch for everyone!


Offline sarcasm_made_Easy

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Re: The Economic Downturn..
« Reply #502 on: August 11, 2011, 04:13:04 PM »
Inward outward backward forward bottom to the top
its the race that never ends and never ever stops. 


Offline Tripe

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Re: The Economic Downturn..
« Reply #503 on: August 11, 2011, 04:32:02 PM »


Offline Bob

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Re: The Economic Downturn..
« Reply #504 on: August 11, 2011, 04:41:04 PM »

In the end, the belief that rich people just have money sitting around waiting for them if things get tough is largely a false belief.

I know, I have put all my spare cash in monocle and sock garter funds.   Of course, my couch IS made out of stacks of hundreds.

I feel sorry for the people who closely follow their 401K balance and the stock market daily as it leads many of them to do INCREDIABLY dumb things like move money out of stocks when they are falling into near-cash instruments, then jump back in as the stocks are rising.   Everyone knows not to do the "buy high, sell low", but a ton of them do.   My 401K is staying in stocks and funds until it is two years before retirement, THEN I think about moving into safer items. 

401Ks are long term items not to be looked at in the short view.


Offline k1

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Re: The Economic Downturn..
« Reply #505 on: August 11, 2011, 04:49:13 PM »
When everything all went to crap right before I was laid off I threw a ton of money into my 401k partly because my company was still matching up to 8 percent of our paycheck and everything was super cheap.


Offline sarcasm_made_Easy

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Re: The Economic Downturn..
« Reply #506 on: August 11, 2011, 04:53:43 PM »
Quote
401Ks are long term items not to be looked at in the short view

Heh yeah my boss just told me he lost a ton of money in his this week.   Then i asked him how much is it up overall since he started 11 years ago.  A ton was the reply. 


Offline mike5150

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Re: The Economic Downturn..
« Reply #507 on: August 11, 2011, 05:01:18 PM »
And Mike swoops in and saves the day!
:D :D

Free cookies and PUNch for everyone!
oooooh...and little sandwiches!! Don't forget the little sandwiches!!!!


Offline Bob

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Re: The Economic Downturn..
« Reply #508 on: August 11, 2011, 05:36:51 PM »
And Mike swoops in and saves the day!
:D :D

Free cookies and PUNch for everyone!
oooooh...and little sandwiches!! Don't forget the little sandwiches!!!!

Better not be those crappy cucumber ones...... :angry:


Offline FLOCK of RABID SHEEP?!?!

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Re: The Economic Downturn..
« Reply #509 on: August 12, 2011, 09:12:45 AM »
And Mike swoops in and saves the day!
:D :D

Free cookies and PUNch for everyone!
oooooh...and little sandwiches!! Don't forget the little sandwiches!!!!

You guys are making me hungry lol.

Better not be those crappy cucumber ones...... :angry: