Am I the only one? Options

[Mommy]

Am I the only one here who feels that the media is largely to blame for our country being on the brink of a recession?
I mean, the way I see it is our country is driven by consumer spending. Yes, the current credit crisis is largely to blaim as well, but I think it was made worse by the fact that the media has been overdramatizing the current state of the economy which in turn worries consumers. Worried consumers don't make big purchases. I am so sick of headlines that read "Some analysts say our country is already in recession" and shit like that.
I'm starting to think that our country will fall into a depression, and the media will be to blame because consumers will pull their money out of banks, out of investments, etc.
Another thing, I think the federal gov't needs to back the fuck off and quit lending banks billions upon billions of dollars to stay above water. Our national debt has to have skyrocketed in the past 8 months. The only move I agree with was the move to keep Bear Stearns from collapsing.
And now this morning they unveleiled a financial overhaul for our economy... "The largest proposal since The Great Depression" according to media sources *rolleyes*.... burried deep within the story, they briefly mention that it will be held up in Congress for months, maybe even years.
Why does our economy rest in the hands of a bunch of bureaucrats in Congress whose knowledge of economics most likely comes from one college course they took as a freshman, some 20-30 years ago? I don't like it.
These are just a bunch of things I have been thinking about lately. Believe me, I am no economist. Last time I took economics was in high school, but I think a lot of these things are pretty obvious.

Thoughts on the media coverage? Thoughts on the Bear Stearns move? Thoughts on the new financial overhaul released today (links below)?

http://biz.yahoo.com/ap/080331/fed_overhaul.html
http://money.cnn.com/2008/03/31/news/econo...dex.htm?cnn=yes

[Seeker]

we just handed over even more power to the federal reserve

until the u.s. is in control of their own money supply we'll continue to be slaves to the fed (international bankers)

JFK was in the process of abolishing the fed and thus he was assassinated

[blaarg]

I'm starting to think that our country will fall into a depression, and the media will be to blame because consumers will pull their money out of banks, out of investments, etc.
Another thing, I think the federal gov't needs to back the fuck off and quit lending banks billions upon billions of dollars to stay above water.

Let me get this straight, you are upset that people are pulling money out of banks because of the media over dramatizing, but then when a bank is about to go under you don't want them to be saved putting a lot of people's money in jeopardy who decided to stay with the bank?

[impala454]

Maybe there is some terrible problem and our whole economy is going down the toilet, but honestly I just don't see it. The only product I purchase that the price has gone up on a lot lately is gas, and the word in that industry is that prices will be dropping soon.

A friend of mine's dad is pretty high up at Exxon and I was talking to him about jobs at the various oil companies, he mentioned to stay away from Valero, as he said they pay a premium to steal employees away from Exxon, Shell, etc, but that word in the industry is that oil prices are about to start dropping, and they'll have to start cutting those jobs to get that money back.

I think the media is to blame for the general idea that our economy is so turrible and about to just take a huge dump and we'll all be poor and in Great Depression 2.0. I'd guess its just the general democrat pre-election scare tactics (yes the media is largely democrat). Everything always tends to be "bad" just before elections, so the candidates can say "I'll Fix ______ !" even if it's not really broken.

[Mommy]

Let me get this straight, you are upset that people are pulling money out of banks because of the media over dramatizing, but then when a bank is about to go under you don't want them to be saved putting a lot of people's money in jeopardy who decided to stay with the bank?

the government (if they get involved at all) should be helping people... not the lenders who irresponsibly caused the credit crisis.

[Mommy]

Everything always tends to be "bad" just before elections, so the candidates can say "I'll Fix ______ !" even if it's not really broken.

that's true too. I didnt even think about that.

[FORSAKENR320]

we just handed over even more power to the federal reserve

until the u.s. is in control of their own money supply we'll continue to be slaves to the fed (international bankers)

JFK was in the process of abolishing the fed and thus he was assassinated

:: slaps forehead ::

i'll never forgive myself for admiting that this time you make sense...

[Seeker]

:: slaps forehead ::

i'll never forgive myself for admiting that this time you make sense...

i always make sense!

[jwttu]

the government (if they get involved at all) should be helping people... not the lenders who irresponsibly caused the credit crisis.

but they are helping you by making sure the people that invest/hold your money don't go bankrupt

[Hartmann]

The fact that the interest rates for savings types of accounts is disheartening. People who are attempting simple saving measures are not able to do so, making things worse.

[Mommy]

but they are helping you by making sure the people that invest/hold your money don't go bankrupt

how then do we penalize companies then who have such poor lending strategies that they drive our country into a recession (along with dramatic media stories about the lending practices)

[FORSAKENR320]

how then do we penalize companies then who have such poor lending strategies that they drive our country into a recession (along with dramatic media stories about the lending practices)

rape

[blaarg]

Maybe there is some terrible problem and our whole economy is going down the toilet, but honestly I just don't see it. The only product I purchase that the price has gone up on a lot lately is gas, and the word in that industry is that prices will be dropping soon.

sure maybe the only effects YOU see is gas going up but...

How many people are losing their homes because they can't afford to pay?
How many people's homes are get devalued because of a slowing market?
How many people (personal and businesses) abroad are getting fucked over by the dollar devaluating SUBSTANTIAL percentages in the past couple of years?

I mean, I don't think the whole depression thing is valid, but it is troubling times and I think the term recession is appropriate...

<shrug>

[impala454]

sure maybe the only effects YOU see is gas going up but...

How many people are losing their homes because they can't afford to pay?
How many people's homes are get devalued because of a slowing market?
How many people (personal and businesses) abroad are getting fucked over by the dollar devaluating SUBSTANTIAL percentages in the past couple of years?

I mean, I don't think the whole depression thing is valid, but it is troubling times and I think the term recession is appropriate...

<shrug>

I can't answer your questions. I'd be interested to see the real answers though. I know I haven't lost my home, or had my mortgage go way up where I can't afford it. I know my home's value has not gone down, rather it's gone up. And as far as my dad's small business as well as his buddy's big business, and the business I work for have not been "fucked over" recently because of anything. It's just been business as usual. I'm not even sure what "fucked over" is supposed to mean in this case.

I'm not just brushing it off like there is no problem, but if it's so incredibly terrible and we're all so screwed by all these apocolyptic financial times, why would I not notice any of it in my regular old budget which involves a pretty wide array of the typical financial institutions we use as Americans? The only real hit I noticed was that my fidelity IRA only gained like 8% last year, when the year before it gained like 14%. Not a cause for panic IMHO

Which explanation is more likely:
1. This is truly a second financial great depression in our midst, and we better prepare for the worst by implementing drastic policy.
2. We're seven months away from a presidential election, which means candidates/media/anyone involved in politics has to paint the worst picture possible of our society so their candidate can tout their solutions to these "problems".

[blaarg]

And as far as my dad's small business as well as his buddy's big business, and the business I work for have not been "fucked over" recently because of anything. It's just been business as usual. I'm not even sure what "fucked over" is supposed to mean in this case.

Which explanation is more likely:
1. This is truly a second financial great depression in our midst, and we better prepare for the worst by implementing drastic policy.
2. We're seven months away from a presidential election, which means candidates/media/anyone involved in politics has to paint the worst picture possible of our society so their candidate can tout their solutions to these "problems".

Typical Impala response of 'if it doesn't affect me personally it's not a big deal.'

The GDP growth rate has been declining the past two quarters.
Home values in major cities have been typically been depreciating the past year. Here is Las Vegas for example:


US home foreclosures have increased over the past year.
The Fed has had to go to unprecedented measures to rescue banks.

But I guess I shouldn't trust the media where I am getting these because they are purposefully inflating the statistics or I guess, in your opinion, I shouldn't be trusting them at all BECAUSE they are statistics.

I just don't think you can say that everyone has seen "business as usual."

Now to your post...
For the first part: if you have employers working abroad (whether it is contracting or whatever) getting paid in US$, they are getting "fucked over." I've taken a 10% pay-cut just because of the dollar devaluating over the past couple of months. If you are dealing with business/employees internationally, there are major problems because of the dollar dropping in value. I mean it's pretty easy to see that if you are an American company with dollars and want to buy things overseas to make your products, you're purchasing power has dropped pretty considerably over the past year.

As for the second part: 1) I haven't heard any reputable US paper or channel refer to it as the second financial great depression (a UK one made it to the drudge). The impression I've been getting is that they aren't predicting the apocalypse is going to happen, they are just saying that it is a problem and we are in a recession, a place where we have been to before on many occassions. 2) THIS makes you sound like a conspiracy theorist that there is this pact to provide overinflated news, along the same lines as people who think Bush intentionally raised the terror warnings frequently right before the election in 2004....

EDIT:: And if your IRA was like mine, ten bucks said it dropped that 6% growth in last two quarters...

EDIT #2: I'm not saying it's a cause of panic "OMG GET YOUR MONEY OUT OF THE BANKS AND CONVERT IT TO GOLD IMMEDIATELY," but it is a fairly serious problem that needs to be addressed by presidential candidates, etc...