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A Great Depression


Sugar Magnolia
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What do you thin the effect will be on the average American if the CC companies crash and burn? I can't imagine it would be all that bad. It might tighten up credit a little bit, but other than that, what are we looking at?

 

I'm not real clear on the ramifications, so this may be off...

 

In a normal bankruptcy, a judge (in concert with a team of analysts, consultants, and company management) looks at the assets of the company (i.e., the accounts that Joe American owes to them) and the liabilities of the company (the pension funds and mutual funds that bought their bonds) and the equity of the company (the pension and mutual funds, etc. that own its stock) ... they then proceed to work out collections on as much of the assets as they can as quickly as they can and use the funds to first, pay secured creditors, second to pay unsecured creditors and then lastly to pay the equity holders. Generally, the equity holders get nothing.

 

Now, how does this impact society? Well, CC holders may have an opportunity to "pay pennies on the dollar" in order to get cash to the bankrupt company so it can pay its creditors ... then again, they may be hounded mercilessly by a number of collection methods until they pay in full. It's possible that collection methods would be more aggressive from a bankrupt company than an operating company.

 

Generally, it would make credit tighter to obtain, which would cause the economy to move slower...at least until a surviving CC company used the failure of a competitor as a chance to take market share...

 

Credit is tight right now, no doubt about it!

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What do you thin the effect will be on the average American if the CC companies crash and burn? I can't imagine it would be all that bad. It might tighten up credit a little bit, but other than that, what are we looking at?

 

 

just like muck said, the economy drags or comes to a stand still. credit becomes much tighter. mortgages tougher. think of all the companies whose earnings depend on cc purchases. poof goes their growth. no more 3years no interest deals. i think GE is in big trouble. they have a huge amount of short term debt.

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It appears that not many people alive today appreciate just how bad the Great Depression was. People were not worried about their 401ks or how to get a loan on a new car with a credit score of 412. Lots of people like us went hungry on a regular basis and unemployment was over 30%.

 

 

Ask how many people remember living in Detroit in the Jimmy Carter days

 

25% unemployment

18% interest rates and inflation was going wild.

 

Sanitation was on strike and it sure didn't smell nice in the Ole murder city.

 

Gas lines

Hostage crisis

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How many times in the history of the United States did we declare war and pass a tax cut? Which candidate is clearly cemented to the political programs of the past 8 years that clearly didn't work? There is nothing remotely whacko about what I'm saying.

 

The cause of this problem goes back more than 8 years. A pseudo-Marxist with a do-nothing congress won't do much to fix it.

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The cause of this problem goes back more than 8 years. A pseudo-Marxist with a do-nothing congress won't do much to fix it.

 

Obama is a Marxist like George W. is competent. The same "ultra-liberal" label/scare tactic was used when Clinton was running for office; yup, his Marxist ways really sent our country into the crapper. Fast forward to 2008; Obama is a Marxist and Clinton is a centrist, same ol, same ol. :wacko:

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Obama is a Marxist like George W. is competent. The same "ultra-liberal" label/scare tactic was used when Clinton was running for office; yup, his Marxist ways really sent our country into the crapper. Fast forward to 2008; Obama is a Marxist and Clinton is a centrist, same ol, same ol. :wacko:

 

Most of politics is about optics, not about accomplishment.

 

BTW, I just realized that I think your user name has a typo in it. Shouldn't it be "Bushwhacked"?

Edited by muck
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Most of politics is about optics, not about accomplishment.

 

BTW, I just realized that I think your user name has a typo in it. Shouldn't it be "Bushwhacked"?

That can be an alternate spelling.

 

Comic-book character bushwacker for a different form of the word.

Edited by Big John
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How many times in the history of the United States did we declare war and pass a tax cut? Which candidate is clearly cemented to the political programs of the past 8 years that clearly didn't work? There is nothing remotely whacko about what I'm saying.

Why discuss the message when you can just kill the messenger?

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The same "ultra-liberal" label/scare tactic was used when Clinton was running for office; yup, his Marxist ways really sent our country into the crapper.

 

The Clinton and Bush administrations both promoted home ownership and strong-armed firms into giving mortgages to people who couldn't afford them. The companies went along with it, knowing they'd be bailed out. Until both parties back the F off and let the economy rebuild on its own, these bailouts will only lead to more bubbles.

Edited by budlitebrad
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All of the economical woes we are seeing are the result of the some group's hidden agenda to turn the US into a police state. Once the government comes in and takes control of all these companies to "bail" them out, the government will control our financial district. They already do not need permission to access your personal information or listen in on your conversations.

 

:wacko:

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All of the economical woes we are seeing are the result of the some group's hidden agenda to turn the US into a police state. Once the government comes in and takes control of all these companies to "bail" them out, the government will control our financial district. They already do not need permission to access your personal information or listen in on your conversations.

 

:wacko:

Then... thank god our 2nd amendment rights were upheld... we might just need them!

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It appears that not many people alive today appreciate just how bad the Great Depression was. People were not worried about their 401ks or how to get a loan on a new car with a credit score of 412. Lots of people like us went hungry on a regular basis and unemployment was over 30%.

So the REAL question is what country is better - Denmark or Finland?

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