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- rpi22, on 01/28/2008, -8/+134those that do not learn from history are doomed, doomed to repeat it!
"We learn from history that we do not learn from history." -- Hegel - farnk, on 01/28/2008, -6/+99Every economist will tell you, that the Stimulus Package wont do anything. It should be called a Political Package. Who knows if a package would even exists if it wasn't an election year.
- designer, on 01/28/2008, -7/+100This stimulus package is to stimulate votes.
- hokie47, on 01/28/2008, -6/+72I can't wait to blow my $600 on Destiny at my local strip club.
- thefirelane, on 01/28/2008, -16/+48This is how insanely stupid the stimulus package is:
Picture the economy is an out of control Train. We all see up ahead that the tracks are ending.
Bush is a guy that gets up and yells: "I've figure out a way to make the tracks 600 feet longer!" - zacharytelschow, on 01/28/2008, -18/+42I hate to be the one to break it to you, but the sky isn't falling. The economy isn't in super shape right now, and I think we all know that, but drawing parallels to 1929 is foolish. There will be a moderate slowdown for the next 6-12 months, and anyone making predictions after that is looking into a crystal ball. Have some confidence in what capitalism has done for our country, and write your congressmen to make sure the government doesn't meddle and make things worse.
- Aidenf77, on 01/28/2008, -2/+25This tax "relief" is only going to further exacerbate our already wildly out of control monetary system. Sure, that, along with lower interest rates, might make it easier for those who got themselves in over their heads to get along for another few weeks/months... but the inevitable is coming. Interest rates HAVE to increase to offset the inflation caused by so many unbacked dollars being literally produced out of thin air, and $600 barely scrapes the surface of my monthly bills. Don't get me wrong, any unanticipated tax breaks or extra money in my account is a good thing, but it's only a temporary band-aid fix that isn't addressing the real underlying issues.
- Firehed, on 01/28/2008, -5/+28Rest of the world: ~$8.00+/gal (for quite some time). If gas prices are the only thing that worry you, you should really consider selling your second hummer.
- Firehed, on 01/28/2008, -6/+25And in all likelihood actually ends up shortening the tracks by that much.
- active1x0, on 01/28/2008, -1/+19Pouring that money back into the economy like a real man. I'm going to buy an immigrant worker with my $600.
- theskyman, on 01/28/2008, -2/+19A summary of what caused the Great Depression.
Mass speculation went on throughout the late 1920's. In 1929 alone, a record volume of 1,124,800,410 shares were traded on the New York Stock Exchange. From early 1928 to September 1929 the Dow Jones Industrial Average rose from 191 to 381. This sort of profit was irresistible to investors. Company earnings became of little interest; as long as stock prices continued to rise huge profits could be made. One such example is RCA corporation, whose stock price leapt from 85 to 420 during 1928, even though it had not yet paid a single dividend. Even these returns of over 100% were no measure of the possibility for investors of the time. Through the miracle of buying stocks on margin, one could buy stocks without the money to purchase them. Buying stocks on margin functioned much the same way as buying a car on credit. Using the example of RCA, a Mr. John Doe could buy 1 share of the company by putting up $10 of his own, and borrowing $75 from his broker. If he sold the stock at $420 a year later he would have turned his original investment of just $10 into $341.25 ($420 minus the $75 and 5% interest owed to the broker). That makes a return of over 3400%! Investors' craze over the proposition of profits like this drove the market to absurdly high levels. By mid 1929 the total of outstanding brokers' loans was over $7 billion; in the next three months that number would reach $8.5 billion. Interest rates for brokers loans were reaching the sky, going as high as 20% in March 1929. The speculative boom in the stock market was based upon confidence. In the same way, the huge market crashes of 1929 were based on fear.
Prices had been drifting downward since September 3, but generally people where optimistic. Speculators continued to flock to the market. Then, on Monday October 21 prices started to fall quickly. The volume was so great that the ticker fell behind. Investors became fearful. Knowing that prices were falling, but not by how much, they started selling quickly. This caused the collapse to happen faster. Prices stabilized a little on Tuesday and Wednesday, but then on Black Thursday, October 24, everything fell apart again. By this time most major investors had lost confidence in the market. Once enough investors had decided the boom was over, it was over. Partial recovery was achieved on Friday and Saturday when a group of leading bankers stepped in to try to stop the crash. But then on Monday the 28th prices started dropping again. By the end of the day the market had fallen 13%. The next day, Black Tuesday an unprecedented 16.4 million shares changed hands. Stocks fell so much, that at many times during the day no buyers were available at any price. - jahurt, on 01/28/2008, -2/+18“We can't solve problems by using the same kind of thinking we used when we created them.”
Albert Einstein - arichard, on 01/28/2008, -2/+17"The proposal called for $160 million in tax relief -- only about $22 billion if adjusted against the gross domestic product at the time, and therefore much smaller than the plan under consideration here in 2008."
Just saying... - adjustafresh, on 01/28/2008, -10/+23Way to rehash a quote that is NEVER overused...especially on Digg.
- active1x0, on 01/28/2008, -12/+25How exactly does our economy crash when the GDP is still rising and unemployment is 5%? Apparently economics is just a fad, the market will do whatever the media tells it to, right?
- rizla420, on 01/28/2008, -3/+15its to keep people pacified and believe in the system. If we believe our elected officials are acting in our interests than we have no need to overthrow the system. Remember, everything is FINE.
- NJank, on 01/28/2008, -1/+13While your enjoying your lapdance, just be sure to ask her to buy something instead of paying down debt or putting it in the bank. need to generate some churn in the economy. none of this personal fiscal responsibility nonsense!
- Matteos, on 01/28/2008, -0/+11Very true. The great government sponsored HDTV buying program of 2008 would not exist if it weren't an election year.
- slvrbullet87, on 01/28/2008, -1/+12You know who else was big on tax cuts? The founding fathers, in fact they faught a war over taxes
- santaliqueur, on 01/28/2008, -0/+11Fitting name for that dancer.
- cambob76, on 01/28/2008, -1/+12More money won't matter if the fundamentals aren't there. It's like throwing a bucket of water on the Hindenburg.
- OwdenBowden, on 01/28/2008, -12/+22It is official - we have become the Soviet Union. Said but true. Secret Police, censorship, elimination of liberties; currency that is in ruin; just about everyone hates us and we continue to burn bridges.
I am a shamed at what has happened. - MysticSavage, on 01/28/2008, -0/+10For $600, Destiny better blow you.
- magoghm, on 01/28/2008, -8/+18Somebody has at least suggested what might be a real recovery plan: http://www.ronpaul2008.com/Prosperity
- BESTenemy, on 01/28/2008, -0/+10Light the man a fire and he'll be warm for the night. Light the man on fire and he'll be warm for the rest of his life.
- MindTrigger, on 01/28/2008, -1/+11Somebody blames Canada? I barely ever even think about Canada, let alone blame anyone up there. I love Canadians and their country, but don't flatter yourself so much.
- inactive, on 01/28/2008, -4/+13because you aren't able to see the greater dynamics of the economy beyond econ 101.
The US is not a production economy anymore it is a service economy which will put us into a 3rd world status eventually even though technically we already are. Have you seen the number of foreclosures this year? have you seen the stats for next year? Have you seen the credit debt to income ratio of the average household recently? Have you seen the negative savings rate recently?
These and more add up to travesty over time... and that time is almost at hand. Whether you like it or not, the middle class is the backbone of this country and when they are feeling the crunch, regardless of how larger corporations and stockholders are doing, then the economy will begin to fail.
Having a lot of fiat money doesn't do ***** for inflation and the real value of the dollar. The country's debt is virtually beyond repair. We are in trouble. - PeppermintPig, on 01/28/2008, -4/+13But have we learned?
Few have. A good many more think they have. The rest weren't paying attention because they like shiny things. - magoghm, on 01/28/2008, -0/+9I do believe that not having a gold standard allows the Federal Reserve to do more harm than ever before.
- sizzzzlerz, on 01/28/2008, -12/+21Remember from your American history class, how the shanty towns that sprung up during the depression were called Hoovervilles? I plan to copyright the term Bushville for today's version.
Oh, wait, that name has already been used. Its called New Orleans. - slvrbullet87, on 01/28/2008, -0/+9When has america ever blamed canada? the only mention i can think of is in Southpark. We dont blame canada we just trash it in jokes because it is an easy target.
- Corrosionx, on 01/28/2008, -0/+9Keynesian economics fail.
- PeppermintPig, on 01/28/2008, -1/+10The problem is that the government IS doing something about it. That's why it's spiraling downward. They've been there the whole time, influencing and nurturing this financial bubble.
- magoghm, on 01/28/2008, -6/+15Don't be an ostrich and stick your head in the sand. Have you seen the price of gold? Take a look: http://goldprice.org/
Last tuesday, gold was at $860 USD. Right now it is at $926 USD. - morel42, on 01/28/2008, -0/+9Can I please have one day without wanting to buy canned goods?
Seriously?
Please? - Sporky023, on 01/28/2008, -0/+9agreed. It's like giving a gram of coke to a coke addict. You relieve his suffering for exactly one day.
- poopz, on 01/28/2008, -10/+18The point of this article? That the government is powerless to stop our economic decline and we are doomed?
Yes, that stimulus package was a failure. But does that mean any special economic plan the government lays out is also doomed to failure? It may be worse to just let the economy spiral downwards than do something about it, despite what happened in this particular situation.. - pyrewyrm, on 01/28/2008, -4/+12Only if you were asleep in econ.
- RP08, on 01/28/2008, -17/+25Five months ago, I was a conspiracy theorist and I didn't know anything about economics when I said, "Hey, the market's collapsing."
- vuke69, on 01/28/2008, -0/+8For $600 she better suck so hard it makes your ears pop.
- jjmckay, on 01/28/2008, -0/+8I for one, welcome our Canadian overlords.
- Daedalus81, on 01/28/2008, -4/+11So, what's the moral of your story?
- jjmckay, on 01/28/2008, -2/+9IMO, the economy is going to crash because of the weak dollar and unprecedented federal govt debt levels. Both of these are caused by a failed foreign policy that dates back decades all the way to the 1940s. The recession is caused by government action in the first place, and now they are trying to patch it with a band aid. It's no real fix.
- magoghm, on 01/28/2008, -5/+12Don't worry. John McCain will fix the problem. He will bomb the rest of the world, which will improve the weather over the United States and provide some sunshine :)
- MikeSD34, on 01/28/2008, -0/+7I am insulted by these accu..... Dude! 12 most awesomely bad ebay auctions! OMG BBL TTYL FYXS KDYEF :LSHJDF
- wildbillhick, on 01/28/2008, -1/+8If McCain, Huckabee, Clinton, and Obama are our the primary candidates winning, then no we have not learned. (BTW- I am not a Ron Paul supporter.)
- magoghm, on 01/28/2008, -2/+9Most economist now acknowledge that the great depression was caused by the Federal Reserve:
Bernanke is particularly interested in the economic and political causes of the Great Depression, on which he has written extensively. On Milton Friedman's ninetieth birthday, Nov. 8, 2002, he stated: "Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You're right, we did it. We're very sorry. But thanks to you, we won't do it again."
You can check the references at http://en.wikipedia.org/wiki/Ben_Bernanke - PeppermintPig, on 01/28/2008, -0/+7Great analogy!
- magoghm, on 01/28/2008, -0/+7I wasn't sure if it was humour or for real, so I decided to answer :)
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