Quoting Post Archived Topic: It will not be bumped to the top of the forum. Topic Economic Problems Membername   Not a member? Sign Up Free (takes 20 seconds) Password   Forgotten your password? Post Font: Verdana Arial Black Georgia Comic Sans Impact   Size: Tiny Normal Big Huge   Color: Default Dark Red Red Orange Brown Green Olive Cyan Blue Dark Blue Indigo Black [ Check Spelling ] [ Post Preview ] [ LiveTags ] Quote: from [m]osmoticdespair[/m] at 5:32 am on Oct. 13, 2008[quote]Quote: from [m]shadowpool[/m] at 7:22 am on Oct. 11, 2008[quote]thanks to the bailout bill, banks no longer have to keep reserves. [/quote]WTF? Seriously?[/quote] FAQ Keyword Search: Post Options Favorites Manager Notify me of new replies to this topic by email Notify me of new replies to this topic by private message Original Post makingxmexsmile Posted at 8:25 pm on Oct. 9, 2008 So, I am a bit proud of myself for actually having paid attention to this. I knew my family was having trouble with money and that America was going through a tough time (what my dad calls a 'recession'). I never much noticed EXACTLY what the problems were though, and now I'd like to share what knowledge I have gathered through several discussions over the past two days and what bit I've been paying attention over the past while (don't ask how long). America is IN a recession, we're headed for a depression. I've been informed that with the problems following the Housing Crisis, we're going (slowly but surely) into a depression. Also, when America goes down, other countries are going with us. So, in two of my classes we were talking about this and the economy, stock market, oil, and the bigger companies when someone informed me on the Bail Out Plan for America. What I can gather about this is this: --It's a $700 billion dollar money plan --People will be paying for this for many, many years in the form of taxes (yay *sarcasm*) --It's still unsure where the money will go (to the people or to the big companies) --If the money does go to the people, it will mean a lovely $50,000 check to every tax paying American (unless you're claimed as someone else's dependent) I've heard several theories on the Bail Out plan, one being that they (meaning whoever is in control of the billions of dollars) are uncertain about giving the money to the big companies, for fear of it never making it to the people. Buuuuut....they're afraid that if they give the people the money, the people are going to take it and get themselves into more debt by doing what was done in the Housing Crisis (i.e. buying homes they can't pay for with loans they can't pay back). I've heard a few other theories and things about the economy, but what I've said is the gist of it. Am I wrong in my 'knowings'? Is there anything else major that I've missed? ((...I know it makes me sound stupid, but I am honestly proud of myself for finally ((thank god)) paying attention to things like this...))

Replies shadowpool Posted at 8:17 am on Oct. 13, 2008 Quote: from osmoticdespair at 9:32 am on Oct. 13, 2008 Quote: from shadowpool at 7:22 am on Oct. 11, 2008 thanks to the bailout bill, banks no longer have to keep reserves. WTF? Seriously? Yes. The new bailout law Go to section 128: 13 SEC. 128. ACCELERATION OF EFFECTIVE DATE. 14 Section 203 of the Financial Services Regulatory Re- 15 lief Act of 2006 (12 U.S.C. 461 note) is amended by strik- 16 ing `"October 1, 2011" and inserting "October 1, 2008". Financial Services Regulatory Relief Act of 2006: "SEC. 202. INCREASED FLEXIBILITY FOR THE FEDERAL RESERVE BOARD TO ESTABLISH RESERVE REQUIREMENTS. Section 19(b)(2)(A) of the Federal Reserve Act (12 U.S.C. 461(b)(2)(A)) is amended-- (1) in clause (i), by striking `the ratio of 3 per centum' and inserting `a ratio of not greater than 3 percent (and which may be zero)'; and (2) in clause (ii), by striking `and not less than 8 per centum,' and inserting `(and which may be zero),'. SEC. 203. EFFECTIVE DATE. The amendments made by this title shall take effect October 1, 2011October 1, 2008." The Federal Reserve Act 2.Reserve requirements. A. Each depository institution shall maintain reserves against its transaction accounts as the Board may prescribe by regulation solely for the purpose of implementing monetary policy-- i. in the ratio of 3 per centuma ratio of not greater than 3 percent (and which may be zero) for that portion of its total transaction accounts of $25,000,000 or less, subject to subparagraph (C); and* ii. in the ratio of 12 per centum, or in such other ratio as the Board may prescribe not greater than 14 per centum and not less than 8 per centum(and which may be zero), for that portion of its total transaction accounts in excess of $25,000,000, subject to subparagraph (C). There it is!  0 percent reserves! osmoticdespair Posted at 5:32 am on Oct. 13, 2008 Quote: from shadowpool at 7:22 am on Oct. 11, 2008 thanks to the bailout bill, banks no longer have to keep reserves. WTF? Seriously? shadowpool Posted at 11:22 pm on Oct. 10, 2008 I have a thread where I've been keeping my research: http://www.golivewire.com/forums/peer-yybnnia-support-a.html#1 The bailout has little to do with the $700+ billion and everything to do with the things that got passed along with it.  For instance, thanks to the bailout bill, banks no longer have to keep reserves.  This has immense implications, but no one seems to be talking about it.   $700 billion is NOTHING compared to the mess we're in. Jettie12 Posted at 9:23 pm on Oct. 9, 2008 What I understand of the bailout is that it's to buy illiquid assets from troubled financial institutions.  And that illiquid assets are things, the mortgages, no one wants to buy.  None of the money is going to the people, that I'm pretty sure.  But Nancy Pelosi seems to be pushing for another stimulus package, so there you go. Latin Muscle Posted at 8:30 pm on Oct. 9, 2008 My dad has gold he bought from long ago. THIS WILL SAVE YOU. Gold is a MUST. If you cannot afford it...it is sad. Try your best to get as much gold as you can. LOL, some say we will MERGE with Canada and Mexico. for a NORTH AMERICAN UNION.. pfftt...not going to happen. Fo Sho Posted at 8:27 pm on Oct. 9, 2008 I think you got it, but I only know what I see on the Daily Show. BTW, this sucks, I'm hitting my prime and the world is going to shit. All 6 previous replies displayed.