[TheBreeze]

[quote=gary_broker]Your understanding of how credit is used by business is limited.. you need to broaden your view. Comparing a company’s need for credit (especially a small company) to you blowing your wad on beer and not being able to make rent is not an accurate analogy.

I own a fashion co. that uses and relies on credit all the time. In business when opportunity knocks you have to take advantage of it. This means sometimes borrowing to fill large orders and yes even occasionally borrowing to make payroll.

Effective small business owners are ballsy and do what they have to do bring in profits and keep their staff employed. If the credit dries up the result will be larger companies with deeper pockets capturing more market share while small businesses lay people off and go under.[/quote]

Businesses that depend on debt are definitely going to suffer in this environment. But that’s not such a bad thing necessarily. It’s healthy for the economy to purge marginal and inefficient businesses occasionally.

In any event, even if it were desirable to continue making short-term loans available to small businesses, I don’t see how buying $700 billion in bad mortgage debt is going to help. If the underlying assets being borrowed against are overvalued, banks are still going to be reluctant to lend. The only way to fix this crisis is to allow asset prices to get back to their natural levels. All of this interference by government is just pushing that day further into the future which is just going to prolong the crisis.

[TheBreeze]

[quote=gary_broker]Your understanding of how credit is used by business is limited.. you need to broaden your view. Comparing a company’s need for credit (especially a small company) to you blowing your wad on beer and not being able to make rent is not an accurate analogy.

I own a fashion co. that uses and relies on credit all the time. In business when opportunity knocks you have to take advantage of it. This means sometimes borrowing to fill large orders and yes even occasionally borrowing to make payroll.

Effective small business owners are ballsy and do what they have to do bring in profits and keep their staff employed. If the credit dries up the result will be larger companies with deeper pockets capturing more market share while small businesses lay people off and go under.[/quote]

Businesses that depend on debt are definitely going to suffer in this environment. But that’s not such a bad thing necessarily. It’s healthy for the economy to purge marginal and inefficient businesses occasionally.

In any event, even if it were desirable to continue making short-term loans available to small businesses, I don’t see how buying $700 billion in bad mortgage debt is going to help. If the underlying assets being borrowed against are overvalued, banks are still going to be reluctant to lend. The only way to fix this crisis is to allow asset prices to get back to their natural levels. All of this interference by government is just pushing that day further into the future which is just going to prolong the crisis.

[TheBreeze]

[quote=gary_broker]Your understanding of how credit is used by business is limited.. you need to broaden your view. Comparing a company’s need for credit (especially a small company) to you blowing your wad on beer and not being able to make rent is not an accurate analogy.

I own a fashion co. that uses and relies on credit all the time. In business when opportunity knocks you have to take advantage of it. This means sometimes borrowing to fill large orders and yes even occasionally borrowing to make payroll.

Effective small business owners are ballsy and do what they have to do bring in profits and keep their staff employed. If the credit dries up the result will be larger companies with deeper pockets capturing more market share while small businesses lay people off and go under.[/quote]

Businesses that depend on debt are definitely going to suffer in this environment. But that’s not such a bad thing necessarily. It’s healthy for the economy to purge marginal and inefficient businesses occasionally.

In any event, even if it were desirable to continue making short-term loans available to small businesses, I don’t see how buying $700 billion in bad mortgage debt is going to help. If the underlying assets being borrowed against are overvalued, banks are still going to be reluctant to lend. The only way to fix this crisis is to allow asset prices to get back to their natural levels. All of this interference by government is just pushing that day further into the future which is just going to prolong the crisis.

[TheBreeze]

[quote=gary_broker]Your understanding of how credit is used by business is limited.. you need to broaden your view. Comparing a company’s need for credit (especially a small company) to you blowing your wad on beer and not being able to make rent is not an accurate analogy.

I own a fashion co. that uses and relies on credit all the time. In business when opportunity knocks you have to take advantage of it. This means sometimes borrowing to fill large orders and yes even occasionally borrowing to make payroll.

Effective small business owners are ballsy and do what they have to do bring in profits and keep their staff employed. If the credit dries up the result will be larger companies with deeper pockets capturing more market share while small businesses lay people off and go under.[/quote]

Businesses that depend on debt are definitely going to suffer in this environment. But that’s not such a bad thing necessarily. It’s healthy for the economy to purge marginal and inefficient businesses occasionally.

In any event, even if it were desirable to continue making short-term loans available to small businesses, I don’t see how buying $700 billion in bad mortgage debt is going to help. If the underlying assets being borrowed against are overvalued, banks are still going to be reluctant to lend. The only way to fix this crisis is to allow asset prices to get back to their natural levels. All of this interference by government is just pushing that day further into the future which is just going to prolong the crisis.

[TheBreeze]

[quote=gary_broker]Your understanding of how credit is used by business is limited.. you need to broaden your view. Comparing a company’s need for credit (especially a small company) to you blowing your wad on beer and not being able to make rent is not an accurate analogy.

I own a fashion co. that uses and relies on credit all the time. In business when opportunity knocks you have to take advantage of it. This means sometimes borrowing to fill large orders and yes even occasionally borrowing to make payroll.

Effective small business owners are ballsy and do what they have to do bring in profits and keep their staff employed. If the credit dries up the result will be larger companies with deeper pockets capturing more market share while small businesses lay people off and go under.[/quote]

Businesses that depend on debt are definitely going to suffer in this environment. But that’s not such a bad thing necessarily. It’s healthy for the economy to purge marginal and inefficient businesses occasionally.

In any event, even if it were desirable to continue making short-term loans available to small businesses, I don’t see how buying $700 billion in bad mortgage debt is going to help. If the underlying assets being borrowed against are overvalued, banks are still going to be reluctant to lend. The only way to fix this crisis is to allow asset prices to get back to their natural levels. All of this interference by government is just pushing that day further into the future which is just going to prolong the crisis.

[TheBreeze]

Bush started talking about The Great Ownership Society back in 2004 — about the time the housing bubble really started gathering steam. Regulation from the Fed and the Treasury could have prevented this. So yeah, I think the Bush administration played a huge role in this housing bubble.

[TheBreeze]

Bush started talking about The Great Ownership Society back in 2004 — about the time the housing bubble really started gathering steam. Regulation from the Fed and the Treasury could have prevented this. So yeah, I think the Bush administration played a huge role in this housing bubble.

[TheBreeze]

Bush started talking about The Great Ownership Society back in 2004 — about the time the housing bubble really started gathering steam. Regulation from the Fed and the Treasury could have prevented this. So yeah, I think the Bush administration played a huge role in this housing bubble.

[TheBreeze]

Bush started talking about The Great Ownership Society back in 2004 — about the time the housing bubble really started gathering steam. Regulation from the Fed and the Treasury could have prevented this. So yeah, I think the Bush administration played a huge role in this housing bubble.

[TheBreeze]

Bush started talking about The Great Ownership Society back in 2004 — about the time the housing bubble really started gathering steam. Regulation from the Fed and the Treasury could have prevented this. So yeah, I think the Bush administration played a huge role in this housing bubble.

[TheBreeze]

How does one go about buying metals? I’ve traded the GLD ETF occassionally, but I’ve never tried to buy any gold coins or anything. Is there some place you can go to actually buy a bar of gold at face value?

I read the other day that people who had given their gold coins to some type of organization for storage were having trouble retrieving them. The speculation was that the gold coins had been loaned out or something or over several times over and the original owners were having trouble getting them back.

By the way, what do you think will emerge as a global currency? The Euro? Gold? I don’t think Europe is in much better shape than we are and I can’t imagine that anyone would trust the Russian Ruble or the Chinese Yuan more than the dollar.

It is scary to think about how quickly grocery stores can run out of stuff. Supposedly they only stock about five days’ worth of goods.

[TheBreeze]

How does one go about buying metals? I’ve traded the GLD ETF occassionally, but I’ve never tried to buy any gold coins or anything. Is there some place you can go to actually buy a bar of gold at face value?

I read the other day that people who had given their gold coins to some type of organization for storage were having trouble retrieving them. The speculation was that the gold coins had been loaned out or something or over several times over and the original owners were having trouble getting them back.

By the way, what do you think will emerge as a global currency? The Euro? Gold? I don’t think Europe is in much better shape than we are and I can’t imagine that anyone would trust the Russian Ruble or the Chinese Yuan more than the dollar.

It is scary to think about how quickly grocery stores can run out of stuff. Supposedly they only stock about five days’ worth of goods.

[TheBreeze]

How does one go about buying metals? I’ve traded the GLD ETF occassionally, but I’ve never tried to buy any gold coins or anything. Is there some place you can go to actually buy a bar of gold at face value?

I read the other day that people who had given their gold coins to some type of organization for storage were having trouble retrieving them. The speculation was that the gold coins had been loaned out or something or over several times over and the original owners were having trouble getting them back.

By the way, what do you think will emerge as a global currency? The Euro? Gold? I don’t think Europe is in much better shape than we are and I can’t imagine that anyone would trust the Russian Ruble or the Chinese Yuan more than the dollar.

It is scary to think about how quickly grocery stores can run out of stuff. Supposedly they only stock about five days’ worth of goods.

[TheBreeze]

How does one go about buying metals? I’ve traded the GLD ETF occassionally, but I’ve never tried to buy any gold coins or anything. Is there some place you can go to actually buy a bar of gold at face value?

I read the other day that people who had given their gold coins to some type of organization for storage were having trouble retrieving them. The speculation was that the gold coins had been loaned out or something or over several times over and the original owners were having trouble getting them back.

By the way, what do you think will emerge as a global currency? The Euro? Gold? I don’t think Europe is in much better shape than we are and I can’t imagine that anyone would trust the Russian Ruble or the Chinese Yuan more than the dollar.

It is scary to think about how quickly grocery stores can run out of stuff. Supposedly they only stock about five days’ worth of goods.

[TheBreeze]

How does one go about buying metals? I’ve traded the GLD ETF occassionally, but I’ve never tried to buy any gold coins or anything. Is there some place you can go to actually buy a bar of gold at face value?

I read the other day that people who had given their gold coins to some type of organization for storage were having trouble retrieving them. The speculation was that the gold coins had been loaned out or something or over several times over and the original owners were having trouble getting them back.

By the way, what do you think will emerge as a global currency? The Euro? Gold? I don’t think Europe is in much better shape than we are and I can’t imagine that anyone would trust the Russian Ruble or the Chinese Yuan more than the dollar.

It is scary to think about how quickly grocery stores can run out of stuff. Supposedly they only stock about five days’ worth of goods.

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