# People, chill! (financial/economic troubles) **URL:** \ **Category:** The BBQ Pit\ **Created:** [September 18, 2008, 2:16pm UTC](https://boards.straightdope.com/t/people-chill-financial-economic-troubles/464144 "2008-09-18T14:16:26Z")\ **Posts on this page:** 18\ **Page:** 5
**Author:** ![The\_Second\_Stone](https://avatars.discourse-cdn.com/v4/letter/t/bbe5ce/32.png) [@The\_Second\_Stone](https://boards.straightdope.com/u/The_Second_Stone)\ **Post date:** [September 19, 2008, 3:53pm UTC](https://boards.straightdope.com/t/people-chill-financial-economic-troubles/464144/81 "2008-09-19T15:53:06Z")
> [@Squink](#): > > **[Speaking of Chickens with their heads cut off:](http://www.nytimes.com/2008/09/19/business/19fed.html?hp)**-Panic until the Feds cut you _several_ checks, that’s a _smart_ strategy! Hey, if they lend me $50 billion, I can guarantee that they will get all but $10 million back. Shit, I’d put it into foreclosed homes that will go up in 10 years, they’d probably do quite well. ---
**Author:** ![Mtgman](https://avatars.discourse-cdn.com/v4/letter/m/b5a626/32.png) [@Mtgman](https://boards.straightdope.com/u/Mtgman)\ **Post date:** [September 19, 2008, 4:36pm UTC](https://boards.straightdope.com/t/people-chill-financial-economic-troubles/464144/82 "2008-09-19T16:36:16Z")
> [@Squink](#): > > **[Speaking of Chickens with their heads cut off:](http://www.nytimes.com/2008/09/19/business/19fed.html?hp)**-Panic until the Feds cut you _several_ checks, that’s a _smart_ strategy! Why did I ever quit day trading? :smack: Enjoy, Steven ---
**Author:** ![The\_Second\_Stone](https://avatars.discourse-cdn.com/v4/letter/t/bbe5ce/32.png) [@The\_Second\_Stone](https://boards.straightdope.com/u/The_Second_Stone)\ **Post date:** [September 19, 2008, 4:55pm UTC](https://boards.straightdope.com/t/people-chill-financial-economic-troubles/464144/83 "2008-09-19T16:55:02Z")
> [@Airman\_Doors\_USAF](#): > > How much of that is legitimate mismanagement, and how much of that is the herd running from good companies? Like I said earlier, it doesn’t take much to cause a collapse. Warren Buffett himself said that things like Schumer’s memo on IndyMac can cause serious damage, how much of this was avoidable were it not for the self-fulfilling prophecy? I’s impossible to tell. > > What I do know is that if people continue to flee we are in deep and utter shit. But I won’t lose sleep over it. I’m already broke. What are they going to do, take my money? When this is over I will be in a phenomenal position to look out for number one. I suppose that is some consolation. Well, the last time this happened, the broke went hungry. If you’re still in the Air Force, you will get fed, so the fundamentals of the economy will be good for you and your family. And while common panic (not the same as economic confidence) can cause bank runs, for the most part there has been little or no panic. The market had a rebound yesterday, there are not major bank runs, etc. That reminds me, I have to get down to the bank. I’m making a deposit!! ---
**Author:** ![OtakuLoki](https://avatars.discourse-cdn.com/v4/letter/o/ac8455/32.png) [@OtakuLoki](https://boards.straightdope.com/u/OtakuLoki)\ **Post date:** [September 19, 2008, 4:58pm UTC](https://boards.straightdope.com/t/people-chill-financial-economic-troubles/464144/84 "2008-09-19T16:58:44Z")
> [@The\_Second\_Stone](#): > > I’m making a deposit!! That edit does seem more important than most. ---
**Author:** ![The\_Second\_Stone](https://avatars.discourse-cdn.com/v4/letter/t/bbe5ce/32.png) [@The\_Second\_Stone](https://boards.straightdope.com/u/The_Second_Stone)\ **Post date:** [September 19, 2008, 5:10pm UTC](https://boards.straightdope.com/t/people-chill-financial-economic-troubles/464144/85 "2008-09-19T17:10:40Z")
> [@OtakuLoki](#): > > That edit does seem more important than most. Sperm bank. ---
**Author:** ![OtakuLoki](https://avatars.discourse-cdn.com/v4/letter/o/ac8455/32.png) [@OtakuLoki](https://boards.straightdope.com/u/OtakuLoki)\ **Post date:** [September 19, 2008, 5:12pm UTC](https://boards.straightdope.com/t/people-chill-financial-economic-troubles/464144/86 "2008-09-19T17:12:10Z")
> [@The\_Second\_Stone](#): > > Sperm bank. Well, some of the talking heads are saying it’s time to really get into commodities… ---
**Author:** ![The\_Second\_Stone](https://avatars.discourse-cdn.com/v4/letter/t/bbe5ce/32.png) [@The\_Second\_Stone](https://boards.straightdope.com/u/The_Second_Stone)\ **Post date:** [September 19, 2008, 5:16pm UTC](https://boards.straightdope.com/t/people-chill-financial-economic-troubles/464144/87 "2008-09-19T17:16:05Z")
> [@OtakuLoki](#): > > Well, some of the talking heads are saying it’s time to really get into commodities… I wanted to make sure not to start a run on my bank by other customers. That would create a very sticky situation. ---
**Author:** ![BrainGlutton](https://avatars.discourse-cdn.com/v4/letter/b/82dd89/32.png) [@BrainGlutton](https://boards.straightdope.com/u/BrainGlutton)\ **Post date:** [September 19, 2008, 5:26pm UTC](https://boards.straightdope.com/t/people-chill-financial-economic-troubles/464144/88 "2008-09-19T17:26:35Z")
> [@smiling\_bandit](#): > > Sometimes, life hands you lemons, and you’ll have to learn to make lemonade or… suck lemons. When life hands me lemons, I make huge, useless pyramids of rotting fruit! 🙂 ---
**Author:** ![smiling\_bandit](https://avatars.discourse-cdn.com/v4/letter/s/e9a140/32.png) [@smiling\_bandit](https://boards.straightdope.com/u/smiling_bandit)\ **Post date:** [September 19, 2008, 8:47pm UTC](https://boards.straightdope.com/t/people-chill-financial-economic-troubles/464144/89 "2008-09-19T20:47:12Z")
There was a weird story up there about making :hard: exchange rates. That does not and cannot work and will do notthing useful, although it will establish a thriving black market. Exchange rates are directly related to the demand for a country’s goods and services. Try to mess with that, and either you price your country’s resources and labor too cheap or too expensive. Either way it’s usually pretty bad in the long run. Some countries get away with it for a while, like China, but… it has repercussions. In any case, long-term investments are made every day regardless… because long-term investments look at exchange rates in the long term, while fluctuations are mostly short-term, or follow semi-predictable curves. ---
**Author:** ![Hyperelastic](https://avatars.discourse-cdn.com/v4/letter/h/a3d4f5/32.png) [@Hyperelastic](https://boards.straightdope.com/u/Hyperelastic)\ **Post date:** [September 19, 2008, 10:14pm UTC](https://boards.straightdope.com/t/people-chill-financial-economic-troubles/464144/90 "2008-09-19T22:14:19Z")
30 years ago, if this had happened, one could dismiss it as a credit and banking issue. Similarly, when this happened in Japan in the 90s, they weathered it without major unrest because they could make money by manufacturing and exporting. The U.S. no longer enjoys that option. Credit is all there is. Unfortunately, we are being forced to realize that you can’t go on borrowing and lending forever when there is no physical economy backing it up. ---
**Author:** ![Squink](https://avatars.discourse-cdn.com/v4/letter/s/b5e925/32.png) [@Squink](https://boards.straightdope.com/u/Squink)\ **Post date:** [September 19, 2008, 11:16pm UTC](https://boards.straightdope.com/t/people-chill-financial-economic-troubles/464144/91 "2008-09-19T23:16:12Z")
No one could have predicted another Iraq war style expense popping up in the last months of Bush’s presidency: [Bailout plan may cost a half-trillion or more](http://news.yahoo.com/story//ap/20080919/ap_on_bi_ge/financial_meltdown_238) > [@](#): > > A grim-faced President Bush acknowledged risks to taxpayers All is well, Bush has donned his ‘determined’ face. ---
**Author:** ![FoieGrasIsEvil](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/foiegrasisevil/32/16638_2.png) [@FoieGrasIsEvil](https://boards.straightdope.com/u/FoieGrasIsEvil)\ **Post date:** [September 19, 2008, 11:45pm UTC](https://boards.straightdope.com/t/people-chill-financial-economic-troubles/464144/92 "2008-09-19T23:45:17Z")
Doesn’t anyone at all believe that a big part of all this is is the shift away from tangible goods production? ---
**Author:** ![Squink](https://avatars.discourse-cdn.com/v4/letter/s/b5e925/32.png) [@Squink](https://boards.straightdope.com/u/Squink)\ **Post date:** [September 20, 2008, 12:00am UTC](https://boards.straightdope.com/t/people-chill-financial-economic-troubles/464144/93 "2008-09-20T00:00:56Z")
> [@FoieGrasIsEvil](#): > > Doesn’t anyone at all believe that a big part of all this is is the shift away from tangible goods production? I suspect that lots of people do. Saying so is probably treason. ---
**Author:** ![FoieGrasIsEvil](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/foiegrasisevil/32/16638_2.png) [@FoieGrasIsEvil](https://boards.straightdope.com/u/FoieGrasIsEvil)\ **Post date:** [September 20, 2008, 12:30am UTC](https://boards.straightdope.com/t/people-chill-financial-economic-troubles/464144/94 "2008-09-20T00:30:35Z")
> [@Squink](#): > > I suspect that lots of people do. Saying so is probably treason. What about the idea in 1971 of putting paper before gold with our currency? [http://www.dailyreckoning.com.au/ron-paul-gold/2007/06/01/](http://www.dailyreckoning.com.au/ron-paul-gold/2007/06/01/) ---
**Author:** ![Squink](https://avatars.discourse-cdn.com/v4/letter/s/b5e925/32.png) [@Squink](https://boards.straightdope.com/u/Squink)\ **Post date:** [September 20, 2008, 12:46am UTC](https://boards.straightdope.com/t/people-chill-financial-economic-troubles/464144/95 "2008-09-20T00:46:43Z")
> [@FoieGrasIsEvil](#): > > What about the idea in 1971 of putting paper before gold with our currency? **[Socrates has a mid-night Clinton’s have a sun-up Einstein has a mid–day Jesus has a sun-down](http://www.timecube.com/timecube2.html)** ---
**Author:** ![FoieGrasIsEvil](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/foiegrasisevil/32/16638_2.png) [@FoieGrasIsEvil](https://boards.straightdope.com/u/FoieGrasIsEvil)\ **Post date:** [September 20, 2008, 12:57am UTC](https://boards.straightdope.com/t/people-chill-financial-economic-troubles/464144/96 "2008-09-20T00:57:35Z")
> [@Squink](#): > > **[Socrates has a mid-night > Clinton’s have a sun-up > Einstein has a mid–day > Jesus has a sun-down](http://www.timecube.com/timecube2.html)** I don’t get the joke there, **Squink**. Elaborate, please? ---
**Author:** ![Squink](https://avatars.discourse-cdn.com/v4/letter/s/b5e925/32.png) [@Squink](https://boards.straightdope.com/u/Squink)\ **Post date:** [September 20, 2008, 1:51am UTC](https://boards.straightdope.com/t/people-chill-financial-economic-troubles/464144/97 "2008-09-20T01:51:02Z")
> [@FoieGrasIsEvil](#): > > I don’t get the joke there, **Squink**. Elaborate, please? There wasn’t enough $35 an ounce gold to back all the transactions we needed to do for all the _other_ valuble things in the world; transistors, iridium, fine optical components, corn, and suchlike. That left us with a choice between stifling the economy, or diversifying the standard. Paul favors stifling the economy, which is pretty Time-cubish. ---
**Author:** ![smiling\_bandit](https://avatars.discourse-cdn.com/v4/letter/s/e9a140/32.png) [@smiling\_bandit](https://boards.straightdope.com/u/smiling_bandit)\ **Post date:** [September 20, 2008, 5:01am UTC](https://boards.straightdope.com/t/people-chill-financial-economic-troubles/464144/98 "2008-09-20T05:01:00Z")
> [@FoieGrasIsEvil](#): > > Doesn’t anyone at all believe that a big part of all this is is the shift away from tangible goods production? No, not really. Tangible goods are no different from any other goods as far as capital markets are concerned, and are often better precisely because they are easily adjusted. Capital is used more easily and earns returns faster. Course this could possibly make it hotter. [Previous page](https://boards.straightdope.com/t/people-chill-financial-economic-troubles/464144.md?page=4)