Posted by MikeT23 on 3/4/2013 12:02:00 PM (view original):

Posted by MikeT23 on 3/4/2013 11:33:00 AM (view original):

Posted by MikeT23 on 3/4/2013 11:01:00 AM (view original):
Aw, cmon.  Don't turtle-up now.   We're dying to hear how wasteful spending is the way to recovery and I, personally, want to know which of the above would solve the most problems and why our current administration hasn't taken that route.

Oh, I see.  This was the last post on the previous page.  You must have missed.

Go ahead.   Explain, please.

Are you just not going to explain to us how wasteful spending is the best way to solve our economic issues?

Or tell us which of the three options would push recovery along even faster?

After you explain how we can eliminate the deficit by selling more treasuries.

Go away, dumbshit. This is for adults.

Posted by bad_luck on 3/4/2013 12:08:00 PM (view original):

Posted by tecwrg on 3/4/2013 11:59:00 AM (view original):

Posted by bad_luck on 3/4/2013 11:55:00 AM (view original):

Posted by tecwrg on 3/4/2013 11:47:00 AM (view original):
bad_luck appears to have forgotten that stupid spending on the part of consumers is what caused the recession in the first place, when they couldn't pay their accumulated debt.

His "solution" is stupid spending on the part of the government, thus increasing the government debt.

There's word for this, but it escapes me at the moment.

Consumer debt and government debt are not the same thing.

Stupid is stupid, is it not?

No, not really.

Consumer spending drove the economy, but when people had to pull back to service debt, it left a massive hole in the economy (kind of like what would happen if the government cut the deficit now).

The government doesn't have to stop spending to deal with the debt, at least not anytime soon. We've had over a trillion dollars in debt for over 30 years. It can wait out the slow economy and cut back when the consequences won't be as severe. 

But that's not what happened to cause the recession.

You know that, right?

That is exactly what caused the recession.

People stopped spending. What do you think caused the recession?

Posted by bad_luck on 3/4/2013 12:18:00 PM (view original):
That is exactly what caused the recession.

People stopped spending. What do you think caused the recession?

Very high level:

People borrowed and spent beyond their means, particularly in the home mortgage market.  This created a bubble which eventually popped when it got too big.  Think of it as a balloon which, when inflated too much, eventually pops.

The mortgage industry collapse then caused a domino effect of financial failures which led to the collapse of the economy.  Businesses collapsed, people lost their jobs.  Once that happened, people stopped spending.

You seem to think that the collapse of the economy was caused when people collectively decided to stop spending.  In fact, people stopped spending because they either lost their jobs or felt the need to conserve their money because the economy had already collapsed.

Were you comatose when all this happened, and you somehow missed it?

Posted by tecwrg on 3/4/2013 12:41:00 PM (view original):

Posted by bad_luck on 3/4/2013 12:18:00 PM (view original):
That is exactly what caused the recession.

People stopped spending. What do you think caused the recession?

People borrowed and spent beyond their means, particularly in the home mortgage market.  This created a bubble which eventually popped when it got too big.  Think of it as a balloon which, when inflated too much, eventually pops.

The mortgage industry collapse then caused a domino effect of financial failures which led to the collapse of the economy.  Businesses collapsed, people lost their jobs.  Once that happened, people stopped spending.

You seem to think that the collapse of the economy was caused when people collectively decided to stop spending.  In fact, people stopped spending because they either lost their jobs or felt the need to conserve their money because the economy had already collapsed.

Were you comatose when all this happened, and you somehow missed it?

You just used three paragraphs to say people stopped spending.

Holy ****, you are one ******* stupid person.

Posted by tecwrg on 3/4/2013 12:43:00 PM (view original):
Holy ****, you are one ******* stupid person.

I'm dumb?

Let's look at your story, with a little added explanation:

People had mortgages they couldn't afford. When the mortgages reset past the intro rate, those people couldn't keep paying the mortgage. So they cut back on spending, or sold their house at a loss, or lost it to foreclosure. The short sales and foreclosures had ripple effects in real estate, construction, & finance. More people lost jobs so more people had to cut back on spending. Businesses that sell things to people who work in construction, real estate, and finance (ALL BUSINESSES) saw a reduction in demand and laid off workers, so those people had to cut back on spending.

So what caused the recession? Sure, people borrowing beyond what they could afford lit the fuse, but the real problem was the massive shrinking demand for all products and services.

Wasn't the massive shrinking demand for all products and services a symptom of the real problem, and not the real problem itself?

Yes

Whenever people in powerful positions make decisions that cause a lot of people to fear spending - for whatever reason - then the economy goes into a recession. When that fear begins to go away, the economy begins to recover.

Posted by examinerebb on 3/4/2013 1:15:00 PM (view original):
Wasn't the massive shrinking demand for all products and services a symptom of the real problem, and not the real problem itself?

I think the shrinking demand was the problem. That's why the economy went to ****.

Sure, you can say the housing bubble caused demand to shrink, but the lack of demand is what needs to be fixed to get the economy moving again.

Posted by bad_luck on 3/4/2013 1:27:00 PM (view original):

Posted by examinerebb on 3/4/2013 1:15:00 PM (view original):
Wasn't the massive shrinking demand for all products and services a symptom of the real problem, and not the real problem itself?

I think the shrinking demand was the problem. That's why the economy went to ****.

Sure, you can say the housing bubble caused demand to shrink, but the lack of demand is what needs to be fixed to get the economy moving again.

And stupid, wasteful spending by the government will do create a demand and fix the economy, right?

In addition to renting all the vacant buildings in the US, do you think the govt should purchase all empty houses?

I've got it.  BadLuck is is part of an anagram for DumbLoserBarack.

BadLuck more bars = DumbLoserBarack

Yes, it's a slow day at work.

Posted by MikeT23 on 3/4/2013 1:45:00 PM (view original):
In addition to renting all the vacant buildings in the US, do you think the govt should purchase all empty houses?

I guess the government could just sell more treasuries to eliminate the deficit. I wonder why no one in the entire federal government has thought of that?