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I was wrong. We came alot closer to financial collapse than I thought

Discussion in 'Off-Topic' started by JerichoHill, Feb 10, 2009.

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  1. JerichoHill

    JerichoHill Bedrock of Knowledge

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    Of course, I didn't have this information, no one did, except those on the inside, and I suppose that's why it didn't leak until now, because then collapse really would have happened. But wow, I'm shocked.

    But here's this, today: (politico)

    Rep. Paul Kanjorski's description, late last month, of how close to the brink the global economy came on September 18. That was the day, recall, when Congressional leaders emerged stunned from a meeting with Henry Paulson, and gave him broad authority to spend $700 billion.

    Part of what he said:

    On Thursday at 11:00 a.m. the Federal Reserve noticed a tremendous draw-down of money market accounts in the U.S., to the tune of $550 billion was being drawn out in the matter of an hour or two. The Treasury opened up its window to help and pumped a $105 billion in the system and quickly realized that they could not stem the tide. We were having an electronic run on the banks. They decided to close the operation, close down the money accounts and announce a guarantee of $250,000 per account so there wouldn't be further panic out there.

    If they had not done that, their estimation is that by 2:00 p.m. that afternoon, $5.5 trillion would have been drawn out of the money market system of the U.S., would have collapsed the entire economy of the U.S., and within 24 hours the world economy would have collapsed. It would have been the end of our economic system and our political system as we know it.
     
  2. bhsup

    bhsup Deity

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    Just out of curiosity, but why the end of our political system? The Constitution would have still been in force. Congress would still have members as would there still be a President in the White House and a Judiciary in the Supreme Court.
     
  3. JerichoHill

    JerichoHill Bedrock of Knowledge

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    I imagine that if our financial system collapsed, things would have changed after stuff settled down again, so probably something would have changed politically.

    Just my guess.
     
  4. Nylan

    Nylan Characters Welcome

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    I think the trick is enforcement.
     
  5. Abaddon

    Abaddon Deity

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    Shame it didn't happen if you ask me.

    Earth needs Resetting.
     
  6. bhsup

    bhsup Deity

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    @JH: Eh, possibly. In any case it is interesting. I guess I should be getting off my screaming box about stupid stimulant packages though. Didn't realize we were that close to oblivion.
     
  7. holy king

    holy king Deity

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    a financial collapse isnt oblivion.
     
  8. BSmith1068

    BSmith1068 Deity Retired Moderator

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    Do you like your current way of life?
     
  9. Irish Caesar

    Irish Caesar Yellow Jacket

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    What was the motivation behind the "bank run"?
     
  10. Ayatollah So

    Ayatollah So the spoof'll set you free

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    So has the house of cards been reinforced with some cardboard, some string, and some Elmer's? Where do you think we stand now, JHill?
     
  11. Abaddon

    Abaddon Deity

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    Yes, but i value the world over my own "way of life"
     
  12. BSmith1068

    BSmith1068 Deity Retired Moderator

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    So if a majority of the world population’s way of life is negatively impacted by a global economic collapse – how is that good for the world?
     
  13. Abaddon

    Abaddon Deity

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    Economic growth = environmental destruction
     
  14. holy king

    holy king Deity

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    if it is fixed just to have worse impact when it finally collapses, what good is that?
     
  15. El_Machinae

    El_Machinae Colour vision since 2018 Retired Moderator

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    Some of the most degraded places are also the poorest. I think that people need a certain level of wealth before they can be convinced to set aside property for ecological consideration and take the long view towards the environment.
     
  16. Irish Caesar

    Irish Caesar Yellow Jacket

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    Seems to me that when times are tough, people prefer to take the quick and dirty routes that are worse for the environment. Coal is "cheap," no?
     
  17. JerichoHill

    JerichoHill Bedrock of Knowledge

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    Oh yeah, we totally didnt kill off the MEgafauna in 10000 BC times.

    Oh, yeah, we did.

    You're flat wrong here.
    Oh and to tother dude, Elmer's and duct tape
     
  18. El_Machinae

    El_Machinae Colour vision since 2018 Retired Moderator

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    This crisis is a good example, where we're worried about a failing economy and so we escalate all the things that we knew were going to hurt the environment, in order to save the economy.
     
  19. emzie

    emzie wicked witch of the North

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    So JH, with what's now known, did Congress act as it had to?
     
  20. Phlegmak

    Phlegmak Deity

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    I'm wondering the same. JerichoHill, do you know?
     
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