The Workermonkey

Thursday, December 04, 2008

Keep that fire buring! 

# posted by ron @ 12/04/2008 11:10:00 PM

Every article I read about the current recession has to do with trying to gain consumers confidence and getting them to buy shit to prop up the economy. Now I'm not an economist, or much of a market analyst here but if you ask a simple man how to put out a fire, he wouldn't answer with "just throw some more fuel on it". Over spending and leveraging created the scenario we have today. How is cutting interest rates (possibly to zero) going to help? "Oh, it will free up the credit markets". Yea sure, I think that banks got the idea pretty quick not to issue more loans that aren't going to get paid no matter what the interest rate.

Inflation is going to go through the roof in the next 2-3 years. Those who will benefit the most from this are exactly the people who fueled this imbalance. Those with the most debt will basically get let off the hook (as there debt is lessened by the weakened dollar). Those of us who are responsible with our money have nothing more to hope for than to hope we bet on the right stocks for 5-7 years from now and suck on crappy CD rates.

bottom line: the market needs to correct itself & bailouts=inflation

3 comments

Well this auto industry thing gets me. We are supposed to operate in a (somewhat) free market. Which means companies either adapt or go away. We can't prop up failing businesses with tax payer dollars. It doesn't matter how big they are or how long they have been around. The American auto industry had plenty of time and warnings about the way the market was turning. I can sum it up here: Oil = finite resource = price slowly increase over time = adapt your fucking business. We can't and shouldn't tell these businesses about how to run their companies. THAT'S THEIR JOB. They did it wrong and now its time to face the music. Yes it will suck, but it leaves room for new and better businesses to start booming- and bam- a stimulated economy. Proactive companies like Honda and Toyota are adapting (slowly) and will probably make it through. END rant.

By  Brancibeer, at Friday, December 05, 2008 2:01:00 PM  

i agree with everything brian just said except the last sentence. read up on the toyota way and how they revolutionized manufacturing with Lean and Continuous Improvement. Toyota has been the shit since the late 70's. the style of thinking they use and hold to is all about continually improving everything. the big three haven't changed shit since the 50's. some of the plants i've seen would scare you to know that those cars/trucks/buses on the road are not safe. they are built by hundreds of layers of redtape and idiots. everyone of htem making their mark along the way.


but anyway, rant over. let the big three fail. it'll be the start of consolidation in the autoindustry. more standardization is the way to go. less makes and models, but at higher quality. go toyota go.

By  Supreme Monkey Overlord, at Monday, December 08, 2008 7:03:00 PM  

Yeah, I agree with that. I should have said, "have been continuously adapting.."

By  Brancibeer, at Monday, December 08, 2008 11:38:00 PM  

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