The Fiscal Cliff

[anthony]

The best and brightest economists used common-sense, that if politicians couldn't come to some type of agreement before the normal break for Christmas, then they would simply go on up until Christmas. Well... low and behold I nearly fell off my chair when they announced that the politicians were breaking for their break as per normal, with a 'who cares' attitude towards the economic impact of the world... unbelievable stuff!

 

[anthony]

I fear for our country.

I fear for the world... the US financial market is bolstered by the rest of the world, it would be little to nothing by itself, just another countries stock exchange. The US stock exchange has for a long time been the central hub of global financial investment. A central repository if you like of major investment. If it goes down due to US politicking, then it will plunge the world into recession again, not just the US.

Whilst that sounds disastrous, it was also expected when the GFC happened... being it was discussed then about the end of 2012 being another possible GFC due to policy deadlines, though the experts anticipation was that it would be smaller than the GFC itself, and shorter lasting than the last few years impact has been to the world.

Quite honestly, I do agree with some economists to a degree about the world needing to fall financially to some degree... because many countries wealth is over-inflated. I live in one such country that fits into this, and we need to decline and banks need to take a hit for the common good. Profits need to be reduced and losses need to be made, so that the countries cost is in relation to wages being earnt. I think many countries fit this model right now... being wages simply don't match inflation, and the cost of living for the basics is starting to outweigh the average wages ability to live. In other words, the middle class of economies is affected too much, and that is dangerous. Lower and upper classes are a minority in most wealthy nations, resting the majority on the middle classes ability to stabilise the economy.

 

[Kim500]

As I watched my stocks go so low today, I was reminded of the form of dance "limbo". "How low can you go!" I read on Wikipedia about limbo, that the dance reflects the whole cycle of life. "The dancers move under a pole that is gradually lowered from chest level, and they emerge on the other side, as their heads clear the pole, as in the triumph of life over death." I found it interesting, because just like the cycle of life, these stocks will go low and then rise again.

And as far as companies that don't make it through this, "It is what it is." Just like naturally caused wildfires, it is good that things die so that new things can be born from the ashes. (Ashes are a fertilizer.)

 

[AS1975]

Bigger problem than the fiscal cliff

[medio]855[/medio]

 

[anthony]

Well... the cliff has begun. You could take a swan dive off of the edge of the stock market today, watching stock fall across the board. This is a blip compared to what will happen on Monday once economic measures kick-in.

 

[AS1975]

Yeah, but war in the near future is pretty much a certainty, even if the military-industrial complex falls, the price of metals, mining equipment and coal/oil has to rise. People don't engage in buying so many expensive military toys and making outrageous territorial claims, unless they intend to use them. The old saying - "If you go to the barber often enough and sit there long enough, you'll end up getting a haircut" holds as true now as it did when the Kaiser was saber rattling from 1900-1914.

 

[Kim500]

even if the military-industrial complex falls, the price of metals, mining equipment and coal/oil has to rise.

That's how I feel about my pet supplies (PetSmart) stocks. Even if things get bad, I think people will still spend their money on caring for their pets. (After all, I check that my birdy has food before I check about myself!) Also, that more people will buy pets to find comfort in a world so lost and cold.
Thanks for sharing! :)

 

[AS1975]

Here is an interesting article about what happened in the 'last' fiscal cliff-type event: [DLMURL]http://www.courant.com/news/opinion/hc-op-pizzigati-old-fiscal-cliff-1230-20121228,0,4346988.story[/DLMURL]

Interesting read

 

[Deleted member 12723]

I wonder if there will be another revolution as Americans are so sick and fed up they are choking on it. Government is so insulated from real life in my opinion. I do not understand why they cannot come to the table with a compromise for the people.

If they do not they all need to be voted out of office and replaced in my opinion. Washington is so out of touch with the real lives of Americans. There are so many homeless people.

My husbands medicare gap insurance ran out this month and his prescription bill is over one thousand dollars. If we were living on only social security he would have to go with out his medication. I do not know how people are making it.

So many homeless families living in their cars. So many homeless kids going to school. I hate to be so doom and gloom but are we heading into another another depression? I just do not know what will happen,

We need help asap. And it looks like Washington is going to drop the ball. I fear for our countrys future. I wish I had some real hope.

 

[anni]

The feet held to the fire are those which are being called 'Entitlement' programs- I guess in our country living in your car is what IS required not to be called names, only if you can afford it do you get to ever retire, all these dirty little poor people must have done something awful to deserve it. The entire world economy will be deliberately, ruthlessly brought down IF Obama refuses to consign yet more of our citizens to poverty.

At this point, while the US is busy looking down it's nose at other countries with Civil Rights abuses, who knew the smugness of the far right would GO this far?? Perhaps other countries really should start talking about evoking censures on us unless we start treating our people better too. It certainly looks like it's going to hit the world pocketbook now-all because a very few smug, wealthy citizens here are in a postion of CAN. This is not my America, this is not of the People, by the People and FOR the People- this isn't what the world is seeing, who we really are. That cold-eyed schmuck Bahner holding us to ransom is not an American, he's a member of some private Oligarchy. He's a foreigner to the people he was called to represent, not speaking any language I ever heard.

You know what this is really about? 'They' object to having 'their' tax dollars used to 'pay' for what they term are handouts- which is what other countries call supporting society with elderly, handicapped, educational and HEALTH CARE funds. So they just say nope- not gonna play, won't do it. Well heck, if everyone gets to CHOOSE where their taxes go, be a big fat mess in a big hurry- Good Grief! Lobbies canNOT be allowed to control a country- this one is going to pretty much control the world, had to change on that. Market will go poof. The zillioniares? Still purchasing mental health care for their dawgs, just another day. Off-shore accounts are wonderful.

 

[piratelady]

Well, today is their last chance to get a deal through. Too bad there aren't odds on whether or not a deal will go through, we could head over to the "sportsbook" and bet, lol. Should be an interesting day to see what happens. My guess is still that at the very last minute, they make a deal.

 

[Deleted member 12723]

I do not think they will make a deal. I think there is something seriously wrong with them. I think they all need to be voted out of office. Just my two cents.