Basically the American economy only works if we are in debt, because we are not on the gold standard. So the more in debt we are, the more money in circulation = higher inflation.
and the 700 billion is to help the failing banks get back on feet.
Basically the American economy only works if we are in debt, because we are not on the gold standard. So the more in debt we are, the more money in circulation = higher inflation.
and the 700 billion is to help the failing banks get back on feet.
Reputation: 492
'Cause we don't know how to save money.
Simple as that. :]
Everyone is acting like this is some new crisis... this has been happening ever since Clinton left office.
Reputation: 45
Well, if the government takes $700,000,000,000 from tax payers (Me and you etc.), then people don't have enough money, which leads to people losing their jobs, because company's can't pay the workers.
And if people don't have enough money, then prices rise, because the company's want to make more money.
Hopefully it doesn't turn into a depression.
Also, yes, it has been happening for awhile, but its at its worst point right now.
Reputation: 71
Apparently though it was speculated to come from taxes, it is actually apparently coming from private investments / stripper money.Originally Posted by yukmouth094
Reputation: 39
This is completely in-accurate.
I'm trying to find a good video summery of whats been happening, but it's basically like this.
A bunch of financial companies worked the system so that they basically made money appear out of nothing. This created an empty pocket in our economy that just grew and grew. That bubble just popped, and these companies are about to all go under unless they get enough money to pay off this economic bubble.
The solution to this was to fix one bubble by creating another economic bubble with that 700Bill.
Reputation: 232
And before.
Reputation: 24
lol im gonna be in AP economics next year
Reputation: 39
Ok, heres a good summary
---------------- Now playing on Winamp: Electric Light Orchestra - Secret Messages
Reputation: 24
dude thats 8 minutes long.
Reputation: 47
Definitely not at it's worst. I agree, it is pretty bad; however it can get much worse.
Anyone read Watchmen?
Reputation: 152
How much money does America have floating around, anyway?
If Bush can push out $700 billion dollars out his ass, I can only imagine it being in the trillions or gazillions.
Reputation: 40
Lol? Money isnt "laying around". It's tax dollars. Used for anything that the gov pays for. So ANYTHING the gov pays for comes from tax dollars.
Example: Schools, roads, gov owned building, war, THIS, etc.
And i doubt there is more than trillions of that money saved up, because the US is in $9 trillion (i think) debt and rising.
Reputation: 39
You'll never go anywhere with that attitude.
---------------- Now playing on Winamp: Everclear - Heroin Girl
Reputation: 58
How much money? About -14,000,000,000,000.
Yeah, it's in the negatives.
Reputation: 232
The thing is, the so called regulators and protectors of the market didn't fend these problems off. They manipulated the "natural flow" trying to substitute their own and then tried to delay the inevitable. I'm not saying that all regulation is bad.
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