ok, i'm gonna live it up

[recursivelyenumerable]

http://sovereignspeculator.com/2008/10/11/listen-to-the-people-who-predicted-this-no-bailouts-no-new-deal-no-serfdom/

What will happen if government doesn’t lift a finger?

The owners of McMansions will lose them to the banks or other mortgage holders, and those mortgage holders, if they bought the paper with loans of their own, will lose them to others, and so on. Almost every bank in the world will fail. They have all come to depend on deposit insurance and central banks to cover for the fact that they have been reckless and insolvent from nearly day one. There will be no bank lending at all.

What will happen to the depositors? Well, almost all of their money will be lost.

So, that is what we are looking at: every bank failing, zero bank lending, almost all the money in the world going to heaven. How is that not the end of the world? Simple: It is a reverse split. In 2006, let’s say, there was a million dollars in total bank deposits. Then in 2008 all the banks go under. All that is left is the cold cash in people’s pockets, let’s say $100,000 in all.

That remaining cash becomes extremely valuable. It has to work where one million did before. If you had $10 in your pocket and $90 in the bank, you now treat each dollar as if it were ten. The key is that so does everyone else. The world still has its unit of account and medium of exchange, we have just moved the decimal point over on all prices. (Note: gold and silver would rapidly re-enter circulation and quickly become the preferred money, as they always do until government outlaws them).

Of course, deflation on this scale makes debts unpayable, so essentially all debt is defaulted upon, but of course most creditors are bankrupt too. Contracts have to be renegotiated or annulled. No big deal, really. The assets are all still there, just the same as before. Nothing has burned down. A car bought on credit still gets the same mileage as before its loan went bad, a house keeps you just as dry.

Trust the prudent and smart, not bankers and politicians.

Such an event brings about a massive transfer of wealth from the reckless to the prudent and farsighted, who are exactly the people you want making the decisions about what to do with money and assets after the crash. They are statistically and philosophically the best equipped to decide what will generate the highest returns with the lowest risk. Life goes on. There is nothing to rebuild because nothing was destroyed. It is all just reordered in a more sensible fashion. The house in the desert is scrapped for materials. The Lehman mortgage traders find something productive to do, like drive cabs.

But that outcome is so quaint, so 1800s, so gold standard. We’re more scientific today. Bernanke is a wise economist. Congress is benevolent. War is peace, and lies are truth.

I have $2000 worth of gold coins in my coat pocket that I withdrew from the bank intending to go buy myself a bunch of lap dances at the local gold-based strip club, but ended up getting distracted by a new release of GHC and spent the evening reading compiler source code instead.  After the crash I estimate they will be worth $200,000, easily enough seed money for my synergetic private fire department and private urban warfare contractor businesses.  The billions those ventures yield will go into nubile and alluring assets bought on the newly deregulated slave markets.  As a prudent and farsighted individual, I am statistically and philosophically the best equipped to decide what to do with them.

[MrAngryFace]

Does anyone alive actually read stuff about the Great Depression? It wasn't a fun 'lesson' where the 'smart savers' got off easy.

[Van Cruncheon]

the crazy eschatological rantings of the rothbardians are the best things about this crisis. "OH GOD WE WILL ALL FALL FOR WE HAVE ECONOMICALLY SINNED LET US PRAY TO OUR IDOLS OF GOLD"

[Don Flamenco]

All this fuss.  The world is way different than it was in the 1930s.  2 Great 2 Depressing is going to be more of a "i think the economy is depressed because its tired all the time and isn't socializing as much as it used to" kind of depression, to reflect modern times.

[BlackMage]

All this fuss.  The world is way different than it was in the 1930s.  2 Great 2 Depressing is going to be more of a "i think the economy is depressed because its tired all the time and isn't socializing as much as it used to" kind of depression, to reflect modern times.

oh shit dude the economy just left me a myspace bulletin!

Subject: do me a favore....
Body: call the government.
adress: wall street
tell them to go to the new york stock exchange.
i'm soo sorry<3


WERE DOOMED

[Don Flamenco]

All this fuss.  The world is way different than it was in the 1930s.  2 Great 2 Depressing is going to be more of a "i think the economy is depressed because its tired all the time and isn't socializing as much as it used to" kind of depression, to reflect modern times.

oh shit dude the economy just left me a myspace bulletin!

Subject: do me a favore....
Body: call the government.
adress: wall street
tell them to go to the new york stock exchange.
i'm soo sorry<3


WERE DOOMED

no dood, u hve so much 2 live 4!  everyones depending on u!

[Joe Molotov]

I've got 10 cents in my pocket; I hope the banks hurry up and go under so I can get a 99 cent Double Cheeseburger from McD with it, I'm hungry.

[Van Cruncheon]

buy a large truck or suv! AMERICANS ARE AT IT AGAIN

http://www.msnbc.msn.com/id/26642867/

WHAT IS WRONG WITH THIS COUNTRY

[Mr. Gundam]

buy a large truck or suv! AMERICANS ARE AT IT AGAIN

Screw that! BUY A MOTOR HOME OR A LUXURY BUS!