[Laptopia]

I was trying to think of something good that might come out of this recent market downturn and "credit crisis" here in the U.S.

I could only think of three things: That perhaps it might change our saving behavior (from 15 percent decades ago to a negative savings rate now); that home buyers will be able to buy at a reasonable price, eventually (if they can get approved for a mortgage); and that retailers might clean up their acts as regards customer service.

I am least confident in the third prediction.

Hate to see all that wealth flushed down the toilet, but also hate to see the government interfere with what should be a natural and occasional purge of excess.

MOD EDIT: political campaigning removed.

 

[nickchen]

One good thing will propably be the decrease of that cruel american/anglo-saxon "casino capitalism" that ruined the lifes of million employees in favour of some thousand rich arseholes.

Before that junk came up in the 80s, we had a kind of capitalism in germany that was called the "Rhenish capitalism". Its attributes were a strong state and the economy dominated by family-driven enterprises, where the patron was rigorous, but took care of his people. I hope the journey goes back there.

 

[xenithon]

Just one thing worth noting - the failing economy / economic turmoil is not isolated to the US. Countried outside of CONUS do exist, contrary to popular belief

. The likes of the Nordic, EU, and APAC economies are equally being blasted as a result of their own internal mess (though I admit, the US failure seems to be a catalyst).

 

[frozenice]

From an article in the Globe and Mail (Canada):

This is the secret of the Big Owe of '08: For all the pain it's causing, it's making people think. Over there, for instance: That woman in her 50s in a café not far from Bay Street, talking to a friend. "I think it's exciting," she's saying. "Will we have to learn how to be poor again? Can I finally stop worrying about keeping up?"

 

[yashicaman]

Will this current crisis of capitalism lead to its ultimate destruction? Karl Marx must be grinning in his grave. World wide socialism here we come!

We have a world wide financial crisis. Perhaps we'll have a more co-ordinated world-wide financial system and we will resurect capitalism and it will florish and so will we all.

I need more coffee, I'm just spouting nonsense.

Hi ho!

 

[nylan8301]

IBTL

Nylan

 

[Rock&Roll Ninja]

Hopefully cheaper houses, spurned-on by the vile "flippers" who now are chewing their own faces off because their last three "investments" are not even selling at a loss and those $30,000 mortgage payments add-up quick.

You can buy a GM, Ford, or DaimlerDomestic car for less than manf. cost with minimal haggling + rebates + incentives

I suspect a modest upsweep in bicycles. Good news for cycle shop owners.

By buying-into the market when the Dow hits 6250 you'll be laughing your ass-off when it goes back to 11,000

Crop outlook good, no sign of a "dustbowl"

FDIC still in effect, 1930's style "depression" not really possible (unless the FDIC collapses... then we're all stewed, screwed, and tattooed)

*Keep an eye on those Germans. They get grumpy during periods of prolonged economic hardship

*Don't be surprised when the fee for bouncing a check raises from $35 to $225,000 at your bank

 

[apatN]

US failing? World failing? Damn you Americans. There's more than just the USA.

 

[ecclesand]

This whole mess will change how people buy houses in this country. No more buying a house with no proof of employment, no credit check, and no money down. It will go back to the way it was 20+ years ago when you had to have a steady job, good credit, and a down payment to buy a house.

I hope it does change our standard of living here. Having an economy that is 2/3 based on consumer spending...it had to fail at some point.

 

[meat01]

Affordable stocks to buy

 

[nickchen]

Quote:

Originally Posted by Rock&Roll Ninja /img/forum/go_quote.gif *Keep an eye on those Germans. They get grumpy during periods of prolonged economic hardship

Correct. Hitler, WW2 & Auschwitz wouldn't have happened without that economy crisis before. But nowadays, things are a bit different. Democracy brought us the longest period of wealth ever. That Nazi thing is limited to east german wrestling watchers mostly.

 

[Dzjudz]

House prices go down a lot.

Stock markets go down a lot (advantage: cheaper to buy your way in if you didn't invest before).

In short, the failing economy has positive side-effects for people who did not just buy a house or invest a lot or saved a lot just before the crisis.

 

[wareagle69]

1. Great opportunity to buy sound companies at less than 10 X earnings.
2. Maybe will restore some sanity into mortgage lending practices, i.e. you must demonstrate the ability to pay it back.
3. Cheaper housing
4. If we're lucky perhaps the concept of personal responsibility will resurface.

 

[wavoman]

A panic is to the economy what a forest fire is to the forest.

Trace the aftermath of all the great financial panics and you have your answer.

 

[synaesthetic]

When the bailout fails and inflation runs rampant, the whole thing blowing up rather spectacularly, the US government might finally learn to keep its reverse-Midas Touch out of the economy entirely.

But the chances of that happening are slightly less than being struck by lightning. Twice. While inside an underground bunker.

The only thing that astounds me more is that people don't even seem to understand what capitalism really is.

This isn't capitalism.

It's not even close.

The last time the US economy was even close to capitalism was back in the barter days of the 19th century.