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huffdaddy
Joined: 25 Nov 2005
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 Posted: Sun Nov 25, 2007 5:40 am Post subject: |
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| dogshed wrote: |
So how many won would I need to pay off my $40,000
in student loans?
0.10 x 930 x 40,000 = 3 720 000 won
woo hoo |
When they talk about the dollar losing 90% of its value, they're using gold as the reference point. Unless your contract specifies that you get paid in gold, even the worst fears of the doomsdayers won't reduce your USD debt by 90%. |
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sojourner1
Joined: 17 Apr 2007
Location: Where meggi swim and 2 wheeled tractors go sput put chug alugg pug pug
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| Posted: Sun Nov 25, 2007 5:49 am Post subject: |
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There just is no way to continue to support or subsidize the economy with credit like America has been doing since 2002. Right now, credit is tightening where it requires the best FICO score to get a mortgage, credit card, car loan, and other loans right now due to an high and increasing default rate. Many financial losses will result due to bad debt which will further make the job market abysmal due to companies contracting budgets with many financially failing. They already let go many finance professionals by the thousands this year.
The good thing about a deep recession or even a crash is that if you have some money, especially foreign currency, then you can buy dollars and American things cheap and maybe find that 5 years later, you are sitting pretty with some wealth to your name.
Many baby boomers got rich, because they bought low and sold high, thus, playing the cycles patiently rather than spending everything they earned while taking out debt to live higher than their means. If the US dollar and market loses a large amount of ground, this presents a huge opportunity for those with some non-dollar savings and who earn their money in a non-dollar currency.
Any one see the possibility of another great depression coming? |
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thepeel
Joined: 08 Aug 2004
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| Posted: Sun Nov 25, 2007 6:07 am Post subject: |
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| Depression is a severe or 3-4 quarter recession. That is possible. The 'great depression', that has been burned into our minds, is probably not. America is a very dynamic economy regardless of how committed the Fed is to ruining the party. |
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Kuros
Joined: 27 Apr 2004
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| Posted: Sun Nov 25, 2007 8:18 am Post subject: |
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| thepeel wrote: |
| Depression is a severe or 3-4 quarter recession. That is possible. The 'great depression', that has been burned into our minds, is probably not. America is a very dynamic economy regardless of how committed the Fed is to ruining the party. |
If the dollar plummets to 90% we're all screwed. The whole world.
And if the dollar plummets to 90%, people will start buying the dollar again, unless the US economy turns into Burma's economy.
We'll see some more drop from the dollar. |
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keane
Joined: 09 Jul 2007
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| Posted: Sun Nov 25, 2007 8:26 am Post subject: |
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| sojourner1 wrote: |
| Any one see the possibility of another great depression coming? |
Very much so. Consider what happens if we hit a major recession or even depression. We are financially toasted for a good number of years. Now mix in the current concensus on peak oil production being 2012 and tight supply up to and past that date, regardless. You end up with extremely high fuel and oil prices that further add to inflation and/or sucks up money that might otherwise go to solving problems. And, just for fun, the bills from climate change keep coming due as they have already started to do... but there's no money for mitigation...
then top off the tank with more years of war...
This is as perfect a Perfect Storm as anyone could have expected to live through, and then some. |
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thepeel
Joined: 08 Aug 2004
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| Posted: Sun Nov 25, 2007 8:38 am Post subject: |
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| Kuros wrote: |
If the dollar plummets to 90% we're all screwed. The whole world.
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Agreed. This isn't an America good/bad thing. The health of the world economy and the amazing strides made against poverty in the last 10 years are in the balance. It is for this reason that I don't think foreigners will assist a collapse of the dollar. The Fed must not cut rates again and maybe the rest of the world will help in preserving Bretton Woods 2.
I think that most of the talk about "diversifying" away from the dollar is the world telling America that they are gravely concerned about the American economy and trying to wake bernanke up. |
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mistermasan
Joined: 20 Sep 2007
Location: 10+ yrs on Dave's ESL cafe
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| Posted: Sun Nov 25, 2007 9:13 am Post subject: |
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| how far has it fallen already? remember when euros = .84 cents? now it is probably $1.40+. |
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Ilsanman
Joined: 15 Aug 2003
Location: Bucheon, Korea
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| Posted: Sun Nov 25, 2007 5:02 pm Post subject: |
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But it is as Dynamic as Korea? Or Sparkling?
| thepeel wrote: |
| Depression is a severe or 3-4 quarter recession. That is possible. The 'great depression', that has been burned into our minds, is probably not. America is a very dynamic economy regardless of how committed the Fed is to ruining the party. |
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thepeel
Joined: 08 Aug 2004
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| Posted: Sun Nov 25, 2007 5:40 pm Post subject: |
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| Ilsanman wrote: |
| But it is as Dynamic as Korea? |
That just isn't possible. I'm sure you all, like me, think of the Korean economy/society when hearing the word 'dynamic'.
Dynamic Korea always reminded me of H. L. Mencken's definition of a platitude:
"Platitude: an idea (a) that is admitted to be true by everyone, and (b) that is not true." |
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