Frozen Mortgage Rates? Agree or Disagree

[.RJ]

Seriously, if you believe that a weak dollar isn't bad, you're fucking loony.

What if the Dollar was stronger than everything else - then no one would buy our stuff and we'd have an even bigger trade deficit.

Of course, a very weak dollar is bad. But just because the value is less than what it was before... the great depression isnt coming. That was the point I was getting at.

[Apoc]

The Canadian dollar is worth more than the American dollar now.

It's actually back above $1 CAD... although it's really kinda scary that we always joked about how the CAD was worth nothing and for a period of 2 months it was actually worth more than the USD.

[Apoc]

What if the Dollar was stronger than everything else - then no one would buy our stuff and we'd have an even bigger trade deficit.

Of course, a very weak dollar is bad. But just because the value is less than what it was before... the great depression isnt coming. That was the point I was getting at.

No but they would invest in our stocks, bonds and real estate... which is a good thing.

I don't think anyone in here is guilty of buying into media hype so you're kinda stating the obvious... but that's for the post count. :wink:

[.RJ]

+kumquat

[Ginger]

What if the Dollar was stronger than everything else - then no one would buy our stuff and we'd have an even bigger trade deficit

Who's buying into media sensationalism now? Despite whatever your favorite news program likes to tell you, a current account trade deficit isn't a terrible, awful thing. I challenge you to even tell me why it is.

Of course, a very weak dollar is bad. But just because the value is less than what it was before... the great depression isnt coming. That was the point I was getting at.

So you're going to draw a line in the sand and say "this is where it's bad"? A weak currency is bad, that pretty much stands on it's own. And nobody said the Great Depression is coming.. Jim Rogers may have said so, but I don't think any of us are beating down his door for advice. I don't think it's going to be the end of the world, but it's downright silly to say the impact is going to be negligable.

[Evan]

You've been drinking too much Republican juice Evan.

Nothing to do with politics. Any decent intro to macro economics book talks about the negatives and POSITIVES of devalued currency.

Sounds to me like you're the one drinking the Ron Paul ballsack juice and his one-sided and manipulative writings on the subject.

[Ginger]

Sounds to me like you're the one drinking the Ron Paul ballsack juice and his one-sided and manipulative writings on the subject.

Ron Paul's kind of like, out in spaceland. Proletariat uprisings, anyone?

[Apoc]

Any decent intro to macro economics book talks about the negatives and POSITIVES of devalued currency.

...and yet you only offered the positive as your conclusion?

Sounds to me like you're the one drinking the Ron Paul ballsack juice and his one-sided and manipulative writings on the subject.

Nah... just a degree in Finance with a concentration in International Business.

PHEAR T3H D'GR33!

[Evan]

Maybe you should have taken an econ class.

I can't seriously believe that you think a devaluing dollar is anything but a bad thing. We don't live in government run economy China land. And that's not a happy place to be, either. When your money is worth less, it buys less. End of story.

it seems to me like you're looking at a macro issue through a micro lens. How much you can buy isnt the issue on the wider scale.

lower currency value means much higher demand for goods and services, both within this country and abroad. Are you saying thats a bad thing?

its also a self-correcting system, so knee-jerk politically motivated "fixes" are more likely to cause more problems than they solve in the long term.

[Evan]

...and yet you only offered the positive as your conclusion?

no, just arguing your dismissive attitude that there are'nt any

[Apoc]

There are... just not enough.

So there.

[Evan]

Sounds to me like you're the one drinking the Ron Paul ballsack juice and his one-sided and manipulative writings on the subject.

Ron Paul's kind of like, out in spaceland. Proletariat uprisings, anyone?

yeah thats the feeling I get from him. he has a few good points hidden in there, but you sure do have to wade through a lot of bullshit to get to them.

[Ginger]

Are you saying thats a bad thing?

its also a self-correcting system, so knee-jerk politically motivated "fixes" are more likely to cause more problems than they solve in the long term.

No, I'm not saying that... but the circumstances under which this devaluation is occurring aren't exactly favorable. That's what I'm saying.

And I agree, the political fixes usually are trash.

[Evan]

so what do you think the causes of the devaluing are?

we've had a big trade deficit for quite some time, so that doesnt seem like the biggest culprit.
maybe the budget deficits and all the borrowing that the government must do as a result?

[Ginger]

so what do you think the causes of the devaluing are?

we've had a big trade deficit for quite some time, so that doesnt seem like the biggest culprit.
maybe the budget deficits and all the borrowing that the government must do as a result?

I'd place most of the blame on this little lending crisis and the subsequent hysterical fear of market players. We've had a huge deficit for quite some time, too, but a strong confident market to back it up with. Give people reason to think that the end is coming and they'll jump ship, and when they jump we lose.

*edit* But really I don't know dick about it
*edit2* Gone for the day and off to class, so ya'll have fun.

[Evan]

hrm, the weakening dollar started a long time before this lending debacle, no?

and I guess I just dont see the connection between the localized housing market and global currency value, but Im certainly no economist.

[Maengelito]

hrm, the weakening dollar started a long time before this lending debacle, no?

and I guess I just dont see the connection between the localized housing market and global currency value, but Im certainly no economist.

well, our housing market isnt necessarily localized. i'm not sure how local you mean by localized but considering that most of those low to middle income houses all over the nation which people can no longer make payments on are backed by federal securities. last time i checked our market is more of a global factor than say zimbabwe's or urugauy's. trust me, i hate media hype almost as much as you evan, but this isnt some harmless practice that affects the local bank down the street and some neighbor.

[Evan]

I mean local as in not global. ie- its a self contained system. And since the houses still exist, its not like there is anything lost in this crisis, its just changing how and when the money is shuffled around.

[HAULN-SS]

Some of the short term effects of a weak dollar aren't bad. We're less likely to export jobs overseas, for one. The bad part is you start to lose your smart labor with a weak dollar. No educated people want to move to a place and work whent he dollar's weak, which is a bad long term effect of a weak dollar.

[Mike]

this is gay. i don't call many things that, but this is. yay for shitting on people who do the right thing. fuck. i'll be blogging about this when i regain my composure. fuck.