The best description of the fed bailout

Re:The best description of the fed bailout by pmorici on Tuesday September 23, 2008 @11:01PM (#313125)

The people who really have a potential to be screwed here are those who have a positive net savings as apposed to those who are mortgaged to the hilt.

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Re:The best description of the fed bailout by nostrademons on Wednesday September 24, 2008 @02:12AM (#313228)

Depends on whether you believe this'll be inflationary or deflationary.

If the government decides to inflate to pay off the bailout, then it sucks for savers and is awesome for mortgagees. But if their intervention isn't enough to halt the deflationary pressure of all these financial institutions failing, then it'll be catastrophic for debtors and good for savers.

People who held cash in the depression (and didn't see it wiped out by a bank run) gained close to 4x their money in about 2 years, which is as good or better than most other bubbles in history. That's relative to consumer prices: relative to asset prices (like stocks), it was nearly a 10x return.

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Re:The best description of the fed bailout by albeit on Wednesday September 24, 2008 @11:59PM (#314501)

all the more reason to stabilize the dollar at its current value. Its the inflation of the dollar that set all of this bad investment into motion.

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