Policy and a Pint: Discuss the Economic Meltdown

Most of this has to do only with the value of the dollar, and politics as usual. The Bush administration gave more value do bankers in 2004 with the change from 12 to 1 to 40 to 1 leverage in the loaning that the banks did so they could loan more money to buy homes. That was not a good thing to do

As the value of the dollar went down 40+% between 2001 and 2007 the price of commodities, homes and Stock went up 40% or in most cases more as the people that saw the price rising thought that the prices would continue to go up and up.

However, when the value of the dollar started going up in 2007 there was an known panic as to why are the prices falling. However the dollar continued to go up in value, and is now up around 10 to 15% and the prices definitely fell in the commodities, homes and the stocks. However, as the prices went up more than was justified, the prices also have fell a bit more than should have been expected also.

Also of note is that the 40 to 1 leverage given to the banks in 2004 was used by some, but not all the banks, like Wells Fargo and JPMorgan Chase, which stayed around the lower leverage arena of 12 to 1, However, Bear Stearns was leveraged at over 100 to 1 when they failed, and Lehman brothers was said to be in the same ball park, however they also carried much more debt than Bear Stearns, and no one wanted to deal with that debt, so they just failed.

As the value of the dollar continues to rise the difficulty will continue. But the dollar being worth more now, also makes it well, while still being misunderstood, better overall.

These are always great events - I'll check my calendar!

I'm worried about worrying. I do not like to hear people talking themselves into a lack of confidence in the US or worldwide economy -- that will only make things worse and longer lasting. As a freelancer I do not have the sort of steady income or benefits many positions provide, and as some one who works in the arts things are even stranger for me right now than, say, for those freelancers who work in healthcare or finance. I think, though, it's important to keep my spirits up, keep looking for creative ways my work can serve and fit in, and work on encouraging positive, creative, and hopeful conversation and thinking.

I'm 44, what will be left of Social Security? No talk of that lately.

What about all the government pensions and union pensions of US legacy type corporations?

Will taxing more increase jobs? Or does it just feel good?

25 years ago in my Ecomonics classes they were teaching us that Keynesian Economics is flawed and not affective. Why will it work now?

Poor regulation got us into this, why would more regulation help?

Note to all: I'll see if the audio from this event is available.

Citizen Citizen, Please don't be alarmed that I removed one of your replies, it was a duplicate post.

Poor regulation got us into this, why would more regulation help?

winston: do you think better regulation would have helped, and do you think it will help in the future?