Geithner plan 5 | Money, banking and central banks | Finance u0026 Capital Markets | Khan Academy

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Title	:	Geithner plan 5 \| Money, banking and central banks \| Finance u0026 Capital Markets \| Khan Academy
Lasting	:	14.01
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Frames Geithner plan 5 | Money, banking and central banks | Finance u0026 Capital Markets | Khan Academy

Description Geithner plan 5 | Money, banking and central banks | Finance u0026 Capital Markets | Khan Academy

Comments Geithner plan 5 | Money, banking and central banks | Finance u0026 Capital Markets | Khan Academy

Wow Wow Wow I have never heard such a clear explanation on why this is a bad deal for the american tax payer
Comment from : spicydragonz

@hyperguy61 now that we have 10 months behind your "i don't believe we're in a deflationary period" comment, let's see if you can now see what i saw, see, will be seeing The federal reserve has infused over $7 trillion into the economy that is by definition inflation However prices have not sky rocketed why? the inflation is fighting the deflation One area where that influx has had little impact is in the housing market, which is falling precipitously
Comment from : Shakaama

@CaronteEmpire woah woah woah, why the cursing and name calling? you'll only make people call you an idiot and slime ball anything after your cursing and name calling is completely ignored idiot
Comment from : Shakaama

the private investors are the banks that are holding the toxic assets - just like you predicted!
Comment from : Myles MacDonald

not sure what you mean by "artificial" all i am saying is that whether it is in 6 months or a year , or 2 years , eventually all this money printing will come home to roost i dont think it can be manipulated indefinitely it's just easier for the US because the dollar is the reserve currency
Comment from : M Jos Muscarelle

the demand for the dollar due to deleveraging creates temporary demand for the dollar temporary is the key skyrocketing coming just give it some time come come back home
Comment from : M Jos Muscarelle

Well that just goes to my point about the manipulation of the dollar Hmm as to deleveraging, that doesn't quite fit Although deflation doesn't either I think the proper term is stagnation or a downward stagnation to be completely precise as to doesn't fool you with the introduction of now $10 trillion, prices should have been skyrocketing however America is changing its buying habits [stagnation] so that there isn't rampant consumerism
Comment from : Shakaama

hi i respect and appreciate the conversation we are having but i respectfully disagree that we are in a deflationary situation we are in a deleveraging situation asset prices are falling , this is not deflation the fact that we havnt felt or seen the effects of our governments inflationary monetary policies yet , doesnt fool me inflation is coming and it will be rampant imo peace
Comment from : M Jos Muscarelle

I don't know if you've been paying attetion but we're actually in a deflationary situation [i suspect, and yes this is conspiracy theory, the dollar LIKE GOLD is being manipulated and these aren't true market indicators] Can the dollar maintain its current rally? Well can the American government coerce foreign countries to keep devalueing their own currency vs the dollar? actually it's worked for over 30 years so far So it could be no inflation which goes to my first answer
Comment from : Shakaama

by "taxes" i meant either the traditional taxes or taxing through inflation , which is worse , imo
Comment from : M Jos Muscarelle

what's funny is alan greenspan in the 90's told japan to let its banks fail and japan didn't listen, and propped up zombie banks for an entire decade, and in the end, they failed anyway and corrected itself when they stopped paying money America told another country to do what we are unwilling to do [irony?]
Comment from : Shakaama

none of these bailouts or stimulus packages come from taxes All of the taxes collected go to pay off the interest, that the federal reserve has lent the us government The bailouts and stimulus packages come from money the feds create out of thin air that's a good news bad news scenario the good news is it doesn't come from taxes the bad news is all future taxes for the next 50 years will again go to pay off the interest on these current loans
Comment from : Shakaama

Is there a Geithner plan 3 ?
Comment from : mdadnan

The government is giving free put options to private investors in the hope that it will cause them to overpay for asset (Pay $50 for a $30 toxic asset + a $20 put option)
Comment from : Khan Academy

So , basically , the govt is using my tax dollars to fund the selling of (crappy and risky) put options to private investors who , in the end , may not even be private
Comment from : M Jos Muscarelle