Comments on: Is the U.S. Bailout Perpetuating the Credit Bubble?

By: MaryTenderLOS

MaryTenderLOS — Mon, 05 Dec 2011 06:47:42 +0000

Wooden toys are perfect presents for a baby shower gift, a birthday or a simple family get-together. This year is the Dancing Teletubbies that will be one of the favourites for the Christmas. This kind of toy will excite babies and keep them safe while on the waters.

By: Unsosausa

Unsosausa — Mon, 22 Aug 2011 12:46:22 +0000

Tramadol is yer only man. I have a theory that it doesnt stop the pain.

By: Wribneeby

Wribneeby — Fri, 24 Apr 2009 00:37:50 +0000

I'm the only one in this world. Can please someone join me in this life? Or maybe death…

By: Jutia Group - Market Jitters & Political Critters

Jutia Group - Market Jitters & Political Critters — Mon, 26 Jan 2009 16:01:05 +0000

[...] Peter D. Schiff Money Morning addthis_pub = 'jutiagroup'; addthis_logo = 'http://www.jutiagroup.com/favicon.ico'; addthis_brand [...]

By: Pete Murphy

Pete Murphy — Sun, 25 Jan 2009 18:53:19 +0000

I'm disappointed that Peter neglected the role of the trade deficit in making the U.S. dependent on credit. The trade deficit is financed by a sell-off of American assets, some of which is treasuries that adds to the national debt. And the loss of jobs through the trade deficit has put downward pressure on incomes for decades, forcing Americans to draw down their assets and turn more toward debt to maintain their lifestyles. The only way to break our dependency on debt is to restore a balance of trade.

Pete Murphy
Author, "Five Short Blasts"

By: Myron Martin

Myron Martin — Sat, 24 Jan 2009 18:36:11 +0000

Most people have not been taught "critical thinking" consequently they are vulnerable to bad influences from politicians and bankers who encourage use of credit (which is a misnomer) since in actuality they encourage DEBT to facilitate FASTER acquisition of WANTS rather than encouraging SAVINGS that defer purchases until they have actually been EARNED!

Few grasp the fine line that connects the two, savings are the basis on which loans are made (bank reserves) so if there is a LACK of savings banks are restricted in their lending. When that happens,because banks MUST lend or die, they look for ways to circumvent reasonable and prudent rules and so we end up with liars loans, collaterlized debt obligations, other cretive derivatives, sub-prime mortgages etc. that become a dangerous deck of cards that collapses the whole system!

Until we return to a system of HONEST money with intrinsic value such as gold and silver which have stood the test of time for over 5000 years of dependable purchasing power and store of value we will just have to suffer the consequences of a FAILED experiment with fiat currencies that is now unravelling.

By: David Spence III

David Spence III — Fri, 23 Jan 2009 18:53:45 +0000

This is clearly more of the same BS. Credit is NOT based on savings. Credit is based on credibility ONLY. Like fiat money that is worth only what someone will give you for it. Credit was hugely hedged, then just like money, unhooked from the collateral, so it became worthless. Banks have been loaning out money that is non existant for decades. Some call it counterfeiting. Wasn't it Thomas Jefferson who said that banks are more dangerous than standing armies?

By: Richard Shurgot

Richard Shurgot — Fri, 23 Jan 2009 18:03:13 +0000

Very nicely described the fundamental problem Peter. I agree with all you said to the letter.

Now, the question is what may be the solution.

I am not suggesting any particular solution (I am in a research/thinking stage myself), but has anyone considered Islamic financing that appears to (1) discourage hard interest, (2) promote profit sharing between lender and borrower in an asset-backed security, and (3) promote a more human interaction between the parties. After all, Islamic financing thrived for centuries in its golden age, and many of the concepts used in finance were invented in this period.

Review these sources for the basics on Islamic financing:

http://www.economist.com/sponsor/qfc/index.cfm?pageid=article104

http://en.wikipedia.org/wiki/Islamic_banking