10-11-2008, 09:21 AM
Another Great Depression could happen. Key word here is "could". It depends. If the government isn't able to raise enough capital to bail out these companies, it would just print more money. When more money is added to the system without any real backing, after all it is just paper, it causes the value of the dollar to go down (think of the peso). If the value of the dollar drops, the price of goods and services goes up. So we spend more on everything. Because inflation sucks like that. So we spend more money. Which is fine, except WE WON'T BE MAKING ANY MORE MONEY. So we spend money we're not making which disallows us to buy luxury items, causing most small businesses to go out of business, store profits to drop, mass layofs because businesses aren't making enough money to make more consumer products, and so on, so forth. Its cyclical. It's also when I'm picking up and moving to Canada because I heart money.
"I'm glad to see those 'Worthless Whore' lessons turned out well for you."