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Chapter 3 Notes
Robert's Topics > Chapter 3 Notes > The Name of the Game is Debt
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kjmccaff - 3/12/2009 10:01:35 PM
Bailout = more reliance upon government
Does anyone see the larger problem emerging?

More individuals are relying upon government to solve their problems. A bail out merely takes this self-reliance upon the governemnt to a deeper level telling citizens "We'll take care of it for you."

The government is raising expectations of just how far it will go and how deep it will reach its hands into tax payers pockets to serve the those who will only continue to rely upon the government for more assistance. The cycles begins . . .

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flitz - 3/12/2009 10:09:45 PM
Bailout is not a option it
Bailout is not a option it only makes the situation worse.However for those people it is worse as there lack of final iq has led to this so this must be their problem and they don't even know about it
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Addison - 3/13/2009 12:51:11 AM
pressure is where diamonds are created...
I have recently started my own business for the first time (b-quadrant). Through the course of the last year and a half, I have been broker than broke. I have been homeless, hungry, and without a properly running vehicle. Each time I faced adversity, I was forced to learn something new. I was forced to find a way to eat, to live, to survive, and to thrive. Now that my family and I are coming out of that season of life and business, we are greatful that no one "bailed us out." If that had happened, we may not have learned as much, we may not be as successful as we are, and we definately would not be the "diamonds" I feel that we are because of our experience. My wife and I now get to pass down financial education that was never taught to us in school.
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rehad22 - 3/13/2009 12:53:46 AM
True capitalism
When I was young I wanted to win the Nobel Prize of Economics for creating a new Economic System... then the Nobel Prize of Literature... for I am also a writer and "The New Economy" book would be my masterpiece... finally, I wanted to win the Nobel Prize of Peace, because my book and my economic system would create the greatest society ever.

After many years having this running on the back of my head, I came to realize that I did not have to create a new economic system, because the one we had was the perfect one (capitalism and free market), I realized the problem was not the economic system, the problem was the way we ran it (nothing like true capitalism and surely not free market at all).

Realizing that was a big shock for me. I could forget about the Nobel... If we already have the best economic system the only way to clean it is with a complete "wipe out" and then a Phoenix-like rebirth from ashes. And if those times came, the Nobel is the last thing I'd think about.

But at that point I still had some hope... maybe the "Apocalypse" (i'll use your word from chapter 3) is coming, i thought, and then maybe, just maybe we can begin from scratch...

My hopes got me researching here and there and then I started looking into the past.. what a sad thing I found... this is not the first apocalypse... we've been repeating this for eons and eons all over the fkn world... all my hope went away...

I am not ready (I said to myself) to spend my life trying to save what cannot be saved, it is not a problem of economics it is a problem of the human race, not only the human race, for if giraffes could have a society like ours, they´d screw it up as well... it is a problem of nature, we are not able to have a society like the one I thought was possible.

So as for me... i'll just run for the biggest piece of cake I can get from this mess, let the world figure the rest out.

I'm sorry... all of this was to say that NO, bailouts for a single person or an institution are NOT the solution... If somebody is broke, he/she/it is broke! and that's it... as soon as we step into the process free market and true capitalism die. GM, Ford, AIG... they all should not be bailed out... let themgo broke and fire their employees, and sell their assets and create a big mess....

The problem is that it is too late now.... how about this? we are about to enter apocalypse... let it be the worst... and then how about starting with the right foot? We need a leader though... (a couple because the first 10 will be assassinated) who's up for it?


Just thinking....

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flames - 3/13/2009 1:25:07 AM
warren buffet
hey robert ive read many of your books, but quick question why are guys like donald trump and warren buffet in support of the bailouts saying if we didn't bail the banks out the whole world economy would of collapsed worste then the great depression, and warren buffet even though worste case scenerio come true say that in 5 years the american economy will be stronger then before
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richland - 3/13/2009 1:45:42 AM
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I think that it does make since to let people learn from their own mistakes however if you look at the situation from another prospective you get a different view of what's going on. Learning from mistakes at an earlier age when there's not alot at stake is better than learning at a later age when there's alot at risk and you face extreme consequences(like living in a tent or being out on the street). The lack of financial education in our school system has served its purpose well in weakening the country. Since there's no schooling for financial education at an early age let alone solving financial problems,silence has been the best weapon against the masses. What you don't know will hurt you when it comes to your financial education. The rich understand this concept very well. They understand that some will eventually learn how to become wealthy and rich however they'll simply change the rules if it gets out of hand until you learn the new rules. He who has the gold makes the rules. Wether we realize it or not there are people in high places with lots of power who have different intentions and plans for humanity than the common good of humanity. When dangerous people get power and wealth bad things can happen. I have a question that someone may be able to answer. From what I understand when the federal reserve prints money to no end and we're chrged the intrest on each dollar that's printed. Since the prinicipal will never be paid down where does the millions and billions of dollar we pay in intrest go?
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shawman4christ - 3/13/2009 2:17:39 AM
A lesson well learned
I agree. I always love getting bailed out when I get in trouble but I never learn the true value of what the pain teaches:NOT TO DO IT AGAIN!
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rmacksolutions - 3/13/2009 2:31:30 AM
Bail Outs
Interesting that the economic stimulus packages seem designed to get people to feel comfortable using their credit cards and borrowing money again...the very thing that created the need for bailouts and stimulus packages in the first place!
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stikksnstones - 3/13/2009 2:39:33 AM
Education really is key
I am eighteen years old, just about to go off to college--and working vigorously on a business plan with which I plan to make my first millions. My real goal at this point is to learn as much about money and business as I can, so that I don't end up like the people who fell for subprime mortgage deals (my parents among them). Still, I fear that this collapse may be too severe for me to overcome. What is the point of working to make more "Monopoly money"? If I become the richest man in the world (with U.S. dollars), who's to say that tomorrow China won't decide that our IOU's are worthless and refuse to buy our debt any longer? Should I continue to work on learning business and finance in this country? Please be brutally honest; if there is not much hope for the red, white and blue, then say so frankly. But if a way out is possible, then please don't be afraid to be mistaken for an optimist. I need a bit of guidance. Sincerely yours,...
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raniees - 3/13/2009 2:41:22 AM
foreclosure..is bailing-out the answer?
I too view losses a lessons but what if bailing out appears the purpose over a solution in this crisis of credit theory??
Isn't time that we make two classifications of beautiful term LEVERAGE similar as GOOD LEVERAGE AND A BAD LEVERAGE??
And how pathetic is seems when a wizard losses possessions in his own backyard?
Will my thoughts go freeze when so much un-predicted moments arise from nowhere that any knowledge looks limited..as somewhere someone is determined to break rules...ethics?
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