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I would never have allowed my children to use that language or throw those hissy fits. My daughter had temper tantrums from 2 to 3, but I just made her stay in her room until she had calmed down.
I never hit them or anything, but I wouldn't have just stood there and let the little boogers rant and rave like that. But then, I supose they follow by example... It was alright those parents crying when things were out of control, but they let their children get to that stage in the first place.