I don't really know what is going on with the economy. I mean, you can watch The Real News, and they say one thing.
Anyway, The Real News has an interesting take on the economy. I think they got it a bit wrong. I mean, sure, there are different reasons for what is happening to our economy, but let's look at the housing market for a moment.
We have banks who are lending money to people, but as soon as the loans are out there, they sell the loans to someone else. So someone qualifies someone for a loan, then they sell that loan. So does the bank really care if the person can pay the loan since the loan has been sold? Hmmmmmmmmm. It would seem to me that there would be a tendency to qualify everyone for the loan. And because wages have not really gone up in 30 years (which is highlighted on the video), we Americans can pretend that we are doing better than our parents by qualifying for a house that is bigger than the house we grew up in. It makes us feel better, and while we are feeling better, we can roll our Visa/Mastercard bills into the new house at the same time. Nice.
I was reading somewhere else that the 800 Billion that was given to banks was sort of wasted money because they did what was in their best interest, suring up their positions, paying their key executives, whatever. And we get mad when they do what is in their best interest because Congress did not anticipate this.
Obama has been in office a short time, and he has already pushed through one bill (worth about $800 Billion), and then he introduced a big ass budget (about 1.3 Trillion deficit). Oh, crap. I mean, George W Bush was a big spender. Problem is, when times are good, we don't want to pay down debt. So when times are bad, we increase our deficit, and when times are good, we really don't make headway – we just start different "programs" that make our elected officials look good. Even The Resident asked a bunch of people, and most on camera did not trust the government with the stimulus package.
Okay, this is more for me than for you. I am just a bit pissed. Just click to your next blog. Me, I am going to start drinking. Well, that is something productive.
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