Though I won't pretend to be an expert on the current economic fall out in the US; I will add my two cents worth to the swirling spins. Most of us, unless you've been in a cave, have heard about or felt the happening across the country. Whether you own a business, large or small, have a retirement account with a portfolio of dabbling in mutual funds, gambling big in short falls on the stock market, or are simply a home owner trying to stay employed to make ends meet - this crises has imbued on everyone with an all encompassing effect. And I don't see an end to it, with or without a bailout.
The blame game is somewhat amusing, I must say. Though there's certainly serious wrong doing on some one's part. Generally I think we as a nation are to blame because we cultivated our lifestyle with irresponsible tools for selfish gain (my minor children, who weren't working at the time, have been solicited to receive credit). Yet as I listen to the commentaries, the senator's speeches, the reporters and then a few more voices out there; it's clear to me the finger pointing is only a distraction. Most want to rest blame somewhere, thinking it may arrest the culprit or at least appease an angry victim. Like that's going to help matters...I don't think so. Frankly, there's so many contributing factors. So I think it best to suck it up, learn from our mistakes jointly and make better choices down the road. No pain, no gain...or more close to the point; if I touch a hot burner - I've learned not to touch it again. I just hope I don't lose my whole hand in the process.
But how do we do that with so many who will suffer, and more others ready to relieve their pain? Take for example the bail out with the government treasury. I think this band-aid is treating a symptom when surgery is necessary. We've been conditioned to consume, consume, consume - and borrowing is a way of life to achieve it. This has inflated everything to the point where now we need to have two working incomes in every household, postponed retirement and insurance for EVERYTHING. Let's not forget all those taxes we pay on all that consumption, either.
King Solomon would say in a nut shell; avoid borrowing. (Proverbs 22:7). Real freedom isn't found in an abundance of choices and opportunity to make them. But it's in the wisdom to know when to be prudent. Borrowing makes one beholden to the lender. And that's enslavement - hardly freeing.
I'm sadden to think it'll be at least a generation (or two) when a new upbringing may change things. That's after a total collapse and there are no other choices out of this pit but up. The bail out plan is perhaps a lesser of two evils at this point. Uncle Sam is the rich guy that can provide a loan big enough and is able to sit on it long enough until the market becomes viable again. But it's just more borrowing with the hope that the investment may pay off down the road. What did the King say exactly? 'The rich rule over the poor, and the borrower is servant to the lender'. That feels a little scary to me. Especially because the Congress, the Whitehouse, the US Supreme Court (let's not forget the Pentagon) have too much leeway for permeating corruption, gaining a ruling hand over me - no thank you.
Here's another thought. With banks having their butts covered; I think they'll dump those empty houses and pull the market down further. As I said before; it's time for surgery and not a band-aid and it's going to be painful.
Or, we could continue as we have with a cavalere way about things. Like someone once said to me, "If I died tomorrow with all my debts paid off; heck, think of all I could've had, high on the hog!"
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