I'm pretty upset about the massive failure of our government. They have taken the best country and system ever created and let it be sucked away by greed, stupidity, and futility. The entire system needs to change. I don't blame Republicans or Democrats. I blame the whole thing. Maybe we need more parties with power. Maybe they need to be split up like monopolies get split up. Maybe the terms of government officials need to change and more requirements need to be made to qualify politicians in avoidance of corruption.
The economic policies of the last thirty years have created this mess(trade deficit, budget deficit, consumerism), and it is nowhere near being over. This is a crash that will unwind over the next 10-20 years. Sure, after this recession we may rebound starting three years from now to slowly get to Dow levels of even 15-17 thousand, but that type of rally will only cause a more rapid fall/depression.
The hilarious thing is that economists the world over know what kind of position the world economy is in. However, they cannot do anything about the governments and international bankers who create policies and control the news just to make profit for themselves. I cannot emphasize this enough: THE BANKS AND GOVERNMENTS WORK TOGETHER. They need each other to survive. Below are some details from a Yahoo article that highlight some of the recent events with the "Bailout Plan"
"In buying equity stakes in banks, the Treasury has 'deviated significantly from its original course,' says Alabama Sen. Richard Shelby, the top Republican on the Senate Banking, Housing and Urban Affairs Committee. 'We need to examine closely the reason for this change,' said Shelby, who opposed the bailout.
The centerpiece of the Emergency Economic Stabilization Act is the 'troubled asset relief program,' or TARP for short. Critics note that tarps are used to cover things up. The money was to be devoted to buying "toxic" mortgage-backed securities whose value has fallen in lockstep with home prices.
But once European governments said they were going into the banking business, Treasury Secretary Henry Paulson followed suit and diverted $250 billion to buy stock in healthy banks to spur lending.
Bank executives hinted they might instead use it for acquisitions. Sen. Christopher Dodd, chairman of the Senate banking committee, said this development was "beyond troubling."
Sure enough, a day after Dodd, D-Conn., made the comment, the government confirmed that PNC Financial Services Group Inc. was approved to receive $7.7 billion in return for company stock. At the same time, PNC said it was acquiring National City Corp. for $5.58 billion."
So, the government instead of using the money to help the individual home owner stay in his home and keep real estate values stable has now started using the money for what they really want to accomplish and that is to have more and more control over us. PNC Financial Services could not have been in that much trouble as they just used bailout money to buy National City Corp!
In every piece of bailout news you see going forward, just read between the lines on how everything they do will be more about getting control over assets rather than helping individual home owners get out of trouble so the economy can stabilize. Greed will win out, and the housing market will continue to get worse, and the recession will be long and deep.
By the way, the video below is not your standard stuff. It was an incredible moment in television, I think.
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