Sorry Mark, it's Lady's Week.
I've been reading a few articles hear and there about the credit crisis. You know, out of morbid curiosity. I suppose I only have one question about the whole mess: Is Joe Six pack buying it?
The whole argument and the new direction of the bailout is that our economy is failing because people can't borrow money. The object of the game then is give the banks money so that they will ease up their lending rules and start giving money out to people so those people can go buy stuff that they can't afford. If we do this, the economy will be right back on track.
The problem obviously is with the track. It's a dead end track. Even if this form of bailout were to work, it would die again in a few months when people couldn't borrow more money.
If they could even afford to borrow more money in the first place. With gas prices, inflation, and job losses, people really can't even afford to live on credit now, even if it's cheap credit. Their credit cards are maxed. Foreclosures are at all time high. Mr. Hope-n-Change wants to stop foreclosures for 6 months so people won't lose their houses. The banks are obviously against giving away homes, even if it's for 6 months.
The ultimate goal is to reinflate the housing bubble so that people can refinance their homes and start the flipping game again. Then we can get back on track. We can get back to building McMansions and filling it full of crap from Ikea.
On a side note, Tia and I finally went to an Ikea earlier this year. It was the first and last time. "Ikea" must mean, "shit even people in Iceland won't put in their homes." We were told that if we made it through the maze, we could have some fudge at the end. We didn't find what we were looking for and hated the maze set up. We flew right by the fudge store as we made our escape.
Speaking of people in Iceland. Their poor (quite literally) banks are worse off than ours. The 3 biggest ones have been taken over by the government. There is a world wide socialist movement taking place right now as people who have lived way beyond their means look to the government to "make everything better."
Speaking of which, I got my sample ballot today. I'll share some of that with you tomorrow.
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