When you're massively in debt, take for example personal finance. Someone comes in and says "hey, I'm going to give you money, get you back up and running and we'll get you later on the bill."
Now, you get the money, you start paying off all that you were behind, in the hole and this leaves you with a margin of money left over to work with.
Now you realize that your profits STILL are not accumulating like they did the past 24 months before all this started to deflate.
And now, since there's not enough revenue to sustain yourself, the "borrowed" money is now running out,
nothing changed on your end, other than you ripped through a great deal of money and your situation is pretty much the same.
That's where america is heading towards. This small "jump" that financed our futures was a move that history will show was a move that most likely had to happen, but that doesn't mean it was a wise one.
In about a year to two years,
You HAVE to start paying back that loan, which if you're running on the next to no margins, you're now operating with no profit margins, working on a massive till of debt for the next 10 years because
you had your hand out for something that you should of just buckled and crumbled, disappeared from the map.
We will all take the fall for supporting these gluttons of debt like the big 3 automakers, along with all these corporate moguls that moved large amounts of money that didn't protect the little guy.
The first wave of defaults were the bad credit risks, that's expected.
This second wave of defaults are going to be the "good" credit risks that either lost their jobs or a spouse isn't working anymore and BOOM; living beyond their expectations.
That second wave is going to jack up all bank loans, all credit card rates, diminishing the big picture of what's safe in money lending.
Unemployment is at a 26 year high. The majority of americans are still working, but it's evident that the infrastructure is starting to wobble, and it is going to topple.
It turns around when we all decide we need to control our spending and be responsible for ourselves. This is absolutely the wrong time for this Administration to try and push through all of these social programs regardless of their merit. We need to allow business which are failing to fail. There is a process which must happen to a failing business and all we are doing now is redistributing funds and ownership at the cost of the taxpayers. Special interest is running rampant and there is no way to stop it in a single party government.
"Somewhere a Village is Missing Twelve Idiots!" - Casey Anthony
I never lost a cent on the jobs I didn't get!
At the risk of sounding like a jacka$$, if you really want to dig into this mess, you need to turn off fox news, msnbc, cnn, rush, olberman, etc.
None of them have a clue.
Check your partisan political tendencies at the door and start poking around.
This is bigger than dems and reps, libs and cons.
Do yourself a favor and do some research. There is plenty of places to find it, ya just gotta dig a little deeper.
These comments aren't pointed directly at anyone here, nor are they meant to be disrespectful to anyone here. I hope they don't come across that way.
Last edited by lmpg; 06-24-2009 at 03:52 PM.
I don't see it as a party issue either. The (R) Bush administration started the ridiculous bailout programs, and then (D) Obama stepped in with full support of this strategy! I am not happy with his decisions regarding bailouts at all. Certainly not the CHANGE we were hoping for. He simply followed in Bush's footsteps with all this bailout funding.
I may move out of this stinking country if things continue to errode and corporate/federal corruption continues to win the day...of course, I don't no where else to go that is any better either.
I've come to the conclusion you could probably count on one hand the number of people in washington that actually understand what is going on. So no, I don't think our elected officials should be calling the shots on this one.
However, the "true financial experts" are ONE on the reasons we are in this mess.
I guess part of what I was getting at was, we HAVE to figure out a way to get past the propaganda BS of the major political parties. It's dragging us down, and it's a distraction (sometimes I think they want it that way) from what's really going on.
I have to admit, I've done alot of reading on subject of the banking system and how we got where we are. I don't claim to completely understand it (not even close). I've learned a ton, but it's been painful at times. I'll also admit I've never been much of a conspiracy theorist, however....
I ran across this quote form Thomas Jefferson a while back, and it made the hair stand up on the back of my neck:
Interesting quote, huh?“I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”
- Thomas Jefferson, Letter to the Secretary of the Treasury, Albert Gallatin (1802)