Two things, since it’s a relatively quiet morning so far and I’m catching up on a lot here and there.
First, the economy talk is crippling for many, including myself. It’s tough to wrap one’s head around even the simplest Time Magazine cover story, let alone the most in-depth Wall Street Journal piece. But staying true to form as one of the good guys, Ron Paul has laid out the particulars in the most easy-to-consume manner I’ve yet to come across in this CNN op-ed. Give it a read if you’re interested in making sense of it all.
Second, last night, David Letterman broought Bill Clinton on to discuss a few things, but key among them was the economic crisis. It was an awesome three-segment visit that gets a bit dizzying in the language from time to time, but, again, in true Clinton form, he laid it all out in consumable terms for the most part. But basically, it was just a damn fine interview and the audience was silent throughout, clearly taking it all in. I haven’t found a YouTube clip yet, but again, if you’re interested, poke around for it and I’m sure it’ll turn up.
Now, back to Oscar stuff…
Comments
20 responses to “On the economy”
I’m finding hard to believe that the economy is as bad as it’s being made out to be. I think it’s mainly just a small portion of the population that’s really being harmed, but usually the minority ends up banging their drum louder.
No one I know (and I’m not saying that it’s a good sample of the country) is having financial problems other than what they bring upon themselves, i.e. not saving, spending frivolously.
I just bought a house this summer and my wife and I are about another new car. Perhaps it’s because I’m doing well that I roll my eyes at all the ‘end of the world’ economy news.
The issue is that fragility of the economy. We’ll certainly pull through and measures are being put in place to ensure that the hemorrhaging stops, but it’s also dangerous to think that these aren’t crucial times. It is certainly overstating to claim that the economy is “the worst it’s been since the Great Depression,” but it is most certainly fair to say that the economy has not been in such a precarious position since just before the implosion that led to said Depression.
Additionally, you bought a house at a time that doesn’t really affect you. Buying now is smart, actually, considering the economy will bounce back and your property will be worth more in the near future. But the people that (foolishly — but without regulation from a responsible government) borrowed money four or five years ago for their houses are now facing inflated mortgages due to the terms of their initial contracts that they can’t pay.
And it’s certainly not a “minority.” Your test sample of friends speaks to nothing, sad to say. I still don’t know a single person who voted for Bush the last time around, but obviously, they’re out there. Minorities and majorities are not that easy to discern when it comes to stuff like this.
Maybe I’m just economically challenged, but I still don’t see what happens to those that already have homes (not builders, but actual homeowners) who can’t sell their homes because of subprime mortgages that they’ve now defaulted on. It’s perfectly logical (if brutally fair) to tell them they deserve it, but that doesn’t solve the problem of how they get out of it (and I don’t think anyone other than a cold hearted bastard would tell them to stay there indefinitely) and also the fact that getting them out of it will (or at least should) help the economy in the long run! Please, someone with economic pedigree please write back! I can see the government has responsibility in all of this but not why they can’t help people now.
A moratorium on foreclosures. It’s the only way. And it’s an idea being tossed about on the political front, but this election will decide a lot of that. Scaling back the payments that were inflated as a result of the original contracts’ time lines is really the only way to help these people, though.
People just shouldn’t have bought houses that they couldn’t afford – even if the banks and such were more than eager to give them a loan. On top of that, the banks should have known better than to give loans to people who they knew couldn’t pay them back. The best thing for the government to do is just the chips fall where they may. Whatever happens with Bush in office will be criticized no matter what, even if the plans work. At least the next president can blame him for any problems they inherit. But if this so-called crisis is as bad as expected, I’m sure we’re going to have a lame-duck president anyway. So unless these problems can be solved in the immediate future there’s nothing Obama or McCain can do. Then maybe the president after them can get some credit for fixing something they probably had nothing to do with.
Well, call me a cold-hearted bastard (and I sort of am one), but I have zero sympathy for people who can’t afford their outrageous mortgages and are now stuck driving 10-MPG SUVs with high gas prices. I don’t think of myself as a particularly frugal person, but living within one’s means just seems like common sense to me. Apparently not.
Of course banks shouldn’t have given mortgages to people who have horrible credit and little income. But, my family (almost all of them in the banking business) can tell stories of how they are constantly under pressure from certain groups (social, political, etc.) to give mortgages to those who can’t afford them, because it would be the equivalent of discrimination to deny them the right to own a home. Sheer insanity.
Sorry for the rant, but I am just so pissed that ordinary people in no trouble at all are going to get slammed for the stupidity of others.
I don’t think “letting the chips fall where they may” is any solution. Millions of people on the streets is the beginning of the end, 9.
However, you are correct in your first two statements. There is plenty of blame to go around, but the truth of the matter is it starts at the top, and government regulation was needed here. And with Republicans in power believing in as little government insinuation as possible, a huge chunk of the blame indeed lies at their feet.
That doesn’t mean people shouldn’t have been smarter in their decisions. But we could go back and forth on this all day long.
Kris,
I understand what you’re saying about the economy affecting more than a minority, but the most recent home foreclosure rates are at just under 3%. Higher than usual, yes, but clearly a considerable minority.
There are more issues at stake then foreclosures, I know. But, I do think Z is right, in the sense that not every other home on the block is in foreclosure, as the news would have us believe.
“not every other home on the block is in foreclosure”
Not yet. And I think THAT is the point. Fragile economy, not “all is lost” times.
However, this is an instance where I’d wager media exaggeration is a benefit. People NEED to be scared shitless.
I think the big issue though that everyone is ignoring is the even bigger picture than the foreclosures. Should bailouts be given to AIG and the like? Will those bailouts help the common people?
A whole other can of worms.
I’m not scared shitless. I saved my money and have made shrewd decisions about my money and finances. I have no reason to be scared.
I suppose we taxpayers, now that we technically own AIG and what ever other companies the government “helps out,” should expect to receive checks from any (if any) profits incurred.
I doubt that will ever happen, but it’s something we should think about.
Right, Mr. 9. I’m in perfectly good shape, and while I know that some people have had some legtimately bad luck, the fact is that anyone who has saved and spent wisely should be in decent shape as well.
Most lenders are doing everything possible to help people stay in their homes, including giving a number of options for those who legitimately can’t make their payments.
Most of the people who are scared shitless are people who have lived ridiculous lifestyles, and other taxpayers are now being asked to bail them out.
Too true, Liz.
Spoken like someone without a care in the world, 9 (and Liz)…I wonder if you have any idea what some of these people are going through.
The selfishness in this thread is stifling. It’s one thing to have a chip on your shoulder, but to essentially tell millions of people, “Let them have cake” — soulless.
This is clearly a political thread, so I don’t feel guilty when I say that the sentiments and overgeneralizations offered in this thread are why I’m sincerely terrified that McCain is going to win this stupid election in November.
The second time this week that I’ve posted something in irritation and regretted it afterwards. I meant every word I said, mind you – I just don’t feel that it is appropriate for me to adopt a confrontational tone in this particular forum.
Maybe a message board is a good idea. Or at least something that gives me the option of deleting my comments. :p
I don’t mean to adopt a confrontational tone either. A few of the sentiments rubbed me the wrong way here, but that’s politics I guess.
Working on that forum. Perhaps beginning of October we’ll have something ready to go.
If some one did something they and others knew they shouldn’t have done I don’t see why or how it should affect me. My rights, as stated by the Declaration of Independence, are life, liberty, and the pursuit of happiness. I know the Constitution includes promoting the general welfare, but if I am well and my family and friends are well, why should it bother me if others aren’t as well off? Most of those people (not all, I’m not stupid enough to go hyperbolic) put themselves into whatever mess they’re in. They should put forth the actions necessary to get themselves out. I would expect nothing less from myself. We need to stop relying and then blaming others for our problems. And that’s what a lot of those in trouble are doing – blaming others, especially the government despite the fact the it was the FED (which keep in mind, is NOT technically a part of the government) and financial institutions that caused their problems. I understand wanting some solution or closure, but based on the news there’s nothing coming for the average citizen any time soon.