I was very close to both sets of grandparents and we discussed a lot of thinks. One topic that came up quite frequently was money and the depression. I bring that up cause they say if you do not learn from history you will re-live it. I am afraid that is going to happen but not for the reasons you might think.
There is only so long you can live in a false economy created by wants and not needs. Sooner or later the bottom has to drop out and nothing is there to support you. Credit cards, ads for products or loans with NO credit checks, and loans made to people whom were not qualified for any type of loan have helped create this false economy. Just like the bubble created during the .com of the late 90's, the .com's stocks were over priced and now the housing market has been over inflated for awhile now due to the increase in home buyers. People are using their credit cards, which I think should be illegal, buying homes with someone else's money they will not be able to repay, and basically living beyond their means.
The consumer is not all to blame cause the financial institutions make it sound so glamorous to have borrowed money for a desired lifestyle. Just look at the latest trend of reverse mortgages. These should be illegal. The greedy financial institutions are trying to take advantage of the elderly to further their portfolios. Then they can bundle the great, good, and bad notes together and sell them off.
The financial institutions want us, the tax payer, to pay for their greed. Ask yourself when was the last time you were having financial issues that the government helped you out. If they would have suspended your taxes, would you have more money to spend? If you didn't have false income like credit cards, would you have more money? If you knew you were going down financially would you change your ways so you would not go under? I know we did in our family and three years before the issue arose we were debt free.
Now the government wants to bailout these financial institutions WITH OUR TAX DOLLARS. Ladies and gentlemen when the government buys private or invests in the private sector you are leaning towards a socialist economy. WAIT we are all ready there since the government has taken over Fannie Mae and Freddie Mac. If you ask the same questions for our economy as you did for your family in the previous paragraph, you will understand some of my thought process.
A bailout does not fix the economic issue. Remember the 300 million earlier this year was supposed to save the economy. That worked well didn't it. The way you save the economy is to eliminate the death, marriage, and capital gains taxes NOW. This will increase the consumer spending, helping increase consumer confidence and there by saving the economy. These companies we are thinking about spending $700 BILLION to save should have all upper management resign and forfeit their HUGH GREEDY salaries, the two ranking members of the congressional bank committees, Chris Dodd and Barney Frank, should have to resign, and lastly stop the false economy practices.
So, if the government would not bail you, your company, or your family out, why should they bail out the other businesses. I am currently reading The Reagan Diaries. His thought practice about taxes, the economy and I can not wait to read his thoughts about the savings and loan issues. He did state the more taxes you raise the more money you spend. That is true for government and the private sector. Quit relying on the false economy, let us spend more of our money, and all of use need to live below our means.