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I have pretty much not said too much about the bad economic climate we are experiencing. I don't actually have a special background in economics, though I did take a year of it in high school and a semester of it in college. So much of what I am reading in blogs on here and in the response of people in surveys and articles represents how ignorant we are as a people when it comes to basic economic principals
To start, economics is a social science. That means there are no hard and fast rules, though there can be trends. It also means emotions such as fear, panic, and impressions/assumptions can greatly affect the economy, particularly in relation to the stock market. That is what is so disconcerting about some of the things that I am seeing posted in blogs relating to what is happening because all they are doing is spreading fear and panic. As a result, they are helping to bring about a self-fulfilling prophecy. It is not something they want to do, but that is what is happening.
The reality is that the recent Congressional package and other efforts being completed are not an instant remedy. They also will not necessarily solve the problem right away. We basically have a nasty economic boil that has to be lanced to get rid of the crap that is making the economy sick. The recent efforts are a medicine that is hoping to soften the blow of what we are going through, but not matter what, that boil has to be lanced, which means we are all going to be hurting. The hope is to prevent things from becoming worse.
Ask our buddy Robin, and you will see a lot of other countries are passing similar packages, particularly in Europe, but they are being welcomed by their people because they are more comfortable with government ownership of companies because there is a history there of it happening and working.
I also have a problem with blaming only those who managed the mortgages for this problem, which has been predicted since 2005/2006 by The Economist. For one thing, let's be realistic. These lending companies didn't hold guns to people to MAKE them buy houses that were more than they could afford. We got selfish and wanted our dream houses and were willing to take a risk because we were allowed to do so.
I am disgusted when I watch the show House Virgins on HGTV. It is a show where people who are buying their first home go through the process, and they never think about getting a starter house that is smaller allowing them to save up for a bigger house when they have more money or get a fixer-upper and building it up to their dream house. No, they go for the who kit-and-kaboodle. I am not saying that the loaners weren't at fault, too, but we have to accept that their is more than enough blame to go around.
All I can say is that we need to calm down, take a breath, and not panic. The end is not going to happen if we approach the situation with sense and ride the wave of trouble until the rocky sea settles down. That will not necessarily be easy because we are going to hurt. At this point, there is nothing driving the stock market down now than fear. Energy costs are plummeting, which was the biggest drain on the economy previous to the credit crisis, which is being addressed by a number of plans and programs. It will get better.
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in the market.The bail out sucks.The bail out should go
to the tax payer and not the crooks on Wall Street.
This is very bad.It will take years and years to recover.
By then will not be around.Money is lost.
This sucks.