Does ANYONE Really Know What is Going On?I offer the musings of a simple fellow and my simple observation of what seems to be happening. Listening to all of the 'experts' it is easy to conclude that no one really has a clue what is happening, or if they do they are keeping it to themselves.
One of my first observations is the fact we are trusting the same political and economic gurus who got us into this mess to somehow get us out of it. It would seem if they really knew that, they would not have gotten us into it in the first place.
On the Matter of Credit
The experts will tell you that 'toxic' credit is what caused all the trouble in the first place. Words like sub-prime mortgages, hedge funds and derivatives come into everyday vocabulary as the evils behind our present woes. One learned fellow I read said that banks had gone from supplying capital for sound business and personal use and turned the whole field into one giant casino where outlandish returns were gambled upon.
It would seem that when these banks and other financial institutions lost sight of there real purpose in the first place they bet the farm with money they could not afford to lose and in fact money which did not really exist. Then one day, everyone seemed to wake up to the fact the bus was about one inch away from the cliff!
So how to solve this problem of bad credit? The answer seems to be to take out even greater loans in the form of borrowing from the taxpayers and in effect loan that money to the big outfits who were in trouble because their loans were no good. The real problem of BAD credit is still the problem, who owns the BAD credit is all that seems to have changed. Instead of the money hungry executives in charge of these gaming houses being held responsible, all of society is asked to pay for their greed and mismanagement.
The fact that many of these greed driven, incompetent business managers turned around and paid themselves huge bonuses with taxpayer dollars further begs the question, "does anyone really know what is happening?". How can a government dish out billions and billions of dollars with no assurance it won't simply be stolen?
It seems that our entire society grinds to a complete stop the moment we are not able to spend money we do not have. After all, that is exactly what credit is, it is money we do not have but are allowed to spend because we 'think' we will have it one day.
The government solution seems to be to spend even more money we don't have in the way of deficit financing. So if credit got us into this mess, how can credit get us out of it?
I repeat, "Does ANYONE really understand what is going on?".
The experts will tell you that 'toxic' credit is what caused all the trouble in the first place. Words like sub-prime mortgages, hedge funds and derivatives come into everyday vocabulary as the evils behind our present woes. One learned fellow I read said that banks had gone from supplying capital for sound business and personal use and turned the whole field into one giant casino where outlandish returns were gambled upon.
It would seem that when these banks and other financial institutions lost sight of there real purpose in the first place they bet the farm with money they could not afford to lose and in fact money which did not really exist. Then one day, everyone seemed to wake up to the fact the bus was about one inch away from the cliff!
So how to solve this problem of bad credit? The answer seems to be to take out even greater loans in the form of borrowing from the taxpayers and in effect loan that money to the big outfits who were in trouble because their loans were no good. The real problem of BAD credit is still the problem, who owns the BAD credit is all that seems to have changed. Instead of the money hungry executives in charge of these gaming houses being held responsible, all of society is asked to pay for their greed and mismanagement.
The fact that many of these greed driven, incompetent business managers turned around and paid themselves huge bonuses with taxpayer dollars further begs the question, "does anyone really know what is happening?". How can a government dish out billions and billions of dollars with no assurance it won't simply be stolen?
Consumer and Corporate Credit
Greases The Wheels
Greases The Wheels
It seems that our entire society grinds to a complete stop the moment we are not able to spend money we do not have. After all, that is exactly what credit is, it is money we do not have but are allowed to spend because we 'think' we will have it one day.
The government solution seems to be to spend even more money we don't have in the way of deficit financing. So if credit got us into this mess, how can credit get us out of it?
I repeat, "Does ANYONE really understand what is going on?".
No comments:
Post a Comment
Your comment will appear after moderation before publishing,
Thank you for your comments.Any comment that could be considered slanderous or includes unacceptable language will be removed.
Thank you for participating and making your opinions known.
Note: only a member of this blog may post a comment.