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| Joined: | Wed Mar 28th, 2007 |
| Location: | Buffalo, New York USA |
| Posts: | 332 |
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Indy Mac was helped along by Chuckie Schumers big mouth. Granted the banks gave loans to many who could not afford them. But then again it was the govt that forced banks to give loans to those that could not get a loan on real terms. Next.. oil. The govt again has kept us from drilling new wells or building new refineries. Then add on the govt devaluing the dollar. Govt needs to get out of the way and let the economy work. Just name me ONE govt social program that is a success?? No wonder things are such a mess. We need to let capitalism work. Just my 2 pennies worth.
I am worried about it all. I hate to see what it will be like this winter when people have to try to heat their homes when they have to pay that big heating bill.
The one good thing is this is a cycle and things will get better.... someday.
I believe the housing boom or "bubble" was an economic boost moreso than the "dot-com" bubble. That it crashed is because of too little regulation and care. It is true that the boom was created with policy to stimulate the economy. The current admin (on Greenspan's recommendation ) dropped the ball when things got shaky trusting the market and did not manage the natural cycle and it got out of hand. This cyclical boom-crash is just one of many problems with free market capitalism.
Next... oil. The Gov't is not preventing drilling. There are, thankfully, some places where industrial oil drilling is not welcome. There are many promising sites that Big Oil USA simply chooses not to. Successful drilling would not impact the price of gasoline for you and I. Some models show that if the US opened protected Wilderness to the oil industry and they "struck it rich", the consumer savings would be 2-3 cents at the pump effective twenty years from now. In this case the old school "supply and demand" scenario is better adjusted on the demand side. We don't necessarily need more destructive industry and refineries, but less demand.
People I've talked to who are in favor of the US returning to a nineteenth century big industry economy sometimes cite the creation of jobs as a bonus. These same people also don't want their own children or themselves working these jobs. Coal mining, oil refining, and smelting are for "others". Service industries such as healthcare, lawyering, dentistry, politics, sciences and creative work are much more desirable employment. As much as you may hate faceless "politicians" or big government, you would be more proud and happy about your daughter the state senator trying to help her community than your daughter the oil driller in Alaska literally busting her ass to line the pockets of venture capitalists. Not that there is a lack of dignity in any work.
One social program that worked? The highly successful Social Security saved this nation. Public schooling is another that has benefitted many of us even if we, such as me, attended private schools. Many programs direly need streamlining, but are necessary to exist. To those who ask "Who can better manage my money, me or the Gov't?" I still say the Gov't. Hands down. Business is business and will perform in the short term interest of shareholders who can bail and jockey in a socially irresponsible game. It's not about people or the quality of life in the US. Unregulated industry includes a criminal society as one of it's productions.
My two pennies worth; anyone wanna talk about watches? Actually I obviously enjoy this sort of thing also.