An Economy Built On Credit Mortgages Our Future

This current situation in our economy has an overwhelming majority of our federal government screaming like Chicken Little that the “sky is falling,” an overwhelming majority of the American people screaming that the government needs to stay out of the market and not spend more money we don’t have, and an overwhelming majority of our elected representatives refusing to listen to us.

It seems appropriate that tonight was the “Debt” lesson of Dave Ramsey’s Financial Peace University class.  This entire problem was built on credit/debt.

  • Credit that lenders were forced to extend to people that would never be able to pay it off. Forced by the government’s Community Reinvestment Act and President Bush’s goal of raising minority home ownership by an unrealistic amount.  Now, I’m not against minority home ownership–I am against anyone buying a home they can’t afford to pay for and financing it at 100%(or even 125%).
  • Credit that banks have used to buy other, smaller banks (Wachovia, I’m looking at you).
  • Credit that was passed around as investments in the sub-prime lending boom.
  • Credit that people didn’t read the terms on or did and took it on anyway knowing they couldn’t repay it if the interest rate notched up.
  • Credit, credit, credit.

Are you seeing a pattern?  Do we really think that giving the people that screwed it up in the first place more credit will help get us out of this trouble?  Because that’s what this bailout is (I refuse to call it a “rescue”).  It’s not real money.  It’s credit that we’re borrowing and printing (as in, more paper money that devalues the paper you have in your pocket).

Well, apparently, our government ignored the voice of the people and the Senate voted overwhelmingly in favor of their own version of the unconstitutional bailout bill.  Apparently, it needed more pork to pass.  This vote (from what I hear, though I’ve not seen the official tally yet) apparently included our two Georgia Senators, Chambliss and Isakson.  Well, all I can say is:

  1. The term “Bank Robber” has a new meaning.
  2. I urge you to do as I will do the next time I have opportunity and vote against any incumbent that voted to spend your tax dollars to prop up failed multi-billion dollar companies on Wall Street.  Fire them!  That’s the only way we’ll take our government back.
  3. Vote for someone other than McCain or Obama in the upcoming Presidential Election.  Both of them overwhelmingly supported bailing out Wall Street at our expense and both of them attempted to help buy the American people’s complicity in this (which this time, from all the polls I’m seeing failed miserably).

I unsubscribed from the McCain campaign propaganda emails today and left explicit reasons in the “comments” box on the unsubscribe form.  I will be making an informed decision on who to vote for in the next few weeks.  Have any good ideas for what to do with a couple McCain/Palin bumper stickers and a never-used yard sign?

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2 Comments

  1. Already, the Asian markets are responding and the dollar is dropping based on the news of the bailout passing the Senate. http://www.cnbc.com/id/26981320

    The Austrians are RIGHT! http://www.mises.org

  2. Yes, the CRA was also a big part of it, but not talked about, because otherwise you are “against” minority home ownership.

    You are probably correct in your decision to not vote for either of them. As it looks slimmer, and slimmer McCain has a shot, I do believe of the two, he would look more closely at cutting spending, then the blank check Pelosi, Reid and Obama will yield.

    All this goes right back down to greed, and the American people averaging $10K on credit cards alone, before we even talk about mortgage to home value debt.

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