"He added that the market for securities backed by consumer debt "came to a halt" last month, making it nearly impossible for millions of Americans to find affordable financing for everything from college to computers."
Wait a sec... I though the problem here was mortgages? Do we really care if people can't get 0% credit cards? Isn't cheap money the problem? Cheap money that is creating unmanageable debt that can't be repaid and that is then defaulted on?
So our solution is to lubricate the problem?
I don't see how any of this bailout money is going to solve the problem. Its like our pyramid is collapsing and our solution is grow the pyramid even larger. How does giving the American people access to more money solve the problem that they can't even pay back the money they've already borrowed?
Does this make me an idiot for always having made my credit card payments on time, or at all?
ReplyDeleteWhy on earth should we be making it easier for people to get credit cards, car loans, student loans?
ReplyDeleteThe damn problem is that if we do the right thing (cut back, save, pay off debt, be responsible) things will get worse because people will consume less which will cause the economy to slow down (drastically).
But I'm baffled that the solution is to say "Fvck it. Go buy sh!t"
The only way to keep the economy moving like it was over the past 15 years is to keep doing what got us into this problem over the past 15 years. Spend, spend, spend.
We aren't really "changing" anything (yes, that was a shot at Obama) all we are doing is changing where the irresponsibility is coming from. Instead of people being irresponsible with credit and Wall Street hedge fund managers being irresponsible with investments the Federal Government is being irresponsible with tax payer money.
Can someone tell me how keeping a failed system working is going to fix the system?
That's like giving money to the auto companies. A bad investment.
ReplyDeleteChasing bad money with bad money.
ReplyDelete