LC’s Commentary

Listen To The Voice of Reason

Pay now or pay later

 

Feeding at the Public trough

 

How long can reasonable people expect to get by on credit? What gives the vast majority of Americans the idea that buying things on credit is such a good idea, especially if there is uncertainty how and when the debt will be paid? This is what is happening in this nation. As a matter of fact, it is growing in leaps and bounds. Americans appear to take their cue from national leaders. Look at the amount of debt this nation is saddled with. Private debt is just overwhelming and unmanageable as public debt. Neither body has a clue how to solve the debt crisis. It is often said; you cannot borrow yourself out of debt. Seems to me, this is exactly what is taking place with the banking and mortgage crisis. The Federal Reserve and the US government continue to pump money into our monetary system in an effort to slow down the freefall of the markets and the possible collapse of the US capitalist system. This venture, amounts to a bailout of many institutions that were playing fast and loose with investors money. Buying these debts, using taxpayers’ money is a huge gamble and may come to naught. Many investors see the huge influx of additional money at their disposal as fair game and there for the taking. In other words, American taxpayers are just refilling the troughs, so pigs can continue to gorge themselves.  Those in the business of making money selling and trading stock will do everything possible to take advantage of the situation and make money at the expense of US taxpayers. Many who hold high level, high paying management positions in companies being bailed out will continue to hold high paying management positions.

If you listen to what is being said by both Presidential candidates and President Bush, you have to come away with a feeling of helplessness and with little hope that things will get better soon. President Bush and both candidates must have a blunt and truthful conversation with Americans and citizens of other nations impacted by what is taking place in this nation. They all need to put aside the bull and tell us what is really going on in our capital markets.

The economic outlook continues to worsen each day. Plugging a few holes by bailing out a few banks and corporations may not be enough to stem the tide and the US economic system could conceivably be in shambles for many years.  Look how long it took Japan to recover from a similar situation. Recovery in the US may not take as long. However, it will not right itself overnight. As the writer so eloquently penned” pay me now, or pay me later!” We are in the pay later stage and will continue to be in it for the foreseeable future.

 

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September 24, 2008 - Posted by | Failed economic poicy, Politics, wealth redistribution | ,

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