Thursday, January 22, 2009

Down Time

I have been enjoying some much needed down time during all the historic events. I was not thrilled with the country's selection of President Obama, but he is the President and I fully support him as such. What I can't support is the continuing bailout program or his selection of a tax cheat to run the IRS. What the he@#? This country is in the financial crapper and we have Congress on an all out spending spree and the guy that is going to be in charge of our country's revenue is either too stupid or criminal when it comes to his own taxes.

The financial sector is begging for more money, GM is putting its paw out again and Congress still has zero idea where $350 billion went. If we let them they will continue to hand out money like it grows on trees. The experts now say that we should have done was buy up the toxic assets and think that should be the new path for the administration. Thanks for nothing, since we've already sunk $350 billion down the Wall Street rabbit hole.

The economy will not recover until people are no longer afraid of losing their homes. When home purchasing was at all time highs the economy clicked right along because people were safe and secure with a tangible asset over their heads. The economy started crashing when that tangible asset was being ripped from over the head or over their head buyers. This started a domino effect that will not stop until we put an end to foreclosures. If people know that they will have a place to live, then they are more willing to buy stuff which in turn employees people to make stuff and so on.

I think that Congress needs to embrace my plan for toxic mortgages and make the people responsible for getting in over their heads responsible for salvaging their own butts. Sure it will require some help from the government, but it would cost a hell of a lot less than continuing to throw money at the guys that looted billions already. We all know that we have done some dumb things and needed help to straighten things out. It might have been your parents when you were young and dumb, but a helping hand can go a long way to fixing problems. What are we gaining right now by playing the blame game and paying Wall Street? We need to help the dumb and protect the young. I am not for huge government programs that go on for ever and ever, but sometimes you need to put people back on solid ground.

These are the same people that are destroying your home equity and life savings. Sure you are angry with them, but that isn't going to stabilize the housing or stock markets. We need to do something smarter than what has already been done and what we don't need is to keep spending money with zero idea of what is going to accomplish and no accountability. I say take the time to put a good plan in place and stop all the emergency measures because all they do is scare the crap out of people and continue to erode public confidence. In that last four months no positive change has occurred to convince people that their homes are any safer, so they are spending less, thus buying less stuff, which causes companies to make less stuff, which means they layoff more employees and so on.

The government needs only to help people (not companies) and we can break this cycle. Won't you help by contacting your Congressman and Senator. Let them hear about this plan and what you want done with your tax dollars. Tell them to stop throwing your money away or lining the pockets of Wall Street. Let me hear if you have any success or if you think I am out to lunch.

4 comments:

  1. You don't think Hank Paulson is an even bigger tax cheat? And Bush and Cheney, for that matter.

    Don't worry about home values. When inflation starts to rampage, those home values will skyrocket. Real estate will soon be one of the best investments you can make.

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  2. I think that if Paulson, Bush or Cheney had done watch Obama's guy did they would have been roasted alive on the Capital steps. The media would have had a field day with it. But since it is Obama's guy there barely a peep and the guy is going to be confirmed in the near future. Think what you want, but the fact remains that Obama gets a pass, while you know for a fact Bush would never get such "fair" treatment for one of his nominations.

    I would agree that when the super inflation hits the housing market will rebound, but the prices and interest rates will still keep it from correctly recovering. Remember the late 70's, there were houses, but interest rates were so high no one wanted to buy.

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  3. Well, I am still thinking that home prices will continue to decline. That means deflation all across the assets that we own.

    Stock prices are down.

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  4. Let's look at it another way. Houses are like beanie babies, both supported in price by a mania. My wife knew a mother who went to every McDonalds in the bay area to pick up a Mickey D's beanie baby.

    Prices on beanie babies are way down. Why is it government's job to support housing prices just because millions bought at the top of the cycle?

    The price must go down. Way down.

    beebs
    not an economist

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