Posted: Mar 17, 08 1:23am
Reading the news on the economy is like reading massive unemployment is coming next week, the stock market will crash, and a depression is imminent. Sorry, but it isn't that bad. Now, the government bailouts of crooked financial institutions and borrowers who bought houses they couldn't afford with even some lying about their income with mortgage loan professionals assistance isn't going to help but hurt. Economic cycles happen for a reason; they clean up the mess.
Foreclosures were needed to correct flaws in the system--basically end the fraud. And, why should honest taxpayers pay other peoples' mortgages? Or save them when they lied to get the home in the first place or let the mortgage company lie for them?
Now, the Federal Reserve is bailing out Investment banks that should collapse so the securities can be bought and salvaged by strong institutions. The people involved in the mess should find themselves unemployed not still employed by taxpayer funded bailouts.
Energy prices will hurt more than anything as everything transported goes up in price as a result. Filling up your car or truck or SUB already stings.
Health care job opportunities are going to soar as baby boomers retire en masse. A nursing shortage already exists. Doctors have the lowest unemployment rate pretty much anywhere.
All these bailouts, lax regulations notwithstanding, aren't good for the economy. If Banks are given cheap loans by the Fed, they should pass on the savings to consumers. They aren't. It should be part of the deal. Why save bankers who played speculation and got burned ruthlessly get cheap money and NOT pass it on?
Personally, these crooks need to go to jail. "A little revolution now and then is a good thing" was once said. Countrywide Financial, bought by Bank of America through the Federal Reserves' intervention, wasn't necessary. Countrywide should have gone down the tubes and let their securities be sold to strong institutions without taxpayers footing the bills. Putting band-aids on problems the market should correct is just going to extend the pain.






