So what's our government's solution? Offer consumers more credit so they can buy more stuff they can't afford!
Nov. 26 (Bloomberg) -- The Federal Reserve's new $800 billion effort to combat the financial crisis is designed to make credit more accessible to shaken consumers who aren't sure they want more debt.Albert Einstein once saidThe new programs bring the estimated total government commitment to ease credit to about $8.5 trillion, with $3.17 trillion being used to date.
..."It's too early to tell whether the lending has increased or not,'' David McCormick, Treasury undersecretary for international affairs, said in an interview with Bloomberg Television today. "We certainly expect that it will.''
“The definition of insanity is doing the same thing over and over again and expecting different results.”If that don't apply here I'll stick a needle in my eye.
Einstein also said:
"No problem can be solved from the same level of consciousness that created it."Einstein was a genius. The Wall Street pirates and Washington hucksters grappling with this financial crisis just think they are.
Nouriel Roubini at Forbes is a smart man. He discusses solutions that are definitely not the same old thing, and they do involve a higher level of consciousness.
The U.S. economy is confronting a toxic mixture: deflation, a liquidity trap and debt deflation, as well as rising household and corporate defaults. Put plainly, the signs of a "stag-deflation"--a deadly combination of stagnation/recession and deflation--are now clear.Our departure from reality and sound economic principles has landed us in a very scary place: Irresponsible borrowing has built a house of cards, and we need to egg on more irresponsible borrowing to keep the flimsy structure from collapsing on our heads. I think they call this a downward spiral.
http://www.bloomberg.com/apps/news?pid=20601103&sid=ag3TJyGD73qk&refer=news
http://www.forbes.com/home/2008/11/26/deflation-stagnation-liquidity-oped-cx_nr_1127roubini.html
6 comments:
you'll enjoy this...
http://www.youtube.com/watch?v=7IrR3o7x1ps
The current calamity isn't from too much lending, but lending to the wrong people whom cannot afford to pay the lent money back. I don't think lending someone money to buy a house, or start up a business is necessarily a bad thing (as you put it) but only when there is not enough regulation.
It's the free market, e.g. banks, credit unions, etc... who got the States into this with their free-wielding ways, not too much government control or support.
The free market did not cause this. Government intervention in the free market did, in the form of forcing banks to lend money to unqualified borrowers.
I agree with you that not all credit is bad.
Russ; Thanks for the tip! You're right, I do love it. So much so that I'm posting it.
"...not enough regulation."
are you kidding? have you ever seen our code of federal regulations? practically every single aspect of our daily lives is regulated beyond belief. and you think we need more??? tell me, if the first 500 banking regulations are not enough, do you really think #501 is going to do the trick and make everything right?
it kills me when people think that a few govt employees are smart enough to solve all of life's problems for 300 million people. those govt workers are just ordinary people, with no special intelligence. if anything, they're probably, on average, dumber and more corupt than the rest of us. and yet, you look to them to solve hugely complicated matters.
i don't have all the answers, but at least i know that. those clowns in govt actually think they DO have all the answers...yet somehow, look at the mess we find ourselves in. how can that be if the clowns are such geniuses? if they're so smart, shouldn't they actually PREVENT problems from occurring? but they never do. instead they shove more idiotic regulations down our throats...and cause even more problems.
govt is not the answer to our problems. in almost every case, govt is the cause of our problems.
Amen Russ. Congress telling banks to loan money to people who couldn't pay it back is what started this. Congress imposing onerous (and dubious) environmental standards on carmakers has contributed to their current woes.
I'm convinced at least half Americans would rather live in a govt controlled state of abject poverty, than in rampant free market prosperity that means some people succeed more than others.
We have a problem with basic the maturity level of citizens more than anything else.
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