Why are we in the financial mess that we are? (bankruptcy, foreclosure)

[jimhcom]

If you have ever wondered how we could end up with our economy in such a mess and or public debt so high take a look at this link.
FSU Editorial: "America's Forgotten War Against the Central Banks" by Dollardaze 10/20/2007

[skytrekker]

Financial Sense is an excellent site- I visit their site everyday- since the vast majority of their writers make much more sense then the mainstream business media.

We are in this mess for many reasons. Too much liquidity by the Federal reserve for a decade- too low real interest rates, and a false set of perimeters by the Fed on real inflation.

The Fed has done a poor job-Greenspan and now Bernanke have trashed the dollar, making those who save and stay out of debt look dumb, while rewarding speculators, bankers, debt, and making the Wall street tycoons rich.

Bernanke while lowering rates caved in again too Wall Street, while thumbing his nose to ordinary Americans. The dollar falls, Gold soars, and oil goes to the heavens. Nice Work 'helicopter Ben'.

[baystater]

Originally Posted by jimhcom

If you have ever wondered how we could end up with our economy in such a mess and or public debt so high

This ones easy to answer. The answer is blind greed coupled with the thought of "I don't have to pay for it now." "I just pay it later. when the bill comes." Well the bill is in the mail get ready to pay.

[goodbyehollywood]

Originally Posted by baystater

This ones easy to answer. The answer is blind greed coupled with the thought of "I don't have to pay for it now." "I just pay it later. when the bill comes." Well the bill is in the mail get ready to pay.

Actually, it's "why pay for it at all?" Reading these posts, I'm amazed at how many people have gotten in over their head with credit card, mortgage or HELOC debt and are just washing their hands of it, leaving the mess to the lender, the financial company, the government, anybody else. Foreclosure and bankruptcy have no stigma-- or at least not enough to get people to own up to their choices and see them through.

So greed and fear started this (the whole "If I don't buy now, I'll be left out" and "If they got that, I need this" mentality), and irresponsibility is added to the mix. What a cocktail.

[baystater]

Originally Posted by goodbyehollywood

Actually, it's "why pay for it at all?" Reading these posts, I'm amazed at how many people have gotten in over their head with credit card, mortgage or HELOC debt and are just washing their hands of it, leaving the mess to the lender, the financial company, the government, anybody else. Foreclosure and bankruptcy have no stigma-- or at least not enough to get people to own up to their choices and see them through.

So greed and fear started this (the whole "If I don't buy now, I'll be left out" and "If they got that, I need this" mentality), and irresponsibility is added to the mix. What a cocktail.

Touché. Sad but true.

[tallrick]

The answer is simple: the Federal Reserve act. We need a gold standard. Fractional reserve banking has to end. Doing it, is an impossible task. Just don't buy the nonsense they will tell you to fix the mess when the economy crashes.