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It would have been interesting to see what people would have predicted had this question been asked in 1999. Does anyone else remember the whole Y2K thing? Thousands of so called "experts" were predicting unprecedented doom and gloom. Some were anticipating that electricity would be out for years, that water supplies would dry up, planes would stop flying, food would become scarce which would in turn force people to riot, etc, etc, etc... Does anyone remember all of those people spending thousands of dollars to prepare for this crisis that never came to fruition?
I look at the current economic situation much in the same way. All of the doom and gloomers are having a hayday predicting the upcoming economic collapse or depression. Although I do beleive that our economy isn't nearly as strong as it was a few years ago, it is not nearly as the media would have us to beleive. The people who are suffering most right now are those who made very poor financial decisions over the past few years (primarily those who bought half million dollar McMansions that they could not afford). As a society, our debt has gotten out of control and perhaps this is a chance for us to learn to live within our means again.
Who knows- maybe there will be some economic collapse- I'm not going to say that it could never happen. Since none of us have a crystal ball (although some people act as though they do), all we can do is make wise decisions and deal with life as it comes. Life is WAY to short to worry about what we cannot control.
There are still a LOT of ARMs that are due to reset to higher rates in the next couple years, which means more bankruptcies and more housing supply.
OTOH the government can pass sweeping legislation to save the bacon of everyone who overbought--and putting the $$$ burden on all the folks who didn't and basically rewarding poor decision makers and financial stewards with lower interest rates than the good decision makers.
If we don't go into civil war over red state/blue staters, it'll be a unrest over "make my mortgage payment cheaper" vs "tough tamales, you bought a $600K home on $50K income."
The unrest leads to war. Hand to hand battles in the crumbling streets, like Mad Max type stuff. Cats and dogs living together, mass hysteria.
OTOH the government can pass sweeping legislation to save the bacon of everyone who overbought--and putting the $$$ burden on all the folks who didn't and basically rewarding poor decision makers and financial stewards with lower interest rates than the good decision makers.
If we don't go into civil war over red state/blue staters, it'll be a unrest over "make my mortgage payment cheaper" vs "tough tamales, you bought a $600K home on $50K income."
The unrest leads to war. Hand to hand battles in the crumbling streets, like Mad Max type stuff. Cats and dogs living together, mass hysteria.
At some point though, people have to realize that the government is not their personal backstop, available to bail them out of any situation, especially when the situation was a product of the individual's poor decisions.
There are some things that are done in the public interest, and we pay the bill. One could argue that a mortgage bailout may be fit those criteria, and they may be right. What annoys me though are these crybabies who have the nerve to demand that the government bail them out, while they blame the banks for "taking advantage". If you're a moron who can't read or hire someone who can read, and you buy a home you can't afford using a loan that anyone with an IQ over 50 knows is a bad idea, then you don't deserve to get your bacon picked out of the fire. Face the piper and take it like a man/woman.
It is your prerogative to believe the propaganda being spewed from the main stream media and government shills. Many of us choose not to.
Mark my words we'll be in a Depression in two to three years.
Here we go, sliding deeper towards depression.
"Another drop in oil prices sent stocks soaring today.
Light, sweet crude oil plunged $3.58 to $116.44 by midday after the dollar gained against the euro; the dollar is at a six-month high against the euro. Oil crossed below $116 a barrel earlier this morning."
Just wait. As I write this a full scale war is erupting in the Republic of Georgia thanks to a large scale invasion by Russian tanks and troops. It is very likely the stock markets will become very jittery and oil prices will start to rise.
I tend to agree with what WILW, et al, are saying......The economy, and our ability to rebuild it has been seriously undermined by our own greed over the past couple of decades. Our infrastructure is decaying. From the indicators I've seen, after the election, the real truth will be revealed regarding the losses that have come from this sub prime mtg mess. The country is already bankrupt. We're just hearing the half truths and propaganda now, as they buy more time to avert a run on the banks.
Because we have transported our jobs, our technology, the tooling, the knowledge, everything necessary to be self sufficient in our own borders, OUT of our borders, we have become "dependants of the world" and we PAY them, to take care of our needs.
Any "little thing" that happens in the most remote part of the planet, now EFFECTS US in a great way, here at home. Sure, gas prices are falling by a few cents in past couple weeks, funny how it never goes down as fast as it went up, isnt it? What do think will happen if....Isreal attacks Irans nuclear facilities? A terrorist attack succeeds against an oil loading terminal in the Gulf? One of them fat tankers hits a mine in the strait of Hormuz? And it doesnt even have to be that dramatic, something as simple as one of the oil rich governments, smashes our econmomy with the stroke of a pen, by simply signing an agreement to divert all of it's oil production to someone else, like say, China?
Think they cant afford it? Then you need to look at the tape of that opening Olympic ceremony last night. They pretty much announced to the world, they are the new economic power in the world. They have a united population, they now hold the brain trust, and the keys to the vault now. Their version of shock and awe. Sure, let the oil prices fall, the Chinese can get theirs cheaper also. Point of fact, who do you think financed that show? You, and me. Wonder where all our wealth went? It's theirs now, because we allowed ourselves to be sold out, while we were distracted by cheap goods, internet, leftist propaganda from the mainstream media, and cell phones that make waffles.
Speaking metaphorically here, We are bankrupt, and naked, we cannot fight the economic world war that IS being waged right now. We're fat, lazy, and stupid. We cant educate our children adequatly to compete in this new "One World, One Dream" order. We're a drug addled society, that has been sold the notion that a pill can fix anything that's wrong. We have allowed the Dems, and Repubs, and unions to divide us, along political lines, along religious lines, along economic lines, along racial lines. WE are a house divided against ourselves. We fell asleep in front of the steam roller, and now it's too late to get out of the way. They put that in our face last night, and rubbed it in vigorously, in case you missed the real meaning of that display. Stick a fork in western civilization. We're done.
By 2010, things will be much worse than they are now, that's the plan after all. I dont even want to think about 2011, or 2012.
All that being said, I still pray, that I'm wrong. Maybe everyone else should too.
There is a minor detail that our economists don't mention. What do Americans lose on depreciation of durable consumer goods every year?
There have been 200,000,000+ cars in the US ever since 1995. At $1500 lost on depreciation per car per year that is $300,000,000,000 in depreciation on cars lost every year. That would come to FOUR TRILLION DOLLARS lost on just cars since 1995. Of course there are air conditioners and televisions and stereos and computers etc. etc.
Of course computers have changed significantly since 1995 but the issue of planned obsolescence is still a factor. I have a Linux book from 2001 that talks about the planned obsolescence of computer software. I haven't used Vista but that seems the perfect example.
So what do our brilliant economists say about that?
It would have been interesting to see what people would have predicted had this question been asked in 1999. Does anyone else remember the whole Y2K thing? Thousands of so called "experts" were predicting unprecedented doom and gloom. Some were anticipating that electricity would be out for years, that water supplies would dry up, planes would stop flying, food would become scarce which would in turn force people to riot, etc, etc, etc... Does anyone remember all of those people spending thousands of dollars to prepare for this crisis that never came to fruition?
I look at the current economic situation much in the same way. All of the doom and gloomers are having a hayday predicting the upcoming economic collapse or depression. Although I do beleive that our economy isn't nearly as strong as it was a few years ago, it is not nearly as the media would have us to beleive. The people who are suffering most right now are those who made very poor financial decisions over the past few years (primarily those who bought half million dollar McMansions that they could not afford). As a society, our debt has gotten out of control and perhaps this is a chance for us to learn to live within our means again.
Who knows- maybe there will be some economic collapse- I'm not going to say that it could never happen. Since none of us have a crystal ball (although some people act as though they do), all we can do is make wise decisions and deal with life as it comes. Life is WAY to short to worry about what we cannot control.
We spent over over $900 worth of food and about $100 for water alone!!!
There is a minor detail that our economists don't mention. What do Americans lose on depreciation of durable consumer goods every year?
There have been 200,000,000+ cars in the US ever since 1995. At $1500 lost on depreciation per car per year that is $300,000,000,000 in depreciation on cars lost every year. That would come to FOUR TRILLION DOLLARS lost on just cars since 1995. Of course there are air conditioners and televisions and stereos and computers etc. etc.
Of course computers have changed significantly since 1995 but the issue of planned obsolescence is still a factor. I have a Linux book from 2001 that talks about the planned obsolescence of computer software. I haven't used Vista but that seems the perfect example.
So what do our brilliant economists say about that?
When i used to live in a semi-rural region of the south, it was amazing how many people worked in low-paying retail jobs, but financed brand new veicles they couldnt afford. The amerikan dream, truly an illusion that you have to be asleep to believe in.
Its sad those who make the least still fall for it.
When i used to live in a semi-rural region of the south, it was amazing how many people worked in low-paying retail jobs, but financed brand new veicles they couldnt afford. The amerikan dream, truly an illusion that you have to be asleep to believe in.
Its sad those who make the least still fall for it.
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