The majority of Americans believe we need to do something to stimulate our economy. At the same time the majority of those same Americans are skeptical about the proposed stimulus, if it will work, or even when we will see results. Most Americans are just scared.
I believe if we do something it will soften our blow temporarily. But it in no way saves us from the full force of this economic mess. Nor does it correct the very problems that created the mess. The hard honest truth is that greed created this monster. Politicians were greedy for votes and encouraged, actually legislated, an ease in lending practices, that were supposed to help "poor" people buy homes, they deserved to own?!? Then the sharks started circling and third party lenders like Lending Tree emerged. Their purpose was to find you a loan at another bank who would assume the risk. Then they made a profit because you and the bank would pay them money for arranging the loan. These Instutions held little to no risk. Business was booming. Four years of absurdly easy credit to people who could only get credit at the local rent a center began. Now we were fleecing homes instead of Plasma TV's. The consumers soon jumped on board and agreed to loans they didn't really understand or bought more house than they could afford. Someone said it was okay so instead of going with their gut they allowed greed to the lead the way. Soon this "good hearted" idea became an economic disaster. Banks saw the risk before it happened and did what they always do, they bunched and sold loans. They relocated the risk to someone Else's pocket book.
All the dominoes began to crumble and average people could no longer pay for the things they had purchased. As they struggled to make the monthly bills more and more expenses, typically credit, went unpaid. With no revolving money coming in the door the stability of the banks and credit markets began to unravel. As quickly as we set up the dominoes it only took one falling down for the rest to follow suite.
Now we all stared at the chaotic stock market dumbfounded asking "How did the Government let this happen and what is the Government going to do to fix it?"
This is where I feel the American people are deceiving themselves into believing an entity with no real revenue, solely reliant on the revenue of prosperous citizens, can magically make this economic crisis disappear or hurt less by adding more bad credit to the growing pot in the name of "economic stimulus".
A bigger deficit may seem necessary but it will only be a band aide unless the American people decide that we don't have to keep up with the Jones. We have to realize their is a difference between wanting something and deserving it. Hard Work and ingenutity is the key to success because it makes money every time thus spinning the revenue wheels of our Government. While entitlements are modern day slavery holding a lower class of citizens at a politicians mercy based on the idealogy the wealthy will always be able or willing to provide.
That is why we have to start with our personal finances because we bank roll big brother and we truly are the economy. We the people grease the wheels of this economic stimulus. Without consumer fiscal responsibility their is no revenue left to draw from for the government, so then what? Their is no way for Big Brother to bail us out.
Like it or not this mess included the American people making a mistake and it will take the American people going back to the days when we saved money for the things we wanted instead of providing ourselves instant gratification. It will take us going back to the good ole days were you saved for a down payment on a home, you even bought a "starter House" in order to work your way into that "dream house". You didn't borrow money on a whim because you understood that meant you were a slave to your lender. You certainly didn't enslave yourself to other countries who didn't see "Democracy" the same way you did.
No, it is time for Americans to live on the wages they earn, nothing more. It is time for Americans to tell our Government this is how they will live as well. We will no longer bank roll Duck ponds. If the cities want them they will have to ask the taxpayer in their counties. If a lobbyist wants a few million for researching the mating habits of walrus's, they to will have to get in line for a research grant. No free money------- everything is earned and everything is truly pay as you go. If we balance our checkbooks we force the Federal and Local Governments to do the same.
If we continue to believe that massive credit is safe; then we always end up back here when credit can't be paid back because our plans didn't work out as planned. From time to time we have to do what's hard and tell that little kid in the mirror, NO! I don't have any money. If you want it earn the money!
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