The Meltdown and The Answer
Is anyone still surprised by the state of affairs in the financial markets? I hope not. The big three automakers have no plan for how they will change the future of their companies. Home builders have now stated they have a glut of homes (no kidding!) and lenders were getting their shareholders rich on the backs of the common American. The two largest contributors to the economy, autos and housing are both in the toilet. This is going to hurt for a long time.
The good news is that it can be turned around. We don't need more free handouts though. NO, it is time to pay the piper and look for long term solutions. I have the benefit of still knowing my grandfather, who is now 97 yers old. He has told me of working during the depresson for pennies a day. His job was to fill wheelbarrows with dirt and haul it out of the bowl they wre digging for the local high school football field. Others were on jobs digging road beds. Still more helpd dredge the millpond so boats could be launched into the local lake to catch fish for food.
I wonder how that type of labor for pay would work in today's society? Do you think the spoiled workers in the auto industry would work for some food money? Or are the rest of us going to be expected to pay their way through government subsidized benefits? They may not get the same $40, $50, even $70 per hour they are used to, but maybe they could do something to get the benefits we all know they will end up with.
Better yet, how many of the exectives from the finance companies are going to share the stockpiled bonuses to help the staff members that now are left with nothing? What about the common workers, the mortgage clerk that has run the paperwork for thousands of loans. Or how about helping the insurance claims adjusters that have saved the underwriters millions of dollaars over the years? They are losing their jobs, their savings, and any hope of a decent retirement. Maybe penalties should be levied against the short-sighted executives that bought the loyalty of the shareholders through high risk profiteering at the expense of the long term stability of the entire economy.
In the meantime, we need to put people to work, and fast. There needs to be a plan for the continued fallout (it ain't over yet people) from these issues. The unemployment rate is going to go higher as the auto industry and housing industry continue to falter. The already burdened government is going to lose tax revenue and incur even more losses in required payouts. If you have any doubts, think of this, $700 billion has been spent on bailing out the financial corporations that fund business in America with absolutely no impact. Citigroup today lost even more money, and there is no light at the nd of the tunnel yet. The government can't print enough money to bail this out without making the dollar weaker than the peso.
My advice is to get rid of all debt you can. If you know your going down, figure out what you can save and let go of the rest. If you have two car payments and an oversized mortgage, let it go. Find a relative to move in with and let the bank have the cars. When this thing eventually gets turned around and moves into a positive growth pattern again, the banks will forgive the fact that you lost the big ticket items because everyne is going to be in the same boat. Quit trying to save a lifestle and get down to the minimums in a hurry.
The good news is that it can be turned around. We don't need more free handouts though. NO, it is time to pay the piper and look for long term solutions. I have the benefit of still knowing my grandfather, who is now 97 yers old. He has told me of working during the depresson for pennies a day. His job was to fill wheelbarrows with dirt and haul it out of the bowl they wre digging for the local high school football field. Others were on jobs digging road beds. Still more helpd dredge the millpond so boats could be launched into the local lake to catch fish for food.
I wonder how that type of labor for pay would work in today's society? Do you think the spoiled workers in the auto industry would work for some food money? Or are the rest of us going to be expected to pay their way through government subsidized benefits? They may not get the same $40, $50, even $70 per hour they are used to, but maybe they could do something to get the benefits we all know they will end up with.
Better yet, how many of the exectives from the finance companies are going to share the stockpiled bonuses to help the staff members that now are left with nothing? What about the common workers, the mortgage clerk that has run the paperwork for thousands of loans. Or how about helping the insurance claims adjusters that have saved the underwriters millions of dollaars over the years? They are losing their jobs, their savings, and any hope of a decent retirement. Maybe penalties should be levied against the short-sighted executives that bought the loyalty of the shareholders through high risk profiteering at the expense of the long term stability of the entire economy.
In the meantime, we need to put people to work, and fast. There needs to be a plan for the continued fallout (it ain't over yet people) from these issues. The unemployment rate is going to go higher as the auto industry and housing industry continue to falter. The already burdened government is going to lose tax revenue and incur even more losses in required payouts. If you have any doubts, think of this, $700 billion has been spent on bailing out the financial corporations that fund business in America with absolutely no impact. Citigroup today lost even more money, and there is no light at the nd of the tunnel yet. The government can't print enough money to bail this out without making the dollar weaker than the peso.
My advice is to get rid of all debt you can. If you know your going down, figure out what you can save and let go of the rest. If you have two car payments and an oversized mortgage, let it go. Find a relative to move in with and let the bank have the cars. When this thing eventually gets turned around and moves into a positive growth pattern again, the banks will forgive the fact that you lost the big ticket items because everyne is going to be in the same boat. Quit trying to save a lifestle and get down to the minimums in a hurry.
Comments