About two trillion in new debt is expected before we are finished bailing out America. Of course, by America, we mean big banks, big companies, etc. Do we mean the little man on the assembly line. No, we mean shareholders and executives. Mostly executives, since most shareholders, i.e., Americans have already lost their shirts through their 401K's. So, mostly the powerful are saving other powerful people for the good of America.
Another $200 billion was just announced to prope up the Fannie Mae, etc., the mortgage market. Again, are we talking about the home owner. Not yet, right now we are talking about the government banks. They are also pumping more money into credit market. Both are supposed to make it easier to borrow money, to extend credit to more Americans. So they can spend more and prope up the economy. Guess what, Americans are broke. They have already spent more than they had. Instead of this quick fix, we have to find a way to increase the earning of Americans, not just give them more rope to hang themselves with.
There is no easy way or quick way to do this. Education, working smarter, and laws keeping the fat cats from paying themselves millions while the company they manage goes down the tube, eg., Lehman Brothers. Or the big auto companies in their corporate jets and fat wallets. If the company you are leading is even thinking about bankruptcy and you have been their boss for the last few years you do not deserve a golden parachute, a bonus, or a fat salary. They should suffer with the workers, if that is even conceivable in their world.
The net effect of all this spending of the money we don't have, even though it is the government. You can't cheat mother nature, or economic law more appropriately. The dollar at some point will start falling, rapidly. It would be good at that time to own some gold bricks. Oh yea, I forgot, owning gold bricks in America, land of the free, is illegal. Wonder why? I am not sure if owning stocks in gold companies, or black gold (oil) companies will be quite the same, but it will be better than cash at some point. The money, the trillions, has not hit the streets yet, but it will and bread will hit the ceiling. Wait and see, its called hyperinflation. In my mind, I don't understand how we avoid it.
Do you believe everyone on our planet is our brother? If so, how do we make laws and policies that help our brother? How do we need to change our thinking to lift the boats of all brothers?
1 comment:
It isn't debt, it's investment in our future. It isn't all doom and gloom if you know where to look. Most people don't realize how much money there is out there. During economic times like this, there is more money to be had than ever. Because of the bailouts and economy, lenders are bending over backwards to bail you out too. Believe it or not, there is people getting tons of cheap money nowdays to start businesses, buy homes, pay off debt, and more.
The Bailout for You
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