Hey America... Don't Fear Depression, Fear Assimulation
Talk at the coffee shop this morning was kick-ass. Here is a taste of the topics€¦
The mal-distribution of wealth in the 1920's and today€¦depression€¦ Jews€¦ Immigration€¦Mexicans sending money back to Mexico€¦ whites w/ blacks against Mexicans€¦ revolution and revitalization of industrial America€¦ and fixing of banking system€¦ America bankruptcy€¦American Confidence€¦Bloated "Whiners€¦ Are we Americans or are we wannabe socialist utopia€¦ and we are willing to give the keys to the car to our 16 year ~Obama~ old to drive us across country in a ice storm? My thoughts are as follows€¦
The eighties were an era when our country prospered tremendously. There are many arguments on both sides of the numbers€¦ but they were€¦ more often than not good times for a majority of Americans. Then we had the excessive speculation in the "information super highway" and junk bonds that came from the greed, up thru the late 1990's. This kept the stock market artificially high through the 90's.
Essentially what happened in the new millennium€¦ We had the early rumblings of recession. A slight market correction€¦ Then 911, and a massive shift of focus. Clinton's global economy started to take off€¦ We got complacent with an unrealistically inflated real estate market combined with the Feds keeping interest rates artificially low for a prolonged period of time€¦ HISOTRICAL! We became to rely upon these two things in order for the economy to remain on an even keel. Remember€¦ For any economy to function properly, total demand must equal total supply and we were way off balance.
The Feds keeping interest rates artificially low€¦ its no wonder that the two major mortgage lenders our in major trouble. To protect these lenders the U.S. government is looking at a bailout. Is that priceless€¦ they cause the problem and take responsibility€¦ ON OUR DIME!
The concept of buying now and paying later filled the already bloated belly of the American middle class. With more and more credit sales, and borrowing against inflated values of real estate the middle-class and poor had reached a point of no return and had to stop buying things with installment credit€¦ they had already mortgaged their children and grand children futures, and could not get their greedy, bloated, selfish fingers on another generations future.
As these two industries began to slow and at a near stop, confidence in the economy is wavering. Higher and higher energy prices rippling though every consumer perceived "need". I say "need" as they are no longer goods and services but consumer gifted gluttony. We want the $5 coffee the gas guzzling SUV and the loan to pay for it€¦ but there is very little left and this dependence has brought skepticism that has produced a "fringe" luxury ~ designer coffees, food, expensive gadgets ~ item economical backlash that now sees company's like Starbucks, Sharper Image€¦ etc€¦ closing stores or just closing its doors and stalwarts like GM stock prices trading at all time lows.
Nearly tapped out on credit and rising energy costs combined with a sagging real estate market the vast majority of the "working poor" of our population, not having enough money to satisfy all their credit liabilities and are pressured into a non saving, non spending corner.
The economy being reliant upon the banking and real estate industries to expand, grow found investors staying home€¦ thus prosperity is in large part only touching the rich among us. The dependence upon essentially two industries that are built upon a foundation of artificial means have the world ready to fill the vacuum created by our "working poor" having to much perceived wealth, borrowing on it€¦ getting fatter and fatter€¦ and the pig€¦ being a hog now, is ready for the slaughter.
European nations not struggling to rebuild and a strong Eros€¦ not as in the 30's and 40's, are poised to gobble up American industries and real estate at fire sale prices. Side note€¦ It is a fallacy to believe that the US was aided by World War I and II to break the 1920 and great depression of the late 30's. The U.S. government lent its European allies $7 billion, and then another $3.3 billion by 1920. By the Dawes Plan of 1924 the U.S. started lending to Axis Germany. American foreign lending continued in the 1920's climbing to a little over $900 million in 1924, and around $1.25 billion in 1927 and 1928. Of these funds, more than 90% were used by the European allies to purchase U.S. goods the economy of the 1920's was one very much dependent upon confidence. This is my point with this brief history lesson€¦ Confidence, and it is this lack of confidence that has lead to our current exaggerated tumble.
We are "a nation of whiners" as Gramm has said, and we should be ashamed of ourselves. The rich, middle class, poor€¦ whatever you call yourself may have to slow or stop spending on "fringe" luxury items€¦ its called sacrifice.
What I think we have to worry about if we don't start acting like Americans again is assimilation
HEY WORLD!€¦ AMERICA FOR SALE CUZ WE DON'T WANT TO SACRAFICE!
Oh€¦ And giving the keys to my 16 year old to drive my family€¦ not a chance. I'll let grandpa do the driving.