I've been reading and thinking about the things I've read about the current economic mess.
I think the time for addressing the financial mess created by loans/mortgages happened a long time ago. How many years have finance businesses (like Citi, AIG, etc.) known/recognized a problem? Recognized all this bad business and did nothing to stop it? Just kept collecting fees, passing out bonuses, and merit increases?
What about the reforms some in Congress looked at in 2005/2006? Not enough votes to address the problem? Was there some thinking that this lifestyle could continue forever? Maybe they were planning the financial collapse of the US? Somehow this was a just thing? A fairness issue?
How long will the new administration continue with tired old ideas?
Obama asks urgent action on 'historic' economic crisis
By Beth Fouhy and David Espo, Associated Press
Tuesday, November 25, 2008
Bush said his administration's dramatic overnight rescue of Citigroup Inc. was necessary to safeguard the nation's financial system and help the economy recover. He said more such moves might follow if other institutions need help. Officials said the government might invest $20 billion in the firm, and guarantee $306 billion in risky assets.
What is the management of these companies adding to keep the business afloat? Are they digging deep into their pockets?He blended criticism of Detroit's beleaguered Big Three automakers — General Motors Corp., Ford Motor Co. and Chrysler LLC — with a pledge of support for government aid to help them survive. "We can't allow the auto industry to ... vanish," he said, although he added that a blank check for an industry resistant to change was not the solution to its long-term decline.
How long can the industry continue by itself? How long can the industry survive even with a check that comes with strings attached?
...Still, he said he would be looking for "meaningful cuts and sacrifices" to restrain federal spending.
Where? Cash to states? Healthcare? Entitlement programs? Schools?
I remember stories from my family members about the first depression. There was no housing assistance, food stamps or other assistance, healthcare, and any number of other subsidies.
They ate simple meals, shopped at the thrift store, and made do with less. There was no tv or radio, electronic games, or computers. There were no lunchables or frozen cubes.
What did they do? They worked. They went to school and did their homework. They used the library. They went to church. They were busy with the everyday tasks of raising a family and making ends meet. Everyone had a job. School was important part of everyone's life.I haven't seen any politician advocating cutting benefits, asking for a freeze on future increases, or asking for people to make do with less.
People survived the first depression with a lot less. I was reminded that Al Quaida survives because many people survive on a lot less than the poor in the US.
Democratic officials in Congress said the stimulus plan could include aid to cash-strapped states to provide health care to the poor, along with road and bridge funding. More money for food stamps is also likely, they said.
http://www.redding.com/news/2008/nov/25/obama-asks-urgent-action-historic-economic-crisis/There are many old sayings -
Use it up, wear it out, make do, or do without.
Make every dollar do the work of two or three dollars.
Ca$h is King in a depre$$ion.
The US is already broke, and politicians have just begun an orgy of spending.
I think the administration should focus on building economic refugee camps for millions of homeless people. Something needed for the near future. Will these camps rival those of Africa and the middle east?
How will America feed the homeless? Will the new administration put something aside for basics like beans and rice? Toilet paper?How many new jobs will really be created using the trickle down theory? Who decides which companies get government contracts?
Will they be giving out money to states for distribution? Or, will the money 'trickle' down to the state and community level? Creating new administrative jobs, but few public works?
IIRC, in the first depression, people learned new skills, they moved from their depressed areas and worked for relief - I've met a number of these old people over the years. They learned to save and spend wisely.
How many will learn new skills in the current depression? Anyone?
Will money stay at the top part of the distribution system? Maybe keep a few jobs going but providing nothing new for the masses or for their future? I think the depression will get a lot worse before it gets better. At this point, I believe the estimates of 8-10 years before there is any light in the tunnel, and a new beginning.Is my check for $1 billion in the mail yet?
