| Submit your comments on this article |
| Home Front Economy |
| Another perspective on stupid-crazy |
| 2008-10-01 |
| As a followup to my post yesterday on how to handle the financial crisis, the writer at the link describes the basics in simple terms. Worth a look. |
| Posted by:Steve White |
| #1 well, I had a problem getting past this statement, " Teaser-rate mortgages first became widespread after Mr. Bush took office in 2001.)" It's a meaningless statement and gives away the writer's bias. He does do a fairly good job of explaining the food chain, and makes some good points. But the point that I believe he is missing is this: There are lots of people who have lots of money. Right now, they are looking for places to put their money now where it can be safe and they can get their best return. So that means that there are plenty of people willing to lend money to credit worthy subjects. And yes, the interest rates will go up, because if you need credit, and credit is difficult to come by, you would be willng to 10% or maybe even more. Supply and demand, baby. Yes, we need to do some things to make the credit continue to flow from the big institutions so that the engine doesn't freeze. The problem is that the bailout it is just a big giant pile of money. Giving to these Senators and lobbyists is like giving food aid to Zimbabwe or North Korea. It doesn't get to where you want it to go, so why give it in the first place? You have to have a plan that assures that the money goes to where it is needs to go to solve the crisis. If a well in a desert town in Africa has dried up, you need to give the residents the ability to continue to get water. Shooting a firehouse of water into a city that needs a well will solve nothing and waste lots of water. Do we need to act fast, yes. But Paulson should be fired and someone who can enact a real plan needs to be put in his place. |
| Posted by: Betty 2008-10-01 18:12 |