Wednesday, January 16, 2008

Economic Faith

First the bush administration made it much more difficult for Americans to declare bankruptcy. Then they looked the other way while all sorts of magical home loans were eagerly given to millions of Americans. While bush crowed about home ownership being higher in the US than it had ever been before, something sinister was afoot.

Now all the magical loans have turned into demons for the economy. The stock market is bleeding daily. Citibank reported a loss yesterday of almost 10 billion dollars in the last quarter due to sub prime loans.

Many Americans may feel they have been caught in a trap. Fairly or unfairly, they have. The exit door to the trap was nailed shut with the change in bankruptcy laws. Cheap home mortgages were used as bait and millions of Americans walked right in to grab one. Slam, the door shut and they can’t escape. They are stuck with houses they can’t pay for, credit card bills that are demanding high interest rates and gasoline prices they never imagined. Plus the American dollar is anemic these days.

Is it any wonder Americans have no faith in the financial future of this country?

19 Comments:

Blogger FranIAm said...

You know PoP, I was reading a post yesterday and I had the thought, "oh those f*cking bankers and politicians, made bankruptcy almost impossible and now the fall comes."

This is some very, very bad shit. Think Enron but on another scale.

Honestly, I am by my very nature, an optimistic person. I have rarely felt so pessimistic.

Between this and my concerns about Huckabee, all humor aside and so much more...

Feeling very nervous, concerned and more than a little afraid.

But more convinced than ever that we must keep ourselves activating against this evil tide.

January 16, 2008 4:12 AM  
Blogger fallenmonk said...

The bad thing is we haven't seen the worst of it yet. Just yesterday reported the foreclosure rate in Atlanta was up 50% last month and we are on the front of the wave.
When all this home and credit mess has its full impact on construction jobs and all related it is going to be ugly.

January 16, 2008 5:44 AM  
Blogger Jazz said...

What a mess...

January 16, 2008 6:15 AM  
Anonymous Anonymous said...

Why is it Rethuglicans always destroy the economy......yet continue to hold on to the reputation of "fiscally" responsible?

Madness!

And speaking of madness...this a.m. I heard that that really sincere, funny, likable guy from Arkansas...will be in Atlanta next week....for a Right-to-Life rally!!....

This man is far more dangerous than many think!!

January 16, 2008 6:27 AM  
Blogger nolocontendere said...

All done on purpose, it's not by accudent or coincidence. America has to be destroyed to be created anew without all those old constraints on dictatorial rule. Order out of chaos and all that.

January 16, 2008 6:51 AM  
Blogger Dr. Zaius said...

Bah, humbug! Are there no workhouses? Are there no prisons?!?

January 16, 2008 6:54 AM  
Blogger Dr. Zaius said...

Bah, humbug! Are there no workhouses? Are there no prisons?!?

January 16, 2008 6:54 AM  
Blogger dguzman said...

You would think there are no prisons, Dr. Z, judging from the fact that Bush and Cheney are free men.

Yes, it's all calculated to make the elite rich and the rest of us into slaves. You gotta wonder, given this latest fiasco, just how long the Saudis and Asians will continue to buy us up/bail us out before they slam that trap door shut on our country. Imagine what would happen if, at the height (or low) of this subprime mess, the Arabs decided, "hmmm... no more oil for you."

Holy shit.

January 16, 2008 7:21 AM  
Blogger robin andrea said...

Back in 2005 Paul Krugman wrote that Americans make money selling each other houses on money borrowed from the Chinese. That's about it. My sister has been a real estate agent for 20 years. When the Bush people took office there were suddenly real estate people everywhere. They were selling houses to people who signed the dotted line with only "stated income" no proof needed whatsoever. The only criteria for a loan was if you could fog a mirror. Lots of innocent people bought those loans and other innocent people invested in them. The whole house of cards is coming down, and it's going to make an awfully load crash when it finally crumbles.

January 16, 2008 7:28 AM  
Blogger Forty Paws said...

Recession, here we come.

Fred, we under your rule about memes and tags. We should impose that rule around here, actually.

January 16, 2008 7:38 AM  
Blogger roger said...

it's way past time to ditch the faith-based economy.

January 16, 2008 7:39 AM  
Blogger bluegrrrrl said...

Oddly, bush is still crowing about the wonders he is doing for our economy. Meanwhile, the number of foreclosures is growing every day, just in my neighborhood alone.

I have heard that we are heading for a permanent recession, whatever that is supposed to mean. Nice legacy, mr. president.

January 16, 2008 8:05 AM  
Blogger Mary Ellen said...

Michigan has been in a recession already for the last year and we're going to be seeing more states in that situation within the next six months. This is what we get when we have a President who only got his college degree because of his daddy.

I was watching one of the financial shows last week, can't remember what the name of the guy is...he wears a really ugly striped suit and his partially bald. Anyway, they were saying that we have no business complaining because without the corporations, NO ONE would have jobs so we should just shut the fuck up (my words not his) and deal with whatever they give us. I couldn't believe it! I guess they're forgetting that when people start losing their homes and are living from paycheck to paycheck, their big corporations could bring all the shit from China they want, no one will be able to afford it.

I knew things were going to be bad when Bush was selected the first time, but I had no idea that he could have done this much damage....and he's not done yet.

Depression here we come.

January 16, 2008 9:25 AM  
Blogger an average patriot said...

POP
Sadly this is true but only a small part of what Bush has purposely done to widen the gap between the haves and have nots for his new societal order while saying he cares.
I can't stand looking at his lying face then he worsens it by opening his lying mouth. Knowing what he is doing makes it all the harder having to listen to his lying idiocy.

January 16, 2008 1:04 PM  
Blogger Human said...

The blame for the present state of the economy can be spread far. Laying it solely at the Bush Regime's feet just does not fit the facts.
As easy
research shows many Democrats supported the Bankruptcy Bill.

And which party is receiving the most contributions from the Finance/Credit card companies in 2008?

And what has the Democratic controlled Congress done to correct or amend this legislation?

Just more evidence "Loyal Democrats" are being taken for a ride on the Corporate Jet. With the left wing engine powered by the likes of Biden and Killer Hillary and the right engine powered by the likes of Bush and Crazy McCain.

Peace.

January 16, 2008 3:33 PM  
Blogger Mauigirl said...

This really leaves these people in a mess, doesn't it. It is a double whammy.

January 16, 2008 8:20 PM  
Blogger DCup said...

PoP - I'm living it. It's not other people, this shit has come home to roost right here at Tits HQ. It's a nightmare.

January 16, 2008 8:56 PM  
Blogger Snave said...

I think the Bush idea is basically to make it harder for Americans to afford their own homes unless their incomes are somewhere like in the top 10% of all wage earners. What a great way to keep up the elimination of the middle class...

Franiam, Thanks for the link to your site, I visited and commented there re. my terrors about Huckabee.

January 16, 2008 9:16 PM  
Blogger Ali said...

nolocontendere said...
All done on purpose, it's not by accudent or coincidence. America has to be destroyed to be created anew without all those old constraints on dictatorial rule. Order out of chaos and all that.


I dunno, I go back and forth, wondering if it's incompetence or a successful strategy. Shock doctrine 101, you know?

I'm not totally convinced their consequences were intentional yet. Are they willing to look like bungling idiots, and fuck up the country, no, several countries, just for money and power?

Stupid question, I guess.. OK, OK, the "on purpose" side of the argument is winning at the moment.

January 17, 2008 3:40 PM  

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