I feel that, stimulus package or no stimulus package, we are heading for some seriuously tough times here. It's just a matter of "when", not "if". A stimulus package MIGHT, and I do mean "might", put off the inevitable for a while, and might make the coming times a LITTLE less bleak, over time. But I think that we as a country as a whole have dug ourselves into too deep a whole financially to get out in such short a time.
This whole mess was NOT created overnight, and it will NOT be resolved overnight. There has been WAAAY TOO MUCH debt created on the personal, local, state, AND national level to be sustained for very long. Americans as a whole have been living WAAY TOO FAR ABOVE their means for WAAYY TOO long without eventually (pardon the pun) paying the price.
And we are JUST now starting to pay. Individuals are maxed out, banks are (more than) maxed out, state gov'ments are going broke, AND, on top of all that, our own government is $9 trillion in debt and getting ready to blow another trillion in one shot. Somewhere, there is a sign that says, "The Buck Stops here." (geeez, again , pardon the pun) (I meant that statement to be taken seriously.) And that "Buck" WILL BE foreign investors/governments who will NO LONGER buy U.S. debt. and no longer finance Americans' extravagant lifestyles. IF and WHEN THAT happens, folks, "you aint seen nuthin' yet."
Just my 2 cents folks.
Too much financial irresponsibility for too long will always e v e n t u a l l y lead to disaster.
The VERY unfortunate thing is is that for our leaders now (or ANY leaders before for that matter) to do NOTHING would probably be political suicide. After all, according to your average citizen, "That's what we hire these guys for, right?" (to fix our problems). Therein lies the conundrum. They "have" to "act". Unfortunately, like I said earlier, I think in the end the only difference will be our country will be $1 trillion more in debt (maybe more) than it otherwise would be should we just do nothing. So sad.
On a philisophical note:
Unlike a socialist state or a dictatorship where the ultimate responsibility for success lies on just a few, the long term success of a democracy with a free market capitalistic system is TOTALLY dependent on EACH and EVERY member of that system acting responsibly for him/her self, and ALSO, to a certain extent, for the betterment of the common good.
I stand here today ashamed to say that our country has failed miserably in that mandate. I sincerely believe that our country became soo blessed and so prosperous that our citizens have become 'sloppy', for lack of a better term. They lost their focus and CERTAINLY their D I S C I P L I N E (I know that's a dirty word nowadays.) and refused to take R E S P O N S I B I L I T Y (another dirty word) for THEIR OWN personal welfare, buying things they KNEW they couldn't afford, and financing e v e r y t h i n g in their lives, living waaay beyond their means.
For lack of another better word: Spoiled.
And that lack of responsibility flows to EVERY aspect of our free markets. From our leaders in government allowing too much leverage in certain financial institutions (financial greed), or MANDATING lowered lending standards for a "good cause" (social engineering), to your average citizen acting irresponsibly (again, greed), there is PLENTY OF BLAME to go around to ALL members of our free market system.
Taking a BIG step back from all of this: Do you think maybe, in the looooong run, that EVERY form of government, whether it be a dictatorship, or a socialist state, or even some blend, or even a purely capitalist system like ours is destined to failure simply because of man's human nature? If our system continues down the path it's on now, I figure it will have taken us about 250 years or so.
"The VERY unfortunate thing is is that for our leaders now (or ANY leaders before for that matter) to do NOTHING would probably be political suicide. After all, according to your average citizen, "That's what we hire these guys for, right?" (to fix our problems). Therein lies the conundrum. They "have" to "act"."
Exactly. Theoretically the politicians are elected to do what's best for the citizens and the country, which might mean making tough decisions that people don't like. In reality the way it works is that the politicians don't have the country's best interest in mind. Instead what controls their every thought and and political move is...reelection. That governs everything they do because they live to get reelected. That is what it's all about, win the next election and keep all your power and prestige etc. As a result, they will often do things that are detrimental to the country in the long term but may placate the people in the short term.
You are absolutely correct. I laugh when I hear these people debating what we should do to fix the problems that we now face. You know what the truth is? There is nothing that can be done to fix it. It's a zero sum game and anything they try will have an adverse affect somewhere else or down the line. Sadly the only way to fix the situation that we're in was to prevent it. The time to act isn't now, it was 5 years ago. So outside of a time machine, we're in for a rough ride. I predict an L shaped recovery. We're not going back to where we were and I think it'll take years to deleverage and work through our problems. I'm in real estate and I can tell you for sure that it's going to be painful in that arena for a very long time.
I feel very sad today for our average citizen. They will get screwed big times in the months ahead. How will they survive?
I think the expectation that Obama’s govt will present a comprehensive plan in three weeks after taking the office is ridiculous. This is the world biggest problem and it will take months to find solution. But I am also upset that we have known about the problem for over one year now, yet, the govt is just starting to think about the comprehensive plan. A concept was just introduced.
May be the correct solution is to allow the institutions to fail. Like the dot com bubble.
We are borrowing money from ME and China. Are we going in the direction of USSR???