With the current downturn in the economy, US workers are bracing for a round of spikes in unemployment numbers. Recession be damned — we’re headed for a full DEPRESSION if we can’t get these spiraling numbers under control.
Just like in the 20’s when the first depression occured, this one will have been sparked by Wall Street cheats. That’s what the sub-prime fiasco is/was — a cheat by Wall Street and the financial community on desperate and unsuspecting home buyers. While it wasn’t a very well hidden one, the “let the good times roll” theme of the day lured many into ignoring their gut and going with the floating interest rate mortgages that are now unaffordable and lure of borrowing against tomorrow on the speculation that property values would increase that was the cornerstone chorus of the sub-prime lending siren song.
The war in Iraq is not helping matters, either. With the government pulling many workers off the line and sending them overseas, manufacturing slowed, and those companies who lost employees to the military are simply downsizing and removing those jobs from the available list. Democrats scream to “bring the troops home”, but if we do that, what will we be bringing them home to? Unemployment, Welfare, Food Stamps and poverty. While I’m not and never have been a fan of the war in Iraq, we now have multiple reasons to keep our military over there and many have nothing to do with Al Qaeda!
Of course many argue that the trillions (Mr. Obama!) we spend in Iraq could go towards domestic issues and they are right, but let’s be realistic — when have you EVER seen government take money from one profit-for-few bottomless pit and put it into anything other than another profit-for-few bottomless pit?
The Feds reduction of interest rates today is a stop-gap measure that has very little hope of bolstering the economy. It took years to get to this level of down and it’s going to take years to get back to a healthy economy. Thinking otherwise is pollyana-ish and unrealistic. We need to get those mortgages that are in danger of being foreclosed on re-financed with some kind of sustainable mortgage that has reasonable rates and reasonable terms (such as no pre-payment fee!) — waive those existing pre-payment fees so people can afford to refinance their loans and “forgive” some missed payments. It’s only by keeping people IN their homes and in their jobs that we can begin to look forward to better times.
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