So we're in an economic down turn. The housing market has led us into this because banks were lending money to people who couldn't afford to pay it back and sold it to get rid of it. Then the banks who bought the bad debt were left hanging because people couldn't pay the debt. So we got into this mess by lending money.
Fast forward a few months. Our govt. says these banks that made and bought the bad debt are too big to fail and if they stop lending money(which is what got us to where we're at now) then our economy is going to tank. So what do the brilliant people in our govt. do??? They give the banks a whole bunch of money that they are supposed to use to lend to people. Ok, so if lending got us into trouble how is increased lending going to get us out of this trouble? That would be like saying, "Oh, you're drunk and you need to sober up so you can drive home. Here is a bottle of whiskey this should help."
That's the way I see it.
Friday, May 1, 2009
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