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| A Conservative's Viewpoint The views of a homeschooling mom of four when it comes to the political world around me. | | by: | This item has no ratings. |
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Created: 10:28am on 05-19-2009
Modified: 10:33am on 05-19-2009 | |
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Entry #650578, added on 05-19-09 @ 10:31 am EDT.
[Entry Access Restriction] None.
Title:
The Government Tells the Banks to Increase Stupidity
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I don't understand the federal government. I thought these people were supposed to be intelligent. How is it that they think the solution to the current economic crisis is for people to borrow more money? I thought borrowing money was what got us into this mess.
Take a look at the subprime mortgages. Loans were made to people who couldn't afford them. People took out loans that were 125% the value of their homes. House payments were 50% or more of a family income. Credit card spending was on the rise. And when a crisis hit, people found they couldn't make payments on their house or their credit cards. They had borrowed more money than they could afford.
So now the government is demanding that banks make more loans to people. "Hey, all of you people in Detroit! You know, the folks facing layoffs! All of your problems will be solved if you borrow more money! It will save our economy! Who cares if you don't have an income, or might be losing your job soon?"
The government wants banks to loan out more money. It wants people to borrow to buy stuff they don't need. What a load of crap. I hope the collective group of intelligent people thumb their nose at this loser rationale. I sure hope that the guy that just lost his job isn't running out and buying comfort items when he needs to worry about food. Or making his house payment. I hope that woman who is facing a reduction in salary and worries about her budget recognizes that the last thing she needs is more debt.
It is irresponsible for the federal government to encourage people to take on more debt when they don't know for certain where their income is going to come from. Debt adds a higher level of stress to people who are already scared enough. The last thing the American people needs is more debt. What we need to do is recognize that we are a wasteful society, that we as a group tend to spend more than we earn, and that we need to be more responsible. I taught my six year old that he can't get everything he wants just because he wants it. Why, then, do we adults have so much trouble with the idea?
The government seems to think that if they lean on the banks, they can encourage them to make more loans to people who don't have the income right now to take loans on. A subprime mortgage in miniature. And they do this even as they decry the greed of those on Wall Street who loaned money - in the form of mortgages and credit cards - to people who plainly could not pay the bills. Somehow, in their small, goal-oriented world, they fail to see the contradiction in this.
I don't know about the rest of Americans, but I certainly don't have someone I can tax a little more to supplement my overspending. |
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