http://www.msnbc.msn.com/id/26856877/

 

What happened? What are we going to do?

 

Both candidates want tax cuts and yet increased spending in some other areas of government. All this with an included 700 BILLION+ bail out. I know it’s the old “politician trying to win votes” concept but lets be realistic. Cutting taxes and increased spending all on top of a huge messy bail out does not make much sense to me. Ok…I am not an economics major but I do know how to run a house.

 

Let us pretend this was my household budget. It would not make sense to me to find a lower paying job (lower taxes)….buy more stuff (increase spending on programs)….and buy a huge home (bailout). If this were the case I would be declaring bankruptcy within three months.

 

Wait one minute. Isn’t this how the whole mess began? People got more credit….bought more stuff…and bought homes they realistically could not afford. Sounds like a vicious cycle to me.

 

So, with either candidate it seems we are in for a dark road ahead. The only winners will be the big execs who made millions from these companies. Oh sure the FBI is stepping in to investigate but what are they expecting to find that was illegal? Just greedy business practices convincing people to buy homes at inflated prices.

 

When did this idiotic practice start? Was it with the Bush administration? Maybe it was Clinton’s. No, I am sure this has been going on for years. The signs were written on the wall. For years we heard of the housing bubble. Someone in the government should have taken notice when the average Joe was buying a million dollar home at interest only loans hoping to sell it in six months for 1.5 million.

 

This was a clear risk even the average Joe should have seen. After the interest only period was over …BAM…huge…and I mean HUGE mortgages. Average Joe knew he could not afford it. This meant foreclosure…..this meant bankruptcy for Fannie and Freddie among others. Maybe average Joe thought someone would bail HIM out when he made a bad decision.

 

These companies and the homebuyers gambled and lost. Now we all are going to pay. This is only the beginning of a bad economic turn for the worst and the world will suffer.

To dig out we need to treat this like a household….stop spending on a lot of social programs…we have no choice…at least for a few years. I know a lot of people will be angry but it is time for tough choices. Either let the country melt down or cut back on spending.

 

These two candidates will need to make tough choices and stop beating around the bush on a plan. With Palin and Obama having limited experience I don’t see a silver lining anywhere.

 

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