It's been a couple of weeks since the $700 billion dollar bailout fellow-Americans (I think, but I really don't want to go find the exact date right now.) When I get on MSN.com, which is pretty much everyday, I am chagrined, nervous, and disappointed when I see that the DOW and NASDAQ continue to appear in red numbers - a color that should not be associated with the economy everyday.
The purpose for this post... well, there are many purposes. For me, the economy is like politics is like a bad, awkward date - I close my eyes, continue to not acknowledge it's effects on me, and pray to God someone better will come along and fix it. The economy scares the hell outta me because I don't know anything about it, or how it will effect me. I've been content to not know and have foolishly believed that many people on Wall-Street were working for the greater good. I don't have much money in savings accounts and money market mutual funds, so how could I really be affected? But, there comes a time when a woman must grow some ova and step up to understand her surroundings and how current events are shaping her future. (Grburbank reminded me of this in my comments a few posts back.)
If you want to become more well-versed in the current economic crisis AND know where to put your blame, here are a two links I found very, very helpful:
This episode, about 58 minutes long (just click on the "full-episode" button), succinctly explains who is to blame (both Repbulicans and Democrats and all the people in-between), what these crazy "credit-default swaps" are, and other useful information, like what you can be doing for yourself. Listening to this podcast really, really helped make me aware and more educated - plus, you should just listen to TAL because it's amazing and free.
This is a pretty short article, and doesn't have all the snazz that TAL does, but it explains some pretty big concepts.
Now. Can I rant? Yes. Yes I can. Although I still don't understand all the problems in the economy and have surely forgotten some things since I listened to TAL's podcast, I do get some things - like why John McCain and Barack Obama should shut up and stop pointing fingers and provide solutions because BOTH of their parties are to blame. On top of that, we, as contributors to the economy, need to step up and take some blame too. For far too long, Americans have lived on credit, lived beyond their means, - like buying houses that are too big, too expensive, and take up too many natural resources - and gambled with money on what has to be a "sure thing." There ain't no thang as a sure thang and this current crisis is a wake up call to that.
Who else is upset that this bailout is based on our tax money? That's right, the government, who does not get involved with public entities and private corporations, is using our money to save CEO's and fat cats who used too much credit - a basically non-existent form of exchange - to buy more and more and then crashed and burned? I'm pissed. Then to top that off, everyone says it's going to get worse before it gets better and if we, as "the small American", haven't really felt the effects yet, what's going to happen in a few months or years? I really don't want to think about it.
(Other things that bother me right now - why does the government have to buy stocks in companies? Socialism anyone? Why do we only have TWO options for president? Shouldn't we have more, well-backed party supported candidates? Silly anyone? Why do I keep getting fever blisters? Am I that stressed? Bah!)
So, if you've read this far, please take time to educate yourself - the act of doing so is empowering, even though it can feel like a risk. If you're an economist or smart business person or smarter or more educated than I am person who's read this far, please give feedback.
5 comments:
For me, I was frustrated when everything was skyrocketing. I knew that it couldn't sustain itself and that people were just getting themselves into debts that they couldn't reasonably pay. That is one reason why I didn't purchase anything at that time. I felt like I was losing out if I purchased at so great a price.
I hate the bailout. The price was too big and too ridiculous. And as much as I and everyone would like to blame the problems on "the government," it is really individuals who made poor choices to not honor their debts that put us in this trouble. The number of people who file for bankruptcy each year or default on their loans is outrageous.
Just because you CAN do something, doesn't mean you should. The problem is that people find out that they CAN spend or CAN get a mortgage, but they don't realize that they shouldn't. This isn't a problem that has only recently manifested itself, either. It's the age old problem of people making poor personal money management decisions.
Now that the market is a little crippled, I am more willing to pay the smaller prices that are being asked for housing, etc. The problem is that, with the bailout, I will probably end up paying for other people's mistakes, too. So, even though I wasn't a part of the problem, I still have to reap the consequences of other people's poor decisions. We reward people who make poor decisions, and THAT is what I have a problem with.
Nicely put. I appreciate your thoughtful comments. Personal accountability is something that is forgotten in this country - on a lot of levels.
Sometimes I like to say that I'm economy-proof. I don't have a portfolio, I don't make much money, and I'm not really in danger of being laid off.
And so while I usually like to stay safely inside my lofty, ivory tower, it is important, like you said, to occasionally know what the hell is going on the outside world. So thank god for TAL--isn't it wonderful.
However, if it weren't for our tax dollar bailout then there really wouldn't be a world economy. And that would rather suck. Of course, it shouldn't really have to come to this in the first place, but we obviously weren't willing to learn from the example of roaring 20s and the Great Depression. Did you know that there was a rush on safes from places like Home Depot and people were pulling all their money out from banks?!? Maybe it's been too long since they've seen It's A Wonderful Life. But maybe we do need a regulated economy, which is socialism in action, because obviously the laissez-faire thing has not worked out so well for us. (And just on a curious note--if you dislike the exploitative nature of capitalism, and you're not a fan of socialism--what type of economy would you like?) I do have a soft-spot for socialism in my heart, which is really why I should just move to Europe.
Also, the two-party system isn't perfect, but it is what the Framers had in mind, with notable exceptions such as Hamilton who deplored parties. But how else really are you going to run a country, which is why he became the leader of the Federalist party in the end. And when you have a strong third-party candidate they just take votes away from one of the other contenders. Ross Perot anyone?
Thank you for another thought-provoking blog and for a space to let me rant too!
I'm also scared of the economy.
Here's a You-Tube video about how well some politicians are listening to the people they are supposed to be representing:
http://www.youtube.com/watch?v=sZFwRAfkV1g
Glad to see you in the blog world! I shall now proceed to stalk you. I've always loved your witty and sarcastic point of view and I'm glad to see it here in writing.
With the economy I have kind of been in the 'ignorance is bliss' category. That is, until it hit a little closer to home. I've been spending the last few weeks researching more about it. Thanks for the helpful links!
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