Sunday, April 1, 2012

Short Term Roburst But Fragile

Today in America we are being literally assaulted by numerous government failures on several battle fronts. These issues are drawing great debate, the impact on our lives is undeniable. We have now seen a short term stabalization but for how long? For many of us, I think it's safe to say, we are truly mystified over the obvious refusal of the federal government to look at its faults.

Beginning in the 1990's, government sponsored bills to deregulate the banking and lending industry. A push toward government mortgages led to unstable government giants Fannie Mae and Freddie Mac. Capitol Hill mandated affordable housing for the poor and put pressure upon banks to make liberally oriented and ill advised loans to minorities who had little if any where with all to pay back their mortgages. Loan approval became a meaningless ritual as groups like ACORN used activism and intimidation tactics to force banks to make loans that would lead to massive defaults in the months and years to follow.

This finally created all consuming losses and major bank failures, unprecedented losses by investors, and the disappearance of many consumer's nest eggs as unqualified mortgage holders defaulted by the thousands sent shock waves through the nation. Wall Street was exposed with criminal complicity as investigations began. Yet, the Bush administration hastily issued the TARP funds to supposedly stabilize the economy from the damage that had occurred, though it would not be enough. Those who were guilty of knowingly pushing insolvent real estate securities as losses piled up and made huge sums on their fees and commissions got away with their criminal violations.

So what's next??

More of the same. I say we be prepared since government isn't willing to be straight and cut our losses. WE ALL NEED TO BE PREPARED FOR A WORSE CASE SCENERIO. It may not be too bad but it will not be good either. Stock up. Learn some survival techniques. And most of all, DON'T BE SURPRISED WHEN THINGS GET WORSE!!

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