An idea for the economy

nebborjk

This recession was mainly brought on by people living beyond their means cashing out artificial home equity. This abundance of extra spending has driven the economy for the past half decade. Having the government pump more artificial money into the economy only delays the inevitable. We need to start living within our means both as individuals and as a county (government). I’ve yet to hear how anyone proposing massive government debt spending is going to justify this to their kids and grandkids. They will be the ones how are going to pay dearly for our greed. We currently are pissing away $500,000,000,000 a year on interest payments. Who knows what this will balloon to after the spend thrifts have their way.

avelanchefan

nebborjk wrote: »

This recession was mainly brought on by people living beyond their means cashing out artificial home equity. This abundance of extra spending has driven the economy for the past half decade. Having the government pump more artificial money into the economy only delays the inevitable. We need to start living within our means both as individuals and as a county (government). I’ve yet to hear how anyone proposing massive government debt spending is going to justify this to their kids and grandkids. They will be the ones how are going to pay dearly for our greed. We currently are pissing away $500,000,000,000 a year on interest payments. Who knows what this will balloon to after the spend thrifts have their way.

+1

Quick story, a buddy of mine and neighbor works for CAT. He survived the layoffs, and he has enough years that he will probably be okay. But when they moved him to AZ, they told him it would be a 5 year assignment at the most. Well his 5 years are coming up, and he is probably close to 100,000 upside down in his house. He was sent a letter from a mortgage company he had done business with before (I think it is one the CAT goes through) and they asked him to call for a interest rate refinance deal to get his payment down.

So any ways he called and they start looking at his payment history and the the mortgage person says:

"So you have always been Current on your mortgage?"
"Yep"
"Hmmm"
"What's the problem?"
"Well this program is more for people who are not current on their mortgage."
"So your telling me I get screwed for making my payments on time, and I would be better off not making them at this point?"

That was pretty much the end of the conversation. He is really pissed right now and rightfully so.

The same thing happened to me in December. I got a letter from Bank of America telling me that CountryWide had settled a class action lawsuit with the state of Arizona over predatory lending. My mortgage fell under those guidelines. I called CW, and they said yes I would be able to redo my mortgage, plus they may reduce the princible as well. I had to send proof if employment, W2's, and current paystubs. They said they would call me back in the middle of January with the new loan info. Well I got a short email from the about January 5th stating I was rejected. I called them up asking why, and basically I was told that I have been an upstanding customer with CW, and since I am able to afford my payments I would not be able to refinance. Only people that are late on payments are being considered at this time.

I was really close to telling them to take the house and shove it up their ****. That was one of the most insulting things I had ever heard. But once it happened to my neighbor I knew this was more of a national thing. So basically what the paying citizens are being told is, "We need to live within our means, but the people that overspent, and over bought in the housing market, will still get preferential treatment."

I am really not sure where this country is heading, but right now I have pretty much lost all faith in our government and lending system.

tonyb

"I am really not sure where this country is heading, but right now I have pretty much lost all faith in our government and lending system."


.....and that sums it all up friends......

rayslifecycle

Thomas Jefferson’s warning, written in a letter to the Secretary of the Treasury Albert Gallatin in 1802:

“I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”

The Federal Reserve is a privately owned bank!

markmarc

Clarknova:
Respectfully, you may want to do some additional reading on the issue of America's early banking system. The chaos back then with "National Bank" was a completely different animal then what we are dealing with now.

Also, one must remember that Jefferson was absolutely horrible with his personal finances and held little regard for bankers. In fairness, he did cut the size of gov't.

It is important to note that the Federal reserve system was created by an act of Congress, and can be dissolved.

From the Federal Reserve Purposes and Functions Book
"The Federal Reserve System is considered to be an independent central
bank because its decisions do not have to be ratified by the President or
anyone else in the executive branch of government. The System is, how-
ever, subject to oversight by the U.S. Congress. The Federal Reserve must
work within the framework of the overall objectives of economic and
financial policy established by the government; therefore, the description
of the System as “independent within the government” is more accurate."

rayslifecycle

marcmarc
I hear what you're saying......and I do have a lot of learning to do.......
That's why we're here right?

But encourage you to look beyond the writings of the unconstitutional institution........
The Fed and the first two national banks all operate on "Fractional Reserve Banking."
This system is undemocratic and immoral......regardless of how long it has existed.

Check out the books "The Creature From Jeckyl Island" and "Secrets of the Temple, How the Federal Reserve Runs the Country"

Quote from Woodrow Wilson referring to the newly created Federal Reserve:
"I am a most unhappy man. I have unwittingly ruined my country.
A great industrial nation is controlled by its system of credit.
Our system of credit is concentrated. The growth of the nation,
therefore, and all our activities are in the hands of a few men.
We have come to be one of the worst ruled, one of the most completely
controlled and dominated governments in the civilized world.
No longer a government by free opinion, no longer a government by
conviction and the vote of the majority, but a government by
the opinion and duress of a small group of dominant men."

Also check out presidential executive order 11110 issued by JFK.......and it is still on the books......

end the fed!

comfortablycurt

Here's an idea...we need to create jobs, and we need people to be making money, so that they'll go out and spend again.

Let's revamp our railroad tracks. Most of the train tracks in this country have been there for over 100 years. Basically every other country on the planet is running on much more modern, safer, efficient rails.

How many jobs would that create? Hundreds of thousands...Sure, it might not completely solve the problem, but it would go a big way in the right direction.

BlueFox

comfortablycurt wrote: »

Here's an idea...we need to create jobs, and we need people to be making money, so that they'll go out and spend again.

Here is a better idea. Let's start treating CEOs, and other executives, who outsource engineering jobs to China, India, Vietnam, etc. as traitors. They are giving away our technology so they can get their bonus, and a good return on their stock options.

PhantomOG

so isolationism will solve everything?

Music Joe

How about buying up cheap or soon to be forclosed homes and properties.
To provide subsidized low-cost homes for returning veterans and their families or soon to be started families.

markmarc

ClarkNova:
Thanks for not non-flaming reply, and you are right, we both have plenty to learn. The big question is, if you end the fed, who is in charge of money supply on a day-to-day basis? Something tells me it would become a much more political situation, and that is far more dangerous.

Good one Joe, I'd support that in a heartbeat.

I still believe we need to develop a domestic energy production system involving nuclear, clean coal, solar, geo-thermal, wind, wave, algae, and whatever else is out there. Keeping 3-500 billion $$ in the country annually is a definite economic winner.

SolidSqual

People only feel responsibility for their money when they've earned it. The banks didn't spend the money to bail themselves out, what's to say the public would use it to bail themselves out?

avelanchefan

I would like to clarify something in my earlier post about being denied new loans. Because after reading it I did come off whinney IMHO.

In no way did either myself or my neighbor ask to be included in these new modified loans. But if you are going to send someone all this information. And the amount of postage and paper they are going through only to say no because you are current....then what is the point? It really stumps me. Surely they could do some simple investigation about this before choosing us for help.

SKsolutions

That's a big spread, and it's on what 210K? Do I get a cookie?