I think we’ve reached a pivotal point in America where the majority of people finally “get” supply and demand, BUT I think the government doesn’t realize we as a people DO get it. Let me explain why.
The billion dollar bailout initially was given to banks to buy up poor mortgages which THEY’D (the greedy ones- can’t put the blame on everyone) given out, and would allow the government to get the poor mortgages to hold over time until the financial mess eventually comes to an end. As a result of giving the mortgages to the government the banks could rid their books of these stupid loans which tied up their money and regain liquidity, thus lending money back to the people who gave them money in the first place. Ok, that was the concept- BUT we know that’s not happenin.
The government changed its mind and started giving some of this money to the businesses who faulted because of the mortgage mess. Billions and billions of dollars are reallocated. So when the banks get the money, they say- “Oh Shit- Joe Business is getting OUR money, we better hold on to what we have and not give it out.” The banks who were supposed to get more liquidity decide to keep the money in their own bank because of the financial mess. Can’t say I blame, ‘em. If you just crossed a desert and someone offered you some water, would you give it to someone else?
Now the government realizes this problem and tries to refocus their strategy. I understand they realize the people need the money, to buy more goods. Ha ha… now this is where it gets funny.
We’ve had monopoly money for years and years. We’ve spent for years and years. It’s our psychology and something we took for granted. All the banks just gave us money to spend, the government gave us money to spend and the economy did REALLY good.
All the credit cards and banks got greedy and again, they gave us the “fat kids” only candy to eat. No protein, just sweets. We ran around like nuts with this constant supply of candy until one day we started to get aches and pains cause our bones weren’t growing, our muscles were deteriorating and we got tired: we had to sit. The banks were the “sweet pushers”.
“I heard the government was going to give us more money! Hurray! I’m gonna spend it on more sweets so I can run around some more and have some more fun! Hurray!” and then the majority started thinking, but my body is aching and I’m really not healthy, I think I better grow up otherwise I could die- I mean ALL of these debts….
I don’t know about you, but I could use a few bucks- TO PAY DOWN MY DEBT. You see, what I just put here…. TO PAY DOWN MY DEBT.
Ok, most Americans have put out all this money ALREADY. They’ve spent money they DON’T have, and are stuck with bank debts in the form of credit cards, loans and such. I don’t think you really need a brain to figure out, people out there are losin jobs and we’re a little worried about all of this money we owe. I’m gonna take the money the government is gonna give me and try and do something constructive with it like, PAYING off stuff. I learned my lesson, and the smack on my hand is better than the bat on my head.
Soooooooo, if I’m one of a majority of thinkers who feel this way- the majority of money we’re gonna be getting isn’t ending up in the form of spending, like it used to. It’s goin back to the banks, who again are gonna be hording it like the bear who stored up food for hibernation. What do you get in this case? The SAME situation, a stalled up economy.
They always shoot the messenger, but some words need to be said.
Everyone says it’s got to get worse before it gets better. This is the truth. Everything about the economy is about psychology: Confidence=spending, Fear= hording. How do you change the national thinking? Damn fine question. Hopefully the new administration can reinvest it’s time and money back into the United States, fine tuning a patriotism which grew in the immediate aftermath of 9-11. We live in the finest country in the world, and every now and then, we gotta be reminded, WE make it that way. Sure, we have problems like everyone else, but we have an infinite potential of resources RIGHT HERE. Who needs outsourcing! Grow internally, not externally. Everything starts here, with your thoughts, your dreams, YOU’RE potential. If you believe- you can achieve. It’s all about
I’ve said my peace.