Monday, October 6, 2008
Hmm. The financial market.
Interesting times, eh? What does all of this economic panic mean to everyone? Well, the markets that bought, sold, and traded the mortgages 2 and 3 times above the banks that initially lent them are in trouble. The government has this massive bill, which covers everything from additional tax credits to energy star dishwashers to permanently allowing the government carte blanche with terrorist investigations. It is a temporary fix for a much needed economic correction. We are a free market economy and with that, not all businesses succeed. Some fail. Panic arises. Downfall ensues with those who predict what's going to happen next and we spiral into whatever it is we are going into. The fact is, perhaps it was too easy to buy a house 3 years ago. Perhaps a no doc, no verification, interest only loan that would soon balloon into a very high rate with negative amortization wasnt such a good idea. Perhaps an unregulated industry needs to be regulated. These are all larger ethical questions. The immediate resolution: money! Lots of it... and tax credits for the environment. And so, there are proposed tax cuts for wind power, clean coal, energy star appliances, and others. For our every day to day lives, be frugal. Be smart. be sensible. Dont be frivolous and try not to charge up that 24% credit card. Even if that bank folds, Warren Buffet, Wells Fargo or Citigroup will buy it so you will still owe it. ;)
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