How many do you own?

Posted: 22/08/2008 in Uncategorized
Tags: ,

As we edge closer to the election, the Presidential candidates are preparing to announce their respective choices for the Vice Presidential slot in the race. One thing to look for is not how these choices are like the Presidential nominee, but how they are different. I believe the main issues are going to be the economy, and foreign affairs this time around. Especially the economy, and its relation to the costs of energy in this country today.

The NY Times has an article examining the apparent desire of the majority to place the economy as a top priority issue. Last time around it was the war in Iraq, and that issue seems as though it may be fizzling out before it explodes again. According to the poll mentioned in that article, 65% of those surveyed seemed t trust that Obama will do the right thing regarding the economy. Obviously they haven’t seen some of Obama’s proposals. It looks as though the Obama nation is going to become the tax nation if all indications are correct.

But there are some problems that exist that are not going to be easily solved. President or not, the powers that be control the strings behind the scene are not going to accept a simple solution to our failing economy. And in spite of what you hear on the evening news sound bites, things are not looking good at all. A large part of the problem is the current housing financial crisis. The CATO institute, in a policy analysis on Freddie Mac and Fannie Mae suggests that the institutions should be fully privatized. I for one would like to see that happen, and let the chips fall where they may. Credit is a gamble under any circumstance, and the industry has been far too generous with the issuance of lines of credit over the last few years.

I think the credit industry should take its licks and learn from their losses. Why the hell should my tax dollars go towards bailing them out? I see a lot of people in my line of work living off of some paycheck down the road that they may not even earn. They have no business buying stuff on a credit card, but the credit card companies encourage, and even tempt people into buying things they haven’t got the money to pay for.

Rich people are rich and poor people are poor. Nothing wrong with that. A Houston Chronicle article talks about the candidates wealth status, saying that  while the McCain’s own Four homes, Obama’s wealth includes eight homes. These guys really know what it’s like to be poor, eh? We can look forward to whoever wins as being ‘familiar’ with our pain when we can’t afford to fill our oil tanks all the way. It’s difficult to accept that these politicians can really do anything when they live like that, and we don’t even have a prayer of it. In spite of hat we’re told, America is a class based society.

And the economy is simply going to continue its decline, swirling down the white bowl of the future. In fact, we may actually be returning to the thirties! Some analysts are claiming that the next segment to feel the pain is going to be the commercial papers market, and with all of the retail closings and cutbacks I can see why. The NY Times article covering this topic says that Riverton Apartments in Harlem, a huge housing complex, may not be able to make a $225 million payment on their loan in September, causing them to default on the loan. That’s a huge chunk of change no matter how you look at it.

I’d say it’s time for us to reevaluate the entire credit industry. Or at the very least, the way we, on an individual basis, use credit as a tool. Used in the right way, it’s a beneficial tool, but used wrongly, it can be a devastating tragedy.

 

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