Credit Crisis explained

Heres a link below to a video that explains our country's credit crisis. Its real easy to follow, and Americans should be aware of it.

http://vimeo.com/3261363

The housing/credit crisis isn't anywhere near over; risky subprime loans got us into the trouble we're in now. I believe subprime was just the tip of the iceberg this option arm(adjustable rate mortgage) crisis which will happen in late 2009 early 2010 when these artificially low interest rates reset to much higher rates turning a $700 mortgage per month into a $1400+ mortgage per month, it will completely cripple the housing, credit and stock market. (See picture on top)
The subprime loans were risky and hit poor Americans hard, Middle America got these option arms, and pretty soon we'll see a lot of middle class people default on their mortgages, and that will have a domino effect on our economy. Banks still aren't lending money even after the $700+ billion they got from the bailout.

Here We Go....

I think these bailouts and stimulus packages have been, are, and will be a disaster.

Here is a video link to a cool twist the Joker from the Dark Knight has on this subject.
http://www.youtube.com/watch?v=_vKxhqSJvPk

Some food for thought on how much the government can do.
"Governments cannot create but merely redirect. When the government spends, the money has to come from somewhere. If the government doesn't have a surplus, then it must come from taxes. If taxes don't go up, then it must come from increased borrowing. If lenders won't lend, then it must come from the printing press, which is where all these bailouts are headed. But each additional dollar printed diminishes the value those already in circulation. Something cannot be effortlessly created from nothing."
-Peter Schiff President of EuroPacific Capital

Democracy

I have to say that I agree with Carl Becker. We as Americans take a lot of our liberties, and the fact that we have a democracy for granted. In fact we have almost forgotten what being a part of a democracy means. We have disconnected ourselves from the government, and figure they’ll do what’s best for us. We usually fall in line with what the government and media tells us to do, especially if they ground it into us. Most Americans have no idea how banks work, and how the Federal Reserve can manipulate various markets by tampering with interest rates, and the money supply. However 8 out of 10 Americans are in favor for the stimulus packages, and bailouts even though they are oblivious to how these pieces of legislation will affect our economy now and in the future. Since CNN and Barack Obama have said we’ve needed this stimulus package dozens of times, then we must need it. Auto tycoon Henry Ford once said if Americans really knew how our banking system in the US works, there would be a revolution tomorrow morning. The ray of hope is that we still live in a democracy, and if Americans can wake up, this government of the people can return to being an industrial powerhouse like we were in the early and mid 20th century, and going back to being the envy of the world.

Interesting Topics

1.What should America do about the economic crisis?
-Will injecting trillions of dollars into the market fix it?
-Is over-regulating aka federalizing everything the answer?
-Is the problem that we have a market inbalance, too much consumption not enough prodction?
-Could the free market potentially fix this?

2.Green Bay Packers
-Who should they draft with the 9th pick?
-Do we have the talent to win the NFC North next year?
-What type of denfensive scheme should we use next year?

3.Product of your enviorment
-How easy is it for a white kid in the suburbs to go to college?
-How hard is it for a minority from the inner city to go to college?

4.Who is your favorite Ferrell? Will or Colin?


5.The differences between Obama and McCain, and even Bush are very small.
-Don't expect alot of change with this president
-Look past the "Yes We Can" bs and listen to what he says and look at his policies
-Fiscally Obama and Bush are very similiar (extreme trade inbalances, extreme budget defits,extreme debt $50 trillion+ in public debt, and unfunded government obligations such as medicare, medicade, and social security, and the devaluation of the dollar)
-If you didn't like Bush's war in Iraq your not going to like Obama's war in Iraq and Afghanistan

6.Should you be able to buy things with money you don't have, and should you have to pay back loans?
-Are Americans entitled to endless credit, because we've gotten used to our extravagant lifestyle?
-Is it fair for an asian to work the same job as an American and get paid a fraction of what the American gets paid?
-The volume of a nations credit, is based on that nation's savings,when nations stray from this economic law, they run into serious financial trouble.Look at the United States right now.