The economy is stuck between a rock and a hard place. I always say for individuals, if you cannot affect the economy, it cannot affect you. Unfortunately, we are letting it affect us. Keep putting money into the market, this is the best time to buy and keep buying, you will follow the market down and then eventually back up, buying along the way will only increase the shares you own. We need to listen to the Billionaires who are voicing their opinions and willing to put their money on the line. These Billionaires can affect the economy, so we should listen. They are willing to put their money on the line, which is where the truth comes out. If you are willing to bet on it, then we have truth. Congress, is more concerned about Legacy Votes and elections, partisanship – child wooden arrows and Puerto Rican Rum, we should bet on the success of the plans and put some paychecks on the line. This is what the American people want. Throughout this I have been really surprised at the revenge that everyone wants. We just need to get through this together. Forgive. Learn from the mistakes and not let it happen again. Why do we have to have heads roll? We focus on that and we will all pay the consequences. We all benefited from the growth of money, home ownership, home equity and the growth of wealth in America. We need to make an adjustment as we did in 1929…….1974, 1987, 1991, 2001 and again in 2008. We need to move forward united.
I think it boils down to providing mortgage insurance for these distressed sub-prime mortgages, mortgage reduction for the home owners who are sitting on negative equity and paying over 30% of their income towards mortgages and liquidity for the banks – keep the money supply up and fund this by creating a market to trade the insured mortgages. Banks could take 10-20-30% write offs instead of 100%. Extending the 700 Billion to the American people.
These are just thoughts from the sideline. I really look forward to coming back to these post in a year or two and seeing the comments and what really happened.