With all the talk , speculation and analysis about an economic meltdown (read Depression II), I can’t help but wonder why no one is talking as if no one could have seen this coming. I’ve lost count how many “Financial Experts” I’ve heard recommend all we (the people) need to do is stop spending and start saving (with what?). Never mind the big red flag about this meltdown having to do with a freeze on credit, I don’t get why no one is talking about $1billion dollars the U.S. is spending on the Iraq Occupation (even though Iraq has a $59 billion in oil revenues), hundreds of thousands of jobs being lost due to NAFTA, and American corporations getting tax credits for offshoring their manufacturing facilities (and jobs) overseas.
I’ve often heard people say if you want to get to the root of a problem, follow the money. Well, what about following the loss of money. It’s bad enough our middle class had been taking it in the shorts since the passage of NAFTA and ensuing loss of ”living wage” jobs, without President Bush and Vice President Cheney lying our country into Iraq, for an open ended occupation that is costing U.S. taxpayeres $1billion a month. Those two factors alone would drive any economy into the ground, without Senator Phil Gram coming up with legislation to deregulate banking and mortgage practices.
My conjecture is when income’s started falling, the financial industry came up with no-cost, no-interest loans that would balloon in 2-5 years. That way, no one would realize how poor they had become, because interest-only payments made it possible to live like they would if they could afford it. Unwitting victims signed contracts they did not want to believe they could not afford, even though their creditors did. When they defaulted on those loans, the creditors foreclosed on their homes and tried to start the cycle all over again, banking (in more ways than one) on property would continue to appreciate. Can you say house of cards?
John McCain and President Bush have a lot of nerve acting like they never saw this coming. If they are as naive (read blind and deaf) as they claim, they have no business holding their positions, but that’s another story.
If Congress and the President really want to fix this sinking US ship, they need to renegotiate NAFTA (and any other similar trade agreements), stop granting tax breaks to American corporations who offshore manufacturing facilities, end the Iraq Occupation, and force anyone holding paper on an ARM of ARM-type loan to down to lenders to negotiate home loans so the homeowners can afford to affordable rates.
That way, we can start spending money on our own needs and not those of Halliburton & KBR, and people will be able to stay in their homes until manufacturing jobs can come home.