There was a time not too long ago, where investors felt confident in companies that had no product to sell or had the managerial skills of your average meth addict. Money flowed, people got rich, and the market flourished. Many Americans became wealthy off the backs of investors trying to get in on the next big thing.Everyone tried to get on the gravy train. Citizens were buying up all sorts of material excess and running up credit cards on IKEA furniture, home entertainment systems, and strip clubs. Yes times were good for middle class America and they would bear the fruits of not much labor.
Now the housing market has collapsed and the financial state of this country is suffering. Blame is being thrown around like a hot potato. Democrats are pointing the finger across the aisle while Republicans go on Fox News and tear into Pelosi. The public is looking for a crotchety old guy or their risen lord and savior to somehow fix the mess that they themselves made.
Yes I said they themselves. I don't blame the current administration nor anything Phil Graham has done. Fannie Mae may have pulled some shitty deals, but it was us, the American people, who, blinded by greed, pursued a lifestyle way above their means. We signed the dotted line with reckless abandon not even paying attention to terms like 'flex rate'. We did this.
Of course the burden now lies with the people who actually made smart decisions. Now everyone is looking to our leaders to protect us from ourselves, cause obviously we're a bunch of children who can't be entrusted with making a smart decision. Given the high ratings for reality television maybe we do need to be coddled.
"I have as many guns as I need, but I don't have as many guns as I want." - Phil Graham
5 comments:
I wouldn't put all the blame on the people. When you don't know anything about mortgages, you trust the person telling you about it. A lot of people were swindled into beleiving they could own a home.
I doubt very much that potential profits from the companies now owned by the US government will go to anything worthwhile, but I did like that lady's speach!
Wow. Tell it like it is Marcy! lol
I experienced a Chapter 13 bankruptcy and it's the best thing that ever happened to me. No credit cards for 5 years seems impossible, but it's not as hard as people think and you realize what you need vs what you want. We need to rethink the whole credit system or we'll all just have Monopoly money. (if we don't already)
Scary times. I started living frugally about 6 months ago, and now am just keeping to it. I'm lucky in that I rent though.
Cxx
I agree with you completely. Generally most people are dissatisfied with their life. It doesn't matter how much they have, like glutenous pigs, they want more ... no matter the cost.
With the housing market ... I saw it first hand. The financial advisement firm I worked for also had a mortgage department. People did not listen to the fine print ... all they could hear was the ooo's and aaaah's of those envious of their new digs. We would explain the costs, rates and other finance information to an ear that had selective hearing. People only heard things when we would say "we can't approve you for that amount because of your income to debt ratio". And they only listened to that because they weren't getting what they wanted. Children that need to be coddled, that is an excellent description of the masses.
I think it's a bit of both really, poor judgement and listening skills on the part of the people and poor direction from the higher ups.
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