Well, just like I said back in December things are getting worst. Even more so lately due to problems occurring as a result of the current credit virus caused by greed and self absorbing attitudes more so than just lack of fiscal responsibility.
Lack of fiscal responsibility was mostly a result of people benefiting directly or indirectly by not doing what needed to be done or was either so busy scheming some where else that they didn't want to take the time and effort they knew would be required to address the monumental problems or people that were abusing the system and simple didn't want to stop the flow of dough. Which basically goes back to it being a greed and self interest issue and the core of the problem which of course shows itself as fiscal irresponsibility.
Anyone could figure things would at some point end as it did. There is an old English proverb, "all good things must come to an end", that comes to mind. It's as true as mathematics. Just as what's happening now is as true as mathematics . . .
I predict many more symptoms will see light as time goes on because of the complexities of the issues. Think about it, even as we speak, times are so hard, money is tight, gas is up, wages are stagnant so how are a lot of people getting by?
The ones who got it, are STILL using credit. When that dries up more foreclosures will surfaces to add to what's predicted now, plus more institutions will either fail or report earnings loss(which will affect the stock market and KEEP money tight) because those people (whose loss their jobs or got hours cut) will not be able to pay their bills.
A lot of people lost jobs and some people were living above their means in the first place before that even happened.
They are just using whatever means available to maintain. Right or wrong, good or bad, it's the reality of what's happening. This is why no matter what people do or say things will get worst for the average citizen before they get better. One thing effects another affects another affects another. If I am right as intermingled as that scenario is it shows how unpredictable the series of events that will occur really is.
There is no cut and dry solution to end the illness. (Only time) The economy has evolved into such a world of webs and I do mean world of webs (emphasized because our economy dictates to a great extent what happens to the economies of other nations which to a certain extent is good)Everyone is affected when the illness is serious enough and the illness IS serious enough so we have not yet seen some of the failures in businesses, and industries to come.
It's very important for us all to save money and prepare for hard times and emergencies. Not that the sky is falling, just because things are so unpredictable and will be for a year or so.(In my opinion, I have no crystal ball but this is what I believe)
Why are things not getting better with the governments latest actions?
The governments actions for the most part are superficial. Giving medication to an economy with a virus. HA HA. Is there medicine that you can take to cure a virus.The answer is NO. Many of us take stuff to cope with the symptoms of a virus. Most the improved feeling is probably psychological. But the body is STILL sick.
Throwing 850 billion dollars at an economy sick with a virus will not cure it either. And if the 850 billion dollar medicine is not properly administered it won't even make things recognizably better.(Do the same people and institutions have access to this money in the same way as they've had access during the build up of this problem? If so how can there be confidence in the market? Can't even get a placebo effect without reason to believe the medicine will work. Right now the players in the game are not confident that the 850 billion dollar medicine will be effective.
Maybe, just maybe what is needed to increase confidence is a show of fiscal responsibility, a change of policies and regulations that would close loop holes that enabled extortion, abuse and embezzlement. (The usage of exaggeration to illustrate a point. We will just call it lack of fiscal responsibility). How about getting rid of some people who were involved in all this too.
We have not seen the public upfront direct display of this being done enough. What does this mean. Well if I am the bank or entity with access to that money(medicine), when I get that money and I know that things haven't fundamentally changed, I am going to hold on to that money because I know that much of the medicine could be easily flushed down the toilet and if that happens then the economy STILL will be terribly sick and no medicine will be left so I will be up shit creek with no paddle just like the rest of the ill.
And so that's why the money hasn't trickle down to the places that it needs to go. Banks, and other entities are holding on to it cause they know things have not fundamentally changed.
Wall street knows this, financial experts at the top in the position to make moves know this, serious investors with big dough probably know this.
Knowing this why would you have confidence? You wouldn't you would have fear. That's what is happening right now there is still too much fear. There is fear here in America and fear abroad.
We know much of the problems that caused the virus, but didn't dispose of or clean up the germs to keep it from returning. There was no teaching of lessons to avoid germs from re infecting the economy. A direct attack should be launched on policies and regulations that allowed and even encouraged people and organizations both government and private sector through companies and the markets to abuse the system while squeezing money out of the economy (actually they sucked up the value from the economy, destroying its immune system).
Somebody please tell Mr. President and congress in order to boost confidence and help the economy recover to address clearly and publicly the problems that cause the current illness and not just the symptoms of the problem and the economy will miraculously get better.
That 850 billion dollar medicine will flow to he extremities of the body where it is needed. (Away from the banks and creditors to the states, local governments, communities and the people in need. If that is done the economy will feel better quicker as it recovers. (That's called relief)
Yet and still only time will heal the ill.
Yeah, I know some people say we never should have bought the 850 billion dollar medicine, we should have just endured the illness.(I agree to a certain extent but it wasn't quite that simple, but seems things could have been done slightly different)