Thursday, September 22, 2011

State of the nation...and other random rants

Thanks to doing some reading and hearing about the volatile trading the past few days, I've been wondering about our economy. Deep thoughts I know, but I have to write this stuff out, if only for my own peace of mind.

The actions of the Federal Reserve today led investors to conclude that the U.S. probably won't recover from the current economic issues for 'several' years. And guess what, the markets went crazy. Who benefited from that?

Back in the early 2000's, we bought our first place. Being first time home buyers, we did our due diligence and researched the whole process of mortgages, real estate, so on. Still felt like we had no clue, but we did ok. Well, back then, banks were throwing mortgages and refinances at anyone and everyone. They approved us for some ungodly amount, even though in reality, there would have been NO WAY we could afford that size mortgage. But, to our credit, we made sure we did NOT over extend ourselves and only spent as much as we knew we would be comfortable paying. And guess what happened!? The stock market and the real estate market tanked! Big time! But, our mortgage is still less than we would pay for renting a place this size, so despite our pocket books taking a BIG hit, we can still afford to keep a roof over our heads. Unfortunately for many average folks, that is not the case. The rate of foreclosures is astronomical and downright depressing. Many people lost their jobs and lost everything they had worked so hard for.

But who is ultimately responsible for that loss? Well, seeing as banks were throwing money at people who in reality could not actually afford to buy half million dollar homes, hmmmmm, well, sure people should know better, but what happened to the regulations that banks were supposed to operate under to keep this kind of problem to a minimum? Oh, yeah, congress repealed that little thing thanks to Phil Gramm and Jim Leach in 1999.

It seems that everyone is passing the buck when it comes to responsibility for any of this 'economic crisis'. People who overextended themselves say oh it's the bank's fault for giving me such a huge loan, and it's the government's fault for not helping me....you get the picture. Then the banks are all surprised that suddenly people can't afford to pay their $4500 a month mortgages, and they are defaulting on their loans....a vicious circle, don't you think?

So at what point do any of us take responsibility for our own actions? There are millions of people living well beyond their incomes all over the country, we fell into that trap as well, but we will be out of debt within the next two years. And boy did we have a LOT of debt. Who should we blame for all that debt? The credit card companies? Well, they do like to raise your credit limit when you send them payments on time for a while. And if god forbid, you are even one day late on your payment, they jack up your interest rate to some undgodly number, say 29.99%. So, again, we find ourselves in a vortex of debt.

As I read somewhere not too long ago, Eddie Murphy is hosting the Oscars, plaid is fashionable, and the economy is in the toilet, did I wake up in 1991? As funny as that is, I finished college in 1991 and there weren't a whole lot of job opportunities out there at the time. Been there, done that, did NOT want to do it again.

We are at the mercy of the people in power, and these days that includes, politicians and big business. Nothing really new about that, but aren't we the ones who vote those politicians into office? We are in the middle of a gigantic shift in the way things work, not just in our country but all over the world. We need to take responsibility for our own lives and effect change where we can. To borrow something that was posted on Facebook today, "Today we mourn the passing of a beloved old friend, Common Sense, who has been with us for many years. No one knows for sure how old he was, since his birth records were long ago lost in bureaucratic red tape. He will be remembered as having cultivated such valuable lessons as: - Knowing when to come in out of the rain; - Why the early bird gets the worm; ... - Life isn't always fair; - And maybe it was my fault. Common Sense lived by simple, sound financial policies, don't spend more than you can earn and adults, not children, are in charge. His health began to deteriorate rapidly when well-intentioned but overbearing regulations were set in place. Reports of a 6-year-old boy charged with sexual harassment for kissing a classmate; teens suspended from school for using mouthwash after lunch; and a teacher fired for reprimanding an unruly student, only worsened his condition. Common Sense lost ground when parents attacked teachers for doing the job that they themselves had failed to do in disciplining their unruly children. It declined even further when schools were required to get parental consent to administer sun lotion or an aspirin to a student; but could not inform parents when a student became pregnant and wanted to have an abortion. Common Sense lost the will to live as the churches became businesses; and criminals received better treatment than their victims. Common Sense took a beating when you couldn't defend yourself from a burglar in your own home and the burglar could sue you for assault. Common Sense finally gave up the will to live, after a woman failed to realize that a steaming cup of coffee was hot. She spilled a little in her lap, and was promptly awarded a huge settlement. Common Sense was preceded in death, by his parents, Truth and Trust, by his wife Discretion, his daughter Responsibility, and his son, Reason. He is survived by his 4 stepbrothers; I Know My Rights, I Want It Now, Someone Else Is To Blame and I'm A Victim. Not many attended his funeral because so few realized he was gone. If you still remember him, pass this on. If not, do nothing. "


Source: webshots.com via Kate on Pinterest


As we head toward the holiday season, it makes me wonder. It used to be a magical time for me, but over the years, the commercialism has really ruined it for me. So I'm going to be trying to recapture some of what the holidays should really be about, friends, family and spending time with the ones you love.

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