The fed just gave another 20 BILLION towards foreclosure solutions. The government still believes giving something away makes the market work better.
Here is the deal. Giving more money to a financially ignorant person does not make them financially smart it just gives the 1.8% of ignorant foreclosure “victims” more to be ignorant with. Let’s look at this analytically not emotionally. Most of those in foreclosure were more concerned playing with toys like ATV’s then utilizing their home as an investment. Now they will have around 20 billion more to buy more depreciating liabilities. The Consumer Confidence Index will rise temporarily because millions will buy toys and other crap. Then we will be right back where we started waiting for the government to bail us out again because we didn’t get the chance to learn the first time.
Stop handing out free money to the stupid. Giving books to someone does not make them smart.
We need to let things take their ugly painful course. Let 70% of the United States file bankruptcy if necessary. Pain is a great teacher and currently we are killing our economy doing all we can to avoid any pain.
Short term solutions rarely go much further than that. Let's think, look and plan past the end of our driveways.
Let the pain begin... let the learning begin. We will be a stronger nation for it. Survival of the fittest is a great filter. Lets be a nation of "teach me's" we know a nation of "gimme’s" is not the answer.
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