I don’t think anybody has a solution to pull us out of this financial crisis. Our politicians, bankers, lawyers and financiers created the mess. Ordinary citizens played a role, too, by taking on excessive debt and partying like crazy during the boom times.
If you want to understand how our brilliant credentialed class created the mortgage mess and the financial meltdown, I recommend reading Steve Sailer.
The way out? President Obama’s tsunami of spending hasn’t worked. Increasing taxes might help to reduce the Federal deficit, but it will kill jobs and reduce consumer spending. The Republicans and the Tea Party are probably correct in their insistence that the Fed needs to downsize and stop spending.
But, I doubt if any of these remedies will lead us back to prosperity. I think that only time will do that. The Fed cannot cut Social Security or Medicare because seniors are too dependent on those entitlements, especially with the depletion everybody has experienced in savings and assets.
I don’t trust either party. Both were in on the mortgage/financial scams. Neither party knows how to stop the offshoring of jobs. There is no political will to stop illegal immigration.
Boom and bust is the natural economic cycle. Booms create overconfidence, irresponsible spending and inadequate saving. The bust is a necessary correction. The last major bust was in the early 70s. Full recovery took 15 years.
I suspect the same cycle will play out again. Politicians don’t have any answers. Time will sort things out. For seniors, this is an unhappy reality. The recovery will not come in time for seniors to replenish their financial resources. We’re going to have to make do with what we’ve got.



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