Since there are only a handful of people with comprehensive knowledge of our economy who would know what to do right now, with the two presidential candidates not being in that category. Why would you vote for president based on the economy?
Just a thought...and a dumb one I'm sure.
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I think it's a great question actually. Well, it leads me to make a point I've been wanting make to for awhile. The fact that the economy was allowed to get so complicated is part of the problem in and of itself. It had to be complicated or the bubble would have burst long ago, or never formed. The "mortgaged-back securities" (small bank mortgage debt, often very risky, split into a million unintelligible chunks and categories and sold off as if they were solid -- they were "rated" higher than they should have been) were so dense that the people buying them weren't aware of what exactly they were. Nor did they care because our wonderful government intimated Freddie and Fannie were too big to fail. The investors didn't really care if they failed (mortgages defaulting) bc they had been led to believe the tax-payers of America would fit the bill if everything went south... and so it is. The position that we HAD to have the bailout was as much an attempt to save-face as it was to help out, imho.
ReplyDeleteSo we have the situation where you have to be very well informed to understand EXACTLY how everything has gone down, but it shouldn't be that way. Anyone coming along with any intelligible proposal will be painted as not capable of understanding the complexities of the market; if we can still call it that. Not a good situation.
In conclusion, we're screwed. The whole ugly mess has come crashing down and only time will help. I don't think the Dow will be 10k+, steadily anyway, for a couple years. God help us if the solution to the problem is more opacity... HAHA.... "if"... We're so "screwed." We'll be fine, just don't start flipping houses.
Oh yah, your actual question... Lesser of two evils is all can say...
ok re-reading this, I was wrong about the million little pieces of the mortgages, I think. The securities were bought by Fred and Fann, split up and complexified AGAIN into CDOs... whatever the hell that is...
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