I have been struggling to first come to grips with what the impact of the decisions of the weeks events really mean to "you and me"-, the American worker with boots on the ground in this war against poverty. I kind of grasp it, but would take a very long post to explain it in words most of us could understand. I am trying to avoid those these days. So I am working on the best way to break the concepts down. But before we even bother with that, there are some points that are missing on all of the news networks.
Of all the people who will really feel the impact of the Banking and credit collapse, the "classically poor" people will feel it the least. The people that already live off government assistance, don't have a job, are never sure if they are going to have a place to live next week, and send their kids to school more as a form of daycare then for an education are not going to be negatively effected. Their environment isn't going to get any worse. They can't expect it to get any better, it might get a little more crowded, but those closest to absolute zero can't sink any lower. In a way they just got richer.
The few remaining in the true "middle class" will feel it pretty bad too. They will feel the most spited for living life right and still getting it in the hind end. The "artificial middle class"- who have used credit to keep their ship from sinking all of these years are apt to face their real financial stature. (For definition sake, I like "middle class" as "anybody who can maintain their current lifestyle in the face of at least 2 major financial events.") These people will find it harder to get credit to bridge the gap when needed. They will find they might get barraged in financial troubles. The reason is part of that long description that I mentioned earlier. The question/ answer to contemplate until then is this. "What is the one thing that a capitalist society needs to remain successful?"- The answer, "consumers"-.
The other people really going to feel this is those within a few years of retirement, or so they thought. All of the sudden you go and check your 401K and boom!! Seems you will have to work another 10 years after all. Too bad they weren't allowed to invest part of their social security too?
It is funny how many people around the world have a stake in our economy and how few people here in this country have a stake in it. It should scare Americans to think that many interest other then our own have bought pieces of us. It should scare us because these foreigners that care less about the US people and its doctrine and solely about their money that we have ended up here today. Not once in the past 3 days have I heard somebody say, "Wait, if we have a deficit, where is all the money to bail these people out coming from?"-
Remember, there is about 300 million in the US. Every time you hear the government giving these big companies money, for every billion, you could more then triple it and think they could send it to you. So $85 billion for AIG? The government could send you $278 for each member of your family. Yet Americans still slumber. They may have stirred a bit. Unable still to connect low prices from over seas to high wage disparity here at home. Americans have let the machine grow smarter then the operators.