We all knew it was bound to happen. And now, as has been foretold by many prophets of doom, the economy is tanking...big time.
Just today, the market fell sharply. Dow Jones fell over three hundred points. Thus continues a downfall in the economy.
How could it be any other way? The economy as it is today is built upon bad credit and CEO's making billions on the backs of others. The middle class is all but gone. The number of people entering the poverty roles are up. The housing market, artificially held up by risky mortgages, has been completely decimated!
Just now on the local news, there was a story about the record number of home loan foreclosures. The number of defaults in Denton county is fifty percent. The number in Tarrant county (Fort Worth) is thirty-nine, and in Dallas county, twenty-two. According to the report, what is happening now is the highest number of loan defaults in twenty-seven years. Fifty-three-hundred homes are slated to for foreclosure in February.
Is there a surprise in these numbers? No, not at all. There were warnings abounding as the housing bubble started growing. Much of what drove the housing market's growth was over-inflated prices, very risky adjustable rate mortgages, and rich people buying house number two or house number five, or...well, you get the idea.
It was an artificial situation created by people trying to make a quick buck on the backs of those to whom they could sell an artificial dream. And it worked, too well.
Now, the piper is demanding his due for the tune which we have all collectively called. Unfortunately, the artificial situation which has been created the present situation means no one has the money to pay that tab. And once again, it is those who barely have means to pay the toll brought on by the actions of greedy money grubbers.
If that were the end of it all, surely it would be bad enough. However, one look at the price per gallon of gas tells yet another frightening story. Taking a stroll through the supermarket is yet another source of consternation. The price of fuel has trickled down, and now when we pay for a gallon of orange juice, we are also buying a gallon of diesel fuel for the trucks that bring the oranges from the orchard to the processor, and from the processor to the store.
Speaking of fuel, the new mania for converting everything that grows on the farm into ethanol for the gas tank has raised the price of corn, wheat, and everything which are derived from these grains, such as bread. remember a few months ago when there was a big protest over the price of corn tortillas in Mexico? I do.
The skyrocketing price of fuel isn't just being felt the supermarket. Prices on everything are going up. It takes fuel to ship things. And more expensive fuel means more expensive things, and well, that means that the upward spiral in the price of everything is sure to continue unabated.
The good news is, at long last, Washington seems to be getting the idea that there's trouble in paradise. The bad news is, the Republicans think that the way to fix the problem is to give more tax breaks. Oh yeah, that'll work, just like dumping enough gasoline on a fire will put it out.
Never does it enter their minds that perhaps it's time to rein in the oil pigs. Never does it enter their minds that supporting artificially enhanced markets might be a bad idea. Never does it enter their minds that perhaps it's time to admit that the economy has been in a shambles for quite some time, and that it has benefitted only the top one percent of the country.
Frankly, I am hoping it gets to the point that even Bill Gates has to start worrying about minding his pennies, like the rest of us. I hope that, because when it gets to that point, then the American people will become angry enough to actually force politicians to earn their money.
That needs to happen. It is long past time that Americans demand their representatives R-E-P-R-E-S-E-N-T them; something that hasn't happened in at least seven years.
Blessed be! Pappy
http://www.bear-upstairs-studio.com
Harpist, unemployed blue collar worker, and Bush basher living deep in the heart of Texas.
All money-based economies are phoney from the start, since governments print the money they artificially control our purse strings. Maybe the only real, real ecomomy is trading goods for services or goods for goods.
My moderate right wing radio guy blames most of our economic woes on government discouraged savings, low interest rates on savings accounts, which further discourages savings, outsourcing jobs, and credit card spending. All excellent points.
You spoke of grocery prices. They tell us we need illegal immigrant labor to keep the price of produce low. Well, the illegal pickers must have the strongest union in the union, because we accidently bought a $7.50 cauliflower last weekend.
I say accidently, because the absent-minded shopper forgot to glance up at the posted price before dropping that cauliflower like a scalding hot potato.
by
Sandy Sand (130 articles, 0 quicklinks, 153 diaries, 1174 comments)
on Friday, January 18, 2008 at 10:38:14 AM
Sounded a lot like voodoo, Reagan lazy-faire, drip down economics.
Big tax breaks for the wealthy and corporations.
Little rebates for the folks. Like the last ones? The one's that weren't a refund at all, but an early refund that was deducted from the next refund, so most people wound up owing money.
How he gonna do dat. Give rebates? Last I heard the IRS was going to be late! late! late! with this year's refunds becuase of the alternative minimum tax SNAFU.
What leadership! or What leadership?
by
Sandy Sand (130 articles, 0 quicklinks, 153 diaries, 1174 comments)
on Friday, January 18, 2008 at 2:58:08 PM
BUT THE PRICES AREN'T, RECESSION IS A BANDAID, DEPRESSION IS A CURE, IT WILL EFFECT ALL WALKS OF LIFE, AND LIKE FOX SAY'S FAIR AND BALANCED, MIGHT HAVE TO PUT OFF A WAR WITH IRAN, MIGHT HAVE LEAVE IRAQ, IN THE END A NEW AMERICA WILL RISE, HOLDING HANDS AND SMILES EVERY WHERE, WE ARE CURED OF THE GET GET GET , MORE MORE MORE, THANK YOU GOD.
JUST CALIFORNIA DREAMING.
by
RICHARD SHADE (0 articles, 0 quicklinks, 0 diaries, 460 comments)
on Friday, January 18, 2008 at 3:38:25 PM
What leadership? Yes, that has been sort of lacking, don't you think? What I think is funny and pathetic about the situation is that after DUBYA spews out his MOTS (more of the same) tax cut bullshit, the market fell even more. I couldn't help but laugh my ass off at that. Can you say Midas touch in reverse...he touches things and they turn from gold to shit.
Also, as a bit of a shameless plug for what someone told me was a really good piece, please check out my latest diary entry. It delves deeply into the plok-tau of this fucked up country. So please, stop by, take a read (only a page long), and comment, if you so desire.
And Sandy, thanks for your kind words about that diary entry. I like the title as is, but thanks for the suggestions.
Blessed be! Pappy
by
Pappy (61 articles, 0 quicklinks, 11 diaries, 863 comments)
on Saturday, January 19, 2008 at 2:24:04 AM
Twenty five years ago in my salad days as a political activist a very intuitive female legal services attorney told me that the middle class in this country would never get up off their collective butts and do anything about our corrupt fascist leadership until the situation bit them right in their collective butts. They are getting bit now but I fear it is too late. For those of us who have spent the past generation living on the edge nothing has changed much.
by
memary (0 articles, 0 quicklinks, 1 diaries, 70 comments)
on Saturday, January 19, 2008 at 4:14:55 PM
Perhaps that's why I was so over the situation long before it got started. Since I live in Texas, I knew the stupidity of DUBYA long before his sorry ass found its way into the White House.
You can imagine the distress I felt as I watched the DUBYA administration do everything in its power to insure we were on our way to war, and everyone was more than ready to go for it.
Then, as the reality of the lies became apparent, the fact that people seemed completely unmoved by the reality of what was happening just made me even more concerned, and confused.
And now that the shit has hit the fan, suddenly people seem to know that which I have known since DUBYA first slithered into the White House: that he is an ineffectual moron with a sadistic streak a mile long.
Well, it's now a bit too late. All the horses have left the barn, the barn is on fire, and there's a fucking tornado heading right for it.
And even with all that, there isn't a call for impeachment, except here. There isn't anyone calling DUBYA a traitor, except the braver writers here. It's still business as usual.
Where is the anger? Where are the protests like we had during the civil rights movement and anti-war movement of the sixties?
It ain't here...that's for sure.
Blessed be! Pappy
by
Pappy (61 articles, 0 quicklinks, 11 diaries, 863 comments)
on Saturday, January 19, 2008 at 5:32:04 PM
