The current problems with the U.S. economy stem from the failures of Wall Street giants who now need the Federal Government to bail them out. These same financial institutions blame the general public for their failures because average working citizens borrowed money to buy homes they could not afford over the past 8 years, thus so many foreclosures are essentially bankrupting them.
These corporate giants have to point the finger at somebody to take the heat off of their own blundering mistakes of jacking up home prices to the point of ridiculousness such as it is in California, New York and other so-called prestigious states where outrageous real estate prices were the norm.
Any one could see this whole meltdown coming as soon as the price of a regular three bedroom house with no pool and a lot size of just one hundred feet square in a questionable neighborhood started going for $400,000 as it did in Southern California just three years ago. Such a house, which was over 10 years old for example shouldn't have been sold for more than $80,000 maximum in the best of times.
So the real estate market is to blame for its own financial woes today because of its greed in trying to scalp regular working people into outrageous loan amounts.
The U.S. Government isn't any better off financially at this time than the institutions it is rescuing.
With a deficit into the trillions and a hemorrhage of hundreds of billions of dollars being sunk into Iraq and Afghanistan each month this country is in reality spending money it simply does not have. This government has finally reached the point where it is bankrupt and having to actually print new currency and create lines of credit for all it spends today with no idea of how it will pay it back.
In reality countries like China, India, Saudi Arabia, just to name a few, now own The United States Of America.
These senseless wars we've been fighting since George W. Bush's Administration came into office are big drains on our capital, but the truth is, we should be able to get away with a much smaller deficit in the billions rather than what we have now which is around five trillion. The same can be said of these financial institutions. They should be suffering from deficits which are a fraction of what they really are.
Individual States are no better off than The Federal Government is, they are dealing with massive growing deficits as well.