Good Morning Middle America. It’s Election Day and what time is it? Time for change.
As we cruise closer to the inevitable recession that is looming, we need to remember that we really don’t have to go home with the ones that ‘brung’ us to the festivity. In fact, I would fully recommend that we leave the ones that ‘brung’ us without a ride home.
Do you think the housing crash is an accident? The bank crash? The oil price? The inflation? The stagnant wages? The shrinking of the Middle Class? The staggering credit card debt? Do you think government was unaware of these crippling issues? If you do, you haven’t read my book.
“The Biggest Lie Ever Believed” isn’t a whacko right of left wing view. It doesn’t start out, “Once upon a time,” and it doesn’t start out, “This is no sh*t.” Or, even, “I was standing on the mountain when this lightning bolt struck, and in the white light of the aftermath…”. None of these things. It’s based on common sense, some 8th grade math and my lifetime of experience as a quasi normal person. I heard that, I said quasi.
All the problems that are stated above were brought to you by your government. Plain and simple. “Okay, then how did the housing crash begin? You ask. First things first, we need to determine how the housing boom started.
We need a boom to set up the crash. And, that was easy. The economy, while not down the drain, was certainly on that end of the tub in 2000, just after the dot-com collapse. To add insult to injury, 9-11-01 occurred, further weakening an economy that had just taken a $2 TRILLON hit. By early 2003, the whole shebang was definately circling the drain.
That, in my opinion, is when we should have gotten in the barber chair, taken our haircut and got on with the business at hand. But, close haircuts are not all that popular with the electorate, who has the cheerleaders from the party that is not in office, saying it’s the fault of the party that is. In reality, both parties have had their turn at bat for 40 seasons and they are all strike out kings, but that is another subject all together.
In June of 2003, Mr. Greenspan lowered the Federal Lending Rate to 1%. A level not seen since 1958 during another (but milder) recession. At the same time a little liquidity was added to the pot. That is Fed speak for, “we printed a whole lot of money and passed it out to the banks.”