It's election day and time for change. As we cruise up to recession, do you believe that the housing and banking crash, inflation, oil price, credit crunch, and the shrinking middle class were all unforeseeable events? Do you believe that government had no previous knowledge of these downturns? Do you believe in the tooth fairy? My articles always contain humor. We gotta laugh to keep from crying.

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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 shit.” 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.”

In what sector the recovery would take place, seemed the daunting question. Since most of America’s industry had moved to foreign countries and since there were no important jobs such as ‘Market Analyst, or Chief Assistant to the Marketing Mugwamp’ due to the unfortunate fact that there was no market to analyze and since we couldn’t re-run the dot-com scam again so soon; residential housing was the last chit in the magic hat.

Residential housing by its very nature is not a sustainable idea, but ideas in government don’t have to qualify as “good ideas.” The main elements of most government ideas are,

Authors Website: www.kingofsimple.com

Authors Bio:
Mike Folkerth is the author of "The Biggest Lie Ever Believed" and is not your run-of-the-mill author of finance and economics.

The former real estate broker, developer, private real estate fund manager, auctioneer, Alaskan bush pilot, restaurateur, U.S. Navy veteran, heavy equipment operator, taxi cab driver, fishing guide, horse packer and few jobs too embarrassing to mention, writes from experience and plain common sense.

Mike’s humorous systems of “Mikeronomics” and “Mikemathics” drastically simplify the economic and mathematic formulas commonly used by very smart, but terribly sheltered individuals.