Normally One Avoids Political Disucssions
As they are one of the two subjects one was brought up never have conversations about, but...
What is going on today with Lehman Bros, Merrill, and the rest of the financial markets are not the direct fault of the current administration, nor the previous, nor the one before that for that matter.
The whole mess is rather the creature of the obsession on behalf of the American government in home ownership.
No other western country puts so much resources, from their tax codes, to direct federal funds, to creating quasi and true government agencies all directed towards home ownership.
Mind you, home ownership is wonderful if persons can afford to do so, and treat a home for what it is, a very large investment, that one happens to live in. Like all investments, maybe it will appreciate in value, maybe not, but that is not the point. You purchase a home because you want something that you own to live in. This message has been corrupted over the past years to mean a home is something one buys, that will always increase in value, and one can use as a cash cow to finance a lifestyle one cannot afford otherwise.
Mr. Greenspan (though is keen to deny it) told Congress on many occasions, that persons need not be worried about not receiving pay rises, or their standard of living going down, as they can always pull equity out of their homes to pay for whatever, which is exactly what many people did.
As the pot of money got larger, more people entered the game, including the big banks, investment banks, and so on. Every time warnings were raised that this foolishness couldn't go on, they were called Agony Aunts, and told to stop ruining the party. Now as it turns out they were right, fingers cannot be pointed fast enough to assign blame.
Differences between Republicans and Democrats aren't that large lately, and a change in government results merely in the same song, only a different conductor,orchestra and chorus.
What the United States needs is persons in power who will sit them down and tell them the god's honest truth on how things really are.
You don't give people what they want because they ask for it, if it isn't good for them. Sadly elected officials are all about staying in power, and most all will do or say whatever it takes to get themselves re-elected.
The problem for the United States, is that so many persons are dependent upon various government subsides in one form or another, total removal is impossible. Persons who say get rid of all welfare, will fight to the death to maintain their mortgage and other tax deductions related to home ownership. Persons who have access to a good or even great health plan, aren't going to let that go easily for some sort of "socialised" medical care, and so forth.
Quite honestly neither candidate fills me with enthusiasm. However Obama has got to do better than trotting out the tired Democratic mandate of lowering taxes. Governments must be run, and cannot do so without funds. Lowering taxes for one group is fine and well, but those funds have to be replaced from somewhere. Either spending must be cut, and or taxes raised elsewhere to offset the difference. Part of the huge problem the United States faces is that it cuts taxes, and runs programs without solid means of paying for them. Congress can play with it's numbers all they want, but the rest of the world, the foreign governments that are financing the "American" lifestyle aren't easily fooled, and are beginning to get fed up. If the United States government does not start engaging in fiscal discipline, it may find that discipline enforced from elsewhere.
L.
