ronaldi

Comments by ronaldi

Will the Horse Drink?

Regarding Don Bauder's Story - Will the Horse Drink? ---------------------------------------------------- I agree with the opinion that we not only have a Credit Problem, but we also have a Debt Problem. In addition to that, I also believe that the U.S. has a Job Problem and a GDP problem. How did this happen? First we shipped our manufacturing over seas for the purpose of cheap labor. This enabled corporations to reduce the unit price of their merchandise, so businesses such as WallMart would continue to purchase them and sell them at lower prices. It kept the ball rolling. People bought on credit, and big business and stock holders made more money. The next step was to lower interest rates and reduce financial oversight, so people could refinance their homes and purchase the big ticket items: Flat Screen TVs and new Cars. When the refinancing slowed down, homes were sold to people who could not afford them. I just love the term "Stated Income". While all this was going on, our illustrious leaders (Executive branch, Congress and Regulators) turned their heads the other way. Everything was done to line the pockets of the rich and powerful in the "short run". Everyone ignored the "long run" ramifications. So when everything went to heck, what did we do? Mr. Treasurer (Henry Paulson) threw money to the institutions that were most responsible for this mess - the Bankers. Quite frankly, I don't trust any of these guys, and I think that the U.S. is in for an extended downturn. If the government feels the need to pump money into the economy, I would like to see it directed to industries that will create jobs, bring back manufacturing and generate "long term" benefits for the U.S. Infrastructure and Health Care are my first two picks. I still have a problem trusting the same bozos to distribute money appropriately. This is where the new administration comes in. Can Obama and gang get it done? I have a lot more faith in them than I had in the Bush clan; however, the proof is in the pudding. Good luck to everyone in 2009.
— January 11, 2009 2:19 p.m.