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The bailout: Caused by a 'Bush'el of problems
Ron Quiroga
Issue date: 10/14/08 Section: Commentary
History has shown us that, as a country grows, the government must be responsible for some part of the economy. The people must realize that reforms like temporary nationalization of bank assets are not the end of our capitalist economy and they must move away from the "socialist fears" that are beginning to plague the nation. The current administration failed to see the signs that banks had begun to lend to more and more to individuals who were unable to fulfill those payments. Thus eventually leading to a domino effect that had collapsed and bankrupted lending companies and banking corporations.
A perpetual cycle of economic self-destruction is what the U.S. will face in the light of a $700 billion bailout. The massive loan would bring up the governments' spending for 2008 over $1 tillion. This again is not being helped out by the daily, billion-dollar price-tag of a war half a world away. Questions continue to arise about why this has suddenly occurred, but if one looks at the details, it suddenly becomes very clear. Any nation who spreads itself so thinly economically, and fails to manage its economic growth will inevitably inundate themselves in debt.
This tremendous crisis can not be placed solely on the shoulders of the national banks. It is also the fault of those who initially signed away their lives to loans that they knowingly could not effectively pay off. The ambitious upper-middle classes aimed too high, lived above their means and consequently, fell just short of what they could afford, and are now paying the price for it, or will in the near future. It is obvious, though, that the nation is in danger of a recession and the answer to economic problems is not to reward those who placed us in the current situation.
A perpetual cycle of economic self-destruction is what the U.S. will face in the light of a $700 billion bailout. The massive loan would bring up the governments' spending for 2008 over $1 tillion. This again is not being helped out by the daily, billion-dollar price-tag of a war half a world away. Questions continue to arise about why this has suddenly occurred, but if one looks at the details, it suddenly becomes very clear. Any nation who spreads itself so thinly economically, and fails to manage its economic growth will inevitably inundate themselves in debt.
This tremendous crisis can not be placed solely on the shoulders of the national banks. It is also the fault of those who initially signed away their lives to loans that they knowingly could not effectively pay off. The ambitious upper-middle classes aimed too high, lived above their means and consequently, fell just short of what they could afford, and are now paying the price for it, or will in the near future. It is obvious, though, that the nation is in danger of a recession and the answer to economic problems is not to reward those who placed us in the current situation.
Viewing Comments 1 - 3 of 4
Fair
posted 10/14/08 @ 5:03 PM EST
Anybody who thinks that the Bush administration is the sole reason for this economic meltdown is sadly misinformed. The actions (or lack there of) of both democrats and republicans are to blame for this financial crisis. (Continued…)
Dominick
posted 11/28/08 @ 1:56 PM EST
The economic crisis is not to be blamed on the current Bush administration. The true blame can be placed on the Clinton administration in where Democrates forced banks to issue sub prime loans. (Continued…)
jack
posted 2/17/09 @ 1:57 PM EST
don't you just love it when republicans talk out of their butts? Always quick to blame everyone and anything but their own party. people have wised up to the republicans to the point where they could have put a pencil and an apple to run against the republicans and the pencil and apple would have won in a landslide. (Continued…)
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