Bernanke: Economic outlook has worsened

"Move along. The economy is fine. Nothing to see here, folks..."

 

It's a done deal. Make plans to live with a lower standard of living. Say with half your present net income.

 

I completely agree. I believe that we are already in a recession, and with the looming crisis in health care, it's only going to get worse.

 

The word recession gets a bad rap. It as we all know it simply means slower growth for two quarters. Recession happens for a number of reasons. Currently we have the slower housing market because lenders are less likely to give out loans to as many people. People defaulting on subprime loans put a stop to much of that.

The housing market has also slowed because housing prices have been greatly inflated and overvalued. In Florida property taxes have run people out of their home alone.

Recession is not always a bad thing. It is likely to occur from time to time because growth can only go so far. These are natural adjustment.

Unfortunately some use these natural adjustments much like they use natural changes in the earths temperature. As politcial tools to gain power. So the situation is presented as a crisis and the one working for power says so and so is the one to fix the crisis.

The same goes for future speculation as to how far the problem will go.

It is not necessary to guess whether we are in a recession or not. Growth can be measured quite effectivley. It is like being pregnant. Either we are or we are not. So if we are going to "believe" we are in a recession then apparently you have some figures for that.

 

The economic data can't be fully compiled until a while into the recession.

It is my belief that once the data can be analyzed, we will recognize this period as a recession.

 

If I remember correctly, Florida does not have an income tax. My guess is that your property tax is lower than most other state's property tax plus the income tax.

 

The reason we are in a bad fix on the economy is our own fault. It is called greed. People expect to have the best of housing starting off in their early 20s, so they buy mortgages that greedy companies should never have been allowed to sell. The creative way to live beyond ones means, increasing interest rates, interest only, balloon payments, assuming a outrageous increase in equity each year. If one cannot afford a fixed rate 15 or 30 years, paying no more than 25% of your net monthly pay, then one cannot afford the house.

It is the same with cars. Lets buy the fanciest car we can. So now, we can finance a car for 84 months. The same goes for all the other ridiculous toys we must have we cannot afford, the ipods, ephones, and other such nonsense.

The concept of starting off a family modestly, saving each month, and setting aside for giving is out the window. We have not only taken away the savings and giving, we spend more than we make.

Where did we learn this? How about the federal government, from both Republicans and Democrats. What is the difference between tax and spend, and raise the deficit and spend? What is the difference? The end result is the same, disaster.

I am not sure when this got out of control. The baby boom generation is the last generation that pays any attention to this at all. Most alive today never lived through a depression, or a real world war. Its called being spoiled brats. Give me my toys.

We saw slides of a missionary trip to Zambia last Sunday. What a different world. They never worried about a virus in their computer, what color their next car is, how their 401K is doing, or what songs they can download to their ipod.

What do you think God thinks about America's greed in general? How many Americans give Him thanks for basics like food, shelter? We not only dont give thanks, we expect more and more. Wants have become needs.

It seems to me God is fully justified to cut off the blessings to this nation.

 

posted in error