Economic woes

Well, the mortgage crisis continues to spiral. The stock market continues its downward trend. Bond insurers for municipal and other government backed treasuries are pulling back and BEST of all...the dollar is just about hitting lows not seen since the great depression.

But the government is going to do a great favor and give us some much needed stimulus in a check og $600 to $1200. That will save this economy.

The Federal Reserve is getting to the point that the cutting of the Fed Funds rate will have little to no impact. We are now at 3% in the most recent cuts and there has been little change in the credit market. Banks are afraid to issue credit and American's are starting to realize, the day of free money has ended. They can't keep using their homes as ATM machines.

This 'bubble' we have been riding started in the good ole 1990s. Dot coms where in the negative, but their stocks were over $100 a share. Greenspan rode that as long as he could, making everyone feel wealthy. That bubble burst. So with 9/11 and the need to get the economy moving, the Fed cut rates to rock bottom. Home prices spiked on increased speculators looking to flip homes, and buy and sell condos. Then you had MILLIONS of Americans use the little equity they had on paper to take out high rate HELOC and other instruments to buy cars, homes, and other things to make theme feel rich and powerful to their neighbor down the street.

It has all come home to roost. Add to that killer oil and energy prices, we are entering a very unstable time in the world. Even auction rate US Treasuries, backed by the United States Governments are having a hard time selling. Inflation is beginngin to soar. All you have to do is look at your grocery bill - food stuffs is skyrocketing. Also, thanks to the media hype of ethonol, corn prices have spiked as farmers are growing corn for the ethonol fuel. Thus feeding all sorts of farm animals has gone up - cows for milk and meat etc.

We will see gas at $4 a gallon this Summer.

Who do we thank for all this? Big Oil? No, BIG bloated and ineffective government. Democrats, who in the 1990s wouldn't let us use our OWN natural resources in Alaska and elsewhere to drill for oil. That oil would have been hitting the market right now, and don't tell me the average truck driver and mom going to work couldn't use a little break at the pump. That oil WOULD be a HUGE difference - almost 1-2 million barrels of US oil on the market today, as I type this. But no. The uninhabitable wasteland had to be preserved despite everyone knowing that with today's technology, the drilling would have little impact on the environment. Forget about all the good paying jobs it would have created.

Now, fine you say, what about off our own US coast? - we have tremendous oil reserves. BUT no, the Rich liberals don't want it, may hurt the dolphin or spoil their compound on the beach's view of the water. Once again, the average American pays for government not thinking in the best interest of the country. Guess who is drilling off our coasts and taking our oil? Cuba and the Communist nation of CHINA. So, we can't drill for oil, but they can. What is going on in Washington? Our enemies are using offshore rigs to lateral drill for oil in our reserves - what a concept.

Yet, we are lead to believe that the compact flourscent light bulb and a wind mill here and there will get to energy independence. This is what sells for national leadership. Just don't break one in your home. They are FILLED with mercury and you may need a special government agency to come and clean up the environmental hazard you created by breaking your light bulb. This is just insanity. What happens to the bulbs when we DO have to throw them out in a landfill? Again, another brilliant idea.

Both parties are to blame for utter lack of economic understand or even having an OUNCE of thought beyond the own pay check and power. After 9/11 one would think we would make it a national effort to find resources here - natural gas and oil, while pushing research for alternative energy sources that are VIABLE for national economic growth. This would move us away from the Middle East for our need to keep our economic engine running. It is like turning the titanic, it takes a WHILE to turn something so big as our economy and energy needs.

Now, China and India are sucking up more and more energy. But we are about to admit to global warming and then go after what little industry we have left and cap them. India and China will continue to grow as we shrink. China is building 4 new coal fired power plants PER MONTH! When was the last time we built a new refinery? Power plant? Nuclear plant?

We are heading into very difficult economic future. That past is the past. But anyone with a basic understanding of math could see how with a little thought, right now, almost seven years after 9/11 we could be much better than we are today economically. That oil would come in handy right about now. But instead, we are on our knees begging OPEC to increase production with costs as $104 a barrel. Their operating President yesterday stated he feels that OPEC should CUT, yes CUT, production. They know we are stagging and are looking to bring a knock out blow.

Prepare for some very very round economic times ahead. This election only provides a lesser of two evils. Both parties stink in the leadership category. Time will tell if we have what it takes to right the ship of state.