What does Best Buy, AMC Theaters, and UPS all have in common? They are suffering from a decline in business for no real reason. You see, we are suffering a recession, yet why? Real estate is facing a real problem. Almost every area of real estate was living in a bubble caused by people who had no money being able to get loans for houses well beyond their means. Bubble burts, market begins correction by swinging the opposite direction a while. Which leads to the mortgage sector, which suffers from a number of foreclosures on bad loans. The bigger problem comes from mark-to-market rules, since no one wants these bad loans, banks are forced to mark their assests down considerably. The banks involved with this are understandably suffering from liquidity problems.
Beyond that, why are the rest of us hurt? Well, the reality is, we aren't. If you are not involved directly in sub-prime lending, you should not be hurt. Yet we are in a recession, and the question is why? Yes, there are inter-connected factors, but as I listen to news, I'm more convinced that the reality is that we are facing a socio-psychological problem more than anything. With the Drama Queens, I mean the media, and the sychophants, I mean politicians, screaming bloody murder every single day about how we are living in the apocolypse, we are all convinced life is terrible. The reality is, most of us are not making less money. With slashes in retail prices, we actually have practically more money! We are just freaked out. Those of us who want mortgages and car loans can still get them, if we have MONEY to pay those loans.
So what's the problem? We are scared. Me, I refuse to be scared. Not that I will be spending wildly. After all, I'm a student with a part time job, wife and daughter to support. Yet, I refuse to be frightened by the media and the politicians.
Beyond that, why are the rest of us hurt? Well, the reality is, we aren't. If you are not involved directly in sub-prime lending, you should not be hurt. Yet we are in a recession, and the question is why? Yes, there are inter-connected factors, but as I listen to news, I'm more convinced that the reality is that we are facing a socio-psychological problem more than anything. With the Drama Queens, I mean the media, and the sychophants, I mean politicians, screaming bloody murder every single day about how we are living in the apocolypse, we are all convinced life is terrible. The reality is, most of us are not making less money. With slashes in retail prices, we actually have practically more money! We are just freaked out. Those of us who want mortgages and car loans can still get them, if we have MONEY to pay those loans.
So what's the problem? We are scared. Me, I refuse to be scared. Not that I will be spending wildly. After all, I'm a student with a part time job, wife and daughter to support. Yet, I refuse to be frightened by the media and the politicians.
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