Don’t think you’ve seen the last of this.
The market has dropped 56%… that’s pretty scary, right? However, I don’t believe for a minute that it’s bottomed out. I would not be surprised to see it go as low as 3500… now that’s scary!
Well, to be fair, it’s only scary if you have investments. If you’re like me and you’re relatively investment free, and you have a semi-steady job, then you really don’t have much to lose through all this. Except of course for Obama increasing the taxes on the few people who still have jobs to pay for unemployment for everyone else. That could happen, too.
The more I watch this unfold, the more convinced I am that things are going to get much worse before they get better. That’s because we aren’t treating the disease, we’re only treating the symptoms.
Ooh… foreclosures are screwing up the credit markets, we’d better throw money at the foreclosure problem. That’s like taking Robitussin to treat AIDS (which incidentally isn’t a half bad idea). Foreclosures are a symptom of the real problem.
The real problem was greed. And I don’t mean corporate greed or Wall Street greed. It was personal greed. It was the widespread sense that if someone else has something, I also deserve to have it. Why should that guy have a house while I have to live in an apartment? That’s not “FAIR”. My favorite word… fair.
It wasn’t just houses. There was greed running rampant. People who barely had a job were buying a house, a new car, and a plasma screen, all on credit.
Government encouraged this personal greed by making banks lend to bums and hobos under the guise of “equal opportunity” and “fairness.” Never mind that a market-driven bank will always make decisions in their own best interest, which certainly don’t include issuing credit to risky borrowers. This perfect storm could only happen with a greedy populace and an enabling government.
The market system simply tried its best to make a profit in the regulatory environment they were forced to work within.
Consumer confidence is now crapped out. People are thinking gloom and doom, and Obama with his “we have to do this or we’re screwed” and “it’s much worse than we imagined” comments are making it that much worse. People look to the White House to be a beacon of hope, not a doomsday prophet.
The markets are freaking out under the many threats Obama has made.
It really is the perfect storm.