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Originally Posted by jorgelito
I realize it is a broad and impossible question, but I figured you had some thoughts about, thank you for responding. I'm hoping we can explore it more.
I agree it is something big, something big will happen, and that the elections will be very prominent. I have no idea really as to what will happen next, but I have a suspicion that we (global) are all inextricably linked. So what ever we or whomever do, all will be affected. But from here to the next phase, can go either way: either a jump to a different system or a modification/reformation of the current one in phases. Regardless of what happens, I would imagine it to be on a large scale.
I actually may have to retract my previous contention: It is conceivable and quite possible that the sky indeed, is falling.
One way or another we must weather the storm.
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I think something big is going in as well. Banks are failing and the markets are in a nose dive. AIG wasn't just another company. Letting it fail simply wasn't an option. All this deregulation/free markets philosophy hasn't panned out so well. The bills just now coming do, IMHO. We went to war. Good idea? Bad idea? Doesn't really matter now- we're in it now. Did we pay for the war? No for the first time in history we went to war, increased spending and cut taxes. How'd we do that? We borrowed the money so it really didn't effect the average US citizen. Most peoples commitment to the war begins and ends with words and $3 magnet they slap on the back of their car. Now the US financial markets and banks are in serious trouble. The solution to that? Borrow more money to shore them up, other wise the entire house of cards is going to tumble. Which in turn, IMHO, creates an even larger house of cards.
I remember the President speaking just days (maybe the day) after 9-11. What was one of the first things he told people? Go travel, go shopping, go about your normal lives. I think he even gave a plug in there to Disneyland. The message was clear- keep consuming, keep spending. Not only were people told to keep spending- they were not asked to pay for any of the new expenses related to security or the war(s.) Some people asked what about the costs of these wars? Not to worry, it's not going to cost that much and the oil from Iraq alone will pay for most if it. Just go forth and spend, spend, spend. And people did just that. A lot of people did that by tapping easy to obtain, questionable loans backed by their house. Eventually the bubble burst in the housing market those questionable loans started a financial crisis, not just for individuals or families but finally for the companies that made the loans, or in many cases bought the loans.
Recently, within the last two days, I saw some talking head on the TV saying "It's not that bad. I go to the store and I see folks buying a new plasma TV, IPhones and all kinds of stuff. Much of this is all overblown hype." He could be right about spending, I don't go to the stores in the US and I've got no idea what the latest reports are on consumer spending. But I'd be willing to bet a lot of that spending is going on the good ol' Visa or Master Card. It's the American way. People are simply following not only their governments advice but it's example. As for his comment about it all being overblown hype? I think he's dead wrong. We can't spend our way out of this mess, that's just crazy. BTW- not long after his infotainment segment I saw an ad telling me I "could now borrow enough money to get out of debt." Makes as much sense as spending our out way out of debt.
I'm not a fan of taxes. I don't even live in the US but I pay not only property taxes there, but my income is generated from the US so I pay not only US taxes but I pay sells tax (which is the main tax here in Mexico) on almost all my purchases. So I'm paying taxes to Oregon, the US, the state of Yucatan and Mexico. I like to spend as little of my income as possible on taxes. But at some point we're going to have to find a way to pay for all this borrowing. As I see it it's a great big shit sandwich and the sooner we start eating the smaller everyones bites going to be.
So yes, as I see it, it's a storm. A big storm and we must find a way to weather that storm. I don't think it's going to be pleasant but the sooner we start working to find real solutions the sooner we'll get through it.