Friday, October 10, 2008

House of cards

I find it interesting that one of the core issues at the heart of the credit crisis…ie relaxing the government regulations that would have determined if a person ‘qualified’ (had a reasonable chance of being able to pay it back) for a loan and instead giving loans to people who were really at high risk to default on the loans…is exactly what the government is doing to try to remedy the credit crisis. In other words, the government is, in essence, borrowing 700+ billion dollars that it can’t afford (wouldn’t qualify for) and is at high risk at never being able or willing to pay it back, and throwing it in the pot to try to restore confidence in the economy. Remember, our government was 9 trillion dollars in debt before the credit crisis. What kind of example is that? Does that build your confidence in our government? Sheesh.