Politics! Once again it appears that the politicians have fooled us. In an apparent effort to make an administration (or administrations) look successful, they (temporarily) stimulated the economy in a short-sighted and irresponsible manner. Surprised? I'm not. The two party system is wrought with this type of behavior. The politicians love to point to the stats. Look at unemployment...look at the housing market...look at this and that. But, so often, the numbers are deceptive because they are the result of, what amounts to, bad business decisions. Decisions that are based strictly on the here and now...without considering the future implications. Want to buy a house even if, in reality, you can't afford it? We'll still give you a loan even if there is a good chance you will default on it. One little hiccup along life's way and you will be over your head in debt.
The way I understand it, the government is at fault in all this, though business took advantage of the government's idiocy. Since the government mandated that companies give loans to people who basically couldn't afford them, these companies did exactly that. There were a lot of commissions on the sale of homes. Capitalism would say...who cares if the home buyer can't afford the home? What matters is that I get my commission. If the home buyer made a bad decision, that's their problem and not my fault. That's what capitalism breeds, greed, and shortsightedness. Who cares that the whole economy collapses later on...what matters is the money I can make right this minute.
imo, the USA needs a whole new government system, as the system we have now has it's origins in selfishness (me), and greed (me). A system that is based on 'me', is doomed to self destruction.
