Posted on 10/14/2008 8:52:59 AM PDT by NormsRevenge
There will be no private capital in this country on Nov. 5th. Talk about a bank run. Actually, I’m sure it’s already started and that’s the real reason banks are failing. They’re taking it out now. If McCain gets lucky they can always bring it back.
OKAY: We can agree that there are plenty of things that need “bailing out”. Why? Let me propose that it is not “bubbles” that have occurred in housing, car financing, and ALL other assets. Let me propose that the root cause of falling prices is too much supply for current demand. Its so simple that we can’t see it. It’s true that crooks inflated the true value of houses, but the final results indicate income can not support current prices of products. “Easy credit” was introduced to supplement demand and americans income in order to allow the continued purchase of goods. It all started with NAFTA, then outsourcing of manufacturing jobs, replaced by hamburger flipper jobs, and now we cannot inflate our economy fast enough to stabilize prices. ITS AN INCOME PROBLEM, pure and simple. I am a Ford dealer. Have been for 36 years. Let me explain to you what outsourcing has done. A couple of months ago we had a recall on diesel trucks. A sensor needed replacing. In our parts price book it sold to the public for $172.00. When the recall was announced, we were to add 30% to Fords price of $2.30. Now please explain to me how a corporation can sell something that costs them $2.30 for $172.00? By moving the manufacturing of the sensor offshore, paying slave wages, and then importing it back into the country and selling it for the same thing it sold for when it was made in america!! Worked for a while but now the chickens have come home to roost. Everyones upside down in their vehicles. I suspect the negative equity in cars approaches $500 billion. To fix our current financial problems we must create good paying american jobs. That is the only answer. More national income.
Rent to own furniture store owners should jump in while the getting is good.
Just when I thought it had to be The Onion or Scrappleface, I saw that it was Reuters.
“It all started with NAFTA, then outsourcing of manufacturing jobs, replaced by hamburger flipper jobs, and now we cannot inflate our economy fast enough to stabilize prices. ITS AN INCOME PROBLEM, pure and simple”
DING DING DING DING!!!
I have tried to make this case on other threads and get flack for it. I come from a heavy industrialized area. NAFTA has depleted this area of jobs and even people are scrounging for McDonald jobs. And if they get them, they are making significantly less income. So spending less, and affecting every other business in the area. On and on and on.
Does the government need to “create” jobs? No, but they need to stop rewarding corporations for going overseas with the jobs. Even tech jobs that people went to school for are leaving for India. It might make the stock market look all pretty, but it doesn’t do anything for the underemployed. And like it or not, there are dumb people in this country and those dumb people breed. Which means they have kids to feed. And then people will complain because they are on food stamps, etc...
I hope folks don’t take this as a defense of welfare, because it’s not. It’s just reality that people will do what they have to survive and support their kids. I just had a fellow tell me about his father and uncle that lived in tents during the Great Depression because they ‘did what they had to do’. I explained that they didn’t have DCFS in the Great Depression. Big difference.
Please Congress, get the businesses back over here!
By the way, thanks a lot Bill Clinton. You screwed us all.
Private corporations need to create the jobs. Developing our domestic resources in energy, building nuclear plants, coal plants and the like would create a boom in disposable income. We must begin now.
Oh absolutely! That’s what I mean! Encourage business HERE! Not in Canada, or Mexico, or China. Here!
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