Economic Woes

The economy is still failing- at least, if you measure the success or failure of that sector by unemployment rates, which still stand at over 9 percent. This rate is increasing amongst high-tech skilled workers, who are getting laid off due to lack of work- and then their jobs are being given to younger people fresh out of college. Exacerbating the problem is the fact that many of these jobs are now being sent overseas, where there is a burgeoning job market for these kinds of talents, and where workers will do the same work for less than Americans.

As we know, high-tech positions and workers aren't the only ones being hurt by this recession, but I think there is some credibility to the argument that they are sometimes hurt more than less skilled laborers. If an electrician gets laid off, he can get a job somewhere else relatively easy, even if it isn't electrical. But if there is a drop from somewhere like Hewlett-Packard as a computer engineer to fast food...well, that just isn't good.

But you know, don't worry. Our fearless leader has a plan. He's calling for $50 billion to be put into a new infrastructure fund and for there to be a push to upgrade the roads and railroads of America, thereby creating jobs.

It's about time, if you ask me. Some of the stretches of interstate highway I've seen are absolutely disgraceful. (Still better than some stretches of highway between Lusaka and Livingstone in Zambia, Africa, but still pretty bad. ^.^)

This is one measure I think I could potentially agree with President Obama on. Our road and railroad system is due for an overhaul, and this seems like a good idea. It may or may not be wise during a time of economic upheaval as we're in, but at least it's Constitutional. I also think some of the logic behind the plan, that of hoping to prevent earmarks headed for transportation projects, is good. It might make our lawmakers more focused on important things. Or wait...maybe we don't particularly want that.

In any case (and all jokes aside), at least they're still trying. But there's one area that some are saying shouldn't be maintained, and they should stop trying.

That's the housing market. From this article:
"As the economy again sputters and potential buyers flee — July housing sales sank 26 percent from July 2009 — there is a growing sense of exhaustion with government intervention. Some economists and analysts are now urging a dose of shock therapy that would greatly shift the benefits to future homeowners: Let the housing market crash. When prices are lower, these experts argue, buyers will pour in, creating the elusive stability the government has spent billions upon billions trying to achieve."

In the Texas town where I live, house sales are crazy. You drive down a residential street, and you're almost guaranteed to see a house for sale. And these houses aren't selling. They're just sitting there on the market, waiting for someone with enough money to come along.

And as the article above pointed out, despite the billions of dollars the government has pumped into the industry, it hasn't helped. The housing market is still failing. Further, the government insured thousands of loans and credit for mortgages on new houses, and now those people are defaulting, costing us even more money.

Personally, I agree that they should just leave it alone. Experience shows us that oftentimes, when an industry like this goes down, it springs back up soon after. People have to have houses to live in, one way or the other, and they'll continue to buy them, just as they will food or clothes.

Economy Still Shrinking

Despite President Obama and the Congress's very ardent efforts to put us completely under the control of the government, the economy is still plummeting.

Now fancy that.

I can just bet that all the aides in Washington were talking together on the day the budget and stimulus plan were being put through.
"Yeah, and we're going to get this all fixed up! Why, don't y'know that the way to get us all out of debt is to spend trillions more money that we really don't have?!"
"Hmm...never would have guessed..."
"Yeah, never woulda' thunk it either, but the whole government said it, so I guess we'll all be OK!"
"You sure Bob? I mean..."
"Ah, don't worry 'bout it! Why, even though we're heading towards a second depression, we can just deny this whole mess away!"
"Yeah..."
"Because, dontcha' know that if we try democratic socialism, it'll work so much better than China's democratic socialism?!"
"Yeah..."

Uh-huh.

So, even though we're spending trillions on an ineffective 'stimulus' package, don't worry! After all, that's a very, very expensive toilet the government is throwing your tax dollars down!!

Nationalization?

Okay...I'm just a little weirded out now. The government is buying up shares in banks...and the banks and the investors are happy about it!! Yay!

Like I said before- no businessman, CEO, or regular citizen should want this. It's insane to trust all your money to the same government that can't keep it's own coffers in the black, much less someone else's!

The government is going to start so-called 'stress tests' on the banks this week by pumping $100 billion in asset form into them to see how much money they actually need. From the article- "Companies deemed to need more money will be required to raise it from private sources, or else accept additional government investments. "

Wha'? Now the banks can't make it unless the government helps them by 'investing'? What happened to the bold entrepreneur who didn't need any help?

He's gone, that's where. He's been snuffed out, extinguished by stupid laws made by our very dear investing government. He's been thrown into exile by the forbidding of just opening a business. We've outlawed the grannies that want to open a restaurant in their old age.

But people are perfectly okay with this. The government has lulled them into a sense of security, safety and- dare I say it?- even freedom! Yes, they have us fooled, thinking we are free. In reality, we are in the worst type of bondage- that put upon us by our own willingness to accept what the government wants to do with our lives.

So should I really be surprised that places like CitiGroup are willingly going the way of nationalization? Why only one option for regaining the upper hand in the market exists- accepting government help?

No, I shouldn't. So why am I?

I don't know. Maybe because I still value freedom? After all, I am a crazy, greedy Libertarian.

Yeah, that's definitely it.

Yet more Fed aid requested...

Yup, we all saw this one coming! With the 'Big 3' in Washington, all the other auto makers have decided to get in on this deal of the century. And not just auto makers- cities, steel producers, and hundreds of other industries and manufacturers have virtually run into DC, all eager for a handout.

Metal forming companies, auto glass companies, and many other car-material suppliers came flocking in, stating that they too required money!

Individuals are even hoping to cash in big on this loan frenzy- a group of retired auto mechanics came into DC and asked for an interview with Senator Richard Shelby (R-Ala).

Governors are hoping to get in on the deal too- asking the Fed to give their respective states loans.

When, oh when, will this loan binge end?!