Re: Re: Obama's $3.6 trillion budget.

[Guest guest]

People should save more. More savings would mean more loans for businesses. I'll put up links to a very good video that explains the current credit crisis. Very simply put, certain investors got together with certain bankers and created mortgage instruments that could be sold and resold, turning a profit each time. They did this because they couldn't make piles of money in the market as it was. The result of this unseen mortgage instrument flipping was that housing prices shot up as the value of the mortgages to the big investors kept going up. It hit the limit, which was expanded by sub-prime loans and other easy credit nonsense pushed by Greenspan and others.

It doesn't really matter now how much money Obama shovels out there. People aren't going to start borrowing on their houses values are still declining. Why take a mortgage when the paper could well soon be more valuable than the house?

Actually all that is going on is that housing prices are returning to the historic norms, where they should have been in the speculators hadn't bolloxed up the market in their greed. I'll see if I can find the price chart, not sure if I bookmarked it though.

The Crisis of Credit Visualized

part 1 (about 7 minutes)

Part 2 (about 4 minutes)

In a message dated 2/27/2009 1:15:32 A.M. Eastern Standard Time, no_reply writes:

But I think the US will lean more toward the Japanese, who have been saving a lot of money ever since their economy hit the skids years ago.Administrator Get a jump start on your taxes. Find a tax professional in your neighborhood today.