Wednesday, January 14, 2009

From Newsweek...

# Government steals its tax revenue from citizens.

# Government increases the national debt through deficit spending.

# Government prosecutes an unnecessary war, one of the most expensive endeavors that can be undertaken, and further increases the debt.

# Government chooses to mask this fact by artificially lowering the interest rate using the Federal Reserve.

# Financially marginal citizens attempt to buy houses at low interest rates, perhaps that are out of their price range.

# Lenders become apprehensive to loan to marginal borrowers.

# Government guarantees bad loans.

# Lenders make lots of bad loans, based on the guarantees.

# Government steps in to “save” lenders and companies from bad decisions by “bailing them out.”

# Politicians further propose to “save” citizens that borrowed too much by renegotiating their mortgages.