Our economy is borderline misleading.

On top of that, the terms for the bad loans that were sold to investors (both at home and abroad) are being arbitrarily changed. That’s a huge cut to the credibility of these investments, and to the credibility of the US financial system. What incentive is there now for someone to invest in a product when the terms may suddenly change at the interested party’s discretion?

Enough sarcasm. ‘Helping’ the economy by stepping into private business matters is irresponsible. Easing a credit crisis with easier access to money and lowering the federal fund rate only make our dollar stretch thinner. Yes, maybe spending will increase with an influx of currency at lower rates, but this only supports inflation. Has everyone forgot about the importance of SAVING?

Businesses love 2 things… Profit & Growth. Every one in business strives to make a profit and grow each year. The reality is that nothing is infinite. The economy as a whole can not keep growing and growing, especially when most Americans have substantial debt and have to pay more for increasing cost of living. Something has to change. Either everyone must change their lifestyles and save more and live modestly, or the country must somehow increase wages and jobs dramatically (and not just 100,000 new jobs paying $7/hour). Allowing people to borrow more money to save falling markets does not fix the problem of too much credit.

Our economy is borderline misleading. If a company increases sales on credit, on paper the company shows growth. However all that money sitting in the accounts receivable kills cash flow. The credit card companies are the big villains here. I think a loan shark would give you better rates, but then again the CC companies won’t break your thumbs, they will just break your wallet.