Wednesday, November 18, 2009

Creditors may bring America to the brink of Revolution

Enconomist will tell you that the economy goes through cycles of ups and downs and right now we are on a downward spiral. In my opinion, this recession was brought on by greed and such a drastic recession could have been avoided. In order to line their pockets, the creditors and mortgage lenders knowingly issued credit to indivudials that would have normally not gotten the line of credit. Now hard woking people are being crushed under a mountain of debt unable to make payments and losing their homes. Then when people file for personal bankrupcy and banks foreclose on homes, the creditors that initially issued that credit are losing money casuing the creditors to shut down. Normally this is type of cause and effect economics is played out daily with no intervention. But this time, the government decided to step in a save the creditors that gambled and lost using more of American money to bail them out of trouble. Top execuitves of those firms are still getting their multi-million dollar bonuses.
Now, the creditors are increasing their rates to generate more income using the recession as an excuse for the rate hike. Does it make sense to raise rates on people who are already having trouble paying their bills?
Banks encourage you give them your money for a tiny percent of interest in return, but they turn around give us back our money in the form of credit charging 20 times the interest! We are fighting a losing battle that the banks and creditors are reaping rewards on the breaking backs of Americans. Today, in a economy based on debt, the creditors and banks join the focus of our fustration and contempt.
One of the reasons that the USA was formed was because of the people were tired of the government increasing taxes and fees making difficult to live. If you keep pushing people to the edge they will push back. One of my favoraite lines in the move Fight Club, describes this sentiment: 
"[T]he people you are after are the people you depend on. We cook your meals, we haul your trash, we connect your calls, we drive your ambulances. We guard you while you sleep. Do not... fuck with us."

Everyone is not a victim here. American culture is somewhat to blame as well. We belive in the American dream and that involves new cars, big homes, and comfortable living. This culture in conjunction with seeming unending credit has allowed Americans to live beyond their means. Instead of reducing our expenses, we open a new line of credit to pay for the things we already can not afford, digging us deeper into the hole. Americans need to take responsiblity and change their thinking to understand the reality of what they can and can not afford in order to stop this downward sprial. However, this does not get all of those companies that sold us the noose and gave us enough rope to hang ourselves off the hook. --

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