Economics---The Fix Without Taxpayer Money

Simple blog today, an open discussion about how the free markets would have fixed themselves without the billions of dollars of taxpayers money spent for the fiscal stimulus plan. Pretty simple--the US government is spending more than its revenues and continues to expand the burden on future generations. The main blame is the wealth destruction caused by a housing bubble created by Federal Reserve intervention. The low rates sparked false demand, while supply couldn't adjust in the short term, prices skyrocketed. The bubble burst and the US consumer who is already over-burdened by debt saw their wealth destroyed. Essentially, if the markets were allowed to adjust without intervention, then we would not be in the present situation. Economists will talk about liquidity and credit crunches, but I look to the debt to wealth ratio of the consumer. We are in dyer times with consumers balance sheets. Debt is high and not being paid, while the housing bubble burst has reduced the amount of assets consumers own. This needs to be fixed and can be quite easily. Credit Unions and Banks need to consult with their members/customers to lower their payments, take the difference to start a savings/investment plan, and improve the overall financial well being of both the individual as well as the economy.

Signed a credit union member who has seen the fruits of working with a financial insitution who focuses on your needs instead of its needs,