Doom and Gloom on MP this morning

[farzad]

If NPR were looking to scare the bejesus out of us this morning the folks at marketplace did a good job.   

Between the chart that shows us how today we are where the economy and debt was in 1929 and the 'taxpayers are going to lose' story - i think it was pretty well wrapped up that its the end of the world and no one will have a job or money.

only debt.  what a great way to wake up in the morning.   

http://www.npr.org/templates/story/story.php?storyId=101224460

"Ultimately, the taxpayer will be on the hook one way or another, either through greatly diminished job prospects and/or significantly higher taxes down the line," the document says.

In other words, the paper says, if the government tries to save taxpayers money, many people will los their jobs and the whole economy will suffer.


http://marketplace.publicradio.org/display/web/2009/02/27/citi_stake/

[Babar]

Great article.  I agree with the proposition that the real culprit in this crisis are ordinary people who took on WAY too much debt.  The banks only contributed to the catastrophe by designing ways to allow that to happen.

It's easy to blame the banks.  The concept of taking personal responsibility is dead in the US.

[farzad]

banks should know better

regulators should know better

the average uneducated american is not savvy in such things as compounded interest etc.   I think you're putting a bit too much of the burden on average americans.   

[Babar]

Oh please.

One of my friends (a debtor's bankruptcy atty.) was quoted in the newspaper a couple weeks ago.  He said that he's seeing a lot more $100k - $150k earners coming to him to file BK now because they can't afford their $500k to $600k houses!!  That's freaking ridiculous.  WTF do they have $500k - $600k houses for?  Are these the average uneducated americans that you are referring to?

I'm telling you:  it's just a bad US cultural phenomenon that has encouraged people to borrow to obtain the "good life", but NO ONE is personally responsible.  Ridiculous.