Take a look at American publics spending habits with credit cards. Everything gets put on credit cards. People think they can spend money they don't have. They buy cars that are way to expensive. They buy electronics that they wont be able to pay for when the statement comes in the mail. All of a sudden you have people rushing to the banks asking for loans and asking for refinancing. Banks call back loans and can't receive the amount owed to them and people get scared about having their money in these banks.
I know its hard to take responsibility but the Economy isn't just affected by the government. We are responsible for this mess too. We decided to spend money we didn't have. We decided to purchase houses, cars, and electronics we could afford.
I think that you have a good argument here. You have several valid reasons and evidence for your claims. However, I think that you should elaborate on one of your ideas towards the beginning of the blog. You mentioned that that economic situation is not the President's fault, but the fault of the American people for not managing their budgets. I think that you could continue with that idea, and demand that people take more responsibility for their actions. Americans should not be pointing fingers when the economic crisis is due to their financial mistakes.
ReplyDeleteI think that David pretty much does what you are asking for here, with the examples of houses and cars. But could the government have noticed earlier that mortgage companies were loaning to people who were poor risks, and likely to default on the loans if just one little piece of bad luck happened to them? It's not the president's fault, but what about the government agency, the Securities and Exchange Commission? How come they didn't see this coming?
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