Thursday, October 09, 2008

Hot, Close, and Real

Mood swings, market swings.

Okay, here are my simple solutions.

1. The US automakers really should switch from making so many cars to making parts for new power plants. If we really want to get serious about "energy independence" then we can't really afford to pussy-foot around about it. Do it now. Like right now, not next month or next year. Duh!

2. Forget about "redistributing wealth". There isn't any wealth left to redistribute. Essentially, all the wealth was illusion anyway that has vanished now.

3. Stop lowering the interest rates. How many times do they have to fail to figure out that something isn't working? All those times that Greenspan lowered the rates over the last few years only increased the problems instead of helping anything. You know, in 1990 when I bought my first car the interest rate was 12.9%. As it should have been for someone just getting out of school and just beginning a new job and not having earned better rates with an established credit history. And guess what? I survived. Higher interest rates are a "natural" control over too much credit being extended.

4. Stop pushing people to keep borrowing. Didn't anyone ever listen to their grandparents' advice? Sure, credit is necessary for big purchases like cars and homes, but come on people, stop freaking living on credit! Make do. It's possible and it's necessary.

more to come...

3 comments:

The Guy said...

Oh my gosh! your 4th point is perhaps one of the most salient I have ever seen. But how to get it through the fog of the world's mind?

It's the 21st century, you'd think someone would invent a world spanning network of computers which would allow anyone to spread such fine wisdom easily, instantly and pervasively. Too bad.

Rae Ann said...

LOL, I almost can't tell if you're being sarcastic. ;-)

The Guy said...

If only the world-mind could tell the difference...