July is the next time that a wave of sub-prime rates increase sharply. Therefore another wave of loan defaults is expected. Numbers suggest that 30% of Freddy Mac and Fannie Mae loans are in default. Numbers like $30billion defaults have been suggested.

When government 'fixes' an economy with free money and corporate welfare, then economic forces take revenge four and more years later. Welcome to an economy manipulated with massive government deficits, tax cuts to the wealthy, corporate welfare, and Enron style accounting. Coming soon is the part where economic forces take revenge.

Nothing new. This was predicted in Jul 2006 with the usual responses. Which is your favorite paranoid fantasy? Today's problems were seen when? July 2006.

Read those posts. Notice what was absurd then is reality now. These economic problems were apparent years ago when others were instead hyping the George Jr economy and his myths. For example, you were warned what tax cuts without spending cuts do. Now we begin to pay for an economic boom based in money games rather than from product innovations.

So what do politicians do? Hype another myth about whiners. We got some major financial problems because Cheney said, "Reagan proved that deficits don't matter." Guess what.

And what exactly does that mean to you?

I love my big brother, I really do. We can't discuss politics, we just don't agree. He got mad at me once for mentioning that he and his wife make really (really really) good money.

This weekend, he went on a rant about how he's so sick and tired of people whining about gas prices. He went on to say that buying a higher mileage car is stupid because you can't possibly make up for other things over the course of the life of your car by saving a bit on gas.

Somewhere along the way, he forgot that there are people out there working for minimum wage, to whom 20 bucks is a couple meals for their family, who couldn't make the mistake of trying to buy a more economical car; just keeping the one they have running is killing them but they still can't afford a new one.

I suppose we are to just shut up and smile. But, this is a country in which we can whine all we want. So, I say...let the whiners whine! Whine away! Whine whine whine whine whine. ;)

No one has mentioned the fact that higher gas prices mean higher prices for all sorts of things, including food. Sure it may be only a few pennies per item, but it all adds up. Not only do low income people get hit at the gas pump, they get hit at the grocery store, too. The repercussions of the mounting cost of gas are being felt all through the economy, and, as usual, the poor are feeling the brunt of it. That's not their imagination but economic fact.

Sam I believe you are on target but IMHO that trickle down effect has not shown itself on the cost of goods yet. But it's coming.

Hey, at least used SUVs are cheap, right?

I recently heard on the radio that the cost of food has increased by 50% in the past 10 months in Egypt, where x% (I forget, but it was an astonishingly high number) of people live on <=$2/day. The saddest part is the malnutrition that results from people's reactions of contracting their circle of foods they can buy. No more vegetables. Meat? HA! Staples only, starch and sugar. Sad.

A rise in property taxes in this state.

Ooops, caught being not American there, SG. yourbad.


And yes, yes you are. Aussies call Brits "Whinging Poms". That's just because they aint got a real grip on you lot yet.

Sorry, what was the question?

:D

That would have settled his hash. Of course, there's the question of overreaction to be settled like the hash...

Robert Heinlein asked, by implication, in several places in his fictional oeuvre, "How much of a spanking do you have to give an adult? And if he needs a spank, is he an adult?"

Depends on how much he enjoys being paddled...:rolleyes:

They are cutting all kinds of state programs here left and right to make up a 1.2 billion shortfall. The most obvious places we are seeing it is in the state parks and wildlife programs. Some social programs are being cut as well.

Kidding aside, I'm sure he meant spanking, comma, punitive, rather than comma, tie someone up and force him to have fun. :lol:

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