Editorial: We Have A New Economy
By Editor (10/18/08)
At least for the short term, Americans and businesses will find that money actually doesn't grow on trees.
Irresponsible grants of credit by financial institutions and governmental bungling created a economic "bubble" without a solid floor.
Property and housing prices expanded out of control. You could buy stuff with no interest or payments for 2 years?
The "nanny state" generations were more or less instructed that they didn't need to work to get a better standard of living. All they had to do was borrow their way into cars, houses and stuff - to hell with the minor point of being able to make the payments.
Companies established redundant retail outlets and vehicle dealerships without regard to the true customer base available to maintain those operations.
Contractors and building companies ran wild building homes, condos and town houses with ungodly inflated prices then moan when they can push the junk?
Businesses entered locations and markets that were saturated with competitors hoping that the free flow of fake credit would allow them to profit.
An simple example is driving three blocks and seeing 3 drug stores and 3 convenience stores.
The business models that don't face reality will fail and are doing so each day.
Meanwhile just to join the frey, the Federal, State and Local governments have been spending and wasting like the proverbial "drunken sailor". So today many are broke and actually coming close to bankruptcy just as they should!
People that work and act responsibly, can and still do get credit appropriate to their financial history and status. A down payment is needed as it should be...
The dreamers, skaters and slugs must now reap the fruits of their efforts and live in the world they created.
The next few years won't be easy for anyone. Dreamers, skaters and slugs will have real tough times, regular productive hard working people will do just fine with some bumps...
(Printer friendly version) Email: Editor
