EX-SD…the fire burns because we live in a debt ridden society and believe in the fundamentals of having debt. This isn’t about putting out the fire, its about trying to “contain” the fire the best we can. This is all about limiting – not fixing. There is no fix and never will be.
I doubt my personal ideology differs that greatly from what you taught your daughters regarding social and moral responsibility. The Feds actions don’t benefit me- I have no debt – therefore I’d rather see the dollar regain in value, I’d rather have interest rates increased. I benefit from stocks getting killed – it means I buy them cheaper and have the capital to do it. I don’t enjoy inflation nor that irresponsible borrowing and lending has led to homes that are overpriced. The more defaulting, the faster home prices will come down – all great things for me personally. However these benefits might also mean unemployment as businesses fail, which might affect me. I am sick of reading articles about how a possible recession means the minimum wage worker no longer goes to Starbucks “every” day to buy their latte, or how homeowners can’t make their mortgages along with their 50K in credit card debt, despite that on paper, if you work through the numbers, they make enough to cover their mortgage if they lived a bit more responsibly. But I can’t fix or change the way people live in debt – the system supports people’s belief in debt. Like Asia pointed out – if the Fed raises rates, it will help inflation – hurray for me – but also means more people lose their homes.
This issue isn’t about me or you, its about a larger system that albeit very broken, needs to be worked through in preferably a fashion that limits panic. I have no clue if what the Fed has done will help us avoid further catastrophes or rather just delay it.
