Things Appear So Evident in Retrospect

For months I have been beyond concerned regarding the banking crisis and its implications to not just the U.S. economy but rather the world economy. The concern is not whether we will be in recession [which we probably are] but rather can it spiral out of control into something more sinister like a depression?

In retrospect things seem so evident. How could builders build houses and market to speculators? How could banks and Wall Street lend to people who could not meet a mortgage payment? Ask a teenager and they would be able to give the correct answer.

In order to potentially limit and contain the devastating outgrowth of the current issues, there are numerous steps to take. We need to purge the excesses and maintain prudent budgets [both personally as well as those of our government]. There needs to be fiscal restraint. Let the banks lose money on all their ridiculous loans. Let the home builders dump their unsold inventory. However this is really not enough. There are untold billions of dollars of toxic paper on the books. The U.S. banking system has risked its creditability on SIVs, CDOs, CLOs and CMOs. What I really do not understand is how Brazil can be self sufficient on Bio fuels. Why can't our auto industry - once the leader of the world - produce cars and trucks that negate our import of OPEC or at least enhance mileage? How much money would we save if we were not paying $100 a barrel oil? Regardless if one supports the war in Iraq, I can not understand how we can solve their internal conflicts, and more so, how much money are we spending there every day? We need that money back in the U.S.A.

I know I sound like a broken record, 'Have a plan. Anything can happen'. We all know that in a crisis fortunes can be made. The key is that you need money to make that fortune when and if the crisis comes to fruition.

In retrospect things might have seemed so evident.

Comments

[WAKEUP]

Keep telling it like it is: maybe people will finally see that this is a deadly serious situation that can easily spiral out of control (a cliche, yes, but mightily appropriate.) Let the bankers and builders who rode the magic carpet now ride the whirlwind to its inevitable conclusion. And stop the damnable wars that are being waged for no real purpose other than profit for a handful of interests.

[Lee Carlson]

Andy,..Where the hell have you been for the past 5-6 years, on a vacation or just unconscious ?
I am not a CFP or anything but a college grad. who reads the paper and sell Real Estate and I saw this coming at least 5 years ago , people buying homes with mortgage applications that have NO DOCUMENTED INFO, and Big Banks taking these loans,..Husing prices way over valued,..It was insanity ! Add the Gov. spending on wars, by the trillions of dollars , and importing so much from China, and every third world country, and exporting nothing, every item in WalMart from overseas, and,.....You didn't see this coming ???
You have lost all credability !!! LC