Stock Market Diving

Many people do not "believe" the stock market is a worthy investment. In other words, they think it's just like betting on the horses or throwing money into a slot machine. That line of thinking isn't supported by realistic data (the house eventually ends up wining when you gamble), but this week this "stuff it in the mattress" thinking crowd looks pretty smart.

Due to the market woes, is there a fundamental problem in the US economy, an economy perhaps based too heavily on lending money to people who are in way way over their heads?

Will the big time debtors among all of us bring down the solid citizens who responsibly pay bills on time and expect their savings to move along nicely in mutual funds and bonds?

US Real Estate Crises

It didn't take a genious to see that the housing buble was going to collapse causing many homeowners to crack under the pressure of their unaffordable loans.

Both political parties in the US have come down on lenders and credit suppliers to be more responsible with lending out for home purchases. The number of foreclosures is going up and will probably get much worse. None of the home buyers who have gotten themselves in this situation could claim innocence.

On discussing government aid:

“I don’t see a way you could reasonably help the people you want to help,” said Dean Baker, co-director of the Center for Economic and Policy Research, “without also helping people you don’t want to help.”

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