Not the GOP or Obama or even Greece – everyone in the US is paying off their debt and that leaves little for new purchases so the economy doesn’t grow. Any stimulus just gets socked into the savings account. In the long run it’s good but it sucks until the piper is paid.
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I got a c in economics, *sad face*
Governments proping up zombie banks isnt going to help growth either
Yet another part of the problem is that while people ARE paying off their loans and Credit Cards, they AREN’T putting any money into Savings, Retirement or Investments. So with the Government Borrowing more of what it spends, and the Average Joe putting less and less of his Cash where it CAN be Borrowed, Businesses are finding it harder and harder to get loans.
Banks have money to lend, they just decided not too. They find it more profitable to trade securities and bonds.
Of course, when they screw that up, the government will bail them out again, and the taxpayers will foot the bill.
There used to be very strict “walls” in place between various financial activities. Banks (and insurance companies) have lobbied for (and received) legislation over the last two decades to break through these walls.
So who do you vote for to get this wall rebuilt?
Nobody who is running will do it.
The next decade will be interesting since many state and local politicians running for federal office are refusing donations or gifts from these institutions while primary party candidates (Obama and Romney) can’t win or maintain their campaign without banks’ financial support.
Nail on the head. Solves many short term problems but will cause a vicious backlash from banks in years to come.
We got to live above our possibilities for too long…
who are all these people paying off their debt? mine punches me square in the balls every fucking morning with a swift “howrya”!
What are you driving, and what’s your monthly payment? If you have a car payment, it’s easy enough to figure out what that would be as a monthly investment.
I guess I’m part of the problem. We haven’t had a credit card or a loan in almost a decade. We paid off $98,618 in 28 months. You know what we have now? MONEY!
Dave Ramsey, y’all.
Fo shiz niz