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Why is our economy so screwed up in America? How do you handle it?

Why is our economy so screwed up in America? How do you handle it? Topic: Large lined writing paper
June 20, 2019 / By Ashley
Question: My husband and I have cut back on everything. (For some reason we have a extra 200 dollars a month now than we did before. Odd?) I think it's because I started writing out a very detailed grocery list/menu plan by the month.. and we stopped buying paper towels. (Which surprisingly saves us 96 dollars a year alone...) Seriously though I don't understand why, didn't Bill Clinton fix it? I tend to be good with money, but I suck with politics. That's honesty.
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Best Answers: Why is our economy so screwed up in America? How do you handle it?

Valorie Valorie | 1 day ago
Our economy is in a recession right now because For the last 3-5 years, the Fed (not the federal government, the Federal Reserve Board of central bankers has continued to debase the dollar by keeping interest rates below where market forces would set them. This in turn created a housing bubble in prices, fueled by speculation and historically lax lending standards because of greed by lenders willing to lend to anybody regardless of credit history or future ability to pay. This due to high fees added to these ridiculous loans such as no down, 1 to 2 % interest. These loans (sub-prime) have been resetting, will continue to do so causing massive foreclosures. The real estate bubble has burst causing home prices to plummet in some cases, 50 to 60%. People are walking away from their homes because they can't pay and homes are worth less than what's owed on the loan. The silver lining is young people will be able to afford a nice home in a couple of years. The above has caused investment banks to lose trillions of dollars which caused a "run" on the investment bank Bear Sterns causing the Fed to print fiat money and bail out the complete collapse of the banking system. This, with the costs of the war and more paper money fueling our national debt has caused energy, food prices, and the cost of everything else to rise at around 9 to 10% a year which is called inflation. As an example, I get a maximum 3% cost of living raise each year. This means that with inflation I lose 6 to 7 % of what my dollars can buy. If this occurs over 5 years I have to curtail purchases by 35 % because that's all I can afford. Our country used to be the greatest creditor nation in history. We are now the largest debtor nation in history. This is because we've become a nation of consumers. we no longer save or produce by other countries standards and have become much less competetive as a nation. The housing bubble also created false wealth. People actually believed they were wealthier by these artificially high prices. They continued to refinance their homes, not to invest, but to buy their Mecedes, big screen tv's, etc. with these adjustable loans. The next bubble will be massive defaults on consumer credit loans (credit cards) that people can't pay back. All of this creates a domino effect which will send us into further recession, more job loss, and much more suffering. This is just the beginning. Hopefully the pain will make us once again a nation of savers,producers and manufacturers to greatness again. This is a somewhat simple answer to a very complex problem but I hope it was enlightening. How to handle it: Curb your spending. Don't buy things you cannot afford. Don't make purchases on credit cards and let the debt overcome you. Ride it out.
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Valorie Originally Answered: Why is our economy so screwed up in America? How do you handle it?
Our economy is in a recession right now because For the last 3-5 years, the Fed (not the federal government, the Federal Reserve Board of central bankers has continued to debase the dollar by keeping interest rates below where market forces would set them. This in turn created a housing bubble in prices, fueled by speculation and historically lax lending standards because of greed by lenders willing to lend to anybody regardless of credit history or future ability to pay. This due to high fees added to these ridiculous loans such as no down, 1 to 2 % interest. These loans (sub-prime) have been resetting, will continue to do so causing massive foreclosures. The real estate bubble has burst causing home prices to plummet in some cases, 50 to 60%. People are walking away from their homes because they can't pay and homes are worth less than what's owed on the loan. The silver lining is young people will be able to afford a nice home in a couple of years. The above has caused investment banks to lose trillions of dollars which caused a "run" on the investment bank Bear Sterns causing the Fed to print fiat money and bail out the complete collapse of the banking system. This, with the costs of the war and more paper money fueling our national debt has caused energy, food prices, and the cost of everything else to rise at around 9 to 10% a year which is called inflation. As an example, I get a maximum 3% cost of living raise each year. This means that with inflation I lose 6 to 7 % of what my dollars can buy. If this occurs over 5 years I have to curtail purchases by 35 % because that's all I can afford. Our country used to be the greatest creditor nation in history. We are now the largest debtor nation in history. This is because we've become a nation of consumers. we no longer save or produce by other countries standards and have become much less competetive as a nation. The housing bubble also created false wealth. People actually believed they were wealthier by these artificially high prices. They continued to refinance their homes, not to invest, but to buy their Mecedes, big screen tv's, etc. with these adjustable loans. The next bubble will be massive defaults on consumer credit loans (credit cards) that people can't pay back. All of this creates a domino effect which will send us into further recession, more job loss, and much more suffering. This is just the beginning. Hopefully the pain will make us once again a nation of savers,producers and manufacturers to greatness again. This is a somewhat simple answer to a very complex problem but I hope it was enlightening. How to handle it: Curb your spending. Don't buy things you cannot afford. Don't make purchases on credit cards and let the debt overcome you. Ride it out.

Selah Selah
We cut out cable TV, we don't use cell phones and only have the one land line at home. We don't have a long distance carrier and use phonecards if we need to dial long distance. We cut back on eating out... maybe once every 3 months if we are lucky. A majority of our savings are tied up in CD's to earn more interest than a regular savings account. We wear coats inside the house and use plenty of blankets to keep our home heating costs down. We read to the kids or play board games for entertainment and watch very little television. We have a garden in the backyard and grow 80% of our own vegetables. I have a compost pile to make our own fertilizer. We don't hire anyone to mow our lawn or clip our hedges. We have more money now that before the recession. I live in California and work for the State. Our Governor is going to cut our pay by 10% because they can't control the spending in Government. Arnold is also planning to raise taxes and add fees to government services.
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Oda Oda
Are the Obama supporters listening to what he says while he finally says something? Audacity is the word for his habit. he's harping on grasping Wall highway being the reason for our economic issues. Wall St. is accountable for lots of the subject concerns yet so are companies like ACORN which Senator Obama has supported; and won help from. His contemporary utterances on "substitute" are relaxing. Now he needs to alter issues he helped convey forth. that may not purely audacious yet hypocritical.
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Madelyn Madelyn
We keep electing politicians that promise us more stuff - but we refuse to pay for it. Eventually somebody figures out - we dont have the money for this --- crash - then we dump more money into the pit to stimulate. It never works. Later we cut expenses, reduce taxes and eccon gets going again. Till we get the politicians to screw it up again.
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Kenna Kenna
Some Neoconservatives (Jews) wanted to RULE the world so they invited the Corporations on the team = PNAC.......... Neoconservatives do the lying = Noble Lies... taught by the father of the Neocons the Corporations supply the $$ and the TV ads
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Kenna Originally Answered: Am I adept about the economy?
If you look at the word to comma distribution of your second sentence, I think you may discover how confused we are. Grammar has rules to allow for easier communication between people, and I cannot understand what you are asking in the above stated question. Please clear that up for the reader so we may actually be able to answer. Thank you and Best Wishes, Golden

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