I don't think this whole economic crisis we are in can be blamed on the War in Iraq or Afghanistan. The U.S. will probably not know the real ramification of the billions spent on the war for another 10 to 15 years. It's not like the Bush Administration took billions from the US Treasury Dept. and spent it on a War. The wars are being funded by money we don't have, which has little effect on the economy currently as it stands. It will show once this money has to paid back down the road. Kind of like some of the current mortgage holders when balloon payments hit.

I believe what we are currently feeling is the aftermath of the Clinton Administration. When Clinton left office and everyone had "all" this money in their pockets they claim, lets look at what happened. People started buying houses they would eventually not be able to afford like crazy, Internet dang near mandatory in every home, Children need cell phones for protection, Got to have the latest video game console, Gas Prices increase 100%, Insurance increases 200%, College tuition increases 400%, Every 16 year needs a car and so on... Then balloon payments hit on these mortgages, people stop shopping as much, but still feel the need to maintain most of the things listed above. Eventually they can't make the payment's. Now it's a mess.

Whatever the next President, whomever it may be, brings to the table, probably no immediate effect will take place on account of what is to come. Whatever the next President puts into play next year, the results will not show until years down the road just as History has proven to us time and time again.

With this upcoming election, people arguing over Republican or Democrat, is like they are about to flip a quarter and believe they are going to get something other than heads or tails.


*Not a cut and paste, only my opinion.

Thomas

Of course they didn't spend it on war....they gave it in uncontested bids to Halliburton.

At least the duckets they are sucking off of us is being kept in america....someone needs to pay for those rediculous CEO salaries and junkets to the Bahamas.

Seriosly when people took those loans they were over eighteen. They had to think didn't they. I went to the bank and asked to loan just a little. And they turned me down. I'm happy I didn't get it. Bought one house fixed it rented it. didn't run out of money. Bought anouther one three months later fixed it and its rented too. My bank account is almost where it was when I started all this.
Dont borrow money save it. Then get what you want.

this economy is in trouble.

automakers' problems are another area which we haven't fully seen disclosed yet.

add their issues to the credit crunch, inflation, the bailout, retailers' woes and jobless numbers on the rise, and you can see that this isn't going away soon.

Yes the defaults by homeowners are a factor.

However the financial house of cards built upon those loans were an even larger problem. Credit default swaps and insurance on loans along with other nifty financial inventions of the investment houses who had no real money backing their manipulations were much more of a factor in the large scale failure we saw.

Once upon a time banks had to have assets. Investment firms did not have real assets. Many held little more promises, insurance and speculation. The laws and lack of regulation let them declare the value of their holdings based merely on what they thought these unbacked assets were. Little more than Vegas on Wall Street.

They stacked the deck and still lost the hand. Now they are dipping into our pockets to pay.