Saturday, December 6, 2008

As a bit of a shift from that farce on Capitol Hill, also called Auto bailout, here is a site I came upon through Joe Sudbay at Americablog.  Bob Geiger has some very good political cartoons.  Take a look and have a good laugh.  We did.

John Aravosis also at Americablog asks a very pertinent question on another part of our economic melt down: the mortgage crisis.  That question is simply whether lowering interest rates are the way to address the problem or will it just encourage a renewed growth of what has been a cancerous bubble.  He points to the absurdity of the situation.  If you don't have good credit lowering the interest rates won't help and, if you don't have good credit,  making it easier to get a mortgage may not do you or the economy any great favors.  It is an interesting bit of illogic which is all too prevalent in this consumer driven economy.

That's all for this snowy and cold Saturday.  

2 comments:

Kay Dennison said...

It doesn't make a lot of sense to me. I worked in the mortgage business for a broker and saw people in terrible circumstances re-financing and refinacing. It was really ugly.

Elaine said...

Well I don't believe lowering the interest rates on mortgages will help. I live in Michigan and we have been in a recession for 3 years. The value of my home is half what it was 4 years ago. In my state the exodus is OUT....and NO one is coming in.

My kids have inherited a house "up north" because it will never be sold anytime before I retire.