Day after day, as we journey through our current economic crisis, it seems that very few voices that are heard are pointing out the obvious flaws in the reasoning.
Of course, we all heard the debates and hard about whether or not to exit the automotive industry. We also heard the almost universal (just) criticism of the financial industry bailout already approved. Most debate centers on whether or not we should move away from a particular industry and if so by how much. Although it is not irrelevant to this question lacks some deeper questions.
Most of all, there is the question of how did we get here? I know that often trumpeted prime mortgage failures are seen as the reason. They are a yes, no doubt. Yet they are not alone, not at all. The origins of this crisis are much deeper and more widespread as the problem of a mortgage.

There is much to suggest that the current crisis has been a long fermentation in the stew of the credit system on which the South, first their entire economic base. It is a system designed to create wealth by encouraging consumers to buy what they do not need the money they have and not to postpone indefinitely the payment of interest on debt accumulates. It is a system designed for massive short-term gain with enormous consequences for the long term. We are beginning to learn the cost of our resources.
The whole economic system based on the credit system and have been widely successful for many decades. Yet it has always been clear that the default credit could exceed the base, it proported represent. That is what happened. As property values soared against loans also increased in value inflated until it was a numbers game run on the back of the credit markets. Those markets have long been absorbing our debt credit card and the national debt and could no longer take in the massive real estate debt. This is not the cause but the straw that broke the camel’s back.
We have long been purchasing more resources, we might as well as a society and as a government. Just as individuals have had to cut their spending, so should government. Many so-called rights must be reduced for the simple reason that there is no real cash to fund them. To continue to fund our credit crisis deepens and creates a bigger problem for future generations. Admitted the fact that each generation would be better and richer than the previous one died. The center will be long, even with a clear picture of how we got here. Without it, recovery will be indefinite.
This is the situation we find ourselves in the election of Barack Obama, while perhaps a cultural importance is not at all economically important. No call for himself or his team has highlighted the glaring fact that we must change the way our economy and basic value. Otherwise we are condemned to spend more on what we do not need a way you can not afford.
Stock on Rum.