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Addressing Reality

October 13, 2008

I find this very well said, and very mature in its perspective on the nature of this crisis and on what is necessary over the long term:

“Part of the reason this crisis occurred is that everyone was living beyond their means – from Wall Street to Washington to even some on Main Street. CEOs got greedy. Politicians spent money they didn’t have. Lenders tricked people into buying home they couldn’t afford and some folks knew they couldn’t afford them and bought them anyway.

We’ve lived through an era of easy money, in which we were allowed and even encouraged to spend without limits; to borrow instead of save. Now, I know that in an age of declining wages and skyrocketing costs, for many folks this was not a choice but a necessity. People have been forced to turn to credit cards and home equity loans to keep up, just like our government has borrowed from China and other creditors to help pay its bills. But we now know how dangerous that can be. Once we get past the present emergency, which requires immediate new investments, we have to break that cycle of debt. Our long-term future requires that we do what’s necessary to scale down our deficits, grow wages and encourage personal savings again.”

6 Comments leave one →
  1. Kay permalink
    October 14, 2008 8:12 am

    That pretty well sums things up. Who said it?

  2. Matt permalink*
    October 14, 2008 11:59 am

    Barack Obama

  3. Kay permalink
    October 14, 2008 5:40 pm

    I’ll give him credit for explaining how we got there, but where’s the call for personal responsibility?

  4. Matt permalink*
    October 15, 2008 4:58 am

    From just before: “It also means promoting a new ethic of responsibility.”

    And just after: “It’s a serious challenge. But we can do it if we act now, and if we act as one nation. We can bring a new era of responsibility and accountability to Wall Street and to Washington. We can put in place common-sense regulations to prevent a crisis like this from ever happening again. We can make investments in the technology and innovation that will restore prosperity and lead to new jobs and a new economy for the 21st century.”

  5. Kay permalink
    October 15, 2008 7:57 am

    I’m also speaking of personal responsibility. What of everyone who shouldn’t have used their credit card to buy something they really didn’t need? What about the people who don’t try to take care of themselves, but wait for Washington to do it for them? The ones who make more money on welfare than working? Where’s the incentive to better yourself without government help?

  6. Ron permalink
    October 16, 2008 5:11 pm

    Okay family . . quit bickering! The points are well taken. When everyone is over-leveraged it almost works when things are running positive & expanding. But when things turn nasty & you have a major contraction & you have to pony up, there are no resources available since everybody is over extended. Hopefully this will force a more realistic & rational approach to both personal & government finances going forward. Additionally, everybody can’t have everything & if you really want something you should have the work ethic to hang in there & earn it. All the government hand-outs & entitlements just help foster a lack of personal responsibility & integrity. Individuals tend to get sloppy & lazy when everything is always given to them for no effort or sacrifice.

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