Wayne D's Blog

The media has me a bit peeved because they seem to be quite happy that the economy is in the toilet. They can't wait to tell us how terrible things are today and the negative feedback this obsession with how bad things are can only result in lower consumer confidence and a deepening of the financial doom and gloom.The U.S. governments bailout of the financial institutions that helped cause the mess in the first place seems completely misguided. It may have added liquidity to the system but it hasn't done anything to reduce the excess inventory of housing that will continue to be a drain on the U.S. economy for years. The problem with the mortgage backed securities that prompted the collapse of the financial house of cards is that there risk level either weren't well understood by those buying them or misrepresented by those selling them. The compulsion to deregulate that occurred resulted in greed winning out over good judgment. The U.S. government abdicated it's responsibility to mind the financial store and now it's adversely affected the whole world. Now they need to start knocking down some of those houses they will end up owning when the mortgages are defaulted on to help salvage the rest of the portfolio and return some of the value to the houses of the people who still are paying their mortgages. Yikes what a mess.