Q: two wars and a half trillion or more bailout of irresponsible banks and borrowers? And aren't the banks being rewarded for predatory financing? And aren't the real estate industry people keeping their huge commissions earned when they hyper-inflated the price of homes? Did'nt any one else see this coming?
A: It can't afford it all. Taxes are going to have to go up to cover all of this. Unfortunately we are stuck with the Iraq and Afghanistan stuff for now. Extrication will happen, but it's going to take time. The bailouts have prevented, so far, far worse repercussions in the market. But don't be complacent, there is far more to come. We have only see the tip of the iceberg in this financial meltdown. Banks aren't being rewarded, they are being saved to prevent worse destruction of our economy. Don't forget that many institutions are being allowed to fail too. Several banks are gone, Merrill Lynch is being absorbed by Bank of America, Lehmann Brothers is gone, Fannie and Freddie will likely be split up eventually and many, many more to come. Yes, plenty of people saw this coming, but greed and the short term profits won over people's better sense. This is the payback, the market correction and it's going to hurt everyone.