Thoughts on the Financial Crisis

Like I think many people I am pretty shocked that the US Congress did not pass the bail out.

But I am pretty surprised by some of the rhetoric I have been reading on what I thought were socially progressive gay blogs.

One blog writer who is on my blog roll seems to believe that the whole thing is a big conspiracy by the American Government (I am not kidding).

The problem is so multi faceted and there is no one solution for the whole kit and Caboodle. For a very long time predatory companies have been loading people up with debt to make more money for their shareholders.

In Australia we are more regulated in terms of credit - although still cringe when I see companies advertising credit specials for things like furniture and home appliances.

It does make me laugh that there seems to be such an us and them attitude towards people who make money and the average Joe on the street.

I am here to tell you we are all connected in this crisis and in one way or another we will all feel the pinch. Whether it be increased costs, job losses or whatever.

I think that Congress will end up reaching a deal to underwrite the bad debts (which is essentially what the bail out is supposed to do, buy under performing bonds backed by defaulting mortgages).

And I assume that the much needed regulation of the credit market will come too.

It's not a good day for the financial markets, but to call it a conspiracy shows the true stupidity and narrow minded knowledge of the person that did so.