In referring to the financial crisis that started with the “mortgage crisis,” President Barack Obama likes to point out that “what started on Wall Street will end up on Main Street,” but what he fails to be honest about is that it all starts and ends with the good ol’ U.S. government or the lack of elected representatives to do what the Constitution tells them to do.
A government that sits idly by while a private central banking cartel known as the Federal Reserve manages our system of credit is a mockery of the free market system and our American system of government.
The Federal Reserve created an economic bubble by keeping interest rates so low, that easy credit flooded the housing market. Our elected officials are so naive that they tend to just allow the Fed to do what it wishes while the private banks that own the Federal Reserve and the other big banks (“too big to fail”) gobble up the stream of interest payments of all these faulty loans and a booming economy.
In addition, our elected officials created laws that essentially said every person who wants a home in this country should have a home. Therefore, the changes that allowed some individuals who shouldn’t have qualified for a loan become homeowners, or more specifically, home-occupiers that pay interest on overvalued homes whose prices were driven up by demand caused by easy credit and government intervention in the market.
But what happens when these overvalued houses and the payments can’t be paid? The houses go into foreclosure and our market is flooded with houses with no demand until Americans can pay off all of their debts because they too borrowed tons of money on easy credit, including credit cards.
The values of homes plummets and the artificial boom is followed by a very real bust. Now, ironically, the government that should have stayed out of the housing market and a government that allows a private central banking cartel to run our country suddenly wants to do something because doing something is better than doing nothing.
I say no thank you, President Obama, government has done enough already. Please do us a favor and get out of the way, and if you want to come up with some oversight in government, focus 100 percent of it on the Federal Reserve.
Jeremy Moore
MSU animal science graduate student
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