Sunday, October 07, 2007

When The Bubble Burst

This is what happens when the bubble bursts.
Out on Phoenix's suburban fringes, where cement mixers are fast colonizing hay and cotton fields, the day is winding to a close. The home hour has arrived.

But sundown gives away a troubling secret: Behind dark windows and unanswered doors, it's clear nobody is coming home.

They're empty, left behind by a rising tide of foreclosures
This is the story of one town on the outskirts of Phoenix but it could be many towns all across America as the roaring home prices have come crashing to the ground and brought with it the financial downfall of many middle class Americans. How did this happen? Stupidity, greed and the desire to live the so called American dream combined to create one of the biggest financial disasters in our nations history. The real problem is that the pain is just beginning.

Just last week banks and investment firms all across the country started reporting staggering losses as a result of these ill advised loan programs that were a disaster waiting to happen. So far firms have reported $20 billion in losses and it is just the beginning. What this all shows is that our economy is built on smoke and mirrors and when the smoke clears the devastation that will be felt by the middle class will be just another nail in its coffin.
The American Dream is overdue for revision.

"There's been a huge shift in the way people view their houses," says John Karevoll of DataQuick Information Systems. "Your house now can basically be used as an ATM."
The problem is that the ATM is out of funds and the economy will soon show the signs of this disaster in all areas. The trickle down theory of Reagan, that was called voodoo economics by the first President Bush but was embraced by the imbecile that currently occupies 1600 Pennsylvania Ave, is one that guarantees ever greater wealth to those at the top while those at the bottom wait for their scraps. Now we are seeing that theory in action and its not pretty.
When there is no middle class in America we will cease to be the beacon of hope that has attracted those to our shores. That shining beacon that was once the world's envy is now just a flicker and unless we fight to reignite the flame we will see the further erosion of the everyday person's standard of living while the rich will get ever richer.

Is this what you want for our future? It is time for the middle class to fight back and demand policies that benefit us all not just those rich enough to be able to make large campaign contributions. It is time for public financing of campaigns. Without it there is no chance for a different outcome.

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