I understand that. My point is, honesty could undermine psychological confidence of the economy and make matters worse.
I don't think it is an issue of confidence anymore. When there is this level of debt it is already known it is in trouble. Besides when the false sense of confidence merely encourages people to buy things they cannot afford to get into more debt to do it in an attempt to prop up the economy for a few more months or years it is only prolonging the problems and creating more. They need to be honest to stop people getting mortgages they will never pay off and then costs someone else their pension. Bad debt means lost pensions. It is just a matter of time.
We have easy credit for cars, no one cares. Easy credit for student loans. No one cares. Credit cards? I applied for a CC at home depot, 7k line of credit. Did the same thing at Lowes, another 6 or 7k. this is 14 k in unsecured debt and the banks will not modify or refi my secured mortgage. Does anyone think you could borrow 14k and buy stocks? Oh you might lose the money. Crap I buy on credit at hd or lowe is going to break or wear out. Or at best I could invest in upgrading my home whose value is in the crapper and lose my money that way. Our policy towards debt is whack.
Exactly the concept of confidence is pointless. The economy is screwed anyway. It is better to tell people the truth to plan for the future better and not get into a mortgage they cannot pay then have to go bankrupt.
your being logical so that makes you wrong. the government and wall street want you in the market bad or good. they want you buying homes even if you can't afford them. they need this cycle to continue and if it stops everything falls apart. the government closes its eyes and won't do anything until it all falls apart. the truth is they can't pay the crazy petitions to cops or teachers or anybody else. the truth is NYC can't buy 7k per student to get to school when the next state pays 3.1k a year for bus service. people don't want the truth though because people can't live on nothing. the extremes of wealth are to out of whack. why would a billion pay all his workers 20 bucks an hour if he could get them for 9 an hour? a business will say its the government job to figure social welfare out, than the rich people get taxed, than say you can't have all these social services, and than say people should get help from church not government. the system is not made to be fixed that's my point.
The rich are as screwed as everyone else. After all it is the people who have a lot to lose who will lose a lot. Also our debt is there money.
BINGO! The now poor will always be poor, regardless. The middle class will become poor. The "sort of rich" will become poor. The very rich will become "barely-rich/old middle class"... GOVERNMENT INTENDS TO CONSUME ALL... THAT'S THE PLAN!! All those who voted for/support Odumbo have ACCELERATED THE DESTRUCTION OF AMERICA! For Americans with any money, the most important question.... "How long does it take?"
how is your book sale? http://www.elitetrader.com/vb/showthread.php?s=&threadid=220007&perpage=6&pagenumber=1
the top richest peoples wealth has grown over the last 20 years and that can't be said for everybody else. capitalism is great but overtime you will find you have a few rich people and everybody else will be poor. it can be like a lotto for creative people with the right idea from time to time though.