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  • From: Clansgian AT wmconnect.com
  • To: homestead AT lists.ibiblio.org
  • Subject: Re: [Homestead] What some of it means
  • Date: Wed, 26 Sep 2007 13:36:55 EDT




> >If people get the
> >idea that things are bad then they stop buying and the economy
> >crumbles. It is not so much the facts as the feelings. One might say
> >that in this regard, feelings create facts.
>
> This is why that no matter how hard politicians and economists try,
> economics is not a hard science. It is closer to the behavioral sciences.


If the economy and finances were on some sort of stable, sustainable basis,
this might be true. But if you create a very bad economic problem, being
Polyanna and just having a rosy attitude won't make it go away.

Reducing it to a personal basis, if a person runs up six credit cards to the
max, borrows heavily against their house (disguised as the emphemism of
"taking out the windfall equity"), makes obligations and debts for himself
...
having a cheery attitude and focusing on the good news and being happy isn't
going
to stop collection activities and foreclosure on the house. The person still
has to meet his obligations.

Thoughts and attitudes might well have created the mess, but it won't get us
out of it.

I keep hearing cries for the government to do something to bail out the
hundreds of thousands that have home loans they can't pay, or to set the
reserve
rate so that stocks will go up. Heck, if they have the power to do that,
let's
all go out and buy three houses, borrow against them to play the stock
market,
and THEN have the fed and the government do that magic and pay off the houses
and give us huge returns on the stock market. If they have that power, why
would it only work in emergencies? Why not do it to make all of us rich
without the emergencies?

Or better still, let's all have a nationwide feel-good session and suddenly
there will be fuel and food and houses for everyone. I'm amazed that we
didn't
think of this before!

James



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