THE ECONOMY IS BOOMING

Wow! I keep hearing how the economy is improving. Even though there are fewer people working, the unemployment rate is down. The media tells me that during the second quarter of this year, we experienced a 4.2% upswing. Perhaps you felt it. The Obama boosters proudly laud that we emerged from the recession five years ago. I’m glad we’re doing so much better.

I’m still troubled with the mundane back stage events that are not so loudly bellowed. The total number of people seeking employment is down. That sounds good on the surface and seems to be a great talking point for the left. The fact that there are more people happy to be on government assistance rather than seeking employment doesn’t bother them, but it does me.

The BLS manipulated figures show that the national average for the unemployed is 6.2%. Knowing that over a third of the potential workforce is sitting idle, I have a hard time accepting this propaganda.

Meanwhile, as the economy booms, credit card companies recently began offering “no interest” for up to 18 months once again. I’m certain that this move is at the behest of the Obama financial planners. It has the smell of Cloward and Piven.

My experience with the financial industry tells me that the business is not made up of benevolent enterprises. They are there to make a profit, often without regard for their customers.

Perhaps this is the one sector that is experiencing stagnant growth and it will look good for a while if people spend more and create more personal debt. Stagnant growth would definitely cause them to nudge consumers into using the cards more frequently without paying an immediate penalty for unpaid balances. The program design is to get consumers hooked on buying, making minimum required payments and accruing a balance. That balance, of course, must be paid in full at the end of the term or 22.99% interest kicks in.

Though consumer purchases may go up for now, expect a severe downturn right about or shortly after the 2016 elections. This program presents a problem not unlike the deferred interest mortgage loans of the turn of the 21st century. Chris and Barney felt everyone should be able to take advantage of the appreciating housing market by owning a home, whether they could afford one or not. They coerced the financial institutions and lenders to lower qualifications borrowers and allow it to happen.

It did. Wanting to get all the profit they could, lenders allowed mortgagees to finance or refinance homes and elect to make payments of 1/360th of the principal plus 1% or 2% interest for two to seven years while deferring up to 5.5% to 7% interest to the loan principal.

In many cases, by the time the loans reset, the loan balance was tens of thousands of dollars more than the original loan amount, and in too many cases, more than the home was worth. Home values plummeted as the borrowers moved out in the middle of the night to live in their cars or with relatives.

Homeowners had become complacent with their spending patterns and found themselves unable to meet the new mortgage payments. People lost their homes, investment companies declared bankruptcy and the American economic structure tanked causing the recession.

Lesson learned? Not by progressive Dumbocrats!

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One Response to “THE ECONOMY IS BOOMING”

  1. Gudrun Says:

    Thanks for the wonderful post

    Like

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