Concern with the Economic Happenings

Let me start by saying, I by no means consider myself to be an expert in the field of economics or politics. I'm still very much "young, naive, and idealistic." At least that's what my old-fashion parents would say. But because of my idealism, I believe I have a right to express my opinion about the current situation in our country today.

What I DO have is common sense, a secondary education, and a sincere desire to have a stable economic system and political system that I can trust making the laws that determine my future and the future of my friends, family and children.

What I DO NOT have is investments in the stock market, a large bank account, or direct members of my family in political positions or currently serving in the military. For this reason, I believe, I can take a look at our current economic and political status and give a real perspective of what is going on in our country.

So here we stand, or shall I say "crumble" as the economic world around us falls apart. We are getting ready to embark on a poposturous financial bail out of 700 BILLION DOLLARS. That's $700,000,000,000 of money that will either be pulled out of thin air, thus lowering the value of our American dollar. Or that cost will "trickle down" to every single American as we continue to give the government our hard earned money.

To put 700 Billion into perspective, I've read that, that is ~$1,675 for every legal man, woman, and child that is a United States citizen.

It's apparent that there are few issues with this bailout that need to be discussed. But the issues I care to discuss, I have heard very little of in the media, or even amongst the chatter around coffee pots, water coolers, and grocery store isles.

I can't say that I agree with the reasonings for the many wars that our country has currently deemed necessary to start, I mean get involved with. But, from what I have learned was that especially during times of war our economic system is supposed to be going through a boom. Yes wars consist of astronomical cost, but the cost for war is cycled back into our economy. Manufacturers shift focus onto governmental contracts and increase production, thus increasing the labor force to generate more products.

Because of increased production and lower unemployment the "free market" is supposed to respond by bringing more value to the stock markets. For some reason this has not occurred and there's reason for that. Primarily the banking system, the same network of corporations that have created the exotic loans that fooled unsuspecting middle class American to invest in properties that were clearly unsustainable.

Now our government officials, many of which have invested their own thousands, if not millions of dollars, into stocks that are now plummeting in price have the opportunity to assist banks. The 700 Billion bailout will cover all of the losses banks have occurred by the foreclosures in the housing market. Once the losses have been covered stocks will once again balance themselves out and the 700 Billion dollar cost will "eventually" be repaid by everyone, including the same hard-working American families that have just had their houses taken away.

What many people fail to realize is that the stock market isn't controlled by huge individual investors or investment companies, as many would like to believe. Corporations (banks, mortgage firms, and extremely wealthy individuals) get involved with the stock market to profit from the spending from novice stock market investors.

Novice investors follow the market closely and try to foresee a positive trend in any particular market, thus they raise their willingness to invest more in that area. They then take their $200, $500, $800 or even couple thousand hard earned dollars to buy stock in those companies. When the corporations see this shift in the market they use their millions to invest. The corporations gain a fraction on the penny, but as a result increase their gains are worth thousands and millions, where as, the novice investor may have earned a few hundred or less.

When a housing market fails it's the novice investors that must withdraw from artificially inflating the stock markets. Again, the corporations follow suit and also withdraw from doing any drastic bidding. So you can see the need to get the housing market balanced once again. But honestly, should this cost be the burden of the tax payers and through the taxes of businesses.

I don't believe that throwing $700,000,000,000 into the hands of the corrupt corporations we know as banks are going to save anyone in the long run. I do believe that millions of these dollars will quickly be lost in bad business deals, disappear into thin air through sloppy paperwork, and unwisely invested into markets outside of our country. The banks have made their mistake and they must learn from them. If they are unable to survive than the free market has spoken. The banks that do survive will be stronger and have better business models.

There are a vast collection of businesses out there with substantial wealth and brilliant thinkers. Maybe it's time for these businesses and business people to create a system that would replace today's current banking system. Evolution exists beyond species, it is in manufacturing, housing, technology and I believe the same stands true for the corporation in which we have fallen victim to.