Recession? Nope. Are we better off? Yep.
Posted by cann0nba11 on September 25, 2008
For starters, the current banking crisis is not related to or caused by our economy. The failure of FM & FM was caused by our government dictating behavior in our free markets. The government forced lenders to loan money to risky borrowers. They couldn’t pay the loans back, the problem escalated and boom, here we are. But our economy is actually growing, despite this housing mess.
Pundits and politicians are telling us that home ownership is down and unemployment is up. But I don’t think that comparing these percentages to previous years is fair. In my opinion the increase in home ownership we saw in the late 90s was because a high number of people qualified for loans that under normal lending scenarios would not have been approved. This “boom” then set the stage for a “bust” once the risk that lenders were concerned about came to fruition and borrowers started defaulting on mortgages. People lose their homes, cry about being victims and the press reports that this is all due to a bad economy under the Bush administration. If these borrowers would have been denied, the houses would not have been lost because they would have been purchased by qualified borrowers.
Back to the economy. An excellent IBD article shows what our GDP looks like with and without housing numbers factored in. If you remove the bogus housing numbers created by government forced lending you see that our economy has actually been growing at a steady rate. LIberals can’t stand the idea, but the numbers are there for them to look at.
While we are talking about the economy, let me give a shout out to my liberal homeys that think we are in a recession. We are not in a recession. True, it sucks that we have to poor roughly $2500 for every man, woman and child in America into a rescue plan, but it could be worse. Look at average adjusted income for Americans in this decade (source: IRS). Yes, we enjoyed a great boom thanks to the Internet explosion in the 1990s, but we have continued grow as a country despite 9/11 and the dot-com crash. Yet Joe Liberal can’t see through his Bush Derangement Syndrome goggles and thinks everything sucks thanks to GWB. Sorry LIbs, you are wrong about this. The economy is growing. Personal income is growing. Hold your breath, I’m sure the mainstream media will be reporting this any moment now.