Sunday, April 5, 2009

Plastic

It caused the Great Depression and it's causing the same problems today. Over extension of credit always leads to problems. In times of prosperity credit is handed out like it's going out of style, but when the people who get that credit fail to pay it back it causes problems.

Isn't the point of studying history so that we can learn from our mistakes? The answer apparently is no. I guess we know better now so it's going to be different. It won't happen like it did back then. WRONG! It is happening, okay so maybe not as severe but it's happening. The credit crunch. What do you think that is? It's from the banks over extending credit to people who were unable to pay it back, and when it happened in mass, we were screwed.

The idea of credit is a good one, in theory, but when put into practice it will cause nothing but problems. People get carried away with money, it's a certain feeling of pride when you can buy anything you like. It's when people forget that they'll eventually have to pay for that huge screen TV or that new hot tub that the problems start.

Another problem is in the way our country works, the way capitalism works. People's homes can be foreclosed, while the government owes them more than enough money than is there debt. Absolutely ridiculous the way the little guy gets screwed. What people owe the government is interested, so they end up paying more than the initial amount. But what the government owes is taxed and is not interested, so the people more or less end up getting less than what is owed to them. Just add it to the list of things wrong with society.

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