Why the U.S. is failing

1) People complain about how much they get paid. You give them raise, they want another. It's a never ending cycle. If we expect to get out of this mess, we need to be happy with having a job, and quit complaining about getting paid a dollar more.

2) People need to quit buying what they can't afford. I was always told to keep my debt on one hand. Which practically means, if you can't afford it, DONT BUY IT. Another thing is using credit cards. I don't even see why people use them. They only get you in more and more trouble.

3)We are bailing out companies that are failing for good reasons, because no one wants to buy from them! Why are we bailing them out?!
Those are really the only two points that i have. I really stand strongly by this. But, ill wait for a grand discussion to start up!

 

Number 1 reason is the greedy and moronic banks. And Obama is planning on giving more taxpayer money on those Banks.

 

How are people bitching about what they are paid the banks faults?

 

The banks give ridiculous loans. They should never give those loans....
Its like this.

A high school graduate wants to go to college, but she doesn't have any money.
Lets say she went to Harvard and it costs like lets say 20,000 a year, that means 80,000$ for a Bachelor's degree, when she gets out of College, she's in 80,000$ in debt. She doesn't have that kind of money. So she goes for a job. But in a failing Economy today she loses her job and remains in a huge debt, that she simply cannot pay....

 

The only time that they give loans is if they see that they will get their money back. What do you expect them to do, not give loans?

 

Not really to blame but that is a problem....... AFFLUENZA I SAY!

This is kinda what got us in trouble... also banks were giving loans that they should not have... but people were taking loans they should not have... imo a credit card should only be used if you can pay it all back in the first month... if you do not want to carry around cash or something...

We are bailing them out so more people do not lose their jobs... Like the auto industry.. no one is really buying a lot from them... but if we lose the big three thats a fucking load and a half shit full of jobs... :/

 

I expect them to give loans, but not the ones that are ridiculous. The banks are just giving out loans to people who simply cannot pay it back. I don't have to give you evidence that this is happening. Go to companies that are failing and close to being bankrupt, go to people that are loosing their homes......
Go to businesses.

The Banks gave them all loans that they couldn't pay back, so the bank fails and the companies begin to fail because lets say they have 4,000,000,000 dollars in that bank, when the bank fails they only give back 250,000$.
The banks fail due to people that simply cannot pay the loans. This means business go down which leads to less jobs which leads to a huge crisis that we are in.

 

This is true. Not all the banks fault... Greedy Americans that want loans but know they can not pay them did not help.

 

But why do the banks give them the loans?

See it's their fault no matter how you put it.....

 

Because the banks want money.... Also... it is possible to qualify for a loan and not be able to pay it back...

 

The Recession IS completely due to the banks because all of this was rising in the Bush Eras. They were giving out more and more loans in the Bush Era that people couldn't pay it back. And all of this kept growing like a huge bubble and its becoming so big that it might pop. We are feeling the effects of all due to years of the banks acting moronic and it was inevitable that it would become a crisis as it is today.

 

I have no problem with student loans, but I honestly think the government should do more about education. The tax rates are pretty high yet where is the money going? If they say every little bit counts, then why are politicians paid 500k+ a year then given full pension after a four year term?

 

They are politicians, of course they have to be given money......
Some Celebs get paid 30,000,000 dollars a year, now that's ridiculous.

 

"President Obama currently earns $400,000 per year, along with a $50,000 expense account, a $100,000 nontaxable travel account and $19,000 for entertainment." Wikipedia...

Thats not a huge amount for running a country... and the taxxes are pretty low compared to other countries... Plus, right now we need tax breaks so people start spending again... But if you reduce everyones salary that works for the government for like 1k a year... that adds up fast....

 

For number 2, we need credit cards to build credit. If we have no credit, then it becomes very hard to get a house, car, and other things of that sort. So by using a credit card and actually paying the bills that come with it, your credit gets better and is better for you in the long run.

For number 3, we are also bailing out banks. They hold people's money. Imagine if one of the banks just closed one day. Where would the trillions of dollars that that company was holding go? Possibly not back to the owners. Also, we bail them out to keep them afloat. The companies that are being bailed out are big for a reason. Because of the number of employees they hold. If it was a small, family owned store, it wouldn't matter but since the big companies such as GM employ thousands, it would be a lot more catastrophic if they fell rather then say, an antique store

 

Actually, you can get credit by simply paying your bills.

If you keep more than 200k in a bank account, your an idiot.

 

TJ knows all. I'll follow you to the end of the earth.

 

This actually started in the Clinton Era. Clinton wanted as many Americans to own homes, which is a good idea. But, subprime mortgages came about, which many Americans failed to be able to pay back. We had people who could not afford these loans, and it came back to screw us.

Subprime mortgages started mainly during the Clinton administration, and continued into early years of Bush's.

 

Well many people owning homes is a good thing... It just banks and people started feeling too good about the good economy we were in for awhile and started being careless.... Then one day, huge banks suddenly said... Sorry... Ummm... Yea... We have no cash... Sooo... Your all fired and... Umm... yea.... Then investors were like WTF?@?!?!?!?!?! O SHIT!!! SELL SELL SELL!!!!

The main crisis for subprime loans came in 2007... 07-08 people were losing their homes left and right... Then, of course the banks would follow shortly... Bush should have saw it coming and done something... But he didn't.... Not until it was too late to stop it...

 

It's called inflation buddy. People ask for raises because the price of everything else is going up, so in effect you need to spend more money to buy the same amount of goods. In reality if you take inflation out of many people's raises, they are earning the same amount of money as they were before.

This is true, but has been going on for a long time. The main problem now is the housing market. People just aren't buying houses and that puts many home sellers in debt and unable to pay off their loans, it's not their fault at all.

Those companies employ thousands of workers and would put thousands of families in a financial crisis, so we bail them out so the company can make adjustments to its product and improve sales.