I finally have a free evening at home which has been nice to relax and take it easy. With that being said, I thought I'd do another blog post. On this blog I thought I would share some of my thoughts on the current times in which we are living and would welcome any readers thoughts or feedback.
These are definitely very interesting times in which we are living. At the end of Friday February 19 the Dow Jones Industrial average was valued at the same value it was back in October of 2002. It has come a long way down in a matter of 6 months. As I read in an recent article in the Wall Street Journal analysts and experts don't really see a bottom right now. That is quite unsettling. While the Dow Jones Industrial Average is by no means the only indicator of what is going on in our economy I find that it gives one of the best and most easily accessible ways of tracking the overall confidence of Americans. Just as analysts and experts don't see a bottom in the Dow this seems to be the consensus for the overall economy as well. Right now, the prevailing discussion in the news and in politics is the economy and how we are going to fix it. There are all sorts of opinions and ideas out there right now whether it be from the left or the right. I find the discussions to be quite interesting which is why I am putting my opinion in this blog.
For starters, we are one month into the Obama Presidency and I am very thankful for a new President in office. The last eight years were quite incredible to say the least. We saw a President who led us into a war in Iraq that was deceptive, misleading, and cost of thousands of American lives and billions of taxpayer money. Along with the Iraq war we saw the Guantanamo prison that represents everything that America is not supposed to represent and we saw the creation of the Homeland Security Dept. and Patriot Act that severly repressed personal civil liberties. To top it all off we are in the current financial crisis. I will not be so ignorant or biased to lay all the blame for this current financial crisis on the Bush Administration but they can not be totally spared either. During the last few years we have seen very little regulation of Wall Street and we are now painfully seeing the results.
The Obama Administration comes in with a heap of problems that it is facing. Obama is tackling some very heavy issues right now. Of course we just saw the huge stimulus package passed and now there is heavy discussion in regards to the Auto Industry and the Housing crisis. There are many out there saying right now that the current stimulus is very flawed and the plans for housing rescue and auto bailout are flawed. Some will say that this whole mess should work itself out by letting the market do its thing on its own. My question is if we continue that train of thought with deregulation how far and deep can we go without any intervention. I think Obama said it well when he mentioned that all businesses are contracting, layoffs are being made, which in turn causes the consumer to hold back and start spending less. All of this leads to a viscous domino effect to where there is no stimulus coming from any sectors of the economy. To me it makes sense that when you have all of this contraction there has to be some positive jolt coming from somewhere and that would be the Federal Government. Also there has been heavy criticism of the recent plan for housing relief. The current plan would seek to lower interest and alter mortgage payments for current homeowners facing foreclosure. The Obama Administration would work with lenders on helping to share losses on these loans. Their is backlash as to why the taxpayer should be responsible for homeowners in this mess. Shouldn't they reap the consequences. This might be easy to say but when people say this how much do they realize that the more these foreclosures continue to happen and the more housing continues to drop this affects everyone. Failure to help stem this crisis will cause everyone's home and property values to decline. I'm not so sure that people will not want help then when they are telling the Government to not help those currently in crisis now.
I've only touched a little bit on the issues and kind of skimmed the surface on the current financial crisis. As I mentioned before if the experts an analysts are having a hard time figuring out this current situation then I would definitely fall into that category as well but I have tried to share a little bit about how I feel about the current situation. This past fall when Obama ran his campaign I really felt like it was a movement led to bring about change. I like many other young voters latched on to this enthusiasm and hope. It made you want to be a part of something that could make a difference. While I know that Obama and his Administration is not perfect and they are probably making errors and mistakes as we speak I have to give them the benefit of the doubt so far. They are trying to tackle these weighty issues and work for the people who elected him into office. It will definitely be interesting to see things continue to develop. I welcome your thoughts or feedback on this. Have a good upcoming week.