$700 Billion Fails due to Republicans - Depression Coming

House Republicans have said no to their own leadership and have told the rest of us they would rather have a worldwide depression than interfere with government regulation. They are the same Republicans who caused this mess with a lack of regulations. The Republicans believe everything will be taken care in a market that is free of government interference; it was the same concepts that in 1929 lead us into a worldwide depression. So now that these people can’t read a simple history book will lead us back into a worldwide depression once again.

Back in the 1920’s it was the lack of regulation of the stock market and deals built upon deals without a foundation. It was greed. Today it’s not the stock market but the home market with greed built upon homes that were lacking a foundation, not a cement foundation but an economic one this time. Once again it was greed, greed to mortgage lenders and banks willing to write a mortgage based on a hope and prayer. As I am walking neighborhoods I spoke to a homeowner who told me about the vacant new home next to his. The loan company wrote a $170,000 loan to two kids working part time at a Subway and didn’t tell them about all the expense with a new home. Didn’t tell them about the taxes on a home, that they would have real utility bills, he said they lasted three months and moved out. The house has been empty for a year. Thee bank is paying for that house and therefore losing money every month.

Lets look down the near term road at some of the other problems that are coming our way. Local government runs on property tax, as home values drop, I have seen one estimate so far this year of a 12% drop, so will tax revenues drop. Now will local governments lower spending or raise taxes as revenue drop. They will ignore the problem and try and raise taxes. The result less money in people’s pockets and less spending further moving our nation into a depression.

Banks will not have any money to make loans, housing starts have already slowed down, thus construction workers will not have money in their pockets and another slow down in another area.

Banks will fail and be bought up by other banks and soon we will have a few very large banks and nothing else. I guess that is what the rich Republicans want.

Next is the greed by the CEO’s and the lack of oversight by the Boards of these companies. The CEO’s get friends to be on the boards no one questions the CEO anymore until the FBI shows up at the door. Do CEO’s even care who they work for anymore? I doubt it. It’s a game and they have no clue about the company they manage, it's more of a management style and not the company’s product line. Combine these along with the lack of caring by the government and guess what it’s 1929 all over again.