Opinion on the Financial Outlook for Many Americans

The author of America's Housing and Financial frauds has a few comments on the financial health for the average America. At this writing, April 10, 2009, the stock market has started to rebound, and some think the bottom has been reached and that the consumer could look forward to better days. Here are a few things to consider:

The stock market has had some positive days, but this is primarily due to the government, via the taxpayers, putting billions of dollars into such financial institutions as AIG, which is used to pay off the speculators, the people who made bets using a company that they knew did not have the capital to pay on the speculation should the economy go bad. Future generations of Americans will be saddled with the enormous amount of money and the interest on it, paid to Communist countries. (Oh, remember how U.S. politicians kept the military-industrial complex humming by stating how mean communist countries were? Nearly 100,000 American lives were expendable to change the form of government in such places as Korea and Vietnam!)
 

The home foreclosure rate has not bottomed out. The next wave of defaults will be due to the subprime loans with adjustable rate mortgages that are just now due for a major increase in the monthly payments.
 

The home foreclosure rate due to job layoffs will add to the list.
 

Many of the leveraged buyouts of companies have yet to fail. Such companies as Mervyn's failed due to the enormous debt piled on during the takeover, which greatly enriched the buyout groups. Many lenders have held back on foreclosing on the many firms that have not been able to meet their loan obligations.
 

Then there is the massive defaults on credit cards that will be rapidly increasing.
 

It will probably be generations, if ever, in our lifetime, that the economy will be sufficient to get the unemployment rate less than five percent, and very probably, over ten percent. The inflated home values fueled much of the prior spending spree, which no longer exists. Less money to spend means fewer jobs.
 

While the present administration appears to be trying, the horrendous debt being incurred could very well spark a depression, decreased value of the dollar, and massive inflation, all of which paints a scary picture for the average American. Making this worse, although the taxpayer money is being given to such financial groups such as AIG, that money is then used to pay the people who gambled, and had AIG guarantee the gamble that they should have known AIG could never meet if the economy turned bad. And most of them knew that a bust surely would come from the housing and financial frauds and complex derivatives.
 

Since the American public has long been the feeding trough for various con-artists, and the public never appears to react, why not continuing feeding on them?

This writer lived through the financial depression of the 1930s, and was a successful real estate investor from about 1952 until 1984—at which time corrupt federal judges seized $10 million in assets that funded attempts to expose widespread corruption in key government offices..

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